Issue link: https://read.dmtmag.com/i/332591
70 • JULY 2014 • WORLD FENCE NEWS NEW YORK – New construction starts in April rose 3% to a seasonally adjusted annual rate of $533.7 billion, according to McGraw Hill Construc- tion, a division of McGraw Hill Finan- cial. The increase maintained the upward movement established in March, which followed sluggish activ- ity at the outset of 2014. By major sector, April gains were reported for nonresidential building and housing, while nonbuilding con- struction (public works and electric utilities) retreated. Through the first four months of 2014, total con- struction starts on an unadjusted basis came in at $153.8 billion, un- changed from the same period a year ago. April's data raised the Dodge Index to 113 (2000=100), up from 110 in March and 102 during the first two months of 2014. For the full year 2013, the Dodge Index was reported to be 112, so April's increase brings activity back up to a level slightly above last year's average monthly pace. "With construction starts now climbing for two months in a row, it's become more apparent that some of the lackluster activity in early 2014 was due to tough winter weather con- ditions," stated Robert A. Murray, chief economist for McGraw Hill Construction. "On the plus side, nonresidential building is strengthening once again, after slipping in recent months. The commercial and manufacturing cate- gories are regaining momentum, while institutional building is making the transition to an up-and-down pattern after its steady decline over the past five years. "Multifamily housing continues to move at a good clip," Murray said. "On the down side, this year's total construction volume is being re- strained by a more subdued pace for public works, given the compari- son to last year's elevated amount and the uncertain prospects for get- ting new trans- p o r t a t i o n legislation passed. "Another cau- tionary note is re- lated to single family housing, which through the first four months of 2014 had yet to move beyond the modest erosion that emerged towards the end of last year." Nonresidential building in April increased 14% to $202.8 billion (an- nual rate), registering a double-digit gain for the second straight month. Much of the lift came from the often volatile manufacturing plant cat- egory, which jumped 146% in April. The largest manufacturing plant project reported as an April start was a $3 billion ethylene plant in Texas, and other manufacturing plants that reached groundbreaking in April The Dodge Report April construction starts rise as weather improves MONTHLY SUMMARY OF CONSTRUCTION STARTS Prepared by McGraw-Hill Construction Research & Analytics MONTHLY CONSTRUCTION STARTS Seasonally Adjusted Annual Rates, in Millions of Dollars April 2014 March 2014 Percent Change Nonresidential building $ 202,841 $ 177,839 + 14 Residential building 214,421 205,551 + 4 Nonbuilding construction 116,454 135,131 – 14 Total construction $ 533,716 $ 518,521 + 3 THE DODGE INDEX (Year 2000 = 100, Seasonally Adjusted) April 2014 .......................................................... 113 March 2014 ........................................................ 110 YEAR-TO-DATE CONSTRUCTION STARTS Unadjusted Totals, in Millions of Dollars 4 Mos. 2014 4 Mos. 2013 Percent Change Nonresidential building $ 50,185 $ 48,198 + 4 Residential building 65,419 63,535 + 3 Nonbuilding construction 38,221 42,574 – 10 Total construction $ 153,825 $ 154,307 0 $"%!"#&$"&#& !%&$"% %!$"&% % "$&!!"&$ &%$ $"%&!"&& $ &!%&#$# $ #& #"%&%%&$#&$ %#&%# &%!!%&!" # &&&#&%$&%$ !"%# &#%# &$"!%!$"& $# %&& A Pete & Jake Blast From The Distant Past!