2016 Construction Spending Forecast

The American Institute of Architects (AIA) recently released their semi­annual Consensus Construction Forecast. This compilation of the nation’s top seven construction forecasters is predicting 8% growth in spending for 2016, as well as an additional 7% growth for 2017. The 2016 numbers point to a 10% increase on the commercial/industrial side and 7% for institutional facilities. There are a lot of interesting insights in the full article. For a more in depth look at the numbers you can see it here.

The article did spend some time talking about how the “strong pace of growth in construction activity has put pressure on its labor force.” In addition to increasing wages for construction workers, the AIA points to four things the industry can do to increase the number of potential employees out there.

1. Attract additional younger workers – The goal is to revive interest in the field by better explaining the compensation potential, career growth opportunities, and the ability to become a business owner.
2. Rebuild training and apprenticeship programs – As the industry has been growing, the training programs have been shrinking.
3. Restart immigration flows – Construction is an industry that has traditionally relied very heavily on an immigrant workforce and there are fewer immigrants coming to the US since the recession.
4. Make the industry more attractive to women – Younger women are pursuing a much broader set of career options than their predecessors of a generation or two ago; unfortunately, construction is not one of them. Many feel that construction is an industry that is inhospitable to women.

Some things to think about when trying to fill positions in the coming years.