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A national analyst’s look at Oregon’s construction industry shows “unquestionable improvement” in several areas, with room to grow in 2014.

“Almost every category of construction has bottomed out or is turning up,” said Cliff Brewis, senior director of operations for McGraw-Hill Construction/Dodge. He presented his research last week at the annual meeting of the Construction Specifications Institute‘s Portland chapter.

Overall, the state’s construction industry grew 29.6 percent in 2013 to an estimate of $6.9 billion. Projected growth for 2014 is 4.1 percent, to $7.2 billion, Brewis said.

Single-family construction, experiencing double-digit growth, is a leading indicator for the industry, he said.

“If it does well, we have strong demand for new schools, retail and everything else,” he said. “The worry was that it was overheating a little bit, but interest rates may temper things a little bit.”

Portland is a “very strong market right now,” Brewis said. Construction employment in the city grew by 8 percent last year, he said.

“It’s not like (Las) Vegas, where 50 percent of homes are still underwater,” he said.

Growth also is projected to soften in multifamily housing, which can be divided into apartments, senior housing and urban condominiums, after three strong years of growth, according to the McGraw-Hill data.

“Senior assisted living is great if you are looking for a nice, steady marketplace,” Brewis said. “In terms of the overall growth, the demographics are good.”

Education spending in Oregon is expected to continue to grow in 2014 with bonded projects in the works around Portland and the rest of the state.

However, highway spending and health care spending are projected to drop 26.7 percent and 21.7 percent, respectively, according to the McGraw-Hill data. Federal funding issues are impacting highway construction. Health care construction may take a hit in the short term, but it’s expected to strengthen in the long term, according to Brewis.

Office construction also is lagging because of high vacancy rates, he said.

One factor still to be considered for this year is a moderate climb in 10-year Treasury rates; that would have an impact on homebuyers. McGraw-Hill says those rates should not ascend past 3.25 percent for most of the year.

“If that holds true, these numbers should be right,” he said. “If the (Federal Reserve) tapering becomes more dramatic or the marketplace reacts more negatively or interest rates rise sharply, that would slow down the pace of construction. That is not my expectation for what is going to happen though.”