Click here to close now.




















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
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
ElasticBox, the agile application delivery manager, announced freely available public boxes for the DevOps community. ElasticBox works with enterprises to help them deploy any application to any cloud. Public boxes are curated reference boxes that represent some of the most popular applications and tools for orchestrating deployments at scale. Boxes are an adaptive way to represent reusable infrastructure as components of code. Boxes contain scripts, variables, and metadata to automate proces...
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so the...
To support developers and operations professionals in their push to implement DevOps principles for their infrastructure environments, ProfitBricks, a provider of cloud infrastructure, is adding support for DevOps tools Ansible and Chef. Ansible is a platform for configuring and managing data center infrastructure that combines multi-node software deployment, ad hoc task execution, and configuration management, and is used by DevOps professionals as they use its playbooks functionality to autom...
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, 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 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Com...
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, discussed why containers should be paired with new architectural practices such as microservices rathe...
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
Puppet Labs is pleased to share the findings from our 2015 State of DevOps Survey. We have deepened our understanding of how DevOps enables IT performance and organizational performance, based on responses from more than 20,000 technical professionals we’ve surveyed over the past four years. The 2015 State of DevOps Report reveals high-performing IT organizations deploy 30x more frequently with 200x shorter lead times. They have 60x fewer failures and recover 168x faster
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Containers are not new, but renewed commitments to performance, flexibility, and agility have propelled them to the top of the agenda today. By working without the need for virtualization and its overhead, containers are seen as the perfect way to deploy apps and services across multiple clouds. Containers can handle anything from file types to operating systems and services, including microservices. What are microservices? Unlike what the name implies, microservices are not necessarily small,...
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Learn what is going on, contribute to the discussions, and e...
This Enterprise Strategy Group lab validation report of the NEC Express5800/R320 server with Intel® Xeon® processor presents the benefits of 99.999% uptime NEC fault-tolerant servers that lower overall virtualized server total cost of ownership. This report also includes survey data on the significant costs associated with system outages impacting enterprise and web applications. Click Here to Download Report Now!