More rough waters lie ahead for the worldwide construction industry, according to IHS Global Insight Construction Service, Lexington Mass., which predicts further decreases in construction spending. According to first-quarter data from 69 markets, IHS predicted construction spending would remain flat in 2010. However, Laura Hanlon, the research firm’s product manager, admits that, in light of recent economic turmoil, the first-quarter outlook was a little overly optimistic. “As of quarter one, we were still optimistic for a flat 2010,” said Hanlon. “However, we just released a new forecast [on June 30], and with the information we have received through quarter two,
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.