Key highlights of the report include:
- Total engineering and construction spending for the U.S. is forecast to end 2021 down 1% compared to up 5% in 2020.
- Declines in 2021 will be led by decreasing investment in private nonresidential building segments, including lodging, office, commercial, and amusement and recreation.
- The impact will also extend into multifamily investment via mixed-use development along with reduced transportation, manufacturing, educational and religious spending.
- Water supply is the only growth segment anticipated for 2021 year-end with rates more than 5%.
- Single-family residential, residential improvements and several other mixed public and private segments are expected to end the year with growth roughly in line with the rate of inflation, and therefore considered stable.
- The latest Nonresidential Construction Index (NRCI) feedback suggests significantly increased optimism heading into the second quarter of 2021, at 54.4, up from 47.1 in the quarter prior.
FMI Managing Director Jay Bowman Discusses the Construction Forecast
Total Construction Put in Place
Estimated for the United States
is a principal with FMI. Jay assists a broad range of stakeholders in the construction industry, from program managers and general contractors to specialty trades and materials producers, with the identification and assessment of the risks influencing the strategic and tactical decisions they face. In this role, Jay’s primary responsibilities include research design and interpretation, based on developing an understanding of the context within which these organizations operate. Jay can be reached at firstname.lastname@example.org
is a senior economist with FMI. Brian’s expertise is in economic and statistical modeling. He leads FMI’s efforts in market sizing, forecasting, and building product/construction material pricing and consumption trends. Brian’s combination of analytical skills and creative problem-solving abilities has proven valuable for many contractors, owners and private equity groups as well as industry associations and internal research initiatives. Brian can be reached at email@example.com
is a senior analyst for FMI’s strategy practice. Emily is responsible for creating and developing tools to deliver innovative solutions for our clients. She is committed to utilizing these strategic tools to improve company performance and profitability. Emily can be reached at firstname.lastname@example.org