Market Snapshot: Health Care (Part 1)

Market Snapshot: Health Care (Part 1)

Weekly market intelligence data and insights for AE firm leaders.

Overview

• The health care category of construction includes hospitals, medical buildings, and special care facilities (e.g., nursing homes, drug clinics, and adult care centers).
  • Approximately 79% of total health care construction is private.
  • Hospitals make up about 53% of total construction. 

Health Care Market Breakdown

Market Size*: $52.6 billion
*Based on Value of Construction Put in Place (CPiP) – 2022 (U.S. Census Bureau)

Health care – Design and Construction Value

Outlook

• Within construction subsectors, hospital construction is expected to have one of the highest growth rates in the next five years. The AIA’s Consensus Construction Forecast projects a 5.5% increase for the health care sector in 2023.
• Operators in the sector are expected to benefit from technological innovation and the digitization of health care (physical, virtual, and at-home), which will create efficiencies and increase access to care.
• Increased M&A activity and investment from private equity over the next few years is likely to help the sector with capital investments for new facilities as well as staff training and development.
• The health care and life sciences industry has unique requirements that will continue to impact construction processes, particularly those related to HVAC and plumbing. 

In next week’s issue, we’ll look at trends and hot spots for this sector. To learn what’s ahead for other markets, check out Morrissey Goodale’s 2023 Market Outlook for the AE Industry. Click here to access recording and materials.

To learn more about market intelligence and research from Morrissey Goodale, schedule an intro call with Rafael Barbosa. Connect with him on LinkedIn.