The 2016 construction spending outlook from AGC of America Chief Economist Ken Simonson suggests that while funding will be challenging—particularly from the private sector—there are plenty of reasons to be optimistic about the future of our industry.
On July 5, AGC of America published its annual outlook highlighting trends across a variety of economic sectors. Here are five highlights from the full report that might shape AGC of Washington members’ business opportunities in the months ahead.
Takeaway #1: Energy is huge. Investments in solar and wind power are on the rise once again, and there will be more construction of gas-fired power plants and natural gas pipelines into 2018. All of those factors are bullish for construction.
Takeaway #2: Railroads see spending decline. On the private-sector side of the equation, expect to see less funding for infrastructure such as railroads. Conversely, small gains are likely for public airports, ports, and transit systems.
Takeaway #3: More people are choosing to travel. Additional travel equates to more demand for high-quality roads and bridges. Fuel purchases are picking up, and those dollars frequently benefit state funding of infrastructure projects.
Takeaway #4: Recreation spending remains a challenge. Although some big athletic stadiums experience intermittent bursts of activity, obtaining the necessary funds for work remains difficult across the country. Notably, funding continues to crumble for park systems in general.
Takeaway #5: Utilities will stay hot. Many communities are facing orders to implement long-term improvements to sewer systems, which is positive for construction spending. In other areas, water utilities have been under stress thanks to drought and contaminants, though lead-abatement funding is a possibility in some cases.
Without question, construction businesses in Washington will see new opportunities unfold in the year ahead. Prepare your team by reading the complete report from AGC of America.