Regardless of rising interest rates, labor shortages, and construction materials, the American Institute of Architects (AIA) projected nonresidential construction spending to increase by 4% this year and continue through 2019.
The AIA conducts a semi-annual Consensus Construction Forecast and the latest release indicates that the commercial construction sectors will lead growth this year. However, the industrial and institutional sectors will likely command the projected construction growth by 2019.
The AIA makes five key points in their forecast:
- Rebuilding and repairs from natural disasters
- Tax reform implications for construction
- Possibility of an infrastructure package
- Strong consumer and business confidence levels
- Leading economic indicators for the construction sector
To read the full report, follow this link.