Residential and nonresidential construction will decline significantly during the rest of this year and next year, dropping 13% and 7% respectively, according to FMI's Construction Outlook: Second Quarter 2009.
But the consulting firm also forecasts that the “nonbuilding” sector — power, highway and street, sewage and waste disposal, water supply, and conservation and development — will increase by 4% each year, in terms of the dollar amount spent on construction, in 2009 and 2010, largely because of the American Recovery and Reinvestment Act of 2009.
So far, the economic stimulus package hasn't created a significant number of new jobs. It is, however, allowing road and water projects that lost funding in state budget cuts to move forward. The “surprise winner” from the stimulus package, according to the report, is conservation and development.