Reed Construction Data announced its December Expansion Index stood at 1.48, indicating overall construction in the United States is expected to grow over the next 12 months.
“The positive signs of growth are encouraging and align with other economic data,” said Bernard Markstein, U.S. Chief Economist, Reed Construction Data. “With an Expansion Index greater than 1 in 41 states plus the District of Columbia, the expected improvement in construction appears widespread across the country.” The top five states expected to see an expanding construction market: North Dakota, Rhode Island, Montana, Virginia, Utah.
The Expansion Index is a monthly measure of expectations for the construction marketplace over the upcoming 12-18 months, based on the value of projects in the planning pipeline. A reading greater than 1 indicates construction volume is expected to expand.
In addition to an overall measure of U.S. construction, Reed uses the Expansion Index to track expected construction volume for every state and more than 360 Metropolitan Statistical Areas.
According to Markstein, multiple factors are supporting the positive signal.
“Many pieces are falling into place for a moderately faster-growing economy,” stated Markstein. “Companies are experiencing rising demand. A federal budget deal was signed into law. Residential construction continues to improve. Europe is slowly working its way out of recession. These and other positives mean the Reed Expansion Index is likely to remain well above 1 for several months–an indication that construction activity will rise throughout the year.”
The Expansion Index is a ratio of the value of projects in the planning phase over the value of the projects estimated to be still under construction in a defined geography and/or building segment. The relationship says if more in the pipeline than underway, the volume will increase in the future if that ratio is greater than 1. The data covered includes non-residential and multifamily residential construction.
To view the Expansion Index, visit www.reedconstructiondata.com/market-intelligence/expansion-index.
20 Fastest-growing MSAs | |
---|---|
MSA | EI rating |
Duluth, MN-WI Durham, NC El Centro, CA Evansville, IN-KY Flagstaff, AZ Flint, MI Grand Forks, ND-MN Greenville, NC Laredo, TX Logan, UT-ID Missoula, MT Muskegon-Norton Shores, MI Providence-New Bedford-Fall River, RI-MA Salem, OR Waterloo-Cedar Falls, IA Clarksville, TN-KY VA Beach-Norfolk-Newport News, VA-NC Columbia, MO Baton Rouge, LA Greensboro-High Point, NC |
>10 >10 >10 >10 >10 >10 >10 >10 >10 >10 >10 >10 >10 >10 >10 9.56 7.75 7.67 6.91 6.77 |
About Reed Construction Data
Reed Construction Data is a trusted source for detailed, accurate, and up-to-date information on private and public construction projects across the United States and Canada. Reed’s data collection teams leverage strong industry relationships, innovative technology, and third-party data sources to deliver timely and accurate information on projects, companies, and contacts and daily updates for all types of general and civil construction. For more information, visit www.reedconstructiondata.com.
Related Stories
Architects | Feb 17, 2015
Architecture billings dip in January, severe weather likely to blame
“This easing in demand for design services is a bit of a surprise given the overall strength of the market over the past nine months,” said AIA Chief Economist Kermit Baker.
Multifamily Housing | Feb 17, 2015
California launches pilot program to finance multifamily retrofits for energy efficiency
The Obama Administration and the state of California are teaming with the Chicago-based MacArthur Foundation on a pilot program whose goal is to unlock Property-Assessed Clean Energy financing for multifamily housing.
Sponsored | Building Team | Feb 17, 2015
Why diversity matters
Companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns above their national industry medians.
Multifamily Housing | Feb 17, 2015
Young Millennials likely to return home
Ninety percent of individuals born between 1980 and 1984 and who hold a Bachelor’s degree left home before they were 27 years hold. However, half of this group later returned to their parents’ home, according to a study by the National Longitudinal Study of Youth.
Sponsored | Modular Building | Feb 17, 2015
When lava flow in Hawaii threatens a public school district, officials turn to modular
Hawaii Modular Space, a Williams Scotsman company, designed temporary classroom space for the Pahoa and Keeau schools that would become displaced due to ongoing lava flow in Pahoa, Hawaii.
Healthcare Facilities | Feb 17, 2015
10 healthcare trends worth sharing
The rise of the medical home model of care and ongoing Lean value stream improvement are among the top healthcare industry trends.
High-rise Construction | Feb 17, 2015
Work begins on Bjarke Ingels' pixelated tower in Calgary
Construction on Calgary’s newest skyscraper, the 66-story Telus Sky Tower, recently broke ground.
Mixed-Use | Feb 13, 2015
First Look: Sacramento Planning Commission approves mixed-use tower by the new Kings arena
The project, named Downtown Plaza Tower, will have 16 stories and will include a public lobby, retail and office space, 250 hotel rooms, and residences at the top of the tower.
Architects | Feb 13, 2015
OMA commissioned to design newest New York High Line addition
Rem Koolhaas is the latest addition to the list of starchitects working on projects near the High Line elevated park.
Codes and Standards | Feb 12, 2015
ASHRAE, USGBC, IES consider biomass requirements in green building standard
The proposal would add biomass to approved renewables.