Signifying a surprisingly resilient economy, spending on architectural projects is on course to substantially increase for the rest of the year, with only a slight tapering off in 2024, according to a new industry survey.
The Washington-based American Institute of Architects is reporting in its most recent Consensus Construction Forecast that spending on building projects is slated to improve by 20%, “a torrid pace not seen since the construction boom years leading up to the Great Recession.”
A press release issued by the group adds: “Leading the charge is the manufacturing sector, where spending is projected to increase by more than 50% over last year’s exceptional performance.”
The increase is a reflection of a larger trend playing out across the country seeing new and big building projects in everything from the commercial and industrial sectors to the institutional sectors.
The new positive trends define a 2023 that, to date, has been good news all around. In a statement, Kermit Baker, chief economist with the AIA, remarked that the “industry got off to an extremely strong start in the first half of the year, and that momentum will ensure healthy gains for the year before moving to a much more moderate pace of expansion in 2024.”
In the nonresidential sector, hotel work has been leading the way this year with a 24% increase, followed by retail and other commercial work at 10.8% and office work, up by 8%.
In the institutional sector, a close competition for work from three sources is seen with a 10.5% increase in education projects, followed by a 10.4% increase in health industry projects; and a final 10.2% increase in amusement and recreation projects.
Religious institutional work saw a smaller increase at 8.4%, followed by public safety work at 3.9%.
Architects are also feeling guardedly upbeat looking at overall national economic trends, notes the AIA release: “With inflation in construction moderating, there is optimism among industry professionals about what lies ahead for nonresidential building projects this year and beyond.”
By Garry Boulard
