FMI Corporation, a leading provider of consulting and investment banking services to the built environment, released the 2023 North American Engineering and Construction Industry Overview. The report provides a comprehensive forecast for a broad range of construction and engineering segments in the U.S. and Canada.
Entering 2023, FMI expects construction spending to decline 2% compared to 2022, mostly due to a decline in residential construction. We continue to see near-record inflation, supply chains still face disruptions across global markets, and companies continue to struggle to find the talent needed to execute new and existing projects.
“Given this uneven landscape, it is critical to understand your core competencies, markets and clients to compete in 2023,” wrote FMI CEO Chris Daum in the introduction to the report. “Knowing your opportunities and challenges and having a plan for tackling them will help your company continue to be successful. Furthermore, firms that focus on their people and culture and execute a clear strategy will be more likely to weather the upcoming downturn.”
In addition to FMI’s segment commentary, key highlights of the report include:
- Total engineering and construction spending for the U.S. is forecast to end 2022 up 8%, the same increases as in 2020 and 2021, all led primarily by residential construction.
- Only the religious, public safety and power segments are expected to decline in 2022. Real losses in output (e.g., square footage, installed capacity, etc.) are projected to be significant, especially in power.
Download the full 2023 Overview here.