A new report by FMI reveals that total construction put in place (CPIP) is predicted to grow 8 per cent for 2015.
Earlier, FMI predicted that CPIP will top $1 trillion in 2015, something the market has not seen since 2008. This is an indication that the economy is on track for a resilient recovery.
“The current growth cycle appears to be broad-based and sustainable,” states Randy Giggard, managing director of research services for FMI. “Most of the new construction activity is in the private sector. Projects dependent on government spending, especially those involving infrastructure, continue to be at the mercy of politics.”
Geographically, larger cities are experiencing strong construction growth due in part to increases in rents and declining inventory for housing and office space, according to FMI.
The sectors expected to experience the highest growth rate are: lodging construction; commercial construction; manufacturing construction; Office construction; and residential construction, FMI said.