Kaempf & Harris highlights important statistics and predictions from the Textura Global Construction Forecast, which was “specially written by Global Construction Perspectives and Oxford Economics for the ENR Global Construction Summit” in New York on September 10, 2015.
This preview of the global forecast discusses the future of this industry until 2030 and how it affects the sheet metal sector:
- A return to “economic normalcy” is upon us, as recovery across the world builds momentum. “Credit conditions have improved considerably, and the massive pullback in construction activity has turned the corner,” suggesting “the expansion phase of the construction cycle is well-established and that we...can expect relatively strong prospects over the next few years from a business...perspective.”
Also, “[the] U.S. housing market [is expected] to grow at [the] fourth fastest rate of growth globally, behind India, Myanmar, and Vietnam,” according to the Executive Summary.
For sheet metal, this means that the United States’ rise from financial downturn will create more commercial and residential infrastructure opportunities, leading to an increase in small- and large-scale construction projects around the nation.
- “One of the key themes of our previous report was the ‘reshoring’ of production back to developed markets, which was one of the reasons underpinning our relatively robust U.S. outlook.
[U.S.] unit labour costs in...have remained stable. More important than the financial cost is...time cost, as time-to-market has become critical across an increasing spectrum of products. Furthermore, firms can exercise greater oversight and control over their supplier networks [and] tailor...products to local consumer tastes.
Notwithstanding the near-term drag of the strong dollar on U.S. cost competitiveness, we expect the combined impact of low energy costs and strong productivity to support industrial construction into the medium term.”
This means that steel imports for sheet metal projects will continue to be a hot topic of discussion, especially because of the new U.S. administration’s take on “Buy American”.
For more information on how the government will affect our industry, grab a copy of our 2017 Governmental Impact Predictions.
- “Employment data...suggests a more positive picture of overall activity. Job openings in the sector have grown at double-digit pace over the first five months of the year, while new hires have shown similar strength.
These trends are in line with our view that the construction sector is expanding capacity ahead of an expected upturn in demand over the coming quarters.”
Like all sectors, sheet metal fabrication shops can expect to have influx of job openings thanks to the increase in work.
However, according to the National Association of Home Builders, a significant drop in trade career interest means difficulty filling these positions despite the quantity, decent salary, and no requirement for college education.
- “Construction activity in hospitals and schools provides another key area for the U.S. sector in coming years. The...Supreme Court decision in favor of the Affordable Healthcare Act should provide...stimulus to medical sector construction which has been lackluster in recent years.
Favorable demographic trends also point to growing demand for new school buildings as the [grandchildren of] baby boomers enter the education system.”
If this is the case, sheet metal for schools and hospitals, such as ductwork, roofing, and galvanized sheet metal, are necessary. This will positively affect sheet metal fabrication shops in booming local and metropolitan economies, as they'll prosper and compete for bids for nearby schools and hospitals.
To find out how the rest of the world, including the Asia Pacific, Latin America, and Europe, will fare in the coming years, download the complete Forecast here. You can also download the full Kaempf & Harris’ Forecast Summary for sheet metal-specific stats by clicking below: