WASHINGTON – Associated Builders and Contractors (ABC) forecasts a continued steady economic recovery for the U.S. commercial and industrial construction industries in 2016, fueled in part by an estimated 7.4-percent growth in non-residential construction.

The industry’s solid economic recovery in 2015 should continue in 2016, according to ABC, led by strong consumer spending and despite a weak global economy.

“As the mid-phase of the economic recovery continues, ABC forecasts growth in nonresidential construction spending of 7.4-percent next year along with growth in employment and backlog,” said ABC Chief Economist Anirban Basu.

“The mid-phase of the recovery is typically the lengthiest part and ultimately gives way to the late phase, when the economy overheats. The current recovery could end up challenging the lengthiest recovery in U.S. history, which lasted 120 months between March 1991 and March 2001.

ABC’s leading indices each suggest that 2016 will be another solid year for the typical U.S. nonresidential construction firm.

“ABC’s Construction Confidence Index encompasses expectations with respect to hiring, profit margins and projected sales growth. According to the most recent survey, overall contractor confidence has increased with respect to both sales (67.3 to 69.4) and profit margins (61 to 62.9). And while the pace of hiring is not expected to increase rapidly during the next six months, largely because of the lack of suitably trained skilled personnel, the rate of new hires will continue at a steady pace.”

ABC’s Construction Backlog Indicator also signals strong demand during the months ahead. According to the latest backlog survey, average contractor backlog stood at 8.5 months by mid-year 2015, with backlog surging in the western United States and the heavy industrial category.

About the Associated Builders and Contractors (ABC)
Associated Builders and Contractors (ABC) is a national construction industry trade association representing nearly 21,000 chapter members. Founded on the merit shop philosophy, ABC and its 70 chapters help members develop people, win work and deliver that work safely, ethically, profitably and for the betterment of the communities in which ABC and its members work. ABC’s membership represents all specialties within the U.S. construction industry and is comprised primarily of firms that perform work in the industrial and commercial sectors. For more information, please visit: https://www.abc.org/

About Xcel Mechanical Systems, Inc.
Xcel Mechanical Systems designs, builds and services commercial and industrial HVAC, Plumbing and Process Piping systems for clients across the Greater Los Angeles Metropolitan Area. Our cost-effective solutions make buildings more comfortable, energy efficient, and easier to manage. Our resume includes large-scale implementations across the Aerospace, Commercial, Data Center, Education, Entertainment, Government, and Healthcare sectors. For more information, please visit: www.xcelmech.com