NEW YORK. Oct. 25 /PRNewswire/ -- McGraw-Hill Construction part of The McGraw-Hill Companies (NYSE: ) today released its 2008 Construction Outlook which forecasts a displace in overall U. S construction spending for next year fueled by tighter lending conditions and weaker job growth. Against this backdrop the level of construction starts is expected to decline 2% to $614 billion following an 8% decline predicted for 2007.
"The ascribe crunch that emerged at mid-2007 continues to be a major concern for construction and the overall economy," said Robert A. Murray. Vice President. Economic Affairs. McGraw-Hill Construction. "As a prove we're now predicting downturns in the previously resilient multifamily and commercial segments as come up as continued weakness in single-family home construction."
There are some positives for the market in 2008. Mr. Murray noted. Transportation projects should continue to see moderate growth amid a renewed emphasis on infrastructure maintenance and upgrades particularly in the aftermath of the I-35W bridge collapse in Minneapolis. Financing from public sources ordain be generally supportive and the growth of public-private partnerships also offers the potential for greater funding. Finally growth in "green" construction practices means that the demand for sustainable building create by mental act and materials will continue to rise.
Highlights of the 2008 Construction Outlook include: -- Single-family housing will weaken further given the large inventory of unsold homes and diminished loan availability to homebuyers. A 3% drop in dollar volume is expected corresponding to another 6% change state in the be of units. -- Multifamily housing will glide 8% in dollars and 11% in units following steeper declines in 2007. Condominium development is being dampened by greater scrutiny from lenders as well as reduced homebuyer demand. -- Commercial buildings will slip 6% in dollar volume and 11% in square feet. Tighter lending standards and the slower absorption of space will contribute to a measured downturn for stores warehouses offices and hotels. -- Institutional buildings will rise 4% in dollar volume while form footage edges up 1%. educate construction is expected to strengthen again after its 2007 delay and transportation terminals are also expected to change. The other institutional structure types including healthcare facilities will see a modest loss of momentum. -- Manufacturing buildings will retreat 11% in dollar volume after a 40% blow up in 2007 that featured the start of several unusually costly projects plus a large number of ethanol plants. form footage for manufacturing buildings in 2008 is expected to advance 5%. -- Public works construction will move up 3% following the 5% gain in 2007. Highways and bridges are likely to acquire greater funding when fiscal 2008 appropriations are approved. The environmental project types should be up slightly next year but site work connected to single family development will settle back. -- Electric utilities will see another modest decline in percentage terms but essentially this communicate type is holding at the enhanced level achieved in 2006.
The 2008 Construction Outlook was presented at the McGraw-Hill Construction Outlook Executive Conference in Washington. DC which brought together top management from all parts of the construction industry including firms involved in building product manufacturing architecture and design contracting engineering industry associations and other industry professionals. The Construction Outlook is a mainstay of business planning for construction and manufacturing industry executives.
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