More bad news, as the AIA is predicting another year of downturns for design and construction demand in 2021, before a 2022 recovery
Bad news for firms hoping that spending on nonresidential projects would increase this year after a dismal 2020, as today the American Institute of Architects (AIA) released its economic forecast for the next year. The AIA is predicting another slide in construction and design demand through 2021, until counting on a recovery in 2022.
The AIA Consensus Construction Forecast Panel, seeing the continued downtrend of the last few Architecture Billings Index figures and the dip in the December 2020 jobs report, has predicted a 5.7 percent slide in total nonresidential construction for 2021 and a 3.1 percent increase in 2022. That figure is an average compiled from eight separate outlets, including Dodge Data & Analytics, IHS Economics, Moody’s, FMI, ConstructConnect, Associated Builders and Contractors, Wells Fargo, and Markstein Advisors.
Recognizing both the impacts of the coronavirus pandemic (likely to stretch further into 2021 despite the vaccine rollout) and ongoing recession on the leisure and hospitality industries, as well as office space demand, construction in those areas is projected to remain low. Hotel demand in particular, the panel expects, is looking at a 20.2 percent drop in demand—a pretty dire prediction.
Read on >>> Source: ArchPaper AIA forecasts another year of recessed demand for 2021