FMI: Construction down 14% in 2009, 5% in 2010
The outlook for the general economy is improving, but that doesn’t mean good news for construction. Total construction in 2009 and 2010 will be down 14 percent and 5 percent respectively. Residential construction will decline 25% in 2009 and...
RALEIGH, N.C., October 27, 2009 – FMI management consultants and investment bankers for the construction industry releases "Construction Outlook: Third Quarter 2009 Report" last week. The outlook for the general economy is improving, but that doesn’t mean good news for construction.
FMI’s Construction Outlook, a quarterly, construction-market forecast and supplement to the U.S. Markets Construction Overview FMI has produced since 1985, reveals that total construction in 2009 and 2010 will be down 14 percent and 5 percent respectively.
This quarter’s outlook takes a more in-depth look at the trends and drivers affecting Residential, Nonresidential Buildings and Nonbuilding Structures construction.
Report highlights include:
- Residential construction will decline 25% in 2009 and will recover in 2010.
- Nonresidential construction will decline 13% in 2009 and 16% in 2010.
- Nonbuilding construction will be the only positive contributor, increasing 5% per year in 2009 and 2010.
- Project cancellations are five times the normal rate and are currently at 10% of backlog (doubled from 3Q08).
- Total residential construction will be $268.5 billion in 2009, down from its 2006 high of $619.8 billion.
- 2009 will be the worst year for housing starts since records began being kept in 1959.
- Power construction is expected to remain positive for the next five years, attaining new highs each year, reaching $122.1 billion in 2013.
View the full report.
