RALEIGH, N.C. (June 6, 2014) – FMI, a leading provider of management consulting and investment banking* to the engineering and construction industry, releases today its Q2-2014 Construction Outlook. The forecast shows cautiously optimistic growth, as the forecast has been lowered a percent since the Q1-2014 Outlook. Construction-put-in-place for 2014 is now predicted to increase 7 percent over 2013 levels.
One reason for the prediction, is the growth of the digital world. With e-commerce becoming a larger market, especially in the retail and educational industries, brick and mortar will inevitably grow at a slower rate. This trend also is slowly affecting office, travel, recreation and even health care, as more time is spent online.
Select market predictions include:
- Residential- Affordability, mobility and uncertainty in the job market has been evident as new-home growth is slowing and renting remains a safer choice for many. With new jobs and pay scales not rising as fast as costs, the forecast has been adjusted from 18 percent growth to 12 percent in 2014.
- Commercial- With retail production slowing, due to the above mentioned expansion of e-commerce shopping, the industry growth rate will slow to 6 percent in 2014.
- Health Care- With political uncertainty continuing to hold off new health care facilities, the forecast is for CPIP to remain flat in 2014. However the $40.8 billion in new construction is expected to continue at a sustainable pace.
- Education- The largest sector of total nonresidential CPIP, education’s slowdown is a large contributor to slower growth in construction overall. 2014 will see only 1 percent growth in the market sector.
- Transportation- Construction for the transportation industry is one of the few areas that continues to see solid growth, with 2014 predicted to grow 7 percent. The shale oil boom, as well as the proposed $73.61 billion transportation bill are large contributing factors.
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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.
