Nonresidential Construction to Grow by 3 Percent in 2011

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Nonresidential Construction to Grow by 3 Percent in 2011

David McFadden | architects, construction, Hiring trends, jobs, new buildings, recession | August 10, 2010

AIA’s Consensus Construction Forecast predicts a 20 percent-plus decline in nonresidential construction spending through 2010.

According to the semi-annual Consensus Construction Forecast recently released by the American Institute of Architects (AIA), the poor conditions created by a combination of surplus nonresidential facilities, low demand for space, declining commercial property values, and lack of available credit are laying the groundwork for drop of more than 20 percent in nonresidential construction spending this year, despite slight improvements in the overall economy.

However, conditions should begin to turn around by the middle of 2011, with an overall increase of 3.1 percent, notes AIA chief economist Kermit Baker, Ph.D., Hon. AIA. The hotel, amusement/recreation, and retail sectors will lead with 8.7 percent, 8.1 percent, and 7.6 percent growth, respectively. Healthcare facilities will follow closely with growth at 5.1 percent, but all other sectors—office buildings, industrial, education, religious, and public safety—will see far less positive improvements; only education is predicted to top 1 percent in growth in 2011.

To read the complete Consensus Construction Forecast and Baker’s analysis, click here.

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Drawing upon original ideas and extensive personal and professional experience in the field, David McFadden crafted this article to explore the untapped potential of making historic architectural masterpieces more sustainable. After working at various design practices—both full-time and freelance—and launching his design firm, David identified a significant gap in the industry. In 1984, he founded Consulting For Architects Inc. Careers, an expansive hub designed to align architects with hiring firms for mutual benefit. This platform enables architects to find impactful design work and frees hiring firms from the time-consuming cycles of recruitment and layoffs. David’s innovative approach to employer-employee relations has brought much-needed flexibility and adaptation to the industry. As the Founder and CEO, David has successfully guided his clients and staff through the challenges of four recessions—the early ’80s, early ’90s, early 2000s, the Great Recession, the pandemic, and the current slowdown due to inflation and high-interest rates.