ConstructConnect, a leading provider of construction information and technology solutions in North America, recently announced the release of its Spring 2018 Forecast Quarterly Report. From 2019 through 2022, the total construction starts forecast remains unchanged with an almost 5 percent average annual rise.
“Nobody doubts the urgent need for upgrades to the nation’s public works inventory,” explained ConstructConnect Chief Economist Alex Carrick. “Recognizing that states and municipalities are taking the lead with infrastructure, we are forecasting increases of 6.9 percent for road starts and 9 percent for bridge starts in 2018.”
The forecast, which combines ConstructConnect’s proprietary data with macroeconomic factors and Oxford Economics’ econometric expertise, highlighted three factors that will influence new construction in 2018:
- A rise in GDP growth to near more than 3 percent;
- A new tax plan that already encourages individuals and corporations to increase spending; and
- Ongoing improvements in global trade.
The report suggested the residential sector will be the primary mover of overall construction growth this year through 2022. In 2018, single-family homebuilding will grow a year-over-year percentage increase of 9.2 percent, and will pull ahead of multi-family starts (flat at 0.1 percent). Total residential starts will rise by an average annual increase of 7 percent out to 2022.
According to the report, non-residential building starts will drop by 1.6 percent in 2018. But in fairness, the decline will be attributed to a response to some major project initiatives from 2017. Total non-residential building starts will average 2 percent annually from 2019 out to 2022.
From 2019 forward, U.S. manufacturing will advance due to the following factors:
- The new U.S. tax plan;
- The U.S. inclination to lead in technological advances; and
- The surplus of North American-extracted energy supplies global economic growth which will help lift the U.S. national output.
To learn more about ConstructConnect or get a free copy of the Forecast Quarterly Report, visit constructconnect.com.
