FMI predicts U.S. construction will increase in 2014
FMI predicts that put in place construction will increase to $977 billion in 2014 in spite of economic and fiscal concerns.
FMI released its 2014 U.S. Markets Construction Overview, providing a forecast for the next fiscal year. With construction put in place at the end of 2013 expected to be at $909.6 billion, researchers at FMI predict CPIP growth rates to be slightly ahead of the GDP in 2014.
Other predictions include:
- Residential CPIP is anticipated to grow from $338.2 billion in 2013 to $379.6 billion in 2014.
- Health care CPIP is expected to grow 6 percent in 2014 to $44 billion.
- Transportation construction should finish 2013 with an 8 percent increase; 2014 predictions show a decrease to 7 percent growth.
- Manufacturing construction is on the upturn, expected to grow 4 percent in 2014, after its 2 percent drop in 2013.
- Sewage and waste CPIP should reach $21.3 billion in 2014.
With moderate growth predicted marketwide, there are key trends to watch that will likely affect various sectors and regions in the U.S. Presenting both threats and opportunities are:
- The shift from shale-gas to shale-oil production has led to projections that the U.S. will produce more oil than it imports by late 2014.
- The federal government’s fiscal difficulties continue to create business uncertainty. Many are worried about the federal debt and the government’s solution to address the problem.
- Implementation of the Affordable Health Act is causing concern, as repercussions are anticipated.
- With baby boomers continuing to retire, succession planning and a search for talent remains one of the industry’s primary challenges.
- Modularization and prefabrication is expected to play an increasingly vital role in improving the productivity of the entire construction value chain.
- As a result of the expansion of the Panama Canal, U.S. coastal infrastructure opportunities will create significant corridors of construction activity starting as early as 2014.
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Annual Salary Survey
In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.
Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.