Four years of accelerating growth in public construction spending is terminating at the end of 2007, at the same time that the steep two-year plunge (due to weak residential markets) in private construction spending is reversing. The precipitating event in the public sector is the cautious state and local government budgets for the 2007-08 fiscal year. The growth of public construction spending will peak at 12.2% in the 2007 calendar year, slip to 8.2% in 2008 and slip further to 7.3% in 2009.

All green building designs must minimize the amount of runoff from impervious surfaces on a property. 

According to the accompanying table and graph, North America’s major stock markets have not given up on the U.S. economy yet, despite all the talk in the media about a possible upcoming recession. The major indices are down a little (-6.0% to -7.0% from 52-week highs), but not a lot, and they remain +5.0% to +10.0% ahead of year-ago levels. While a number of leading economic indicators are pointing to a weakening of U.S. economic growth, there are still many reasons to be optimistic.

Recycled-content carpeting is growing in availability and is a cost-competitive green flooring choice.

Reducing energy use in buildings saves resources and money while reducing pollution and CO2 in the atmosphere.

Resort/retirement markets hold ten of the top twenty spots in the list of markets with the most intense housing development, even with housing starts slowing sharply in many of these cities in recent months. In addition, two hurricane-rebuilding markets are on the list, Gulfport-Biloxi and Houston. Completing the list are four large and four small “business or college” cities. Each is attracting jobs with low living, business and housing costs.

Roof design has made major strides where sustainability is concerned

Investors are experiencing an aftershock late in October and in early November from the unexpectedly high magnitude of financial market losses on residential mortgages, even though they quickly got past the July jolt when they abruptly realized that subprime mortgages were not worth as much as they paid for them. Reed Construction Data has slightly reduced the construction spending forecast for the end of 2007, but most of the impact will be felt in 2008.

The RAIC will be offering a course to enable architects, engineers and others in the industry to understand how to offer fully integrated project delivery using this powerful new tool.