Commercial construction is up and institutional construction is down, according to the American Institute of Architects (AIA) Consensus Construction Forecast.
The Memphis Business Journal reports that despite adverse weather conditions that slowed construction in the first quarter, the overall construction market is performing well to date, with total spending on commercial building increasing more than 7 percent for the year.
“Buoyed mostly by the red-hot commercial sector, spending on nonresidential buildings should be close to $360 billion this year, approaching $390 billion in 2016,” said AIA chief economist Kermit Baker. “But the demographic factors that are also fueling heavy demand for health care and education facilities are going to lead to a more balanced construction market in the foreseeable future.”
The forecast projects spending will increase by nearly 9 percent in 2015, and by 8.2 percent next year.