Despite predictions of a slight downturn in the national economy, one industry forecast is expecting to see a 3 percent increase in total engineering and construction spending for the rest of 2019.
The FMI Corporation, an industry analysis firm with offices in Denver, among other locations, notes in particular that “Spending growth in 2019 is expected to be led by public investment across both nonresidential buildings and nonresidential structures.”
Although the predicted 3 percent increase is good news for the industry, says the FMI’s North American Construction Outlook, it is slightly off from the 4 percent total engineering and construction spending recorded last year.
The segment charted to see the most growth for this year is transportation, which will, says the FMI report, be up by 9 percent, followed by public safety projects with a 6 percent increase, and both educational and manufacturing facility work, up by 5 percent.
Categories slated for spending decreases this year include religious institutions, down by 5 percent; multifamily projects, also off 5 percent; and lodging projects, down by 2 percent.
The report is additionally predicting a 5 percent jump in highway and street spending due primarily to increases in state and local revenues, and a 2 percent increase in sewerage and waste disposal projects spurred by the passage of the federal Water Infrastructure Act late last year, as well as the reauthorization of the Water Infrastructure Finance and Innovation Act.
By Garry Boulard
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