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
| Oct 11, 2010
Rhode Island is the first state to adopt IGCC
Rhode Island is the first state to adopt the International Green Construction Code (IGCC). The Rhode Island Green Buildings Act identifies the IGCC as an equivalent standard in compliance with requirements that all public agency major facility projects be designed and constructed as green buildings. The Rules and Regulations to implement the Act take effect in October 2010.
| Oct 8, 2010
Union Bank’S San Diego HQ awarded LEED Gold
Union Bank’s San Diego headquarters building located at 530 B Street has been awarded LEED Gold certification from the Green Building Certification Institute under the standards established by the U.S. Green Building Council. Gold status was awarded to six buildings across the United States in the most recent certification and Union Bank’s San Diego headquarters building is one of only two in California.
| Oct 6, 2010
Windows Keep Green Goals in View
The DOE's National Renewable Energy Laboratory has almost 600 window openings, and yet it's targeting LEED Platinum, net-zero energy use, and 50% improvement over ASHRAE 90.1. How the window ‘problem’ is part of the solution.
| Oct 6, 2010
From grocery store to culinary school
A former West Philadelphia supermarket is moving up the food chain, transitioning from grocery store to the Center for Culinary Enterprise, a business culinary training school.
| Sep 30, 2010
Luxury hotels lead industry in green accommodations
Results from the American Hotel & Lodging Association’s 2010 Lodging Survey showed that luxury and upper-upscale hotels are most likely to feature green amenities and earn green certifications. Results were tallied from 8,800 respondents, for a very respectable 18% response rate. Questions focused on 14 green-related categories, including allergy-free rooms, water-saving programs, energy management systems, recycling programs, green certification, and green renovation.
| Sep 22, 2010
Michael Van Valkenburg Assoc. wins St. Louis Gateway Arch design competition
Landscape architect Michael Van Valkenburgh and a multidisciplinary team of experts in “urban renewal, preservation, commemoration, social connections and ecological restoration” have been picked for the planning phase of The City+The Arch+The River 2015 International Design Competition.
| Sep 22, 2010
Satellier, Potential + Semac close investment deal
Satellier, a world leader in providing CAD and Building Information Modeling (BIM) outsourced services to the architecture, engineering and construction industry, announces a strategic minority investment from India-based top engineering firm Potential + Semac, ushering in the next evolution of the global architecture support industry.