FMI says total engineering and construction spending in the U.S. will be up 5% for 2023, ending at about $1.9 trillion.
Continued record growth in manufacturing, combined with gains in various nonresidential and nonbuilding segments, is expected to uphold industry spending in 2023, according to FMI’s 2023 North American Engineering and Construction Outlook.
Last year, FMI altered some of its base assumptions to include the likelihood of a recession. While delayed based on economic conditions in recent quarters, the FMI forecast still indicates some upcoming economic contraction late this year or in early 2024. The length of its anticipated recession depends on policy response, although historically, the impact on the construction industry tends to linger.
Looking ahead to the next three years, FMI projects double-digit growth in most construction segments including multifamily residential, highway and streets, sewage and waste disposal, water supply and conservation and development.
Only religious and communication segments are expected to remain at the inflationary rate of 0 to 4%.
Conversely, the report indicates that residential, particularly single-family residential construction, will continue to decline through 2026.
Overall, a reasonable outlook for 2023 and into the future from a certain point of view.
