McGraw-Hill Construction Sees Flat Construction Environment in 2012

Lingering doubts in the minds of business executives and consumers about the health of the U.S. economy, uncertainty over the political turmoil in Washington, D.C., and weak demand will probably choke off any significant growth in the 2012 construction market.

That's the consensus of the construction economists at McGraw-Hill Construction Outlook 2012, held Oct. 19 in Washington, D.C. Compared to the double-digit declines that the industry suffered through the past three years, things could be worse than a year of no growth. But compared to the pinch-me-I-can't believe-it's-real 2006-2007 construction market, the new normal doesn't feel so hot.

With the exception of the multiple-family housing market, which McGraw-Hill expects to grow 17 percent in 2012 to 205,000 units, progress will be slow -- and hopefully won't be torpedoed by a double-dip recession. Overall, McGraw-Hill Construction expects the level of construction starts in 2012 to be $412 billion, following the 4% decline to $410 billion predicted for 2011.

Subscribe to Electrical Marketing to read the full report.