Despite a slow start, the next five years will be a period of robust revenue growth for commercial construction companies, mainly because of the economic recovery, according to a market research report from IBISWorld. Few industries suffered more during the recession than commercial building construction. The collapse of the housing market and its subsequent strain on the financial sector set the stage for a stifled commercial construction market. Reduced corporate profit, high unemployment and low consumer spending contributed to the industry’s decline as businesses stopped growing or even downsized, which halted demand for new office space and warehouse construction.
High unemployment and low consumer spending also crippled the retail and hospitality sectors, according to Andrea Alegria, IBISWorld industry analyst. As a result, industry revenue is expected to fall at an average annual rate of 13.4% to $105.9 billion over the five years to 2012.