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
| Apr 12, 2011
Miami courthouse design does justice to children and the environment
Suffolk Construction broke ground recently for the Miami-Dade County Children’s Courthouse, a $328 million project the firm has a 30-month contract to complete.
| Apr 12, 2011
Long-awaited San Francisco center is music to jazz organization’s ears
After 28 years, SFJAZZ is getting its first permanent home. The San Francisco-based nonprofit, which is dedicated to advancing the art of jazz through concerts and educational programs, contracted local design firm Mark Cavagnero Associates and general contractor Hathaway Dinwiddie to create a modern performance center in the city’s Hayes Valley neighborhood
| Apr 12, 2011
Entrance pavilion adds subtle style to Natural History Museum of Los Angeles
A $13 million gift from the Otis Booth Foundation is funding a new entrance pavilion at the Natural History Museum of Los Angeles County. CO Architects, Los Angeles, is designing the frameless structure with an energy-efficient curtain wall, vertical suspension rods, and horizontal knife plates to make it as transparent as possible.
| Apr 12, 2011
BIM Grows Up: Separating Hype from Reality in a 3D World
While BIM adoption still lags in both design and construction, some enterprising owners, architects, and contractors are unlocking the potential of this dynamic technology.
| Apr 12, 2011
Metal cladding: Enhancing design with single-skin panels, MCMs, and IMPs
Single-skin metal panels, metal composite panels, and insulated metal panels can add both aesthetic and functional value to your projects, if you use them correctly.
| Apr 12, 2011
American Institute of Architects announces Guide for Sustainable Projects
AIA Guide for Sustainable Projects to provide design and construction industries with roadmap for working on sustainable projects.
| Apr 11, 2011
Wind turbines to generate power for new UNT football stadium
The University of North Texas has received a $2 million grant from the State Energy Conservation Office to install three wind turbines that will feed the electrical grid and provide power to UNT’s new football stadium.
| Apr 8, 2011
SHW Group appoints Marjorie K. Simmons as CEO
Chairman of the Board Marjorie K. Simmons assumes CEO position, making SHW Group the only firm in the AIA Large Firm Roundtable to appoint a woman to this leadership position
| Apr 5, 2011
Zaha Hadid’s civic center design divides California city
Architect Zaha Hadid is in high demand these days, designing projects in Hong Kong, Milan, and Seoul, not to mention the London Aquatics Center, the swimming arena for the 2012 Olympics. But one of the firm’s smaller clients, the city of Elk Grove, Calif., recently conjured far different kinds of aquatic life when members of the City Council and the public chose words like “squid,” “octopus,” and “starfish” to describe the latest renderings for a proposed civic center.
| Apr 5, 2011
Are architects falling behind on BIM?
A study by the National Building Specification arm of RIBA Enterprises showed that 43% of architects and others in the industry had still not heard of BIM, let alone started using it. It also found that of the 13% of respondents who were using BIM only a third thought they would be using it for most of their projects in a year’s time.
