Marcum LLP
News

Press Release

 

In This Edition

Marcum Construction Index Predicts Robust 2018 for the Construction Industry

Share:

New York City, NY - The quarterly Marcum Commercial Construction Index released today foresees continued momentum in the construction market in 2018, following sustained economic expansion in 2017. The 4th quarter report finds that the outlook for the industry in 2018 is the most positive since 2005, with real estate owners, construction firms, logistics suppliers, retailers, and other cyclical businesses as the main beneficiaries.

According to Anirban Basu, Marcum’s chief construction economist and author of the index, nonresidential construction spending expanded 0.8 percent in December, or $720.4 billion on a seasonally adjusted basis. It was the fifth consecutive month of growth in nonresidential construction spending.

The biggest gains, year-over-year, were in Transportation (12.9%), Educational (6.6%), Health care (6.3%), Commercial (5.1%), and Lodging (4.8%) construction, while Manufacturing (-11.7%), Water supply (-10.6%), and Power (-9.4%) registered the biggest declines.

Following passage of the Tax Cuts & Jobs Act in December, month-over-month upticks were logged in 12 of the 16 nonresidential construction subsectors during January, led by Public safety (4.7%), Office (3.4%), and Lodging (3.2%) construction.

Concomitant with spending increases in January, nonresidential construction added 16,400 net new positions last month, with particularly notable job growth in the heavy and civil engineering (6,300 jobs) and nonresidential specialty trade (12,400 net new positions) segments.

“The future is likely to represent a departure from prior trends, in large measure because of the recently enacted tax reform bill. The tax cut will further bolster private sector liquidity and confidence, which will ultimately translate into more construction starts and spending. If long-awaited progress is made on infrastructure spending the construction recovery will likely transition from solid to spectacular,” Mr. Basu wrote.

“We cannot ignore the 10-year recessionary cycle event horizon we’re hurtling towards, but there appears to still be hope for continued growth. The momentum of last year has carried us into another prosperous quarter, and the signs we look to, for the near-term, seem to say “more to come,’” said Joseph Natarelli, national leader of Marcum’s Construction Services Group and an office managing partner in New Haven, Connecticut.

For the complete Marcum Commercial Construction Index, visit www.marcumllp.com/construction.

Marcum Construction Summits

Additional insight into the prevailing dynamics of the construction industry will be the focus of the remaining 2018 Marcum Construction Summits, to be held in Rosemont, IL, on March 8; New Haven, CT, on September 25; Nashville, TN, on October 1; and Irvine, CA, on October 18. Mr. Basu, the country’s preeminent construction economist, will keynote all four conferences, which are presented in partnership with the construction industry’s leading trade organizations.

Marcum Construction Services

One of the leading construction accounting firms in the U.S., Marcum LLP's Construction group provides audit, consulting, and taxation services to clients ranging from start-ups to multi-billion-dollar enterprises. The group's professionals, among the country’s foremost experts in construction accounting, are frequent industry authors and speakers and also serve as technical reviewers for the AICPA’s construction audit and taxation guides. In addition to the quarterly Marcum Commercial Construction Index, the group publishes the annual Marcum JOLT Survey Analysis, a discussion of employment trends in the construction industry.

About Marcum LLP
Marcum LLP is one of the largest independent public accounting and advisory services firms in the nation, with offices in major business markets throughout the U.S., as well as Grand Cayman, China and Ireland. Headquartered in New York City, Marcum provides a full spectrum of traditional tax, accounting and assurance services; advisory, valuation and litigation support; and an extensive range of specialty and niche industry practices. The Firm serves both privately held and publicly traded companies, as well as high net worth individuals, private equity funds and hedge funds, with a focus on middle-market companies and closely held family businesses. Marcum is a member of the Marcum Group, an organization providing a comprehensive array of professional services.

 
Related
Joseph Natarelli, Construction Services Leader, Assurance

Construction Services Leader
Assurance
New Haven, CT
Anirban Basu, Chief Construction Economist,

Chief Construction Economist


 




 
 
HAVE A QUESTION? ASK MARCUM
 
STAY IN TOUCH.

SIGN UP TODAY FOR MARCUM'S NEWSLETTERS.

ABOUT MARCUM LLP

Marcum LLP is one of the largest independent public accounting and advisory services firms in the nation, with offices in major business markets throughout the U.S., as well as Grand Cayman, China and Ireland.

Learn More

CONNECT WITH US
OFFICES

Headquarters
750 3rd Avenue, 11th Floor
New York, NY 10017

Find an Office

(855) MARCUM1
info@marcumllp.com

FOUNDATION

Marcum Foundation

AFFILIATIONS

Leading Edge Alliance

Privacy Policy

This website uses cookies to learn how visitors interact with our website so that we can improve our services and your online experience. By using this website, you agree to our privacy policy.