We all remember the dark days of 2008. And 2009. Construction projects slowed to a crawl and it seemed like all anyone wanted to do was just hold their existing equipment together as long as they could. Fortunately, our economy picked up and the commercial construction business followed.
We looked into our crystal ball for 2017 and we’re seeing some more good news in 2017. And we’re going to agree with the economic wizards. Here’s why commercial construction is poised to grow in 2017 and, along with it, commercial HVAC systems. (Preferably hydronic HVAC systems, but that’s another blog post altogether.)
- Architects are busy now. According to an August 2016 press release, American Institute of Architects (AIA) Chief Economist Kermit Baker said that revenue at architecture firms has been growing in 2016. Given that fact, he suggested that the construction industry would remain solid over the next 12 to 18 months, based on 2016 revenues alone. Additionally, he stated that single-family residential and institutional building sectors have the biggest growth opportunity for the near future. We are fans of busy architects. That means more construction jobs will go out to bid…and soon!
- Backlog for contractors. Associated Buildings and Contractors (ABC) reported in the September 2016 Construction Backlog Indicator (CBI), that the construction backlog reached an all time high of 14.6 months for large contractors. A contractor backlog means contractors are Here in North and South Carolina, contractor backlogs have been over 10 months on average for the last four quarters. And, according to the report, the backlog in the south has never been higher.
- Blossoming economy. The national unemployment rate is under five percent, inflation is low, energy costs are well below average, stock prices are high and interest rates are near record lows. There may be a saying somewhere “As goeth the economy, so goeth commercial construction.” OK, maybe not. But usually the two do go hand in hand.
So, 2017 looks to be a steady year for commercial construction. That’s good news for all of our building owners, engineering partners, manufacturing partners, and contractors! A strong construction year means good things for our industry as a whole. We’re looking forward to seeing the positive momentum continue.
Submit a Comment