June 29, 2007
  AIA CONSENSUS CONSTRUCTION FORECAST
After a Strong 2007, Nonresidential Construction Growth Projected to Moderate in 2008
Panel sees slowing in commercial, stability in institutional markets next year
Nonresidential construction activity is expected to have a strong year in 2007, according to the AIA’s latest Consensus Construction Forecast. AIA Chief Economist Kermit Baker, PhD, Hon. AIA, reports that despite continued weakness in the residential sector, there have been solid gains in most nonresidential construction sectors so far, and robust conditions are expected to continue for the remainder of the year. The AIA Consensus Construction Forecast Panel is projecting growth of 7.2 percent in nonresidential construction activity (after inflation adjustments) this year, with an almost 9 percent jump in commercial activity, and a healthy 5.4 percent increase in institutional facilities. Next year is projected to see much slower gains, but gains nonetheless. Commercial construction is expected to edge up another 1.1 percent, with institutional activity growing by 4.5 percent, producing almost a 3 percent gain in total in activity for 2008.

kiplinger connection
Water • Housing • Taxes
Water: Water shortage is a new business paradigm.
Housing: Sub-prime meltdown, higher mortgages, ouch.
Taxes: IRS is looking at who is an employee, who is a consultant.

Nine Steps for Succession Success
Tips to help firm owners avoid common transition perils and pitfalls
When it comes to planning for the transition of an architecture firm to the next generation of leaders, good things do not come to those who wait, says Sandy Blaha of Sandy Blaha Performance Consulting. Firm owners who do often find themselves feeling the pressure of a ticking clock, caught between needing to move quickly and immobilization. If you are thinking about, and planning for, the next phase of your—and your firm’s—life, taking the following steps will help you move quickly toward your goal and assure smoother sailing in the process.

 

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Welcome to the Business Zone
This is the place for our monthly Work-on-the-Boards survey report, quarterly Housing Trends survey report, and biannual Consensus Forecast, all by AIA Chief Economist Kermit Baker, PhD, Hon. AIA. You’ll also find tips for managing the business side of your practice, as well as the weekly Kiplinger Connection.