Construction Outlook 2012: Flat

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Industry News

10/19/2011

Construction Outlook 2012: Flat

 
The construction outlook for 2012 looks to be flat according to a recent study.

McGraw-Hill Construction has released its 2012 Dodge Construction Outlook, which predicts that overall U.S. construction starts for next year will remain flat.

It’s possible that housing and commercial building construction starts may improve, but will be offset by weakness in the public works and institutional building sectors.  The level of construction starts in 2012 is expected to be $412 billion, following the 4% decline to $410 billion predicted for 2011.

Based on research and analysis of macro-trends, the 2012 Dodge Construction Outlook details the forecasts for each construction sector, as follows.

  • Single family housing in 2012 will improve 10% in dollars, corresponding to a 7% increase in the number of units to 435,000 (McGraw-Hill Construction Dodge basis). This is still a low amount, as the excess supply of homes due to foreclosures continues to depress the market.
  • Multifamily housing will rise 18% in dollars and 17% in units, continuing its moderate, upward trend.
  • Commercial building will grow 8%. Warehouses and hotels will see the largest percentage increases, but improvement for offices and stores will be modest.
  • The institutional building market will slip an additional 2% in 2012, after falling 15% in 2011. The tough fiscal environment for states and localities will continue to dampen school construction, and the uncertain economic environment will limit growth in healthcare facilities.
  • Manufacturing buildings will increase 4%, following the 35% gain in 2011, as the low value of the U.S. dollar continues to support export growth.
  • Public works construction will drop a further 5%, after a 16% decline in 2011, due to spending cuts and the absence of a multiyear federal transportation bill for highway and bridge construction.
  • Electric utilities will retreat 24%, following a 48% jump in 2011.

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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. 


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. 


 
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