In its new U.S. Markets Construction Overview, Raleigh, N.C., management consultant FMI Corp. predicts continued industry growth in 2007, optimistically
In its new U.S. Markets Construction Overview, Raleigh, N.C., management consultant FMI Corp. predicts continued industry growth in 2007, optimistically forecasting a 2.2 percent increase for total construction put in place compared to 2006 figures. Growth will hinge on how the industry copes with finding skilled workers and rising materials costs. Citing demographic and social changes, FMI contends that the talent shortage is not likely to go away in the near future for engineering and construction interests, and organizations focusing on retention, recruitment and training efforts will likely possess a competitive advantage. Overall, FMI notes that price increases for construction products and materials have slowed, and future increases will be moderate and settle at a new level. Market shortages of selected materials, such as cement, steel, copper and diesel fuel will continue, causing project delays and cost escalation.
The firm estimates that growth for nonresidential construction markets could reach as high as 9.0 percent overall and that almost all sectors, with the exception of religious buildings, will be well ahead of the 2007 gross domestic product growth rate. The 98-page Construction Overview provides a look at the economic health of the U.S. construction industry, along with forecasts for each market sector and geographic region, plus a look at industry trends and emerging issues. The report can be purchased from FMI, 800/877-1364 or by clicking on Information Resources at www.fminet.com.