The commercial sector is expected to see the biggest gains in construction spending, with the hotel industry leading the pack at 13.1% growth expected in 2014 and 9.2% growth in 2015. Second place goes to retail, with 10.5% growth expected in 2014 and 11.5% growth expected in 2015. The office building segment of commercial construction will experience 9.2% growth in 2014 and 10.8% growth in 2015.
Demand for institutional construction projects is expected to increase at a more moderate level. The Amusement/Recreation market segment is expected to see a higher 9.9% growth in 2014, but growth in construction projects within the healthcare and education sectors are a less impressive 5.2% and 2.8%, respectively. Next year looks better for healthcare and education facilities, however, as spending in 2015 is expected to be 7.8% for healthcare and 5.8% for education.
All this growth, however, foretells several concerns for the entire construction industry. Construction costs are on the rise, skilled labor is in short supply, and bank credit standards are making it tough to secure construction financing. These challenges will need to be faced head on if the construction industry is expected to sustain growth for the foreseeable future.
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