Consistent with FMI's dedication to add value to the construction industry, we present this edition of the Overview to stimulate thinking that will lead to appropriate action for you and your organization. We hope this document will provide you with a thorough understanding of the economic issues affecting the industry and that it will serve as a starting point for your organization's planning efforts.
This year's Overview consists of three major pieces: a synopsis of the key trends our industry faces, important issues facing nine client groups served by FMI and the third quarter 2013 economic forecast.
A few highlights include:
- The revised figure for total construction put in place for 2013 is $909.6 billion, but we expect growth to return to 7% in 2014 and hit $977.1 billion.
- New bricks and mortar retail space will continue to be slow to recover, as many companies turn to Internet mail-order sales.
- The big war for talent remains one of the industry's primary challenges.
- Succession planning is vital as baby boomers continue to retire.
- Modularization and prefabrication will play an increasingly vital role in improving the productivity of the entire construction value chain.
- The shift from shale-gas exploration and production to shale-oil production has led to projections that the U.S. will produce more oil than it imports by late 2014.
- Funding for needed heavy civil projects will continue to be challenging, especially for many state and local governments.