MCA Study Sees Nonresidential Construction Market Returning To 2007 Levels
Chicago, IL – A market study released by the Metal Construction Association (MCA) reports that 2017 will be the year the nonresidential construction industry will return to the peak levels last seen in 2007. The residential market will take a bit longer to hit the mark, but the news is positive across the board for industry stakeholders.
According to the study, the growth has been steady and moderate over the past five years and is slowly inching its way back to high levels seen a decade ago. Growth is predicted to reach 8% in 2016 reaching $1.14 trillion. The market is highly dependent on economic factors like interest rates, consumer spending and housing growth.
The study shows the strongest hot spots for total construction growth (residential, nonresidential and nonbuilding combined) are in the Pacific, South Atlantic, Mountain, New England and East North Central. The 20 top-growth areas, based on construction volume and compound annual growth rates, are listed below. The two common factors among these areas that contribute to growth are the number of jobs, particularly technical jobs, and ties with universities.
1. Riverside-San Bernardino-Ontario, CA
2. Los Angeles-Long Beach-Anaheim, CA
3. Phoenix-Mesa-Scottsdale, AZ
4. Miami-Fort Lauderdale-West Palm Beach, FL
5. San Francisco-Oakland-Hayward, CA
6. Atlanta-Sandy Springs-Roswell, GA
7. Dallas Fort Worth-Arlington, TX
8. Sacramento-Roseville-Arden-Arcade, CA
9. Denver-Aurora-Lakewood, CO
10. Washington-Arlington-Alexandria, DC-VA-MD-WV
11. San Diego-Carlsbad, CA
12. Seattle-Tacoma-Bellevue, WA
13. Las Vegas-Henderson-Paradise, NV
14. Houston-The Woodlands-Sugar Land, TX
15. Tampa-St. Petersburg-Clearwater, FL
16. Portland-Vancouver-Hillsboro, OR-WA
17. San Jose-Sunnyvale-Santa Clara, CA
18. Orlando-Kissimmee-Sanford, FL
19. Chicago-Naperville-Elgin, IL-IN-WI
20. San Antonio-New Braunfels, TX
The study was conducted by FMI, a leading management consulting and investment banking firm dedicated to engineering and construction, infrastructure, and the built environment.
About The Metal Construction Association
The Metal Construction Association brings together a diverse industry for the purpose of expanding the use of metal in construction through marketing, research, technology and education. Companies involved in MCA gain benefit from association activities that focus on research, codes and standards, market development, and technical programs. MCA's market development efforts increase the use of metal materials in construction through the education of the building and design communities about the benefits of metal. For more information about MCA, visit www.metalconstruction.org.