Construction Industry Remains Optimistic

The construction industry remains optimistic even with volatile global market conditions. Two indicators that were recently released show a positive outlook out for 2016. The Architecture Billings Index (ABI), a leading indicator for U.S. commercial construction, ended 2015 on a positive note with eight of the past 12 months pointing toward increased demand for architects’ services.

 

Watchdog Construction Industry leaders expect their businesses will continue to grow in profitability in the year ahead, although they are slightly less optimistic than in 2015.

 

The monthly index compiled by the American Institute of Architects (AIA), reflects the nine- to twelve-month lead time between billings by architects and construction spending. Demand grew in December with an index of 50.9, up from 49.3 the previous month. Any index score above 50 indicates an increase in billings.

 

“Overall, ABI scores for 2015 averaged just below the strong showing in 2014, which points to another healthy year for construction this year,” according to AIA Chief Economist Kermit Baker.

 

Owner's Rep Outlook

 

The Wells Fargo Construction Industry Forecast’s survey released Tuesday by Wells Fargo & Co. subsidiary Wells Fargo Equipment Finance reported that 62% of respondents believe the construction industry will expand over the next two years.

Watchdog Real Estate Project Management
Watchdog Real Estate Project Management is a real-estate consulting firm that provides owner’s representation and project management services. More about Watchdog Real Estate Project Management as well as additional blog posts can be found at www.watchdogpm.com
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