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. Â 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
| Sep 23, 2014
Cedars-Sinai looks to streamline trauma care with first-of-its-kind OR360 simulation space
The breakthrough simulation center features moveable walls and a modular ceiling grid that allow doctors and military personnel to easily reconfigure the shape and size of the space.
| Sep 23, 2014
Third phase of New York’s High Line redevelopment opens
The $35 million Phase 3, known as High Line at the Rail Yards, broke ground September 20, 2012, and officially opened to the public on September 21.
| Sep 23, 2014
Cloud-shaped skyscraper complex wins Shenzhen Bay Super City design competition
Forget the cubist, clinical, glass and concrete jungle of today's financial districts. Shenzhen's new plan features a complex of cloud-shaped skyscrapers connected to one another with sloping bridges.
| Sep 23, 2014
Designing with Water: Report analyzes ways coastal cities can cope with flooding
The report contains 12 case studies of cities around the world that have applied advanced flood management techniques.Â
| Sep 22, 2014
4 keys to effective post-occupancy evaluations
Perkins+Will's Janice Barnes covers the four steps that designers should take to create POEs that provide design direction and measure design effectiveness.
| Sep 22, 2014
NCARB overhauls Intern Development Program, cuts years off licensure process
The newly adopted changes will be implemented in two phases. The first will streamline the program by focusing on the IDP’s core requirements and removing its elective requirements. The second phase will condense the 17 current experience areas into six practice-based categories.
| Sep 22, 2014
Biloxi’s new Maritime and Seafood Industry Museum is like a ship in a bottle
Nine years after the Museum of Maritime and Seafood Industry in Biloxi, Miss., was damaged by Hurricane Katrina’s 30-foot tidal surge, the museum reopened its doors in a brand new, H3-designed building.Â
| Sep 22, 2014
Swanke-designed Eurasia Tower opens in Moscow
The 72-story tower—the first mixed-use, steel tower in Russia—is located within the new, 30 million-sf, 148-acre Moscow International Business Center.
| Sep 22, 2014
USGBC names 2014 Best of Buildings Award winners
The Best of Building Awards celebrate the year’s best products, projects, organizations and individuals making an impact in green building.
| Sep 20, 2014
Healthcare conversion projects: 5 hard-earned lessons from our experts
Repurposing existing retail and office space is becoming an increasingly popular strategy for hospital systems to expand their reach from the mother ship. Our experts show how to avoid the common mistakes that can sabotage outpatient adaptive-reuse projects.Â