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AIA: Healthy Nonresidential Market in 201702-06-17 | Economic News

AIA: Healthy Nonresidential Market in 2017
Commercial Sectors Will Lead The Way

The construction of retail outlets, offices and hotels should lead all subsectors in nonresidential building spending growth in 2017, the American Institute of Architects said.

The American Institute of Architects is forecasting a healthy market for the nonresidential construction industry in 2017, predicting all sectors combined will expand by nearly six percent.

"Commercial construction "?u retail, office, and hotel "?u will continue to lead the building recovery, while industrial construction is projected to see almost no increase this year," the AIA said.

However, a shortage of qualified laborers may continue to be a challenge.

"Though most conditions look favorable, virtually every segment of the design and construction market is reporting that recruiting and retaining qualified staff is a growing issue," said Kermit Baker, chief economist. "Many workers left the industry during the downturn, and others left the workforce entirely. Rebuilding a competent and productive workforce is a challenge, particularly when the national unemployment rate is below five percent."

Much of the increased nonresidential construction spending in 2018 will come from the institutional sectors, the AIA predicts.