CX Insider Blog

Written By N. Oliver Maudlin, LEED AP, IES, Regional Sales Manager at Acuity Brands- Midwest

Looking into the new year, it is easy to be filled with excitement. Despite the certain challenges of an oftentimes volatile market, whatever headwinds we face will also carry a bounty of opportunities, technological and process innovations, and moments of brilliance. In short, we Midwesterners, or more accurately, Chicagoans, are a resilient bunch who keep moving forward regardless of the obstacles in our path.

We are fortunate to serve several vertical markets in Chicagoland, many of which are predicted to enjoy expansion in 2024. Buoying this positive sentiment are data points which justify this more bullish outlook. Nationally, the December Institute for Supply Management (ISM) Manufacturing PMI rose to 47.4%, up from 46.7% in November of 2023. Unlike the Architectural Billing Index, the ISM Manufacturing PMI uses a baseline score of 48.7% to indicate market expansion or contraction. The ABI uses the more round number 50%. Regionally, the ABI continues to paint a positive picture with the Midwest registering a score of 49%, leading the country. While Chicago slightly lags the Midwest region in terms of the ABI, we did notice an increase since October. Lastly, and perhaps the most bullish of all signals we’re discussing, is a spike in project inquiries. Local and regional firms have reported an uptick, responding to a potential ease in credit conditions.

Healthcare, a pivotal vertical market, is witnessing a surge in construction. While hospitals and major medical campuses may not be the driving force of this growth, medical centers and specialized care facilities are undergoing renovations and expansions to accommodate the evolving healthcare landscape. Innovations in healthcare design are not only enhancing patient care but also reflecting a commitment to wellness and healing environments.

Another vertical that is looking to expand greatly in 2024 is the commercial sector. As people start to transition back to a hybrid office schedule, the lighting industry is noticing significant expansions of existing properties as well as groundbreaking and innovative new projects. Ultimately, office spaces are undergoing transformative renovations, blending cutting-edge technology and sustainable designs to cater to evolving work trends. A quick Google search will lead you to discover some incredible developments across Chicagoland that are answering the challenge of the new workplace environment.

While mortgage rates appear to be nearing their plateau, the residential market, including multifamily developments, is expected to contract slightly against the backdrop of consecutive, near record-setting years of investment. That said, as has been mentioned several times thus far, innovations abound. A coastal trend of converting existing commercial spaces to multifamily dwellings has finally found its way to Chicagoland with developers securing funding to convert vacant spaces into apartments.

With a current influx of available square footage, developers can be creative by taking the sustainable approach and repurposing existing building envelopes into new and vibrant properties. Turning previously underserved or vacant spaces into something scalable and sustainable is one of the leading opportunities our development community faces.

In closing, 2024 does promise to be a most exciting year. Collaboration among stakeholders, from the design community to developers to contractors and distributors, is what fuels prosperity, transformation, and growth. I, for one, am looking forward to another year of collaborating with and working alongside such a resilient bunch of Chicagoans.

Happy New Year to you all!