The global recession of 2008 may be far past us, but the construction industry is still reeling from the adverse effects of the downtrend. However, a recent news report said that the construction industry in the U.S. is poised to experience significant improvements within the next five years.
The Construction Intelligence Center (CIC) estimated the annual growth rate of the construction industry to increase from 1.7 percent (prior to the review) to 3.1 percent between 2014 and 2019. According to the CIC report entitled “Construction in the US – Key Trends and Opportunities to 2019,” these figures translate to a significant jump in construction spending from $1 trillion in 2014 to roughly $1.1 trillion by 2019. Potential reasons behind this development include the following:
For the latter, the U.S. population is estimated to shoot up from a little over 321 million people in 2010 to about 338 million by 2020. This is probably the reason why residential construction continues to take the largest market share in the industry. The federal government aims to support this further with an increase in budget allocation for residential construction by 1.9 percent, which is going to be devoted to providing more opportunities for low-income and vulnerable communities to own more affordable housing
The government is also looking to increase spending for renewable energy, making the energy and utilities sector the second biggest market in the industry. Projects in the federal plan include installation of more renewable energy facilities for residential purposes and military installations. These are all part of the government’s plans for renewable energy to make up 20 percent of the country’s power supply by 2020.
Improvements in the U.S. economy over the next few years should result in a gradual increase in construction projects for commercial facilities such as office buildings and retail complexes. Take a look through all of our software such as the top of line contractor software ProEst provides.