- Most large mechanical contractors are expecting 3% to 5% growth until 2018
- Investors are beginning to help lift commercial construction out of a slump by taking more risk
- FMI predicts that health care construction will grow 2% in 2014, 6% in 2015
- The power market is forecast to grow from 5% to 9% over the next four years
- U.S. manufacturing will do well because of our energy production and subsequently low energy prices
- FMI reports that the lodging industry forecasts 591 hotels opening in 2014
- Labor may become an issue in the near future
Southland Industries CEO Ted Lynch pointed out a project to us that is as emblematic of what’s going on this year as anything. When the economy crashed in 2008, few towns suffered as much as Las Vegas. Vegas had quite a few abandoned projects rusting, including Boyd Gaming’s Echelon resort. But now Malaysia-based Genting Group has purchased the 87-acre site on the Strip and is developing Resorts World Las Vegas. Various sizes have been attributed to the project — the Las Vegas Review Journal said 3,500 rooms and Forbes said 6,000 rooms — and the price tag could be anywhere from $2 billion to $7 billion.
This is going to be a decent year. 2015 will be a better year. Then look for continuous growth through 2018, economist Brian Beaulieu, ITR Economics, told contractors attending this spring’s Mechanical Contractors Association of America convention. The commercial/industrial/institutional markets are in for a very good run.
Viega LLC is the sponsor of this year’s annual CONTRACTOR Book of Giants.
To download a pdf of our complete 2014 Book of Giants, including rankings of the top 100 mechanical contractors in the country by revenue, click here.
For a gallery of our top ten companies by region, click here.
For a gallery of our top ten companies by type of work, click here.
To see breakdowns based on how they get work, markets served, public vs. private and type of work, click here.