WASHINGTON, D.C. – A brighter construction industry outlook in 2011? Bring it on.

The prognosticators at McGraw-Hill Construction released their 2011 Construction Outlook on Oct. 29, and said they expect the level of U.S. activity to advance 8 percent to $445 billion. That follows an anticipated 2 percent decline in 2010 compared to 2009.

“While the economy is still facing headwinds, the stage is being set for construction to see modest improvement in 2011 from this year’s very weak activity,” said Robert A. Murray, vice president of economic affairs at McGraw-Hill Construction, addressing nearly 400 construction executives and professionals at the 72^nd annual Outlook 2011 Executive Conference. “We’re turning the corner, slowly. 2011 will be the first year of renewed growth for overall construction activity, and 2010 becomes the final year of a very lengthy and unusual construction cycle.”

Based on significant research and in-depth analysis of macro-trends, the 2011 Construction Outlook details the forecasts for spending each construction sector:

• Spending on single-family housing will climb 27 percent in 2011.
• Multi-family housing will rise 24 percent.
• Commercial buildings will increase 16 percent, following a three-year decline, which dropped contracting 62% in dollar terms. But the levels of activity expected for stores, warehouses, offices and hotels in 2011 will still be quite weak by historical standards.
• The institutional building market will slip an additional 1 percent in 2011, retreating for the third straight year. The difficult fiscal climate for states and localities will continue to dampen school construction, although the health care facilities category should see moderate growth.
• Manufacturing buildings will increase 9 percent.
• Public works construction will drop 1 percent, given the fading benefits of the federal stimulus act for highway and bridge construction.
• Electric utilities will slide 10 percent, falling for the third year in a row.

“The U.S. economy is in the second year of economic expansion,” said Kathleen Camilli, president of Camilli Economics. “While the growth rate is currently modest, momentum is likely to grow as the economy responds to ongoing monetary and fiscal stimulus in the pipeline. Notwithstanding the financial crisis’ impact on residential and nonresidential construction, growth in this sector of the economy will continue to be driven by innovation in building technologies.”