Heading into 2017, many commercial construction companies were riding a wave of optimism, and the projections for the year looked rosy. And while the industrial and commercial construction sector is projected to keep growing in 2018, the pace of that growth will most likely be slower than it was in either 2017 or 2016.
According to the American Institute of Architects, 2016 ended with strong growth in nonresidential building sector and commercial construction. Plus, the president elect was promising to cut taxes, repeal the Affordable Care Act, and pass a $1 trilling infrastructure package that would pump record amounts of money into construction projects around the country.
While 2017 isn’t over yet, none of those things have yet come to pass.
Unsurprisingly, 2018 commercial construction projections aren’t quite as strong as they were in 2017. In fact, overall, this year’s construction spending was relatively sluggish — the commercial/industrial construction market saw just 7% growth in the first half of the year compared to 2016.
A recent AIA report on 2018 commercial construction projections found that, “Our economy has seen only about 2 percent growth (when annualized) over the first half of the year, and key elements of the Trump administration’s legislative agenda have made almost no progress. Both consumer sentiment as measured by the University of Michigan Consumer Sentiment Index, and business confidence as measured by the Conference Board’s CEO business confidence survey, are currently at levels below those entering 2017.”
The commercial construction industry is expected to keep growing in 2018, but not as aggressively as it has in recent years. The AIA is projecting overal construction spending growth of 3.5 or 4% in 2018.
Additionally, the AIA construction forecast breaks down projected growth in the commercial construction sector into four separate categories:
- Retail: 4.0%
- Office Space: 4.6%
- Hotels: 2.4%
- Industrial Facilities: 1.1%
Overall, that averages to 4% growth in 2018 compared to 8.8% growth in 2016.
As one of the nation’s premier domestic laminate countertop manufacturers, we know how important these numbers are to thousands of companies and workers. While these numbers aren’t as exciting as the projections were for 2017, a lot can still change in the months ahead. Already, there is talk of reviving the president’s infrastructure package.
As one of the top laminate countertop manufacturers, we know how much our clients depend on accurate and reliable information. That’s why we’ve developed the SQUAD pricing tool, which provides precise quotes for all kinds of countertop projects. If you are ready to learn more about this unique pricing tool, contact LE Smith for a free training session.
