FMI Predicts Design-Build Will Continue to Grow
Date Posted: October 5, 2021
Posted In: Ideas,
From ConstructionDive: Consulting firm FMI released an updated study on design-build construction spending last week, showing a positive outlook for the delivery method.
While overall construction spending is expected to total up to $7.9 trillion through 2025, design-build spending is expected to reach $1.7 trillion, or around a fifth of spending in the assessed market segments, according to the study. These segments include industries such as manufacturing, education and healthcare.
Overall, design-build spending is anticipated to grow 34%, with the water/wastewater sector showing the highest annual growth (11.1%) out of all sectors, which include highway/street (9.4%), healthcare (8.8%), educational (7.8%) and office (5.0%).
Dive Insight:
Despite a tough economic forecast, supply chain issues and a workforce shortage, design-build construction is trending upward.
FMI released the results of its design-build utilization update, forecasting a CAGR of 7.6% from 2021 to 2025, according to the study. The survey is an update of a 2018 paper of the same topic, and consists of electronic records, market modeling and industry interviews.
While national construction spending for 2020 and 2021 saw a decline, design-build construction spending for recent years saw upticks of 1.3% in 2020 and an estimated .5% increase in 2021. It’s projected that design-build will also outperform national growth rates by 1.6% over the 2021-2025 window, according to the press release.