FMI Consulting recently published its 2016 U.S. Markets Construction Overview featuring three major areas: a synopsis of the key trends in the energy market and their widespread impact on our industry, important issues facing sectors within the industry and a highly detailed economic forecast using the latest figures available as of third quarter 2015.
A few highlights include:
- After adjusting our forecast for construction down a notch last quarter to 5%, we now expect 6% growth for 2015 and 7% for 2016 to reach $1.09 trillion, the highest total since 2008.
- Canadian economic expansion will remain weak for at least another 18 to 24 months, some rebound should occur looking beyond Q3 2015 advancing from Eastern Canada’s (Ontario) manufacturing and export industries.
- Talent is and will remain a critical constraint over the next few years, until there is either an influx of talent or market demand cools.
- Growth in energy and clean tech is outpacing other construction markets and is expected to continue, due to good economic returns.
- Specialty trades on average saw improvements to operating profit in 2015.