Commercial sector to be hardest hit; lower building materials costs
"As profits for businesses have fallen and the ability to get credit to finance projects has become far more difficult, construction plans have been put on hold or canceled outright in recent months," said AIA Chief Economist,
Market Segment Consensus Growth Forecasts Commercial / industrial 2009 2010 Hotels -20.2% -12.2% Retail -19.2% -6.6% Office buildings -17.5% -11.1% Industrial facilities -11.2% -8.4% Institutional Religious -9.4% 1.4% Education -7.4% -1.9% Amusement / recreation -5.9% 1.0% Health care facilities -3.6% -1.9% Public safety -3.5% -1.9%
"The downturn in nonresidential activity has helped stabilize construction costs," Baker added. "For example, prices for steel, gypsum products, lumber and cement have all come down recently which makes taking on projects more attractive to developers."
About the AIA Consensus Construction Forecast Panel
The AIA Consensus Construction Forecast Panel is conducted twice a year with the leading nonresidential construction forecasters in
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SOURCE American Institute of Architects