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.
