Construction Markets Are In Transition As Growth Remains Slow
After a year of gloomy construction market statistics, economists are cautiously closing their umbrellas in anticipation of a fairly sunny 2004. While industry prognosticators see only very moderate overall growth next year, they argue that with total volume at historically high levels, its nothing to complain about. Economists are optimistic that the market will strike a balance, as slowly accelerating office and manufacturing construction sectors make up for slowdowns in traditionally dominant housing and public works arenas.
If these predictions prevail, it would be a fundamental change from the recent past when the industry often met such transitions with wild cyclical swings. "During the 90s, construction adopted a much more muted cycle, and we are dealing with a more stable construction industry now," says Robert Murray, vice president of economic affairs for McGraw-Hill Construction Dodge. "Construction in 2004 will once again see an offsetting pattern by major sector, with a somewhat different mix of pluses and minuses than 2003."