Newly passed U.S. tax bill expected to induce more spending and growth in the construction sector
CINCINNATI – February 9, 2018 – ConstructConnect, a leading provider of construction information and technology solutions in North America, announced today the release of its Spring 2018 Forecast Quarterly Report. From 2019 through 2022, the total construction starts forecast remains unchanged with an almost +5.0% average annual rise.
“Nobody doubts the urgent need for upgrades to the nation’s public works inventory,” explained ConstructConnect Chief Economist Alex Carrick. “Recognizing that states and municipalities are taking the lead with infrastructure, we are forecasting increases of +6.9% for road starts and +9.0% for bridge starts in 2018.”
The forecast which combines ConstructConnect’s proprietary data with macroeconomic factors and Oxford Economics’ econometric expertise, highlighted three trending reasons that will influence new construction in 2018:
- A rise in GDP growth to near +3.0 percent
- A new tax plan that already encourages individuals and corporations to increase spending
- Ongoing improvements in global trade
The report suggested the residential sector will be the primary mover of overall construction growth this year through 2022. In 2018, single-family homebuilding, will grow a year-over-year percentage increase of +9.2%, and will pull ahead of multi-family starts (flat at +0.1%). Total residential starts will rise by an average annual increase of +7.0% out to 2022.
According to the report, non-residential building starts will drop by -1.6% in 2018. But in fairness, the decline will be attributed to a response to some major project initiatives from 2017. Total non-residential building starts will average +2.0% annually from 2019 out to 2022.
From 2019 forward, U.S. manufacturing will advance due to the following factors:
- The new U.S. tax plan
- The U.S. inclination to lead in technological advances
- The surplus of North American-extracted energy supplies
- Global economic growth which will help lift the U.S. national output
To learn more about ConstructConnect or get a free copy of the Forecast Quarterly Report, visit constructconnect.com.
ConstructConnect is a leading provider of construction information and technology solutions in North America, and a wholly-owned subsidiary Roper Technologies, Inc. Through the combination of its four legacy brands (iSqFt, Construction Market Data, BidClerk and Construction Data), ConstructConnect brings project participants together with the most complete, accurate and actionable construction data and tools to drive success in national, regional and local markets. Its collaborative network empowers the construction industry to be more successful with access to relevant information through easy to use technology. For more information, visit constructconnect.com.