01/09/2002

On the Rise

Forecast 2002 - Part 2 of 3

 

contents of this article

1) Setting the Stage

2) On the Rise

3) The Beat Goes On

According to F.W. Dodge’s Construction Outlook 2002, the main points for this year’s construction market include the following:

• Single-family housing will retreat through early 2002, as home sales and construction are adversely affected by the weak job market and diminished consumer confidence. When uncertainty eases, homebuyer demand will be able to show a greater response to low mortgage rates. The full year is projected at 1.175 million units (F.W. Dodge basis), a 2-percent decline from 2000, which translates into no change in dollar terms.

• Public works construction will advance 2 percent, as continued expansion for highways and bridges counters a slower pace for other public works categories.

• Electric utilities, following robust growth the previous four years, will begin to settle back as the post-deregulation surge in new power plant construction eases.

• Income properties will slide an additional 3 percent in dollar volume, corresponding to a 5-percent drop in square footage. The steepest decline is projected for hotels, while stores, warehouses, and offices will experience more moderate retrenchment. Apartment construction is the income property type most likely to avoid a decline, since it continues to be viewed favorably as a target by the real estate finance community.

• Institutional building will advance 3 percent, due to further expansion for schools combined with a moderate increase for healthcare facilities. However, reduced contracting is expected for courthouses, churches, amusement-related projects, and airport terminals.

• Manufacturing building is expected to edge up 2 percent, as its extended four-year decline reaches bottom in early 2002. The category will still be extremely weak by historical standards, down 35 percent in dollar terms from its most recent peak in 1997.

2002 New Construction Potentials for Non-Residential Buildings
Floor Area (Millions of Square Feet)
Building Type
2000 Actual
2001 Preliminary
2002 Forecast
% Change 2002/2001
Stores and Shopping Centers
308
265
240
-9
Office Buildings
300
253
240
-5
Hotels and Motels
70
59
50
-15
Other Commercial Buildings
503
420
378
-10
Manufacturing Buildings
111
100
102
+2
Total Commercial and Manufacturing
1,292
1,097
1,010
-8
.
Educational Buildings
252
268
275
+3
Healthcare Facilities
88
80
83
+4
Other Institutional Buildings
237
220
212
-4
Total Institutional and Other
577
568
570
-
.
Total Non-Residential
1,869
1,665
1,580
-5
Multi-Family Housing
2000 Actual
2001 Preliminary
2002 Forecast
% Change 2002/2001
Thousands of Units
412
405
415
+2
Floor Area (Millions of Square Feet)
465
459
470
+2
SOURCE: F.W. DODGE CONSTRUCTION OUTLOOK 2002

Go to part 3 - The Beat Goes On

Linda K. Monroe (linda.monroe@buildings.com) is editorial director at Buildings magazine.

 

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Click here for more info


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.

Bluebeam® Revu® simplifies digital facilities document management from design review to leveraging as-builts, maintenance manuals and O&Ms submittals.

Yaskawa drives offer quality performance for air handlers and cooling towers on the roof to secondary chilled water pumps in the basement

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.


 
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