A market study released by the Metal Construction Association, Chicago, reports that 2017 will be the year the nonresidential construction industry will return to the peak levels last seen in 2007. The residential market will take a bit longer to hit the mark, but the news is positive across the board for industry stakeholders. According to the study, conducted by Raleigh, N.C.-based FMI, a management consulting and investment banking firm dedicated to engineering and construction, infrastructure and the built environment, the growth has been steady and moderate during the past five years and is slowly inching its way back to high levels seen a decade ago. Growth is predicted to reach 8 percent in 2016 reaching $1.14 trillion. The market is highly dependent on economic factors, like interest rates, consumer spending and housing growth.
The study shows the strongest hot spots for total construction growth (residential, nonresidential and nonbuilding combined) are in the Pacific, South Atlantic, Mountain, New England and East North Central regions. The 20 top-growth areas, based on construction volume and compound annual growth rates, are the following:
- Riverside-San Bernardino-Ontario, Calif.
- Los Angeles-Long Beach-Anaheim, Calif.
- Phoenix-Mesa-Scottsdale, Ariz.
- Miami-Fort Lauderdale-West Palm Beach, Fla.
- San Francisco-Oakland-Hayward, Calif.
- Atlanta-Sandy Springs-Roswell, Ga.
- Dallas-Fort Worth-Arlington, Texas
- Sacramento-Roseville-Arden-Arcade, Calif.
- Denver-Aurora-Lakewood, Colo.
- Washington, D.C.; Arlington-Alexandria, Va.; Md.; W.Va.
- San Diego-Carlsbad, Calif.
- Seattle-Tacoma-Bellevue, Wash.
- Las Vegas-Henderson-Paradise, Nev.
- Houston-The Woodlands-Sugar Land, Texas
- Tampa-St. Petersburg-Clearwater, Fla.
- Portland-Hillsboro, Ore.; Vancouver, Wash.
- San Jose-Sunnyvale-Santa Clara, Calif.
- Orlando-Kissimmee-Sanford, Fla.
- Chicago-Naperville-Elgin, Ill.; Ind.; Wis.
- San Antonio-New Braunfels, Texas
The two common factors among these areas that contribute to growth are the number of jobs, particularly technical jobs, and ties with universities.