2014 Construction Forecast
While the home-building industry will enjoy the biggest growth in 2014, McGraw-Hill Construction says increased new construction in several other key market segments will push the overall market to a 9% increase and $555.3 billion in new construction spending.
McGraw-Hill Construction sees 26% growth in the single-family housing market for 2014, the third year in a row of +20% growth.
The National Association of Home Builders (NAHB), Washington, D.C., thinks this growth trend will continue and is calling for solid 2014 increases in total housing starts (+25%); single-family starts (+31%); and multi-family starts (+10%). That’s nothing but good news for the electrical wholesaling industry.
NAHB is forecasting 10% growth in 2014 multi-family housing to 326,000 starts, and 9% growth in 2015 to 357,000 starts. That's solid growth, but down quite a bit from some of the growth in recent years in the construction of apartments and townhouses -- NAHB says the multi-family housing market increased 56% in 2011, 39% in 2012 and 22% in 2013.
McGraw-Hill Construction is looking for 11% growth to $53.1 billion in construction spending for this market segment next year.
New retail projects like this new shopping mall in southern Kansas City will help the commercial construction market enjoy a 17% increase in 2014, according to McGraw-Hill Construction.
While the long-term demographic trends for K-12 enrollment looks good, construction in the educational market has been a bit weak recently because of concern over local bond issues.The overall institutional market sector, which includes construction of colleges, universities, hospitals and other health-care facilities will grow a mild 2% next year, according to McGraw-Hill data.
Over the long term, cheaper energy costs in the United States will attract more new industrial construction then there has been over the past few decades. In 2014, McGraw-Hill Construction is looking for an 8% increase in the construction of manufacturing buildings to $14.9 billion.
Utility construction tends swing wildly from year-to-year, and McGraw-Hill Construction is looking for a 33% drop in 2014 to $15.5 billion, following a 55% drop in 2013, a 16% increase in 2012, 53% increase in 2011 and a 36% increase in 2010.