FMI Predicts U.S. Construction Put in Place Will Reach $977 Billion in 2014

FMI, a leading provider of management consulting and investment banking* to the engineering and construction industry, announces the release of its 2014 U.S. Markets Construction Overview. With construction put in place at the end of 2013 expected to be at $909.6 billion, researchers at FMI predict CPIP growth rates to be slightly ahead of the GDP in 2014.

Other predictions include:

• Residential CPIP is anticipated to grow from $338.2 billion in 2013 to $379.6 billion in 2014.
• Health care CPIP is expected to grow 6 percent in 2014 to $44 billion.
• Transportation construction should finish 2013 with an 8 percent increase; 2014 predictions show a decrease to 7 percent growth.
• Manufacturing construction is on the upturn, expected to grow 4 percent in 2014, after its 2 percent drop in 2013.
• Sewage and waste CPIP should reach $21.3 billion in 2014.

 
With moderate growth predicted marketwide, there are key trends to watch that will likely affect various sectors and regions in the U.S. Presenting both threats and opportunities are:

• The shift from shale-gas to shale-oil production has led to projections that the U.S. will produce more oil than it imports by late 2014.
• The federal government’s fiscal difficulties continue to create business uncertainty. Many are worried about the federal debt and the government’s solution to address the problem.
• Implementation of the Affordable Health Act is causing concern, as repercussions are anticipated.
• With baby boomers continuing to retire, succession planning and a search for talent remains one of the industry’s primary challenges.
• Modularization and prefabrication is expected to play an increasingly vital role in improving the productivity of the entire construction value chain.
• As a result of the expansion of the Panama Canal, U.S. coastal infrastructure opportunities will create significant corridors of construction activity starting as early as 2014.

 
FMI publishes the U.S. Markets Construction Overview annually. To purchase a copy visit www.fminet.com/resources. Members of the media may request a complimentary PDF file of the Overview by clicking here.

About FMI:
FMI is a leading provider of management consulting, investment banking* and research to the engineering and construction industry. We work in all segments of the industry providing clients with value-added business solutions, including:

• Strategic Advisory
• Market Research and Business Development
• Leadership and Talent Development
• Project and Process Improvement
• Mergers, Acquisitions and Financial Consulting*
• Compensation Benchmarking and Consulting
• Risk Management Consulting

 
Founded by Dr. Emol A. Fails in 1953, FMI has professionals in offices across the U.S. FMI delivers innovative, customized solutions to contractors; construction materials producers, manufacturers and suppliers of building materials and equipment, owners and developers, engineers and architects, utilities, and construction industry trade associations. FMI is an advisor you can count on to build and maintain a successful business, from your leadership to your site managers. For more information, visit www.fminet.com.

*Investment banking services provided by FMI Capital Advisors, Inc., a registered broker-dealer and wholly owned subsidiary of FMI.