The 2015 season is officially over, and now that the first of the year has passed we’re gearing up for what will develop in 2016. Our industry has been rebounding nicely from the recession and 2016 is expected to continue this trend with growth in both commercial and residential construction.
According to the Associated Builders and Contractors (ABC) forecast, the roofing and construction industry should expect to see nonresidential construction spending grow 7.5% this year. Contractor confidence has increased and backlog indicators also signal strong demand. The Dodge Outlook Report predicts that new construction starts will rise 6% overall. By sector, the new construction breakdown is expected as:
• A 20% rise in dollars for single family housing corresponding to a 17% increase in units. • A 7% rise in dollars for multifamily housing corresponding to 5% increase in units. • An 11% rise in commercial building. • A 9% rise in educational buildings including schools and hospitals.
This positive picture of the industry is indicative of rebounding markets, improvements in the economy, and increases in job growth. As an election year, 2016 should also see an increase in capital improvement projects as state budgets have allocated more spending for infrastructure. The collaboration with private industry has led to more public-private partnerships (P3) which enable government agencies to better afford large capital construction projects. P3 offers a broad array of options and are a viable option for financing and managing construction projects.
Experts are also predicating a banner year ahead for the remodeling sector, with the strongest growth in the luxury market and an increase in adoption of green building. Residential remodeling and green building are in demand as consumers want higher quality results and ways to reduce living costs. Residential construction is catching up to the commercial sector in green principles.
The predictions for the coming year are very promising and align with what we have been experiencing. Knickerbocker is seeing growth in the market, and general improvements in the industry, as residential and commercial projects seek the highest quality roofing and construction capabilities. We are a leader in architectural sheet metal fabrications, steep slope roofing, low slope roofing, and green roofing services. Our specialty roofing capabilities set us apart from others in the industry.
The Knickerbocker team wishes all of you a Happy New Year and look forward to the new challenges of 2016. Contact us today to learn how our capabilities can set you apart from the others in the new year!