Welcome!

News Feed Item

February Construction Unchanged from Prior Month

NEW YORK, March 20, 2014 /PRNewswire/ -- At a seasonally adjusted annual rate of $486.7 billion, new construction starts in February were essentially the same as January's amount, according to McGraw Hill Construction, a division of McGraw Hill Financial.  After the strong finish to last year, the construction start statistics have shown lackluster activity during the first two months of 2014.  The flat pace for total construction starts in February was due to a mixed performance by major sector – less nonresidential building, but more housing and public works.  For the first two months of 2014, total construction starts on an unadjusted basis were reported at $66.7 billion, down 3% from the same period a year ago.

February's data kept the Dodge Index at 103 (2000=100), remaining below the full year 2013 average for the Index at 111.  "While construction activity has generally trended upward over the past two years, the monthly pattern has frequently been hesitant, and early 2014 has turned out to be one of those hesitant periods," stated Robert A. Murray, chief economist for McGraw Hill Construction.  "To some extent, the harsh winter weather has played a role in dampening construction activity, particularly as it relates to single family housing. At the same time, multifamily housing in early 2014 has been able to strengthen further.  For nonresidential building, the upturn so far has been much more gradual and subject to setback, such as what took place in this year's first two months.  Still, the commercial building sector is seeing rising occupancies and rents, and the improved fiscal health of states and more financing from bond measures should help the institutional building sector stabilize, which would enable nonresidential building to soon regain upward momentum.  For nonbuilding construction, the prospects for renewed growth in 2014 are more limited, given the comparison to 2013 which included the start of several massive public works projects, in combination with the continued retrenchment for new electric utility starts underway after the record high reached back in 2012."

Nonresidential building in February dropped 9% to $141.9 billion (annual rate), sliding back for the third month in a row after the heightened volume registered last fall.  The volatile manufacturing plant category, plunging 75%, was responsible for much of February's nonresidential building decline.  If manufacturing plant construction is excluded, then nonresidential building in February would be up 4%. January's manufacturing plant amount had been boosted by the start of a $1.2 billion propane dehydrogenation facility in Texas; in contrast, the largest manufacturing project reported as a February start was a $143 million medical products plant, also in Texas.  Commercial building in total climbed 10% in February, helped by gains for offices, warehouses, and hotels.  Office construction advanced 17%, helped by groundbreaking for several large office buildings, located in Albany NY ($103 million), San Antonio TX ($92 million), and Waltham MA ($50 million). Warehouse construction jumped 43%, lifted by the start of a $79 million Nordstrom fulfillment center in Elizabethtown PA. Hotels rose a moderate 8%, aided by the start of a $40 million Hyatt hotel in Denver CO. Store construction, receding 1%, was not able to contribute to February's commercial building gain.

The institutional categories on balance in February held steady with the prior month, due to mixed behavior by project type.  Educational facilities retreated 9%, although the latest month did include the start of a $136 million high school renovation project in Long Beach CA, an $85 million research lab in Maplewood MN, and a $68 million high school in Cambridge MA. Healthcare facilities fell 5% in February, despite the start of a $118 million ambulatory care clinic in Minneapolis MN. The smaller institutional categories in February were led by an 86% jump for miscellaneous nonresidential buildings, reflecting the start of a $146 million renovation project at the New York Aquarium in Brooklyn NY.  Gains were also reported for churches and public buildings, each up 12% from weak January activity, although amusement-related work slipped 5%.

Residential building, at $213.8 billion (annual rate), increased 3% in February, as 17% growth for multifamily housing outweighed a slight 1% drop for single family housing.  The February gain for multifamily housing was led by three large projects in the New York City area, with two in Manhattan ($425 million and $322 million), and one in Brooklyn ($240 million).  Additional support came from the start of a $198 million apartment building in San Francisco CA.  During the first two months of 2014, the metropolitan area with the largest dollar amount of new multifamily starts was New York NY, followed by Washington DC, Miami FL, San Francisco CA, and Denver CO.  The slight 1% decline for single family housing in February, compared to a steeper 4% drop in January, suggests that single family housing may now be starting to stabilize after showing decreasing activity during the three previous months.  In February, the single family declines by region were shown by the Northeast, down 8%; the Midwest, down 2%; and the South Atlantic and West, each down 1%; while the South Central managed to edge up 1%.  Murray noted, "The most recent weakness for single family housing can be attributed to tough weather conditions in parts of the U.S., and it's expected that single family housing will regain its previous upward track very soon. Still, the demand for single family housing arising from potential first time homebuyers may be restrained going forward, due to such factors as continued tight bank lending standards for mortgages and the high student loan debt faced by many in this group."

Nonbuilding construction increased 8% in February to $130.9 billion (annual rate), making a partial rebound after the steep 33% decline in January.  The public works sector overall improved 12%, due mostly to a 146% surge for the miscellaneous public works category, which includes such diverse project types as mass transit and pipelines.  Large mass transit projects entered as February starts were the $1.3 billion Crenshaw/LAX Transit Corridor Project in Los Angeles CA, plus two highway guideway projects in Honolulu HI valued at $444 million and $362 million respectively.  A $345 million oil pipeline in Michigan was also entered as a February start.  Water supply construction in February registered a moderate 6% gain, helped by the start of a $78 million water treatment plant in Lake Forest CA.  The other public works categories fell back in February, with river/harbor development down 10%; bridge construction down 14%, highways down 21%, and sewers down 39%.  Electric utility construction in February dropped 25%, although the latest month did include the start of two large wind power projects located in New Mexico ($450 million) and Nebraska ($145 million).

The 3% decline for total construction starts on an unadjusted basis during the first two months of 2014, compared to 2013, was the result of a varied performance by major sector – nonresidential building, down 12%; residential building, up 5%; and nonbuilding construction, down 2%.  By geography, total construction for the January-February period of 2014 revealed this behavior compared to last year – the South Atlantic, down 8%; the South Central, down 7%; the Midwest, down 4%; the West, unchanged; and the Northeast, up 8%.

Useful perspective is also obtained by looking at twelve-month moving totals, in this case the twelve months ending February 2014 versus the twelve months ending February 2013, which lessens the volatility inherent in comparisons of just two months.  On this basis, total construction starts advanced 6%, as the result of the following performance by sector – nonresidential building, up 5%; residential building, up 20%; and nonbuilding construction, down 10%.  By geography, the twelve months ending February 2014 showed this pattern for total construction compared to the previous twelve months – the Northeast, up 14%; the West and Midwest, each up 9%; the South Central, up 3%; and the South Atlantic, down 5%.

February 2014 Construction Starts

The Dodge Index of New Construction Starts

Photo - http://photos.prnewswire.com/prnh/20140320/NY87731

February 2014 Construction Starts

Monthly Summary of Construction Starts
Prepared by McGraw Hill Construction Research & Analytics

 


Monthly Construction Starts
Seasonally Adjusted Annual Rates, In Millions of Dollars


 

February 2014

January 2014

% Change

Nonresidential Building

$141,946

$156,607

-9

Residential Building

213,808

206,982

+3

Nonbuilding Construction

130,925

121,544

+8

   Total Construction

$486,679

$485,133

-0-

The Dodge Index 
(Year 2000=100, Seasonally Adjusted)
February 2014...103
January 2014...103

 


Year-to-Date Construction Starts
Unadjusted Totals, In Millions of Dollars


 

2 Mos 2014

2 Mos. 2013

% Change

Nonresidential Building

$20,276

$23,096

-12

Residential Building

28,702

27,379

+5

Nonbuilding Construction

17,757

18,119

-2

   Total Construction  

$66,735

$68,594

-3

 

About McGraw Hill Construction: McGraw Hill Construction provides essential data, news, insights, and intelligence to better inform construction professionals' decisions and strengthen their market position. McGraw Hill Construction's data, analytics, and media businesses – Dodge, Sweets, Architectural Record, and Engineering News-Record – create opportunities for owners, architects, engineers, contractors, building product manufacturers, and distributors to strengthen their market position, size their markets, prioritize prospects, and target and build relationships that will win more business. McGraw Hill Construction serves more than one million customers through its trends and forecasts, industry news, and leading platform of construction data, benchmarks, and analytics, including Dodge MarketShare™, Dodge BuildShare®, and Dodge SpecShare®. Construction data is available for North American and global markets. To learn more, visit www.construction.com.

About McGraw Hill Financial:
McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company's iconic brands include: Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.

Media Contact:
Kathy Malangone, Senior Director, Communications:
McGraw Hill Construction, 212-904-4376, [email protected] 

SOURCE McGraw Hill Construction

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Silver Spring Networks, Inc. (NYSE: SSNI) extended its Internet of Things technology platform with performance enhancements to Gen5 – its fifth generation critical infrastructure networking platform. Already delivering nearly 23 million devices on five continents as one of the leading networking providers in the market, Silver Spring announced it is doubling the maximum speed of its Gen5 network to up to 2.4 Mbps, increasing computational performance by 10x, supporting simultaneous mesh communic...
Sensors and effectors of IoT are solving problems in new ways, but small businesses have been slow to join the quantified world. They’ll need information from IoT using applications as varied as the businesses themselves. In his session at @ThingsExpo, Roger Meike, Distinguished Engineer, Director of Technology Innovation at Intuit, showed how IoT manufacturers can use open standards, public APIs and custom apps to enable the Quantified Small Business. He used a Raspberry Pi to connect sensors...
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
Data-as-a-Service is the complete package for the transformation of raw data into meaningful data assets and the delivery of those data assets. In her session at 18th Cloud Expo, Lakshmi Randall, an industry expert, analyst and strategist, will address: What is DaaS (Data-as-a-Service)? Challenges addressed by DaaS Vendors that are enabling DaaS Architecture options for DaaS
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
CIOs and those charged with running IT Operations are challenged to deliver secure, audited, and reliable compute environments for the applications and data for the business. Behind the scenes these tasks are often accomplished by following onerous time-consuming processes and often the management of these environments and processes will be outsourced to multiple IT service providers. In addition, the division of work is often siloed into traditional "towers" that are not well integrated for cro...