Issue link: https://read.dmtmag.com/i/314292
58 • JUNE 2014 • WORLD FENCE NEWS www.gatesandcontrols.com Seattle 800-548-2365 Sacramento 800-926-5520 Portland 800-204-7344 Las Vegas 866-275-1651 Serving You Since 1991 All the stuff you need! Wholesale to the Gate & Access Control Industry Anaheim 877-386-9797 Spokane 866-709-8869 Enjoy the Adventure! March construction starts climb 7 percent NEW YORK – New construction starts in March advanced 7% to a sea- sonally adjusted annual rate of $521.4 billion, according to McGraw Hill Construction, a division of McGraw Hill Financial. Nonresidential building picked up the pace after its lackluster performance at the outset of this year, continued on page 60 while nonbuilding construction man- aged a moderate gain. Meanwhile, residential building settled back as single family housing remained sluggish. During the first three months of 2014, total construction starts on an unadjusted basis were reported at $107.4 billion, down 2% from the same period a year ago. The latest month's data lifted the Dodge Index to 110 (2000=100), up from February's 103, and close to last year's average reading for the Index at 112. "The slow start for construction activity in early 2014 can be attributed to tough winter weather conditions, in combination with the up-and-down pattern that's frequently been present during the hesitant upturn witnessed over the past two years," stated Robert A. Murray, chief economist for Mc- Graw Hill Construction. "This is par- ticularly true for nonresidential building, which bounced back sharply in March after depressed activity in January and February, alleviating some concern that its recovery may be stalling. Nonresidential building's po- tential for more growth in 2014 is being supported by a rising volume of bank lending directed at commercial real estate development, more energy- related manufacturing projects, and signs that the institutional building sector is finally turning the corner after five years of decline. "Nonbuilding construction in 2014 is seeing a less severe pullback for electric utilities compared to last year, although public works is gener- ally proceeding at a slower clip," he said. "Residential building so far in 2014 is benefitting from more strength for multifamily housing, yet the loss of momentum for single family housing in the first three months of 2014 stands out relative to the steady gains regis- tered in 2012 and most of 2013." Nonresidential building in March jumped 24% to $176.3 billion (annual rate), regaining upward movement after declines in January (down 9%) and February (down 7%). The often volatile manufacturing plant category provided much of the lift in March, surging 140% after a weak February. Large manufacturing facilities that reached groundbreaking in March in- cluded these energy-related projects – an $800 million methanol chemical plant in Texas, a $400 million upgrade to an oil refinery in Minnesota, an $80 million crude oil terminal in New Mexico, and a $56 million biomass-to- gasoline refinery in Louisiana. The commercial categories in March edged up 1%, reflecting a mixed pattern by individual structure type. Office construction continued its ascent from low levels, advancing 17% in March with the help of these large projects – a $160 million office building at the Fan Pier site in Boston, a $100 million tenant fit-out at One World Trade Center in New York, N.Y., an $87 million office building in Austin, Tex., and an $83 million office building in Houston. Through the first three months of 2014, the top five metropolitan areas ranked by the dollar amount of new of- fice starts were – New York, N.Y., Houston, Boston, Washington, D.C., and San Antonio, Tex. Hotel construction in March