The Dodge Construction Outlook released by McGraw Hill Financial has long been an industry staple for forecasting the upcoming year. The 2014 report includes multiple bright spots and a predicted 9% rise in construction starts, projecting them at $555.3 billion total. Despite multiple uncertain years for the housing and construction markets due to an unstable economy, things are really starting to look up for many businesses and industries. New housing starts are expected to grow 26%, but it’s not just more people building new houses next year. Commercial building starts are anticipating a 17% increase as companies gain confidence in the economy and invest more money in building new spaces for business.
According to McGraw Hill, warehouses and hotels will once again lead the way in new construction, but new stores and office buildings will also help bolster the commercial construction gains. Improving market fundamentals are a big factor behind the positive gains, and more new construction means good news for many other businesses as well. Here at Pucel we understand that an economy gaining strength will bring business not only to us, but to our customers and fellow manufacturers, and one of the most obvious signs of a strong economy is new construction. While these numbers in the 2014 report are still below the 2007 peak, they are well on their way back up from the low levels of the recession.