The Portland Cement Association, Skokie, Ill., predicts that the construction industry will shift gears in 2005, with public works and nonresidential building markets replacing the housing market as the industry’s main growth drivers. PCA’s forecast, which is adjusted for inflation, says that the result will be a 2.9% increase in the real value of total construction in 2005. This will be slightly less than this year’s 3.7% gain, after discounting for inflation. PCA predicts that the value of the single-family housing market will slip 0.5% in 2005 after jumping 15% in 2004. However, nonresidential construction is expected to bounce back 10% in 2005 after showing little real growth this year. Public construction also will make positive contributions to growth after this year’s inflation adjusted decline of 1.5%. In 2005, PCA predicts that public works will increase 4.0% in real terms.

PCA Construction Put-in-Place
$ billion (constant 1996 dollars)
TYPE OF CONSTRUCTION 2003 2004 2005 PERCENT CHG.
03-04 04-05
TOTAL CONSTRUCTION 697.6 723.7 744.7 +3.7 +2.9
Total Residential 361.9 392.5 391.2 +8.5 -0.3
Total Nonresidential 122.2 122.2 134.3 0.0 +9.9
Manufacturing 10.9 10.3 15.8 -5.5 +53.4
Office 27.7 28.3 30.1 +2.2 +6.4
Hotels Motels 7.6 7.8 8.3 +2.6 +6.4
Hospitals Institutions 13.9 13.8 14.2 -0.7 +2.9
Religious and Miscellaneous 12.4 12.2 12.4 -1.6 +1.6
Educational 10.2 9.7 10.3 -4.9 +6.2
Commercial 39.4 40.1 43.3 +1.8 +8.0
Public Utility1 39.8 38.1 41.5 -4.3 +8.9
Public Construction 173.6 171.0 177.7 -1.5 +3.9
Buildings 78.7 75.6 78.8 -3.9 +4.2
Highways & Streets 48.1 48.7 50.4 +1.3 +3.5
Conservation 3.0 3.0 3.2 0.0 +6.7
Sewer Systems 10.5 10.8 11.2 +2.9 +3.7
Water Supply 8.0 7.7 7.9 -3.8 +2.6
Military Security/Miscellaneous 25.4 25.2 26.2 -0.8 +4.0
Source: Portland Cement Association skokie, Ill.
1= Includes farms Building.

(Photo top by Monica N. Macezinskas, photo manipulation by Nancy Soulliard for ENR)

advertisement
...