FMI Releases 2022 North American Engineering and Construction Outlook Second Quarter Edition

FMI Corporation, a leading provider of consulting and investment banking services to the built environment, released the 2022 North American Engineering and Construction Outlook Second Quarter Edition today. The report provides a comprehensive second quarter forecast for a broad range of construction and engineering segments in the U.S. and Canada.

Entering the second quarter of 2022, FMI expects construction spending to end 2022 up 7% compared to up 8% in 2021. But that growth will be offset by inflation, supply chain snarls, a shortage of workers, project delays and economic turmoil caused by international events such as the Russia-Ukraine war.

In addition to FMI’s segment commentary, key highlights of the report include:

• Strong investment in residential and manufacturing will drive industry spending through 2022. Additionally, due to expected increases in infrastructure funding later this year, several nonbuilding segments, including highway and street, sewage and waste disposal and water supply, are all anticipated to realize growth rates of more than 5% in 2022. 
   
• Year-end 2022 growth will be tempered by ongoing spending declines across various nonresidential building segments, including lodging, office, educational, religious, public safety and amusement and recreation.
   
• Commercial, health care, communication, power and conservation and development are all expected to end the year with low growth, roughly in line with the historical rate of inflation, between 0% and 4%, and are therefore considered stable.