09/03/2010

Construction Projects Decline By 20%

Hospitality and retail facilities shy away from construction projects

 
Construction Projects Decline By 20%

2010 has been a rough year for construction, with spending decreasing by over 20%. The American Institute of Architects (AIA) found that a troublesome combination of low demand, a surplus of facilities, and declining property values has stunted construction projects.

“There are a number of factors at play here that are contributing to one of the steepest construction downturns in generations,” says AIA Chief Economist, Kermit Baker, Hon. “We have businesses nervous about expanding their facilities, a fragile financial sector, excess commercial space, and general unease in the international economy.” 

Declining by 43%, the hospitality industry has been hit the hardest, according to AIA’s semi-annual Consensus Construction Forecast. Spending has also slowed for retail properties (25%) and office buildings (29%). Education fell by 13% while healthcare only dropped to 6.5%.

Despite one of the sharpest declines in recent years, a marginal increase of 3.1% is expected in 2011 in inflation adjusted terms. According to Baker, “Things should begin to turn around midway through next year with retail and hotels expected to see the strongest growth, along with health care and amusement and recreation facilities.”

To view the full report, visit http://www.aia.org/press/AIAB085343

 


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Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.

Add highly responsive multi-zone comfort to any building project, in any climate. Our CITY MULTI H2i R2- and Y-Series VRF systems give you flexibility to fit the needs of any building. Enjoy 100% heating capacity at 0°F outdoor ambient, and 85% heating capacity at -13°F outdoor ambient.  For more information, log on to www.mitsubishipro.com

 
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