The effects of the Great Recession have been far-reaching, and it left many construction companies scrambling to pick up the pieces. Now, after years of turmoil, a new report from FMI, a management consulting firm, suggests that construction is back on the right foot.
FMI reported that total construction put in place (CPIP) finished 2014 at around $972 billion, which represents a $62 billion increase over the previous year. This 7 percent growth is just the start for the construction industry’s comeback, and FMI expects CPIP to reach (if not exceed) $1.04 trillion in 2015.
This optimism can also be found in the “2015 Construction Outlook,” from the January 2015 issue of ELECTRICAL CONTRACTOR. This has not been a quick recovery, but it has been steady, and, for the first time in several years, it is safe to say that the industry is trending upward. The outlook found that total construction starts rose approximately 5 percent in 2014, with the potential to hit 9 percent in 2015.
According to the FMI report, two of the largest growth sectors in 2014 were commercial and manufacturing construction, which suggests that many companies are starting to bring their business to the United States. One of the biggest reasons for this is simple: energy opportunities.
“With new and apparently sustainable sources of natural gas and shale oil, America is on the verge of a veritable manufacturing renaissance, building petrochemical plants in the Gulf and gaining interest from more companies, especially foreign-owned companies, considering relocating manufacturing to America,” said Randy Giggard, managing director of research services at FMI.
The FMI and ELECTRICAL CONTRACTOR’s Construction Outlook suggest that this current growth may allow construction companies to both recover and prosper from the recession. The enthusiasm in the industry is very real, and the belief is things can only get better in 2015.