Commercial construction rebounding

Masonry Construction, Sept, 2006 by Ron Holzhauer

Commercial construction, one of the last industries to recover from the most recent recession, is poised for its best year since 2001, contributing more to economic growth just as homebuilding starts to ebb. Job growth and falling vacancy rates may push investment in non-residential construction up 9% this year to $531 billion, the most since at least 2001, according to the Associated General Contractors of America, Arlington, Va.

"After six years of recession-like conditions in the industry, 2006 is shaping up as the year that will launch a non-residential expansion, picking up some of the slack from a cooling residential market," said Kermit Baker, chief economist with the American Institute of Architects, Washington, D.C. Architectural billings, which are a leading indicator of construction, have risen 12 months in a row, according to the organization, which predicts a 5% growth rate for the industry this year in inflation-adjusted terms.