Wells Fargo Construction forecasts cautiously optimistic outlook

Wells Fargo Construction has released their construction industry forecast for 2008, which predicts infrastructure construction in the United States should continue at about the same pace as in 2007. The forecast is based on interviews with more than 900 construction industry executives.

According to the forecast, most construction contractors expect the number of bid projects to remain constant for 2008, while equipment distributors expect improvement in commercial and industrial market segments. With respect to challenges, the forecast indicates insurance costs and a shortage of qualified workers top the list of concerns.

The forecast reported several trends for 2008, including higher equipment purchase budgets and an increase in equipment rental. Excavation equipment will be the equipment rented most often, and highway trucks are at the top of the purchase list.