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A Bright Future for America’s Design-Builders: Construction Spending to Grow through 2021

By May 8, 2019Design Build
A Bright Future for America’s Design-Builders: Construction Spending to Grow through 2021

For America’s design-builders, it’s good news that growth in construction is expected to continue through 2021 according to leading economic industry forecasts.  Growth will not be as strong as in the last five years, but will continue to grow at a slower rate. FMI Corporation’s design-build market analysis predicts a 5.6 percent growth or $290 billion in construction for 2019.

FMI senior consultant Paul Trombitas said “Across the board, in projects of all sizes, you see that the proliferation of design-build is amazing.  As experience with the use of design-build grows and the ability to deliver more innovative solutions and reduce cost grows because of the collaboration…it’s pushing design build to new heights.”  FMI data shows that design-build spending in manufacturing, highways and education will be the biggest percentage of construction spending through 2021.

Cristian DeRitis, deputy chief economist of Moody Analytics said “Educational facilities should see continued growth in 2019, supported by funding coming from numerous school construction bond measures.  Healthcare projects will make a partial rebound after pulling back in 2018.  Airport terminal and amusement-related projects are expected to stay close to the elevated levels of construction starts reported in 2017 and 2018.”

 

Design-Build Continues to Be the Most Popular Delivery Method for Construction Projects Nationwide

New research by CLL/Pankow shows that design-build continues to outpace other delivery methods as design teams develop more innovative, resilient and cost/time sensitive projects. DBIA created an online resource “The Design Build Data Sourcebook,” that compiles important design-build trends from leading research reports to show how design-build continues to outperform other delivery systems in cost, schedule, growth measures, construction and delivery speed.

 

New Technology and Digital Tools are Transforming Design-Build Delivery Systems

The collaborative nature of design-build contributes greatly to the delivery system’s success and the increased use of new technology and digital tools bodes well for future growth.  “Digital is transforming the industry itself and helping us imagine, create and build the spaces, structures and cities of tomorrow,” said Michelle Meisels, engineering and construction leader at Deloitte Consulting LLP.  “Advanced technologies hold the promise to help firms achieve operational efficiencies, thereby reducing costs while improving margins.  Those firms that embrace the projects of tomorrow and invest in digital transformation are expected to be the winners here.”

Deloitte’s 2019 Outlook reports that “Digital is also driving connected construction adoption.  Drones, wearables, augmented reality and GPS tracking services are revolutionizing job sites, streamlining surveying, improving worker safety, and capturing valuable data.”

Leading economists agreed that the design-build industry growth continues to be stable and secure into the future as the industry approaches nearly half of all construction dollars spent.

K-Con Inc. is a full-service design-build general contractor specializing in commercial, light-industrial and government construction.  K-Con Inc. serves commercial and government entities in Charleston and across the United States.  Please contact us today to see how we can best serve your needs.