Click here to close now.

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
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development...
Live Webinar with 451 Research Analyst Peter Christy. Join us on Wednesday July 22, 2015, at 10 am PT / 1 pm ET In a world where users are on the Internet and the applications are in the cloud, how do you maintain your historic SLA with your users? Peter Christy, Research Director, Networks at 451 Research, will discuss this new network paradigm, one in which there is no LAN and no WAN, and discuss what users and network administrators gain and give up when migrating to the agile world of clo...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, it is now feasible to create a rich desktop and tuned mobile experience with a single codebase, without compromising performance or usability.
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult – let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and liv...
SYS-CON Media announced today that CloudBees, the Jenkins Enterprise company, has launched ad campaigns on SYS-CON's DevOps Journal. CloudBees' campaigns focus on the business value of Continuous Delivery and how it has been recognized as a game changer for IT and is now a top priority for organizations, and the best ways to optimize Jenkins to ensure your continuous integration environment is optimally configured.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the...
"In the IoT space we are helping customers, mostly enterprises and industry verticals where time-to-value is critical, and we help them with the ability to do faster insights and actions using our platform so they can transform their business operations," explained Venkat Eswara, VP of Marketing at Vitria, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
The most often asked question post-DevOps introduction is: “How do I get started?” There’s plenty of information on why DevOps is valid and important, but many managers still struggle with simple basics for how to initiate a DevOps program in their business. They struggle with issues related to current organizational inertia, the lack of experience on Continuous Integration/Delivery, understanding where DevOps will affect revenue and budget, etc. In their session at DevOps Summit, JP Morgenthal...
"We provide a web application framework for building really sophisticated web applications that run on a browser without any installation need so we get used for biotech, defense, and banking applications," noted Charles Kendrick, CTO and Chief Architect at Isomorphic Software, in this SYS-CON.tv interview at @DevOpsSummit (http://DevOpsSummit.SYS-CON.com), held June 9-11, 2015, at the Javits Center in New York
In his session at 16th Cloud Expo, Simone Brunozzi, VP and Chief Technologist of Cloud Services at VMware, reviewed the changes that the cloud computing industry has gone through over the last five years and shared insights into what the next five will bring. He also chronicled the challenges enterprise companies are facing as they move to the public cloud. He delved into the "Hybrid Cloud" space and explained why every CIO should consider ‘hybrid cloud' as part of their future strategy to achie...
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
"The idea of polyglot persistence is you have to apply the right database for the job - you always have to have many different databases in play. We offer that whole system as a service," explained Raj Singh, Developer Advocate for IBM Cloud Data Services, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that WHOA.com, an ISO 27001 Certified secure cloud computing company, participated as “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which took place June 9-11, 2015, at the Javits Center in New York City, NY. WHOA.com is a leader in next-generation, ISO 27001 Certified secure cloud solutions. WHOA.com offers a comprehensive portfolio of best-in-class cloud services for business including Infrastructure as a Service (IaaS), Secure Cloud Desk...