Expecting the best
There is lingering uncertainty about what kind of
economic activity will unfold in 2008-due in part to the
pronounced troubles in the housing market and
resulting credit crunches. Despite the fact that U.S.
economic growth as a whole may not be as robust as
once expected, Interiors & Sources
remains confident that the A&D industry will fare well
in the days and months ahead.
There are several indicators that suggest commercial
construction will remain strong this year. For
example, "The Construction Outlook," a quarterly
market forecast developed by FMI's Research
Services Group, states that nonresidential
construction was booming in 2007 and will increase
again in 2008, although at a slower rate.
Nonresidential construction will expand at a 5 percent
rate in 2008 and at a 4 percent rate in 2009 as the
declines in residential begin to lower demand for
certain nonresidential segments, according to the
report.
Further, according to the "2008 AEC Industry Outlook:
Strategy and Insight for Design & Construction Firms,"
healthcare, higher education, and power and energy
will be among the hottest markets for design and
construction firms in 2008.
Perhaps even more encouraging is the fact that, after
posting an impressive compound annual growth rate
(CAGR) of 23 percent through 2006, the market for
green building materials is expected to continue
growing from almost $2.2 billion in 2006 to $4.7
billion by 2011, according to Green Building Materials
in the U.S., a new report from market research
publisher Specialists in Business Information (SBI).
While some analysts say an economic recession
hasn't been completely ruled out, it seems more likely
that 2008 will see steady growth, albeit
slow.Interiors & Sources fully anticipates
another year characterized by inspiring design
projects and innovative product launches.
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