Construction banking consultant
FMI says 2009 will be a “benchmark low-water year” for US residential construction, due to a continuing “contraction unprecedented in its depth.”
According to FMI President and Managing Director, Hank Harris, “This has been a year of opportunity for some and disappointment for many. Sustained by poor lending practices well beyond the demand curve, the single family residential wave finally broke – big time. As goes residential, so (eventually) goes much of construction.”
In 2005, residential construction swelled to nearly $618 billion, accounting for 56% of all U.S. construction. In 2008, that number has dwindled to $397 billion, now accounting for just 37% of U.S. construction.
FMI has published the U.S. Markets Construction Overview annually since 1985. The Overview includes a comprehensive report on vital construction trends and forecasts the growth or decline in 19 market segments and nine geographic regions, noting both short-term and long-term considerations.
FMI outlines 10 significant drivers that will affect the future of the construction industry. For each driver, there are five implications and five actions to aid thinking around these issues. The top 10 futures drivers include:
• Energy Burns
• Capital Supply Suffers
• Talent Losses Likely
• Climate Changes Count
• Cost of Construction Climbs
• The Old Guard Changes
• Change Comes Faster
• Green Keeps Growing
• Customers Increase Construction Knowledge
• Global Acts Impact Local Markets
More information:
www.fminet.com
--From a press release