With the first half of 2021 now behind us, certain trends in the construction and engineering industries have become clearer. However, COIVD-19 coupled with material and labor shortages loom large over the industry for the foreseeable future.
Download FMI’s 2021 Third Quarter North American Engineering and Construction Outlook, and get more information on the key takeaways listed below:
- Total engineering and construction spending for the U.S. is forecast to end 2021 up 2%, compared to up 5% in 2020.
- Strong growth in residential investment, especially within single-family and improvements, will again uphold industry spending levels in 2021. Water supply is the only nonresidential segment expected to grow in 2021, with an anticipated gain of more than 5%.
- Declines in 2021 will be led by falling investment in nonresidential buildings, especially among private segments, including lodging, amusement and recreation, religious, office and commercial construction. Further, declines in publicly funded nonresidential building segments will be realized across public safety, transportation and education.
- Multifamily residential, health care, communication, manufacturing, highway and street, and sewage and waste disposal are all expected to end the year with growth roughly in line with the rate of inflation, between 0% and 4%, and are therefore considered stable.
- The latest Nonresidential Construction Index (NRCI) feedback suggests continued and increased optimism heading into the third quarter of 2021, at 59.7, up from 54.4 in the prior quarter. The index shows strong momentum since the first quarter of 2021, well within expansionary territory, surpassing the growth threshold of 50. The most recent reading is in the range of scores collected between 2011 and 2018, suggesting increased engineering and construction opportunities ahead.
Go more in-depth by reading the full report published by FMI.