Report Confirms Design-Build to Account for Over 47% of Construction Spending by 2028

WASHINGTON, DC, UNITED STATES, January 7, 2025 /EINPresswire.com/ -- FMI Corporation released an updated 2024 Design-Build Utilization Study projecting design-build will account for over 47% of U.S. construction spending by 2028, surpassing $1.1 trillion in total construction spending over the next five years.

The findings emphasize the critical importance of skilled Owner Advisors (OAs) in navigating complex projects and ensuring effective communication across teams. The study highlights the growing need to engage Underutilized Business Enterprises (UBEs) to address scalability challenges and promote meaningful participation in design-build project delivery. The study also reveals design-build’s early collaboration, innovative approaches and integration of UBEs provide unique opportunities to address supply chain challenges and enhance project outcomes.

“This report reaffirms the versatility and resilience of design-build, even in uncertain markets,” said Lisa Washington, CAE, DBIA’s Executive Director/CEO. “When executed in accordance with proven best practices and techniques, design-build can continue to drive optimal outcomes for Owners and practitioners nationwide.”

Among the report’s highlights:

- Market Growth: Design-build is forecast to grow at a 2.9% compound annual growth rate (CAGR) from 2024 to 2028, with public and private Owners increasingly adopting the method to mitigate challenges such as labor shortages and supply chain disruptions.
- Sector Expansion: Manufacturing, highway/street and educational sectors are expected to see the largest design-build investments. In particular, the education sector is seeing rapid adoption due to its ability to handle tight schedules and evolving needs.
- Progressive Design-Build: Progressive design-build is gaining momentum, particularly for water/wastewater and healthcare projects, offering flexibility and fostering innovation while maintaining cost predictability.
- Talent Retention: The study emphasizes how design-build’s collaborative approach supports talent retention through enhanced team engagement and early involvement, addressing critical workforce challenges in the AEC industry.
- Equity and Inclusion: The report highlights the increasing emphasis on involving UBEs, with strategic mentorship programs and early engagement helping to unlock new opportunities for smaller firms.

Learn more about the report:
- Full FMI Report: Download the free full report.
- Webinar: Join FMI’s Emily Beardall on January 29 for an in-depth discussion of the report’s key insights and their implications for the design-build community.
- Podcast: Be on the lookout for February’s episode of the Design-Build Delivers Podcast, where Beardall explores the results and narratives shaping design-build’s future. Available wherever you listen to podcasts.

Erin Looney
Design-Build Institute of America
+1 850-443-0455
email us here
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