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FMI releases Q4-2013 Construction Outlook report

Words: Sarah Al-mortajiFMI, a leading provider of management consulting and investment banking* to the engineering and construction industry, releases its Q4-2013 Construction Outlook. The forecast predicts 2013 to end with 7 percent growth for the construction industry as a whole. Final statistics for construction-put-In-place will be available April 2014.

Select market predictions include:
  • Residential — Forecasts show residential construction ending 2013 with 18 percent growth. Multifamily construction has been particularly strong in the past two years with growth of 48 percent in 2012 and 38 percent in 2013. With rents still high and household formations low, multifamily construction is expected to continue growing.
  • Power — After a booming return in 2012, power construction slowed to just 2 percent growth in 2013. However, the industry is expected to grow an additional 5 percent in 2014 to reach $101.4 billion.
  • Manufacturing — Growth in manufacturing construction will end around 4 percent for 2013. This upward trend will continue, reaching 6 percent or more starting in 2015.
  • Lodging — After several years of sharp decline during the recession, lodging construction continues its solid comeback in 2013, growing 18 percent. This sector is expected to grow another 10 percent in 2014. Improvement of existing properties will continue to be a focus for the industry.
  • Amusement and Recreation — The recent announcement of a $672 million stadium for the Atlanta Braves gives amusement and recreation construction a 2014 boost. Construction put in place for 2014 should reach $15.7 billion, with additional growth through 2017.
  • Transportation — Completed construction of transportation projects in 2013 is expected to end 12 percent above 2012 levels, with additional growth of 6 percent in 2014. The airline industry is expected to play a role in this growth. Airlines are now ordering a record number of new planes over the next decade.
To login and download a copy of the full report, click here.

* Investment banking services provided by FMI Capital Advisors, Inc., a registered broker-dealer and wholly owned subsidiary of FMI.
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