An unusual surge in public construction in October pushed total construction spending to its highest level since May 2009 despite a dip in both private residential and nonresidential activity, according to an analysis of new Census Bureau data by the Associated General Contractors of America. Association officials urged lawmakers in Washington to make water and surface transportation investment a top federal priority.
“Nearly every category of public construction increased in October, according to the preliminary Census figures, although for the first 10 months of 2013 combined, public spending continues to lag the 2012 year-to-date total,” said Ken Simonson, the association's chief economist. “Meanwhile, residential spending slipped for the month but still showed strong year-to-date gains, and nonresidential spending remained stuck in neutral.”
Construction put in place in October totaled $908 billion, 0.8 percent higher than in September. But figures for August and July were revised down below levels that initially exceeded the current October estimate. The total for the first 10 months of 2013 was 5.0 percent above the year-to-date mark for the same months in 2012.
Public construction spending jumped 3.9 percent for the month but trailed the 2012 year-to-date total by 2.8 percent. The two largest public components were mixed: highway and street construction increased 0.6 percent in October and 0.3 percent year-to-date, while educational construction leaped 8.5 percent for the month but fell 8.5 percent year-to-date, Simonson said.
Private residential spending slid 0.6 percent for the month but still climbed 17 percent year-to-date. New single-family construction decreased 0.6 percent in October but soared 30 percent in the first 10 months of 2013 compared with 2012. New multifamily spending advanced 2.2 percent in October and 46 percent year-to-date.
Private nonresidential spending edged down 0.5 percent for the month and up 0.8 percent year-to-date, Simonson observed. The largest private nonresidential category, power—including oil and gas as well as electricity—plunged 5.7 percent and 5.8 percent over the two time periods. But the next three niches in size—manufacturing, commercial (retail, warehouse and farm), and office—rose for the month and year-to-date.
“Construction will likely display varied patterns in the next several months,” Simonson said. “Multifamily construction will keep burgeoning but single-family homebuilding may stall. Private nonresidential spending should benefit from more power, energy and manufacturing work. Public construction remains threatened.”
Association officials said Congress and the administration should keep public construction from returning to its recent slump by quickly completing Water Resources Development legislation that has already passed both houses and passing a new surface transportation bill next year that funds repairs to deteriorating highway, bridge and transit infrastructure. They added that any new transportation bill must include provisions to adequately fund the nearly depleted federal Highway Trust Fund.
“If Congress can act in a bipartisan way on transportation funding as it did on the Water Resources bill, it can avoid a cliff-like drop in highway spending,” said Stephen E. Sandherr, the association’s chief executive officer.
Related Stories
Sponsored | | Nov 12, 2014
Eye-popping façade highlights renovation, addition at Chaffin Junior High School
The new distinctive main entrance accentuates the public face of the school with an aluminum tube “baguette” system.
| Nov 12, 2014
Collaboration as competitive advantage
A collaborative planning and design process may seem like a common-sense goal, but the concept can be a challenge to achieve in the fragmented AEC industry. SPONSORED BLOG
Sponsored | | Nov 12, 2014
Williams Scotsman plugs into the jobsite
Many of our customers conduct important business from their temporary modular jobsite office and most require access to technology to get their job done effectively and efficiently. SPONSORED CONTENT
| Nov 12, 2014
Chesapeake Bay Foundation completes uber-green Brock Environmental Center, targets Living Building certification
More than a decade after opening its groundbreaking Philip Merrill Environmental Center, the group is back at it with a structure designed to be net-zero water, net-zero energy, and net-zero waste.
| Nov 12, 2014
Refocusing the shifted line
A recent trend in the practice of architecture that I’ve been noticing is the blurring of responsibility between design and construction coordination. I’m not sure why this trend began, but the subject is worth exploring, writes FXFOWLE's Mark Nusbaum.
| Nov 12, 2014
Designs by three finalists for new Beethoven concert hall unveiled
David Chipperfield and Valentiny are among the finalists for a new concert hall being built to commemorate Beethoven’s 250th birthday in his hometown of Bonn, Germany.
| Nov 12, 2014
Forbes: Houston is America's #1 construction hotspot
A new list of America's 20 biggest boomtowns shows Houston on top, with New York City close behind, followed by Dallas, Washington, D.C., and Los Angeles.
| Nov 11, 2014
Must see: Artist pairs up Hollywood icons with famous modern architecture
In his latest series, Federico Babina illustrated 17 iconic Hollywood personalities, from Marilyn Monroe to Michael Caine, interacting with famous 20th century homes.
| Nov 11, 2014
Renzo Piano's third building at London Bridge Quarter approved, will be built adjacent to the Shard
Renzo Piano Building Workshop has been granted planning approval for its residential building at London Bridge Quarter—a 26-story apartment tower dubbed Feilden House.
| Nov 10, 2014
5 guiding principles for solving airflow issues in open-plenum office spaces
Although architecturally appealing, exposed ceilings can create unwanted drafts and airflow problems if not engineered correctly. McGuire Engineers' Bill Stangeland offers tips for avoiding airflow issues on these projects.
