Positive Industry Sentiment Signals Commercial Construction Momentum

It’s no secret that the state of construction in the Southeast could be more robust. In fact, commercial construction has particularly seen its share of ups and downs in an economy that is just starting to regain its footing. But with design firms indicating changes in the market, commercial construction –including firms in East Tennessee – stand to gain more momentum in the next year, according to the annual Top Design Firms survey by ENR Southeast, a leading news resource for the construction industry.

ENR cites an increase in firm responses, collective revenue and industry sentiment as positive signs toward more mature recovery for the commercial construction industry.

Other factors?

Non-Residential Building SpendingNon-residential construction makes up about 60 percent of nearly $1 trillion in U.S. construction. Spending in this sector is expected to grow 8 percent in 2015, according to the American Institute of Architects.

Growing Client Base – Firms that participated in the ENR survey said they are seeing an increase in clients and volume of projects and project that retail, office and health care will become the areas of growth.

Support Sales Technology, security and fire systems, and building materials companies are also reporting increases in orders. An 11 percent increase in steel sales is a particularly promising indicator because steel is shipped early in the construction process.

Consumer SpendingAccording to the Fed, consumer spending is reporting modest growth in nearly every district of the United States, which bodes well for commercial construction retail projects.

As areas in the Southeast start charging forward — the ENR report singles out the Atlanta metro area where two major league stadium projects could result in the highest contracts in the area in six years — the rest of the region is sure to follow.

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