Signs of recovery are in place for the construction industry and a full recovery is expected in the non- residential sector in 2004, predicts Kermit Baker, chief economist, American Institute of Architects, speaking at the Construction Specifications Institute's annual meeting in Chicago on April 10. Because architectural firms are engaged in the early stages of the construction process, Baker used data, among other industry resources, taken from the AIA surveys conducted earlier in the year.
According to Baker, there is a new wave of cyclicality that is being seen in construction. Non-residential construction has always been characterized by wide swings of activity from year to year. While the overall economy stays in a fairly narrow growth band, rarely seeing growth of 5%, double-digit rates of growth for construction are not at all uncommon.