August 4, 2010
US Nonresidential Building Seen Down 20 Pct In '10

NEW YORK - Spending on U.S. nonresidential construction is likely to fall more than 20 percent this year before recovering slightly in 2011, according to a semiannual survey by an architects' trade group.

The survey's consensus forecast calls for a 20.3 percent decline in construction spending, according to the American Institute of Architects.

The AIA cites an oversupply of nonresidential facilities in most construction categories, weak demand for space, continuing declines in commercial property values, and real estate lenders' reluctance to provide credit.

Recovery of nonresidential construction activity typically lags a recovery in the wider economy, especially an employment revival, which drives demand for office and retail space.

Conditions have deteriorated over the past year, even as the wider U.S. economy has begun to rebound from recession. For 2010, survey respondents had forecast a 13.4 percent drop in January and only a 12 percent decline a year ago.

Construction spending on hotels will drop more than 43 percent this year, construction of office buildings will decline almost 30 percent, and retail and industrial categories will be down more than 20 percent, the AIA said.

It forecast smaller declines for institutional categories like amusement space, educational and religious facilities, and health care buildings.


The AIA forecast single-digit gains in most categories in 2011, with an overall 3.1 percent increase in nonresidential construction spending. That is a slightly improved outlook from the prior survey in January.

The survey is based on forecasts by McGraw Hill Construction, Global Insight, Moody's, and others.

The AIA's monthly index of billings by architectural firms has indicated contraction since January 2008. It most recently dipped in May, after three months of gains, dashing hopes that a recovery was gaining traction.

Most diversified industrial companies garner at least some revenue from the nonresidential sector, selling either machinery used in construction or the guts of a building: elevators, electrical and lighting systems, heating and cooling and security networks, for example.

A partial list includes Honeywell International Inc, Tyco International Ltd, Ingersoll-Rand Plc, Johnson Controls Inc, Caterpillar Inc, Deere & Co, Terex Corp, Emerson Electric Co, Parker Hannifin Corp, Manitowoc Co, Oshkosh Corp, ITT Corp and Eaton Corp.

Source: Reuters, July 14, 2010  

Next Article >>
New Address
Steel Framing Alliance
1140 Connecticut Avenue
Suite 705
Washington, D.C. 20036
Phone +202.785.2022
Fax +202.785.3856
Cates Engineering, Ltd
Gainesville, VA
Genie GaMi
Quebec, CANADA
SCA Consulting Engineers
Sugar Land, TX

August 25, 2010
WEBINAR: Cold-Formed Steel Design 2007 - Major Changes to the AISI S100 Design Standard, included in the 2009 International Building Code More


September 20-22, 2010
Steel Structures 2010 Culture & Sustainability International
Istanbul, Turkey More


September 20-24, 2010
Steel Frame Innovation Conference
Auckland, New Zealand More


October 20-22, 2010
2010 METALCON International

Las Vegas, NV More



Renew 2010 Member Dues | Unsubscribe

Brought to you by the Steel Framing Alliance (SFA) on the first Wednesday of each month, February through December. Framework Online arms you with important news and commentary on the cold-formed steel (CFS) framing and construction industries.