School construction, spurred on by a surge in student enrollments, has been one of the industrys strongest markets over the last decade. While state fiscal problems are expected to slow the double-digit growth of recent years, the underlaying demographics will keep the school building market going strong for years to come.
Over the next 10 years, enrollment in K-12 schools is expected to increase an average of 5% a year, says Richard Branch, an economist who tracks the school market for McGraw-Hill Construction Analytics, Lexington, Mass. While this is down from the 20% annual increase in K-12 enrollment during the previous decade, it will be enough to keep the market near peak levels.