We’ve heard so much in the news lately about the healthcare reform debate. What I haven’t heard talked about is the future of healthcare construction … until now.
Jim Haughey, Reed Construction Data chief economist, said in July healthcare spending is certain to expand in 2011 and create a need for more facilities – hospitals more than residential care.
The good news for those in the healthcare construction business is it looks like there will be plenty of projects in the next couple of years.
“The long term outlook for healthcare construction remains good and will likely be boosted somewhat by whatever Congress decides to do,” he wrote on the RCD Web site.
The uncertainty facing hospitals is also affecting medical offices, nursing homes and residential care facilities … compounding their woes are the effects of the recession and surplus office spaces.
Haughey says overall, healthcare construction spending growth has declined from several years in the 10 percent range to about 2 percent, allowing for drops in construction materials costs, since last fall. He is predicting a further 7 percent decline through the end of 2009. But there is light at the end of the tunnel!
“This is as much due to the uncertain market environment as it is to the recession,” Haughey said. “Then expect a return to the 10 percent growth range by late next year (2010).”
He does warn you to be open-minded and flexible about your projects, however.
“But depending on what Congress decides to do, the project owners may not be the same hospitals you now expect to expand next year,” he said.
Regardless of the size and scope of the project, you can count on Projectmates to help keep all facets of your project running smoothly, on time and on budget.
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