A Weak Recovery Won't Lift Nonresidential Construction
Through the country's economic recession and still shaky recovery over the past two years, there were always clutch markets that stepped up to the plate to keep construction in the game. Public works, institutional buildings and housing all posted impressive growth rates this year, offsetting huge declines in the industrial, commercial and office building markets. But economists now predict that as private nonresidential building markets sink deeper into recession in 2003, this year's growth engines may not have enough horsepower to offset the slide.
The Dodge division of McGraw-Hill Construction expects overall construction contract awards to decline 1% next year. But that still amounts to $495.1 billion, equal to 2001, the peak of the expansion. Overall volume will remain strong but contractors still will find few true growth markets. Firms seeking growth will have to settle for winning larger market share. Click here to view F.W. Dodge: Contract Awards