According to Robert Murray, Chief Economist and VP for Dodge Data and Analytics, a news and intelligence firm serving the North American construction industry, construction work is expected to expand significantly in 2015, becoming more broad-based as further financing becomes available for project start-ups and interest rates remain low and manageable.
In fact, according to Dodge Data and Analytics, the industry is projected to increase at a 9 percent clip from a year ago, amassing in the neighborhood of $612 billion in 2015. For comparison’s sake, the construction industry accounted for about $564 billion in 2014. Federal funding is still somewhat limited when it comes to new construction, but states are picking up more of the slack, helping to get more projects off the ground running.
This outlook is good news for the economy as a whole, as it was the construction industry that was among those that took a major hit during the economic recession of 2009. But this forecast is also good news for C&D recycling, as its specialization in construction and demolition recycling enables it to recycle construction supplies like bricks, steel, glass, concrete, pipes, lumber and more.
Specifically, here are areas of the Dodge Construction Outlook to note:
1. Commercial building is expected to increase by 15 percent, namely in the way of new office construction and private developments. Hotel and warehouse construction is also expected to be on the upswing.
2. Institutional: Facilities like schools and healthcare buildings are expected to rise by 9 percent in 2015.
3. Single family housing is projected to be one of the biggest growth factors in construction, increasing by 15 percent. Multi-family housing is expected to increase by 9 percent.
4. Public works construction will improve 5 percent.
5. Electric utilities are the only notable category on this list that is expected to slide, and by 9 percent. This isn’t an unexpected decline, however, as it has been expected following the construction starts of 2011-12.
6. Manufacturing plant construction is the largest projected increase, at 16 percent. And for good reason, as the recession took a big hit on this industry as well. Now that this industry is coming back, so is construction.
As you can see, the 2015 construction outlook is very positive. And when there’s a multitude of construction work, there’s also an increased need for construction and demolition recycling services, such as those provided by C&D recycling.
For more information on construction and demolition recycling solutions, contact General Kinematics today.