2013 Electrical Construction Forecast Looks Good

According to a recent report in EC&M magazine, overall the forecasts for 2013 are optimistic. Reed Construction Data forecast predicts total construction spending to increase 8.3% in 2012, 7.7% in 2013, and 9.2% in 2014 While McGraw-Hill Construction expects an increase of 6% in 2013 FMI Corp., Inc. is predicting a 7% hike for 2013. However, remaining cautious, the Portland Cement Association (PCA)

is forecasting a mere 1.2% increase. The article also goes on to state that Associated Builders and Contractors (ABC) is predicting nonresidential construction spending to expand 5.2%.

Industry experts are basing their forecasts on strong numbers from the housing market. “Housing looks like it’s finally stabilized,” said Beth Ann Bovino, deputy chief economist, Standard & Poor’s, speaking at the McGraw-Hill 2013 Outlook Executive Conference. “With each year, it continues to heal,” she said, putting the risk of falling into another recession in 2013 between 20% to 25%. “This year will be the first year housing will contribute to GDP growth since 2005.”