Exceptional Industry Growth in Some Sectors, More Growth Projected for 2016
Gilbane, a national construction and real estate development company, said in its Summer 2015 Construction Economics Report, 2015 will see record-breaking spending growth for some sectors of non-residential construction. Spending on manufacturing buildings was up 50% in 2015 over last year to $86.4 billion, an unprecedented year-over-year growth increase.
Other growth areas include education buildings, which grew 7.1% over 2014, the sector’s first substantial increase since 2008. It is expected to grow 6% in 2016. Total spending for healthcare was up 7% over last year and is expected to rise 6% in 2016. Commercial/retail buildings are predicted to jump 8.8% this year over last, and office building spending in 2015 is on track to grow by an impressive 21.2%.
Gilbane is cautioning that productivity will probably be limited by the ongoing industry labor shortage. The Bureau of Labor Statistics Job Openings and Labor Turnover survey has been over 100,000 for 26 of the last 28 months through June, 2015, and has been trending up since 2012.