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Page 32 - January 3-16, 2018
A t the Associated General
Contractors of Colorado
Breakfast with the Board and
Associate/Supplier Showcase on
Dec. 13, I presented findings from
Dodge Data & Analytics’ Con-
struction Outlook 2018 Report to
an audience of nearly 300 con-
struction industry professionals. I
have presented the Dodge Out-
look, which is based on propri-
etary construction data gathered
by Dodge, to AGC for the past
10 years. The intent is to provide
insights on various construction
industry sectors tohelpguide both
general and specialty contractors
for the upcoming year.
Year inreview
– construction
in 2017. Over-
all, the U.S.
construction
industry has
moved into a
mature stage
of expansion.
After rising
11 percent to
13 percent per
year from2012
through 2015,
total construction starts advanced
a more subdued 5 percent in 2016.
That deceleration has continued
into 2017, with construction starts
exhibiting an up-and-down pat-
tern on a quarterly basis, often
typical of a market that’s in the
process of either approaching or
rounding a peak.
However, Colorado remains
one of the healthiest marketplaces
in the country. This year was an
extraordinary year in construction
for Colorado, going from $18 bil-
lion in construction starts in 2016
to $21.6 billion in construction
starts in 2017, which represents a
20 percent increase in construction
starts.
Looking Ahead – construction
in 2018. Total national construc-
tion starts in 2018 are forecast to
advance 3 percent to $765.2 billion.
Gains are predicted for residen-
tial building, up 4 percent; and
nonresidential building, up 2 per-
cent; while nonbuilding construc-
tion stabilizes after two years of
decline.
Colorado is expected to expe-
rience a seven percent growth
in construction starts in 2018, 4
percent higher than the national
average. In addition, Colorado has
more than doubled in terms of
the amount of construction work
since 2011.
Colorado construction industry
insights. Although Colorado is
expected to experience overall
construction growth, some mar-
ket segments are predicted to be
stronger than others. The follow-
ing are insights for 2018 broken
down by industry sector:
•Single-familyhousingwill con-
tinue to growin 2018 and serves as
a driving force for all other types
of construction.
•Multifamily housing is begin-
ning to level off
•Commercial buildings (office
and hotel): The office building sec-
tor continues to thrive, whereas
the hotel sector has peaked and
has begun to fall off slightly
•Commercial buildings (retail
and warehouse): The retail sector
will continue to experience soft
growth, with warehouses, includ-
ing distribution centers, expected
to grow in 2018.
•Institutional buildings (edu-
cation): The bond measures that
recently passed will allow for
growth in the education sector
in 2018, with K-12 serving as a
bigger market sector for growth
than universities/colleges.
•Health care is still fairly strong
in Colorado, but is a volatile mar-
ketplace due to the uncertainty
in health care policies and pro-
grams in the U.S. as a whole.
Although the construction out-
look for 2018 for both the U.S.
and for Colorado remains prom-
ising with continued growth,
major issues such as the con-
struction labor shortage and the
overall capacity of the industry
to keep up with demand repre-
sent challenges for the construc-
tion industry moving forward.
To combat these issues that could
hinder further growth in Colo-
rado, AGC has undertaken one
of the most substantial workforce
recruitment efforts in the coun-
try with and
the Construction Careers Now
program.▲
Construction, Design & Engineering
Cliff Brewis
Vice president of
operations, Dodge
Data & Analytics
Dodge Data & Analytics
The Unfound Door
Cliff Brewis delivers remarks to the
AGC crowd.
Think About It!
A man wakes up after sleeping with an advertised pillow on an
advertised mattress and pulls o advertised pajamas. Shaves with
an advertised razor, brushed his teeth with advertised toothpaste,
washes with an advertised soap, puts on an advertised suit, drinks a
cup of advertised co ee, drives to work in an advertised car and then...
Refuses to advertise believing it doesn’t work. Later if business is poor he
advertises it for sale.
See how advertising works for you.
Lori Golightly
303-623-1148 x102