Your outlook for 2006?

**James** · #1 (**permalink**) 12-30-2005, 08:01 AM

Now that we are ending 2005 and New Year is upon us. What is your outlook for the new year business wise!

I was thinking that the increase in the cost of materials since Hurricane Katrina and Rita, I figured that the there would be a decrease in the new construction market for at least the first quarter of 2006. But with the housing market being so hot I just don't see it happening.

I feel the demolition market will see an increase in business, especially in the GulfCoast region. Many of the general contractors and demolition contractors along the GulfCoast will be very busy for a long time.

Let me know what you think!

**James** · #2 (**permalink**) 01-04-2006, 03:08 AM

The Architecture Billings Index, an economic indicator of nonresidential construction activity, showed growth for the 11th consecutive month in November, according to The American Institute of Architects. Because of the approximately six-month lag time between billings for architectural services and construction activity, nonresidential construction activity is expected to be a strong economic sector in much of 2006.

"It is especially noteworthy that if architecture firms report even modest billings gains in December, 2005 will be the first year since 2000 that gains were reported every month of the year," said AIA Chief Economist Kermit Baker. "We are expecting improved business conditions for construction firms that specialize in commercial/industrial, as well as institutional projects."

The index predicts continued improvement in business conditions for U.S. architecture firms in the Northeast and Midwest, and firms in the South and West will have moderate growth levels. For more information, go to www.aia.org