The sun seems to be coming up for the nonresidential construction industry. The U.S. Commerce Dept. reports that construction spending for nonresidential projects through November 2014 rose 4.2% from the year before, with lodging, office, commercial and sewage/waste disposal construction rising 11.3%, 14.7%, 8.4% and 13.6%, respectively. The American Institute of Architects says in its most recent Architecture Billings Index that 10 out 12 months last year saw increased demand for design services, which “points to a healthy outlook” for the industry.
“Business conditions continue to be the strongest at architecture firms in the South and the Western regions,” says AIA Chief Economist Kermit Baker. “Particularly encouraging is the continued solid upturn in design activity at institutional firms, since public sector facilities were the last nonresidential building project type to recover from the downturn.”