Construction spending in May reached the highest level since December 2009 as widespread gains in private nonresidential construction, single-family and multifamily homebuilding more than offset a continuing downturn in public construction, according to an analysis of new federal data released today by the Associated General Contractors of America.
“It is encouraging to see such a broad-based pickup in private construction,” said Ken Simonson, the association’s chief economist. Simonson noted that private nonresidential spending climbed for the third month in a row and was 19% higher than in May 2011. Residential construction surged 3% for the month and 8% year-over-year, with new multifamily construction leaping 6% and 50%, respectively, and single-family homebuilding up 2% and 15%.
The construction economist said that four private nonresidential categories each posted 12-month spending increases of more than 25%: power and energy construction, 35%; hotels, 29%; educational and manufacturing, 27% apiece. There were also improvements in year-over-year totals for private transportation such as trucking and rail facilities, up 17%; health care and commercial (retail, warehouse and farm), 11%; and office construction, 7%.
In contrast, public construction slumped for the fifth consecutive month, falling 4% below the May 2011 level, Simonson noted. He said the largest public category, highway and street construction, slipped 0.5% from April but edged up 2% year-over-year, while the second-largest segment, educational construction, fell 3% and 7%, respectively.
“Based on the number and variety of projects that have been announced in recent months, I expect the private nonresidential sector to keep posting hefty gains for the rest of 2012 and beyond,” Simonson predicted. “Apartment construction seems sure to remain strong as well. Single-family homebuilding is not as solid but has apparently passed its low point. Together, these categories should mean that total construction spending in 2012 will be positive for the year for the first time since 2007 despite ongoing weakness in public construction. +
Related Stories
| Aug 26, 2014
Ranked: Top industrial sector AEC firms [2014 Giants 300 Report]
Stantec, Jacobs, and Turner top BD+C's rankings of the nation's largest industrial sector design and construction firms, as reported in the 2014 Giants 300 Report.
| Aug 26, 2014
High-rise concept uses 'sky street' to link towers [slideshow]
The design for a new complex in Shenzhen’s bay area consists of highly reflective glass towers, expansive garden space, and a horizontal glass structure that connects the buildings.
| Aug 25, 2014
Restoration of quake-ravaged Atascadero City Hall affirms city’s strength [2014 Reconstruction Awards]
The landmark city hall was severely damaged by the San Simeon earthquake in 2003. Reconstruction renewed the building’s stability, restored its exterior, and improved the functionality of the interior.
| Aug 25, 2014
Ranked: Top cultural facility sector AEC firms [2014 Giants 300 Report]
Arup, Gensler, and Turner head BD+C's rankings of design and construction firms with the most revenue from cultural facility projects, as reported in the 2014 Giants 300 Report.
| Aug 25, 2014
Tall wood buildings: Surveying the early innovators
Timber has been largely abandoned as a structural solution in taller buildings during the last century, in favor of concrete and steel. Perkins+Will's Rebecca Holt writes about the firm's work in surveying the burgeoning tall wood buildings sector.
| Aug 25, 2014
'Vanity space' makes up large percentage of world's tallest buildings [infographic]
Large portions of some skyscrapers are useless space used to artificially enhance their height, according to the Council on Tall Buildings and Urban Habitat.
| Aug 25, 2014
Photographer creates time-lapse video of 1 WTC using 30,000 photos
Choosing from 30,000 photos he took from the day construction began in 2006 to the day when construction was finished in 2012, Brooklyn-based photographer Benjamin Rosamund compressed 1,100 photos to create the two-minute video.
| Aug 25, 2014
Glazing plays key role in reinventing stairway design
Within the architectural community, a movement called "active design" seeks to convert barren and unappealing stairwells originally conceived as emergency contingencies into well-designed architectural focal points. SPONSORED CONTENT
| Aug 25, 2014
An easy trick for minimizing construction delays
About one out of every three construction projects is behind schedule or over budget, according to the Construction Industry Institute's Assessment of Owner Project Management Practices and Performance survey. SPONSORED CONTENT
| Aug 22, 2014
Before & After: Hospital upgrade shows shifting needs in healthcare construction
Community Hospice of Northeast Florida took an outdated 10-bed inpatient hospice unit and created a space that would meet the needs of patients receiving end of life care by creating a place that felt like home.