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Nonresidential Construction to Grow by 3 Percent in 2011

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Nonresidential Construction to Grow by 3 Percent in 2011

| 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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About the author

After working at various design practices on a full-time and freelance basis, and starting his own design firm, David McFadden saw that there was a gap to be filled in the industry. In 1984, he created an expansive hub for architects and hiring firms to sync up, complete projects, and mutually benefit. That hub was Consulting For Architects Inc., which enabled architects to find meaningful design work, while freeing hiring firms from tedious hiring-firing cycles. This departure from the traditional, more rigid style of employer-employee relations was just what the industry needed - flexibility and adaption to modern work circumstances. David has successfully advised his clients through the trials and tribulations of four recessions – the early 80’s, the early 90’s, the early 2000’s, and the Great Recession of 2007.

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