2014 Will Be a Good Year for Construction After All

Published: Apr 21, 2014

compujeramey / Foter / Creative Commons Attribution 2.0 Generic (CC BY 2.0)

Predictions about the future of the construction industry in 2014 are once again optimistic, after Q3 of 2013 and Q1 of 2014 were marked by a slowdown, mostly due to harsh winter.

Economists say they are foreseeing a growth of 6 percent, mostly driven by housing and nonresidential building construction, with housing “expected to be the construction’s star in 2014.”

According to Kermit Baker, the American Institute of Architects’ chief economist, 2014 will see a 23 percent increase in housing starts (or a total of 1.14 million starts), while it will rise another percent in 2015 (or a total of 1.43 million starts).

As for non-residential building construction, it is already experiencing a rise. Bad weather did not affect it harshly, so February 2014 saw a 6.3 percent increase compared to February 2013.

The predictions of Ken Simonson, chief economist with the Associated Contractors of America (AGC) are also quite optimistic. He thinks total construction spending will grow by 10 percent or double that of 2013. He also expects “construction spending to grow in the 6% to 10% range every year for the next three years.”

Read the full article in Forconstructionpros.com

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.