Issue link: https://read.dmtmag.com/i/384751
WORLD FENCE NEWS • OCTOBER 2014 • 65 The Dodge Report Spending on mass transit projects helps keep public works construction levels steady The manufacturing plant catego- ry jumped 44%, reflecting the start of still more chemical and energy-relat- ed facilities, including these projects in Texas – a $3 billion petrochemi- cal plant in Baytown and a $1.7 bil- lion ethylene plant in Freeport. Other large manufacturing projects entered as July starts included a $450 million semiconductor facility in Hillsboro, Ore. and a $370 million ore process- ing plant in Corpus Christi, Tex. The commer- cial building group in July rose 11%, resuming its up- ward trend after retreating in June. Hotel construction in July climbed 29%, helped by groundbreaking for a $190 million hotel/time share tower in Honolulu and $114 million for the hotel portion of a $300 million mixed- use building in Los Angeles. Store construction improved 12%, aided by the start of a $49 million mall addition in Denver, Colo. Office construction grew 8%, supported by the start of $252 million for the office portion of a $420 million mixed-use building in Minneapolis and $170 million for the office portion of a $225 mixed-use building in Dal- las. Warehouse construction was the one commercial project type not able to report a July gain, as it slipped 13%. The institutional building group as a whole dropped 14% in July, re- treating after growing 12% during the previous two months. Healthcare facilities fell 34% from its heightened June amount, which featured the start of a $900 mil- lion hospital campus in San Francisco. In contrast, educational building in July advanced 11%, supported by groundbreaking for such projects as a $130 million addition and renovation to a high school in Winchester, Mass., a $94 million new high school in Cen- terton, Ark., and an $86 million new high school in Laramie, Wyo. Through the first seven months of 2014, the dollar amount of new high school construction projects for the nation was up 10%, contributing to a 7% year-to-date gain for the overall educational building category. The July pattern for the smaller institutional project types was mixed. Transportation terminal construc- tion grew 39%, lifted by the start of NEW YORK – New construction starts in July climbed 6% to a season- ally adjusted annual rate of $588.8 bil- lion, according to McGraw Hill Con- struction, a division of McGraw Hill Financial. Nonresidential building contin- ued to advance, supported by yet an- other robust month for manufacturing plant projects as well as improvement for commercial building. The non- building construction sector (public works and electric utilities) also ad- vanced, helped by the start of a very large mass transit rail project. At the same time, residential building was unchanged from its pace in June. For the first seven months of 2014, total construction starts on an unadjusted basis were reported at $311.6 billion, a 4% gain compared to the same period a year ago. The July statistics raised the Dodge Index to 125 (2000 =100), up from a revised 118 for June, and mark- ing the highest level for the Dodge In- dex so far in 2014. "The construction expansion this year is getting more of a contribution from nonresidential building," stated Robert A. Murray, chief economist and vice president for McGraw Hill Construction. "Manufacturing plant construction is seeing the start of nu- merous chemical and energy-related projects, consistent with the nation's growing energy sector. Commercial building is maintaining its upward momentum from low levels, while institutional building with its up-and- down pattern appears to be stabilizing after a lengthy decline. "With residential building being limited so far in 2014 by the slug- gish single family market, the further growth for nonresidential building has been needed to keep the construction expansion going," Murray said. "As for public works, this year's pullback has stayed moderate, helped in part by the ongoing strength for mass transit work. The recent passage of a $10.8 billion 'patch' by Congress to shore up the Highway Trust Fund through May 2015 should also help to keep this year's public works downturn from getting much more severe." Nonresidential building in July in- creased 7% to $229.0 billion (annual rate), showing further growth on top of the 12% increase reported in June. continued on page 70 "As for public works, this year's pullback has stayed moderate, helped in part by the ongoing strength for mass transit work." – Robert A. Murray