FMI Releases Q1-2014 Construction Outlook Report

FMI, a leading provider of management consulting and investment banking* to the engineering and construction industry, releases today its Q1-2014 Construction Outlook. The forecast continues to show optimistic growth. As a whole, construction-put-in-place is predicted for an 8 percent increase for 2014, with continued growth over the next few years.

Select market predictions include:

• Residential –Although the market is forecasted to grow, the pace is slowing. Forecasts show an 18 percent growth in single-family construction. However, multifamily construction will show a 27 percent increase in 2014, a drop from the 44 percent increase in 2013.
• Commercial – Investors are beginning to help lift commercial construction out of a slump by taking more risks. The industry is expected to grow another 7 percent in 2014 to $52.6 billion – the highest mark since 2008.
• Health Care – Construction will grow 2 percent in 2014, however a jump to 6 percent is predicted in 2015 as the outcomes on new health care regulations become clearer.
• Educational – Improving state and local budgets will help move educational construction back into the growth mode. 2014 will see a 3 percent level of growth to $83 billion.
• Power – Growth to $91.2 billion is forecast for 2014 with a slow climb from 5 percent to 9 percent over the next four years. The cost of new nuclear power will continue to hinder growth until regulatory concerns are considered.
• Manufacturing – With signs of sustainable growth, predictions are for 5 percent in 2014 to $45.2 billion, and an upward swing with another 8 percent growth in 2015.
• Lodging –The industry forecasts 591 hotels opening in 2014 compared with the 500 in 2013. Growth at 13 percent is expected with this market reaching $16.1 billion.
• Transportation – 2014 will see a 7 percent improvement to $4.4 billion. With the president’s 2015 budget proposal of $73.61 billion for surface transportation spending, there is a bright future in the coming years in this industry.

To download a copy of the full report, click 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.