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FMI Predicts Construction-Put-In-Place Will Top $1 Trillion in 2014
RALEIGH, N.C. – FMI, the largest provider of management consulting and investment banking to the engineering and construction industry, announces the release of its 2013 U.S. Markets Construction Overview. With construction-put-in-place at the end of 2012 expected to be between $826-$884 billion, researchers at FMI predict CPIP growth rates to be slightly ahead of GDP in 2013 and 2014. This would place the CPIP at more than $1 trillion by the end of 2014, nearly six percent of GDP.
Other predictions include:
Power CPIP will cross the $100 billion mark in 2013
Residential CPIP will be back to double-digit growth in 2013
Transportation and healthcare CPIP will reach record levels by 2013
Education CPIP will continue to rise achieving 2008 numbers by 2016
However, in 2013 commercial buildings, offices, manufacturing facilities, communications systems and lodging CPIP are expected to continue to underperform at an average of 60 percent of 2008 levels, off by more than $115 billion. By 2016 these sectors are predicted to only reach 70 percent of 2008 CPIP. In addition, excitement over the double-digit growth in residential construction is also balanced with the disappointment that by 2016 residential CPIP will still only be at 65 percent ($200 billion behind) the record high in 2006.
More than just an economic forecast, the 2013 U.S. Markets Construction Overview offers insight into some of the engineering and construction industry’s most complex business challenges. This year the overview includes a synopsis of the key trends and discussions of important issues facing nine of the non-residential construction sectors. Highlights include:
The uncertainty stemming from the two diverse approaches to economic recovery presented by the U.S. presidential candidates
How information technology is driving innovation in the energy services market
The challenge of recruiting, managing and retaining talent
Concerns over succession planning as industry leaders look toward retirement
The increasingly vital role of modularization and prefabrication
Private equity investors increased attraction to smaller deals. Half of all deals in 2012 are valued at less than $50 million and approximately 95% of deals are less than $500 million.
FMI publishes the U.S. Markets Construction Overview annually. To purchase a copy visit www.fminet.com/resources. Members of the media may request a complimentary PDF of the Overview by clicking here. For more information about FMI’s Overview, please contact Kelley Chisholm at 919.785.9215 or kchisholm@fminet.com.
In addition, each quarter FMI produces a Construction Outlook that supplements our U.S. Markets Construction Overview. If you would like to receive an electronic copy of the quarterly Construction Outlook, please email us at outlook@fminet.com.
About FMI
FMI is the largest provider of management consulting, investment banking and research to the engineering and construction industry. We work in all segments of the industry providing clients with value-added business solutions, including:
Strategic Advisory
Market Research and Business Development
Leadership and Talent Development
Project and Process Improvement
Mergers, Acquisitions and Financial Consulting
Compensation Data and Consulting
Risk Management Consulting
Founded by Dr. Emol A. Fails in 1953, FMI has professionals in offices across the U.S. FMI delivers innovative, customized solutions to contractors; construction materials producers, manufacturers and suppliers of building materials and equipment, owners and developers, engineers and architects, utilities, and construction industry trade associations. FMI is an advisor you can count on to build and maintain a successful business, from your leadership to your site managers. For more information, visit www.fminet.com.
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