Slow Down in 2013 Nonresidential Building Activity


WASHINGTON, D.C. – July 31, 2013 – (RealEstateRama) — With slower than expected activity in the nonresidential construction sector in the first half of the year, the projections for growth in spending have been scaled back. Led by the hotel and retail project categories, the commercial sector looks largely unchanged, but a noteworthy drop in demand for institutional projects has caused participants in the American Institute of Architects’ (AIA) semi-annual Consensus Construction Forecast , a survey of the nation’s leading construction forecasters, to reduce projections for spending to a 2.3% increase in 2013, with next year’s projections raised to 7.6%.

“A disappointing recovery of the U.S. economy is limiting need for new nonresidential building activity,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “Optimism for a stronger performance next year is based on the recent increase in domestic energy production, the boost to the general economy from a resurgent housing market, and improving employment figures that should help drive demand in the design and construction sectors.”

Market Segment Consensus Growth Forecasts 2013 2014
Overall nonresidential 2.3% 7.6%
Commercial / industrial 8.5% 11.5%
• Hotels 17.4% 15.0%
• Retail 8.2% 11.7%
• Office buildings 5.8% 9.5%
• Industrial facilities 4.0% 6.3%
Institutional -1.8% 5.6%
• Religious 1.5% 6.0%
• Healthcare facilities 1.4% 7.7%
• Education -2.5% 4.8%
• Amusement / recreation -4.1% 6.5%
• Public safety -4.8% 1.0%

About the AIA Consensus Construction Forecast Panel
The AIA Consensus Construction Forecast Panel is conducted twice a year with the leading nonresidential construction forecasters in the United States including, McGraw Hill Construction, Wells Fargo Securities, IHS-Global Insight, Moody’s, Reed Business Information, Associated Builders & Contractors and FMI. The purpose of the Consensus Construction Forecast Panel is to project business conditions in the construction industry over the coming 12 to 18 months. The Consensus Construction Forecast Panel has been conducted for 14 years.

About The American Institute of Architects
Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being.  Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit

Contact: Scott Frank

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