Construction spending is expected to drop in 2009
Non-residential construction spending will not rebound in 2009, but for the projects that are ongoing though the year, prices for building material will drop.
That's according to an outlook from the American Institute of Architects (AIA) which says that non-residential construction spending will drop 11 percent this year.
However, fewer projects mean less demand for material which will result in lower prices for builders who do have work through the next 12 months.
The forecast looks dire for the industry as the AIA chief economist Kermit Baker says construction spending should continue to drop into the near future.
"As profits for businesses have fallen and the ability to get credit to finance projects has become far more difficult, construction plans have been put on hold or canceled outright," he said. "This is not expected to turn around anytime soon and it's likely to get worse before it gets better."
The AIA is also asking President-elect Barack Obama to include nearly $100 billion for the design and construction of energy-efficient, sustainable buildings which it says will create 1.6 million jobs in the design and construction industry.
