New Report Predicts Strongest, Weakest 2013 AEC Markets
MEDIA RELEASE: December 11, 2012
Two of the top three markets identified in The JAGG Group’s 2013 Guide to the U.S. AEC Markets as the most promising of 2013 are no surprise – apartments and projects related to natural gas development have carried the industry along for months, if not years. However, the third in that group may turn a few heads.
In naming Senior Housing the third most-promising market for AEC firm work in 2013, The JAGG Group reports, “The inescapability of demographics, combined with low levels of building for a prolonged period, have brought the senior housing market back in vogue. High occupancy rates, rising home prices and lagging supply also contribute to the resurgence.”
Despite a tapering off of the market’s construction activity in the latter half of 2012, The JAGG Group’s 270-page market outlook predicts a renewed focus on investment in senior housing development in 2013. This view, while likely unexpected to some, is supported by comments from industry insiders at the annual conference of the National Investment Center (NIC) for the Seniors Housing & Care Industry in September.
Bill Kauffman, senior research analyst for NIC, told Senior Housing News, “There’s chatter about new construction and lenders being extremely busy. Talking to lenders, they say they’re very busy with underwriting new construction loans.”
Another factor that could potentially drive the industry is acquisition. More than two-thirds of senior housing and care industry executives say that mergers and acquisitions are their primary growth strategy for 2013. This could eventually lead to design and construction work on rehabs and renovations.
Fourth on The JAGG Group’s list is the transmission and distribution market, for which the comprehensive research book notes, “The high ranking is for short-term prospects in 2013, as well as longer-term possibilities through at least 2015. The needs are great and it’s not a market that can be ignored.”
In all, the newly released annual market guide ranks 40 U.S. markets served by architecture, engineering, environmental consulting and construction firms. The book also includes sections on what the results of the 2012 election mean to the industry, an update on 10 top trends in 2013, a look at international markets, and much more.
For more information on The 2013 Guide to the U.S. AEC Markets or to purchase this strategic planning tool from the publisher, visit their blog at http://www.aecinsight.com or email to [email protected]. You can also find links to more information on Twitter @aecinsight.