The end of 2016 is approaching quickly. It's been a good year for the commercial construction industry, and it looks like next year will be a good one, too. Here's some of the top commercial construction trends and predictions for 2017.
2016 has been a great year for growth in commercial construction. The American Institute of Architects (AIA) predicted an increase of about 11.7% in commercial construction for 2016. For 2017, they're predicting a continued growth of about 6.5%. While the prediction for 2017 is not as high as that for 2016, the growth will be beneficial to the industry nonetheless.
Some issues, but generally positive advances
The AIA explains that there are several issues that may affect the commercial construction industry, but that the outlook for 2017 remains generally positive. These issues include:
- Weak manufacturing sector - In the past 17 months, the output of US factories has declined roughly 13%. This is due mostly to
competingcountries, such as China, Russia, and Brazil, continuing to face economic difficulties. Because of the decline in their economies and the increase in the value of the dollar, there is more incentive to purchase imports rather than products manufactured in the US.
- Presidential election - Unrest surrounding the 2016 presidential election has caused some decline in the amount of business investments in the US. Due to the uncertainty of coming policies, many investors are less likely to pay for projects that may end up failing after a new president takes office.
The AIA estimates that, in the commercial construction industry, offices and hotels will experience the strongest growth in 2017. For 2016, offices were expected to experience a growth rate of 14.7% and hotels had a predicted growth of 17.9%. For 2017, the predictions are 7.5% and 7.6% respectively. While these predictions are lower than those of 2016, the growth should still provide work and profit in the commercial construction industry.
For more information on 2017 commercial construction trends and predictions, or to find contracting services to fit your construction needs, contact us today!