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
ProConnect Events | Jan 17, 2023
3 ProConnect Single Family events for Home Builders and Product Manufacturers set for 2023
SGC Horizon, parent company of ProBuilder, will present 3 ProConnect Single Family Events this year. At ProConnect Single Family, Home Builders meet in confidential 20-minute sessions with Building Product Manufacturers to discuss upcoming projects, learn about new products, and discover practical solutions to technical problems.
University Buildings | Jan 17, 2023
Texas Christian University breaks ground on medical school for Dallas-Fort Worth region
Texas Christian University (TCU) has broken ground on the Anne Burnett Marion School of Medicine, which aims to help meet the expanding medical needs of the growing Dallas-Fort Worth region.
Green | Jan 17, 2023
Top 10 U.S. states for green building in 2022
The U.S. Green Building Council (USGBC) released its annual ranking of U.S. states leading the way on green building, with Massachusetts topping the list. The USGBC ranking is based on LEED-certified gross square footage per capita over the past year.
Libraries | Jan 13, 2023
One of the world’s largest new libraries opens in Shanghai
Designed by Schmidt Hammer Lassen Architects, Shanghai Library East covers more than 1.2 million sf, 80% of it dedicated to community activity.
Religious Facilities | Jan 9, 2023
Santiago Calatrava-designed St. Nicholas Greek Orthodox Church opens in New York
In December, New York saw the reopening of the new St. Nicholas Greek Orthodox Church and National Shrine—the only religious structure destroyed on 9/11. Renowned architect and engineer Santiago Calatrava designed St. Nicholas Church to address the traditional Greek Orthodox liturgy while honoring the Church’s connection with the World Trade Center Memorial site.
Government Buildings | Jan 9, 2023
Blackstone, Starwood among real estate giants urging President Biden to repurpose unused federal office space for housing
The Real Estate Roundtable, a group including major real estate firms such as Brookfield Properties, Blackstone, Empire State Realty Trust, Starwood Capital, as well as multiple major banks and CRE professional organizations, recently sent a letter to President Joe Biden on the implications of remote work within the federal government.
Sustainability | Jan 9, 2023
Innovative solutions emerge to address New York’s new greenhouse gas law
New York City’s Local Law 97, an ambitious climate plan that includes fines for owners of large buildings that don’t significantly reduce carbon emissions, has spawned innovations to address the law’s provisions.
Fire and Life Safety | Jan 9, 2023
Why lithium-ion batteries pose fire safety concerns for buildings
Lithium-ion batteries have become the dominant technology in phones, laptops, scooters, electric bikes, electric vehicles, and large-scale battery energy storage facilities. Here’s what you need to know about the fire safety concerns they pose for building owners and occupants.
Market Data | Jan 6, 2023
Nonresidential construction spending rises in November 2022
Spending on nonresidential construction work in the U.S. was up 0.9% in November versus the previous month, and 11.8% versus the previous year, according to the U.S. Census Bureau.
Industry Research | Dec 28, 2022
Following a strong year, design and construction firms view 2023 cautiously
The economy and inflation are the biggest concerns for U.S. architecture, construction, and engineering firms in 2023, according to a recent survey of AEC professionals by the editors of Building Design+Construction.