Issue link: https://read.dmtmag.com/i/418584
82 • DECEMBER 2014 • WORLD FENCE NEWS The Dodge Report Construction starts in September climb 10 percent NEW YORK, N.Y. – New con- struction starts in September ad- vanced 10% to a seasonally adjusted annual rate of $604.1 billion, accord- ing to McGraw Hill Construction, a division of McGraw Hill Financial. The increase followed an up-and- down pattern during the previous two months, and brought activity to its highest level so far during 2014. Nonresidential building regis- tered a sharp gain, helped by an el- evated pace for several institutional categories plus another brisk month for manufacturing plants, while the nonbuilding construction sector (pub- lic works and electric utilities) also strengthened. Run- ning counter in September was a decline for residen- tial building. During the first nine months of 2014, total con- struction starts on an unadjusted basis were $419.5 bil- lion, a 5% gain compared to last year. The September data lifted the Dodge Index to 128 (2000 =100), up from a revised 116 for August, and slightly ahead of July's 126 (the previ- ous high for this year). "While the progress for construc- tion starts has been uneven at times on a month-to-month basis, the quarterly averages show that an upward trend has been re-established," stated Rob- ert A. Murray, chief economist for McGraw Hill Construction. "In this year's first quarter, construction starts fell back 10%, but then climbed 6% in the second quarter and another 6% in the third quarter. "A key factor in keeping the con- struction expansion going in 2014 has been the greater role now being played by nonresidential building. Commer- cial building has continued to see moderate growth from low levels, and the manufacturing building catego- ry is still showing a surge of chemi- cal and energy-related plants reach groundbreaking," Murray stated. "What's different in 2014 is that the institutional structure types are now beginning to contribute to the nonres- idential building upturn. In contrast, both public works and electric utilities have generally lost momentum during 2014, notwithstanding their strong showing in September. And, residen- tial building is now providing a much smaller lift than in the past two years, as the sluggish performance by single family housing has outweighed fur- ther gains by multifamily housing." Nonresidential building in Sep- tember increased 15% to $228.5 bil- lion (annual rate), after pulling back in August. The institutional building group soared 33%, with substantial sup- port coming from a 322% hike for the amusement and recreational cate- gory, which reflected the start of the $948 million Atlanta Falcons retract- able-roof stadium in Atlanta, Ga. and $717 million for the casino portion of the $925 million National Harbor MGM Casino Resort in Oxon Hill, Md. Also climbing sharply in Sep- tember was trans- portation terminal work, up 171%, led by the $240 million renovation of the 95th Street train and bus ter- minal in Chicago, and a $144 million aircraft hangar in Wichita, Kan. Educational facilities, the largest nonresidential building category by dollar volume, climbed 34% in Sep- tember. Large projects that helped to lift the educational total included a $150 million research lab in Cam- bridge, Mass., plus several sizeable high schools – two in Texas valued at $150 million and $100 million respec- tively, and a $130 million high school in the state of Washington. Through the first nine months of 2014, the educational facilities cate- gory increased 10% from a year ago, including a 16% gain for high schools. The public buildings category (courthouses and detention facilities) in September grew 11%, but religious buildings fell 30%. The healthcare fa- cilities category in September plunged 44%, sliding back from a strong Au- gust, although the latest month did in- clude the start of a $206 million hos- pital expansion in San Antonio, Tex. The manufacturing plant category in September surged 105%, continuing to show the highly volatile month-to-month behavior that's been present during 2014. Providing the upward push in September was the start of a $1.3 billion methanol plant in Louisiana and a $225 million tire manufacturing plant in Georgia. The commercial building group in September fell 15%, retreating from its heightened amount in August. Store construction declined 22%, after being lifted in August by the continued on page 84 "While the progress for construction starts has been uneven at times on a month-to-month basis, the quarterly averages show that an upward trend has been re-established." – Robert A. 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