By Healthcare Facilities Today

Healthcare-related construction is expected to rise 6 percent in 2014 to an estimated $44 billion, according to management consultant/investment banker FMI’s 3Q13 Construction Outlook.

The Affordable Care Act and related impacts on healthcare costs could shift developers’ plans in the relatively near future, according to the report, but an aging population is still creating increased demand in this area.

Overall, the markets continue to shift, reducing annual  predictions to $909.6 billion, down nearly $4 billion from previous predictions. Early forecasts for 2014 show annual construction will have moderate growth of 7%, rising to $977 billion.

The report's major market predictions also include:

• Residential  — FMI continues to forecast traction in residential construction. However, the growth is expected to taper off to 12% in 2014. Total predicted residential forecast is $379.6 billion, compared with the $338.2 billion for 2013.

• Commercial  — The current forecast calls for a 5% increase in 2014. Although retail sales as of June 2013 were up 5.7% over the previous year, new bricks and mortar retail space along with commercial other construction growth will remain slow to recover.

• Educational — The increase in residential construction and tax revenues will help bring this market back in many areas of the country. Due to budget cuts for government spending at all levels, the national market will rise only slightly in 2014 to 4% over 2013 levels.

• Manufacturing — The resurgence of the automotive industry is a big boost to manufacturing as is the continuing explorations and mining for shale oil and gas. However, manufacturing construction is expected to drop 2% by year-end 2013 before returning to 4% growth in 2014.

Download the report.