National nonresidential construction spending fell 1.2% in July, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, spending totaled $809.1 billion for the month.
Of the 16 nonresidential subcategories, 10 were down on a monthly basis. Private nonresidential spending declined 1.0% while public nonresidential construction spending was down 1.3% in July.
“There are two primary countervailing forces influencing the trajectory of nonresidential construction spending,” said Basu. “The first is a force for good and involves the reopening of the economy and associated rebound in overall economic activity. Despite the lingering pandemic, third quarter GDP growth is likely to be quite strong. All things being equal, this would tend to strengthen business for contractors.
'Next year is shaping up to be an especially harsh one for many contractors, especially as some are already indicating that they are nearing the end of their backlog. The wild card, as is often the case, is Congress.'
“However, the second force at work is not benign and appears to be the stronger of the two,” said Basu. “The crisis has resulted in tighter project financing conditions, battered state and local government finances, substantial commercial vacancy and uncertainty regarding the future of key segments, such as office and lodging. And while backlog was strong at the start of the year, contractors indicate that it is now declining rapidly, in part due to abundant project cancellations.”
“Next year is shaping up to be an especially harsh one for many contractors, especially as some are already indicating that they are nearing the end of their backlog,” said Basu. “The wild card, as is often the case, is Congress. Another stimulus package could go a long way toward improving the trajectory of overall nonresidential construction spending, particularly one with a sizable infrastructure component. The upshot is that declines in nonresidential construction spending are likely even in the context of broader economic recovery.”
Related Stories
| Mar 11, 2011
Blockbuster remodel transforms Omaha video store into a bank
A former Hollywood Video store in Omaha, Neb., was renovated and repurposed as the SAC Federal Credit Union, Ames Branch. Architects at Leo A Daly transformed the outdated 5,000-sf retail space into a modern facility by wrapping the exterior in poplar siding and adding a new glass storefront that floods the interior with natural light.
| Mar 11, 2011
Historic McKim Mead White facility restored at Columbia University
Faculty House, a 1923 McKim Mead White building on Columbia University’s East Campus, could no longer support the school’s needs, so the historic 38,000-sf building was transformed into a modern faculty dining room, graduate student meeting center, and event space for visiting lecturers, large banquets, and alumni organizations.
| Mar 11, 2011
Mixed-income retirement community in Maryland based on holistic care
The Green House Residences at Stadium Place in Waverly, Md., is a five-story, 40,600-sf, mixed-income retirement community based on a holistic continuum of care concept developed by Dr. Bill Thomas. Each of the four residential floors houses a self-contained home for 12 residents that includes 12 bedrooms/baths organized around a common living/social area called the “hearth,” which includes a kitchen, living room with fireplace, and dining area.
| Mar 11, 2011
Construction of helicopter hangars in South Carolina gets off the ground
Construction is under way on a $26 million aviation support facility for South Carolina National Guard helicopters. Hendrick Construction, the project’s Charlotte, N.C.-based GC, is building the 111,000-sf Donaldson Hangar facility on the 30-acre South Carolina Technology & Aviation Center, Greenville.
| Mar 11, 2011
Texas A&M mixed-use community will focus on green living
HOK, Realty Appreciation, and Texas A&M University are working on the Urban Living Laboratory, a 1.2-million-sf mixed-use project owned by the university. The five-phase, live-work-play project will include offices, retail, multifamily apartments, and two hotels.
| Mar 11, 2011
Chicago office building will serve tenants and historic church
The Alter Group is partnering with White Oak Realty Partners to develop a 490,000-sf high-performance office building in Chicago’s West Loop. The tower will be located on land owned by Old St. Patrick’s Church (a neighborhood landmark that survived the Chicago Fire of 1871) that’s currently being used as a parking lot.
| Mar 11, 2011
Community sports center in Nashville features NCAA-grade training facility
A multisport community facility in Nashville featuring a training facility that will meet NCAA Division I standards is being constructed by St. Louis-based Clayco and Chicago-based Pinnacle.
| Mar 11, 2011
Slam dunk for the University of Nebraska’s basketball arena
The University of Nebraska men’s and women’s basketball programs will have a new home beginning in 2013. Designed by the DLR Group, the $344 million West Haymarket Civic Arena in Lincoln, Neb., will have 16,000 seats, suites, club amenities, loge, dedicated locker rooms, training rooms, and support space for game operations.
| Mar 10, 2011
How AEC Professionals Are Using Social Media
You like LinkedIn. You’re not too sure about blogs. For many AEC professionals, it’s still wait-and-see when it comes to social media.
| Mar 7, 2011
Sika Sarnafil announces 2010 roofing Contractor Project of the Year winners
Sika Sarnafil announced winners of its 2010 Contractor Project of the Year Competition. Twelve contractors were recognized for outstanding workmanship in completing a project using a Sika Sarnafil thermoplastic membrane for roofing or waterproofing applications. A winner and two finalists were chosen from each of four different categories: Low Slope, Steep Slope, Waterproofing and Sustainability.
