Nonresidential Construction Recovery Possible by Latter Part of 2011
Sharp declines projected for the rest of 2010.
Even with modest improvements in the overall U.S. economy, nonresidential construction spending is expected to decrease by more than 20% in 2010 with a marginal increase of 3.1% in 2011 in inflation adjusted terms. Poor conditions remain because of an oversupply of nonresidential facilities in most construction categories, weak demand for space, continuing declines in commercial property values, and a strong reluctance to provide credit from real estate lenders. These are highlights from the American Institute of Architects (AIA) semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters.
“There are a number of factors at play here that are contributing to one of the steepest construction downturns in generations,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “We have businesses nervous about expanding their facilities, a fragile financial sector, excess commercial space, and general unease in the international economy. Things should begin to turn around midway through next year with retail and hotels expected to see the strongest growth, along with health care and amusement and recreation facilities.”
Market Segment Consensus Growth Forecasts
| 2010
| 2011
|
|
|
|
Overall nonresidential
| -20.3%
| 3.1%
|
|
|
|
Commercial / industrial
|
|
|
Hotels
| -43.3%
| 8.7%
|
Office buildings
| -29.1%
| 0.0%
|
Retail
| -25.6%
| 7.6%
|
Industrial
| -21.3
| -2.0%
|
|
|
|
Institutional
|
|
|
Amusement / recreation
| -14.4%
| 8.1%
|
Education
| -13.2%
| 1.3%
|
Religious
| -10.2%
| 0.0%
|
Public safety
| -9.1%
| -0.7%
|
Health care facilities
| -6.5%
| 5.1%
|
- Related News:
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2012 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.