Welcome!

News Feed Item

July Construction Rises 6 Percent

NEW YORK, Aug. 22, 2014 /PRNewswire/ -- New construction starts in July climbed 6% to a seasonally adjusted annual rate of $588.8 billion, according to McGraw Hill Construction, a division of McGraw Hill Financial.  Nonresidential building continued to advance, supported by yet another robust month for manufacturing plant projects as well as improvement for commercial building.  The nonbuilding construction sector (public works and electric utilities) also advanced, helped by the start of a very large mass transit rail project.  At the same time, residential building was unchanged from its pace in June.  For the first seven months of 2014, total construction starts on an unadjusted basis were reported at $311.6 billion, a 4% gain compared to the same period a year ago.

The July statistics raised the Dodge Index to 125 (2000=100), up from a revised 118 for June, and marking the highest level for the Dodge Index so far in 2014.  "The construction expansion this year is getting more of a contribution from nonresidential building," stated Robert A. Murray, chief economist and vice president for McGraw Hill Construction.  "Manufacturing plant construction is seeing the start of numerous chemical and energy-related projects, consistent with the nation's growing energy sector.  Commercial building is maintaining its upward momentum from low levels, while institutional building with its up-and-down pattern appears to be stabilizing after a lengthy decline.  With residential building being limited so far in 2014 by the sluggish single family market, the further growth for nonresidential building has been needed to keep the construction expansion going.  As for public works, this year's pullback has stayed moderate, helped in part by the ongoing strength for mass transit work.  The recent passage of a $10.8 billion 'patch' by Congress to shore up the Highway Trust Fund through May 2015 should also help to keep this year's public works downturn from getting much more severe."

Nonresidential building in July increased 7% to $229.0 billion (annual rate), showing further growth on top of the 12% increase reported in June.  The manufacturing plant category jumped 44%, reflecting the start of still more chemical and energy-related facilities, including these projects in Texas – a $3.0 billion petrochemical plant in Baytown and a $1.7 billion ethylene plant in Freeport.  Other large manufacturing projects entered as July starts included a $450 million semiconductor facility in Hillsboro OR and a $370 million ore processing plant in Corpus Christi TX.  The commercial building group in July rose 11%, resuming its upward trend after retreating in June.  Hotel construction in July climbed 29%, helped by groundbreaking for a $190 million hotel/time share tower in Honolulu HI and $114 million for the hotel portion of a $300 million mixed-use building in Los Angeles CA.  Store construction improved 12%, aided by the start of a $49 million mall addition in Denver CO.  Office construction grew 8%, supported by the start of $252 million for the office portion of a $420 million mixed-use building in Minneapolis MN and $170 million for the office portion of a $225 mixed-use building in Dallas TX.  Warehouse construction was the one commercial project type not able to report a July gain, as it slipped 13%.

The institutional building group as a whole dropped 14% in July, retreating after growing 12% during the previous two months.  Healthcare facilities fell 34% from its heightened June amount, which featured the start of a $900 million hospital campus in San Francisco CA.  In contrast, educational building in July advanced 11%, supported by groundbreaking for such projects as a $130 million addition and renovation to a high school in Winchester MA, a $94 million new high school in Centerton AR, and an $86 million new high school in Laramie WY.  Through the first seven months of 2014, the dollar amount of new high school construction projects for the nation was up 10%, contributing to a 7% year-to-date gain for the overall educational building category.  The July pattern for the smaller institutional project types was mixed.  Transportation terminal construction grew 39%, lifted by the start of a $55 million renovation of an intermodal facility in Springfield MA, and church construction increased 19% from the previous month's weak amount.  On the negative side, the public buildings category retreated 12% while amusement-related construction dropped a more substantial 45% after a strong June that included the start of a $375 million arena in Las Vegas NV.  Despite its steep decline, amusement-related construction did include the July start of a $129 million casino in Jamul CA.

Residential building, at $223.4 billion (annual rate) in July, held basically even with its June pace.  Single family housing slipped 3%, reflecting this performance by major region – the West, down 10%; the Northeast and South Central, each down 3%; the Midwest, unchanged, and the South Atlantic, up 1%.  Since the end of 2013, single family housing has been essentially flat, placing the strong upward movement that was reported during 2012 and most of 2013 on hold.  Murray indicated, "One explanation for the sluggish single family market is that investor demand has waned, and first-time homebuyers have been unable to fill the gap, given continued tight bank lending standards.  On a positive note, the most recent survey of bank lending officers conducted by the Federal Reserve shows that 18% of the respondents had eased lending standards on residential mortgages during the second quarter, which along with continued low mortgage rates may help housing demand and construction to strengthen in the latter half of this year."  Multifamily housing in July increased 8%, maintaining the moderate upward trend that's been present during 2014.  Large multifamily projects that supported the July increase included a $350 million multifamily tower in Queens NY, a $260 million condominium tower in Honolulu HI, and $160 million for the multifamily portion of the $300 million mixed-use building in Los Angeles CA.  Through the first seven months of 2014, the top five metropolitan areas ranked by the dollar amount of new multifamily starts were the following – New York NY, Washington DC, Los Angeles CA, Miami FL, and Boston MA.

Nonbuilding construction in July climbed 14% to $136.4 billion (annual rate).  While most of the public works categories showed decreased activity during July, miscellaneous public works (which includes site work, mass transit, and pipelines) soared 103%.  The lift came mostly from the $1.2 billion related to the start of Phase 2 of the Dulles Corridor MetroRail project in Herndon VA.  In general, mass transit rail work has stayed strong during 2014, registering a 61% year-to-date gain for the nation as a whole.  Highways and bridges moved in the downward direction during July, sliding 11% and 21%, respectively.  The environmental public works categories showed a moderate loss of momentum in July, with river/harbor development and water supply systems each down 7%, while sewer construction fell 9%.  The electric utility and gas plant category in July jumped 55%, as part of its occasional departure from the downward trend reported over the past year.  Large projects in July that boosted the electric utility and gas plant total included a $1.5 billion natural gas liquid fractionator facility in Texas and $500 million for electrical system upgrades to the East Side Access Tunnel project in New York NY.

The 4% gain for total construction starts on an unadjusted basis during the first seven months of 2014 was the result of a varied performance by the three main construction sectors.  Nonresidential building during the January-July period advanced 13%, due to this behavior – commercial building, up 5%; manufacturing building, up 149%; and institutional building, down 1%.  Residential building grew 5% year-to-date, with single family housing up 2% and multifamily housing up 17%.  Nonbuilding construction registered a 10% year-to-date decline, with public works down 10% and electric utilities down 8%.

By geography, total construction starts in the first seven months of 2014 revealed gains in two regions – the South Central, up 18%; and the Northeast, up 5%.  The West was unchanged from the same period a year ago, while declines were posted by the Midwest, down 1%; and the South Atlantic, down 3%.

July 2014 Construction Starts

July 2014 Construction Starts

JULY 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



July 2014

June 2014

% Change

Nonresidential Building

$229,038

$213,832

+7

Residential Building

223,355

223,537

-0-

Nonbuilding Construction

136,395

119,422

+14

   TOTAL Construction

$588,788

$556,791

+6

 

THE DODGE INDEX
(Year 2000=100, Seasonally Adjusted)

July 2014….…125
June 2014.......118

 

YEAR-TO-DATE CONSTRUCTION STARTS
Unadjusted Totals, In Millions of Dollars



7 Mos. 2014

7 Mos. 2013

% Change

Nonresidential Building

$110,475

$97,703

+13

Residential Building

127,431

121,100

+5

Nonbuilding Construction

73,703

81,472

-10

   TOTAL Construction  

$311,609

$300,275

+4

 

About McGraw Hill Construction: McGraw Hill Construction provides essential data, news, insights, and intelligence to better inform construction professionals' decisions. 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:
Evelyn O'Neill, Marketing Communications:
McGraw Hill Construction, +1 212-904-3322, [email protected]

Photo - http://photos.prnewswire.com/prnh/20140822/138834

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
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, attendees learned about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how ...
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Effectively SMBs and government programs must address compounded regulatory compliance requirements. The most recent are Controlled Unclassified Information and the EU's GDPR have Board Level implications. Managing sensitive data protection will likely result in acquisition criteria, demonstration requests and new requirements. Developers, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by incorporating changes. In...
"Coalfire is a cyber-risk, security and compliance assessment and advisory services firm. We do a lot of work with the cloud service provider community," explained Ryan McGowan, Vice President, Sales (West) at Coalfire Systems, Inc., in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
CloudJumper, a Workspace as a Service (WaaS) platform innovator for agile business IT, has been recognized with the Customer Value Leadership Award for its nWorkSpace platform by Frost & Sullivan. The company was also featured in a new report(1) by the industry research firm titled, “Desktop-as-a-Service Buyer’s Guide, 2016,” which provides a comprehensive comparison of DaaS providers, including CloudJumper, Amazon, VMware, and Microsoft.
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, sha...
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web ...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.