World Fence News

56 • JULY 2019 • WORLD FENCE NEWS The Dodge Report: April construction starts retreat 15% Nonbuilding construction and nonresidential building slide after sharp gains in March NEW YORK – The value of new construction starts in April fell 15% to a seasonally adjusted annual rate of $685.2 billion, pulling back follow- ing the 16% hike that was reported in March, according to Dodge Data & Analytics. Steep declines were registered by two of the three main construction sectors. Nonbuilding construction, which is comprised of public works and electric utilities/gas plants, plunged 31% from its elevated March amount which was lifted by the start of the $4.3 billion Calcasieu Pass liquefied natural gas (LNG) export terminal in Cameron, La. Nonresidential building fell 18% in April after being boosted in March by groundbreaking for the $1.6 bil- lion Toyota-Mazda automotive manu- facturing facility in Huntsville, Ala., among other large projects. Nonresidential building in April did receive support from the start of the $1.3 billion new airport terminal project at Kansas City International Airport. Meanwhile, residential building in April decreased 1%, as a modest rebound for multifamily housing was outweighed by further slippage for single family housing. During the first four months of 2019, total construction starts on an unadjusted basis were $224.5 billion, down 8% from the same period of 2018. On a twelve-month moving to- tal basis, total con- struction starts for the twelve months ending April 2019 held steady with the correspond- ing amount for the twelve months end- ing April 2018. April's data lowered the Dodge Index to 145 (2000 =100), from 171 in March. Taking the average for March and April produces an Index reading of 158, which is above the 150 aver- age for January and February, yet still below the 171 average for all of 2018. "The construction start statistics can be volatile on a month-to-month basis, and that's certainly been true in March and April, as a 16% jump was followed by a 15% decline," stated Robert A. Murray, chief economist for Dodge Data & An- alytics. "Much of the volatility can be attributed to the presence or ab- sence of large proj- ects – in March there were 10 projects valued each at $500 million or more that reached groundbreaking, while April saw only two such projects. "Amidst this volatility, there are several trends about 2019 construction activity that are beginning to emerge," Murray said. "Overall construction activity continues to show decelera- tion around an up-and-down monthly pattern, with a varied performance by major construction sector. "The public works side of non- building construction got off to a slow start in 2019, which at least through March was partially offset by an up- turn for electric utilities/gas plants," he noted. "Some improvement for public works is expected as the current year proceeds, given the fiscal 2019 federal funding approved back in February as well as the continued support of state construction bond measures. "Nonresidential building is stay- ing close to its pace of last year, helped by continued strength for office build- ings, hotels, educational facilities, and transportation terminals," he said. "The multifamily side of residen- tial building is retreating, even with the occasional monthly upturn, while single family housing has not yet pro- vided evidence that it can rebound from the slower pace that took hold towards the end of last year." Nonbuilding construction in April plunged 31% to $147.2 billion (annual rate), which followed a 40% surge in March. The $4.3 billion LNG export terminal in Louisiana that was includ- ed as a March start caused much of continued on page 58 "The construction start statistics can be volatile on a month-to- month basis, and that's certainly been true in March and April, as a 16% jump was followed by a 15% decline." – Robert A. Murray "The multifamily side of residential building is retreating, even with the occasional monthly upturn, while single family housing has not yet provided evidence that it can rebound from the slower pace that took hold towards the end of last year." – Robert A. Murray COMPARE AND SAVE ON TEMPORARY FENCE PANELS WE SHIP COAST TO COAST 4,000 + PANELS of 6 X 10 & 8 X 10 ARE IN STOCK SWAN-BOND Fused-Bonded Wire 800-688-SWAN (7926) www.swanfence.com 600 W. Manville St., Compton, CA 90220 Fused-Bonded Wire 30

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