Construction growth projected for 2008
In 2008, completed construction will total $1.21 trillion, about 9 percent of U.S. gross domestic product.
FMI, a construction consulting company, released the figures as part of its 2008 U.S. Construction Overview publication.
The annual publication also offers reports on construction trends and forecasts the growth or decline in each market segment and geographic region.
In the area of so-called green building, nonresidential construction was worth $13.4 billion in 2006. By 2008, FMI has projected that $21.2 billion of all new nonresidential construction will employ the use of green-building principles, a 58 percent increase. FMI claims that this growth has created a shift in perception among owners and the architectural and engineering communities over the last few years, and the industry is increasingly recognizing green building as a necessary part of business.
The firm is also predicting dramatic changes in ownership within the construction industry. Family ownership is declining while broad-based employee ownership is increasing.
“The 2008 construction forecast is generally positive and many sectors of the construction industry will remain healthy, despite the continuing drag of the housing downturn,” said Heather Jones, construction economist for FMI’s research services. “In terms of trends, the aging of the population, immigration and deteriorating infrastructure will drive much of this growth. The health care, public safety, office and transportation segments will see the strongest growth in 2008.”