Issue link: https://read.dmtmag.com/i/48221
78 • DECEMBER 2011 • WORLD FENCE NEWS The Dodge Report September construction slips one percent BEDFORD, Mass. — New con- struction starts in September receded 1% to a seasonally adjusted annual rate of $419.5 billion, according to McGraw-Hill Construction, a division of The McGraw-Hill Companies. Both non-residential building and housing fell back after their improved pace in August. Meanwhile, the non- building construction sector, com- prised of public works and electric utilities, strengthened for the second month in a row after weakening in early summer. For the January-September period of 2011, total construction starts on an unadjusted basis were reported at $314.1 billion, down 5% from the same period a year ago. The September statistics lowered the Dodge Index to 89 (2000=100), compared to the August reading of 90. "The volume of construction starts continues to hover within a set range, not yet able to gain sufficient momen- tum for expansion to take hold," stated Robert A. Murray, vice-president of economic affairs for McGraw-Hill Construction. "For a variety of reasons, this ex- tended plateau is likely to last a while longer. Tight budget conditions at the federal, state, and local levels of gov- ernment are restraining the amount of construction that's taking place for the institutional building and public works sectors, notwithstanding the occa- sional upturn such as shown by public works in September. The slow pace of job creation and widespread uncer- tainty about the economy are causing developers and lenders to remain hes- itant about new commercial projects, and they're also causing potential homebuyers to remain wary about going ahead with home purchases." Non-residential building in Sep- tember dropped 13% to $131.8 billion (annual rate). The institutional side of the non-residential market retreated overall, pulled down in particular by a 24% drop for healthcare facilities after the 92% jump for this category in Au- gust. Several very large hospital proj- ects, valued each in the range of $164 million to $385 million, had provided the August lift. While September showed that large hospital projects continued to reach groundbreaking, they were gen- erally smaller in scale than what had been reported in the prior month. The large hospital projects in September, valued each at $100 million or more, were located in Delaware ($180 mil- lion), Colorado ($128 million), New York ($109 million), Illinois ($104 million), and California ($100 mil- lion). Also falling sharply in September were the public buildings category (comprised of courthouses, detention facilities, and military work) which plunged 36%; and the amusement-re- lated category which dropped 22%. Cushioning the institutional down- turn was a slight 1% increase for edu- cational buildings, helped by the start of two large college buildings, valued each at $92 million, located in Philadelphia and San Diego, with ad- ditional support coming from the start of a $79 million high school in contin ued on pa g e 81