Rapidly rising demand for services and higher prices for building materials should lead to strong price growth in the construction sector this year.

A recent analysis by IBISWorld has identified several industry sectors, including construction, whose prices are forecast to grow more rapidly than the national inflation rate in 2016. And within the construction sector, services for landscape architecture are predicted to increase 3.4 percent.

IBISWorld is a leading publisher of business intelligence, specializing in industry research and procurement research.

Though the forecast is good for landscape architects, it causes issues for those that have to procure those services.

According to the authors of the study, company research analysts Syed Ali Khan and Anna Son, "Businesses must be vigilant of changing market conditions to achieve cost savings, accommodate for cost increases and plan efficiently. This rings true particularly for buyers of legal, transportation and construction services, which are displaying rapid price growth. To soften the blow of price increases, procurement professionals can leverage their knowledge of key market characteristics to minimize costs and win strategic deals."

In the report, the predicted increases in construction prices are attributed to the improving economic outlook and the available cash that businesses have, which fuels their expansion plans including construction activity. Another factor cited is high demand for new healthcare and educational facilities, offices, hotels and retail stores.