Beyond the Build

Construction Trends

Trends Show Construction Industry Looking Up

Our CFO Del Allen recently attended the Birmingham Aon/Smith Currie breakfast, where they presented a “state of the union” type look at the construction industry.

Later this week, I will share 3 key issues effecting talent in the construction industry, but first I thought you might like to take a look at the stats. Many thanks to Brian Moore of FMI for allowing us to share.

Highest volume segments in 2011:

  • Power–Driven by environmental regulations and transmission/distribution projects.
  • Educational–Due to rapidly increasing student populations, widespread overcrowding and antiquated facilities.
  • Highway and street–Tough climate because state revenues are declining and residential construction is slow.

Strongest gainers in 2011:

  • Power (7%)
  • Commercial (7%)

Weakest segments in 2011

  • Religious (-18%)
  • Lodging (-16%)
  • Manufacturing (-6%)
  • Office (-5%)

Before you start thinking these numbers look dismal, consider the losses in 2010. Lodging and office construction were down 53% and 32%, respectively.

Total “put in place” (construction that has finished and is now being used) lost 10% in 2010, but is expected to grow 2% in 2011. Forecasters say we’ll be up 6% in 2012. From what I can see, we are healing.

Merrill Stewart Jr.

Merrill Stewart is Founder and CEO of The Stewart/Perry Company, a commercial building contractor based in Birmingham.