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Construction starts rise 4% in October, led by gains in nonresidential projects

2024-11-22T16:09:00-05:00

The total number of construction starts increased by 4% in October to a seasonally adjusted annual rate of $1.2 trillion, according to Dodge Construction Network’s latest Construction Starts Index. Nonresidential building starts rose 14%, nonbuilding starts grew by 2%, while residential building starts fell 3%.

On a year-to-date basis through October, total construction starts were up 3% from the same period in 2023. Residential starts were up 7%, nonresidential buildings rose 1%, and nonbuilding starts ticked up by less than one percent. For the 12 months ending October 2024, total construction starts were up 1% from the 12 months ending October 2023. Residential starts were up 6%, and nonresidential and nonbuilding starts were each down 1%.

“Construction starts have yet to see the impact of falling interest rates,” said Dodge Construction Network chief economist Richard Branch. “Several more rate cuts will be needed to start moving construction projects through the planning proce...

Construction starts fall 6% in September, following two consecutive months of gains

2024-10-18T14:58:00-04:00

The total number of construction starts fell by 6% in September, resulting in a seasonally adjusted annual rate of $1.1 trillion, according to Dodge Construction Network’s latest Construction Starts Index. Nonbuilding starts fell 11%, residential starts decreased by 1%, and nonresidential building starts were down 6%.

On a year-to-date basis through September, total construction starts were up 2% from the same period in 2023. Residential starts were up 7%, nonresidential buildings rose 2%, and nonbuilding starts fell 3%. For the 12 months ending September 2024, total construction starts were up 1% from the 12 months ending September 2023. Residential starts were up 6%, nonresidential building starts were unchanged, and nonbuilding starts decreased by 4% on a 12-month rolling sum basis.

“Construction starts are treading water,” said Dodge Construction Network chief economist, Richard Branch. “September’s rate cut was just the first step in unwinding a period of high rates and severa...

Construction starts rise 6% in August, San Francisco International Airport T3 expansion leads with the highest project value

2024-09-24T14:19:00-04:00

The number of construction starts nationwide climbed 6% to a seasonally adjusted rate of $1.2 trillion in August, according to the latest data from the Dodge Construction Network (DCN). For the month, residential starts rose 5%, nonbuilding starts were up by 17%, and nonresidential buildings fell by 2%.

On a year-to-date basis through August, total construction starts were up 4% from the first eight months of 2023. Residential starts were up 8%, nonresidential buildings 3%. Total nonbuilding starts were down 1%. The total number of construction starts was up 2% from the 12 months ending August 2023. Residential starts were up 6% compared to the same year, while nonresidential building and nonbuilding starts each went up by 1% on a 12-month rolling sum basis.

"Construction starts continue to move forward at a modest pace," DCN chief economist Richard Branch said. "Now that the Federal Reserve has begun to lower rates the construction sector should begin to feel relief. The Dodge M...

Construction starts rise 10% in July, propelled by gains in nonresidential building and infrastructure

2024-08-26T13:03:00-04:00

Construction starts have risen 10% for the month of July to a new seasonally-adjusted rate of $1.1 trillion, according to the latest data published by Dodge Construction Network (DCN). For the month, nonresidential buildings rose 25% and infrastructure starts were shown to increase by 19% as starts in the residential construction sector fell by 8%.

This reverses June’s 19% decline. On a year-to-date basis through the end of July, total construction starts were up 6% from the first seven months of 2023. Residential starts rose 11%, nonresidential buildings were up by 5%, and starts for nonbuildings remained flat.

For the 12 months ending July 2024, total construction starts were up 3% from the 12 months ending July 2023. Nonresidential building starts were down 1%, residential starts were up 7%, and nonbuilding starts were up 5% on a 12-month rolling sum basis.

“Construction starts show...

Construction starts fall 19% in June, driven by stark decline in utility/gas activity

2024-07-24T15:01:00-04:00

The total number of construction starts fell by 19% in June, which resulted in a seasonally adjusted annual rate of $1.0 trillion, according to Dodge Construction Network’s latest Construction Starts Index.

Nonbuilding starts dipped 46%, and nonresidential starts decreased by 13%. Residential starts, on the other hand, rose 9%. On a year-to-date basis through June, total construction starts were up 7% from the same period in 2023. Residential starts were up 14%, nonbuilding starts gained 8%, and nonresidential building starts rose 1%.

June’s decline is attributed to a stark dip in utility/gas starts following a high level of activity in May, in which a Liquified Natural Gas plant and an offshore wind project got underway. As a result, gas/utility plants fell 90% over the month.

“The construction market remains sluggish as high interest rates continue to reverberate through the sector,” sa...

Construction Starts Index hits $1.24 trillion in May, propelled by 10% increase

2024-06-25T11:42:00-04:00

The total number of construction starts increased by 10% in May, according to data in Dodge Construction Network’s latest Construction Starts Index.

Nonbuilding starts increased by 49%, while residential starts fell 7% and nonresidential building starts went down 2%. On a year-to-date basis through the end of May, total construction starts were up 11% from the same period of 2023. Residential starts rose by 16%, while nonbuilding starts gained 17%, and nonresidential building starts went up by 3%.

The new seasonally adjusted annual rate was equal to $1.24 trillion.

“Even though May’s gain in construction starts was mainly due to a handful of large projects, the data highlights that there is some grassroots demand building in the market,” Richard Branch, Dodge Construction Network chief economist said in a statement. “Single-family starts, in particula...

Construction starts up 6% in April, led by substantial gains in manufacturing and institutional sectors

2024-05-28T13:36:00-04:00

The total number of construction starts in America rose 6% to a seasonally adjusted rate of $1.13 trillion for April, according to the latest data in Dodge Construction Network’s monthly reporting. For the month, nonresidential building starts gained 17%. The number of nonbuilding starts was 4% higher, while the residential starts fell by 1%.

The new Construction Starts Index report notes that, on a year-to-date basis, total construction starts were up 13% from the first four months of 2023. Residential starts were up 22%, while nonbuilding starts gained 14% and nonresidential building starts rose 5%.

“The rebound in starts in April was certainly good news for the sector,” Richard Branch, the chief economist of Dodge Construction Network, explained. “While the uncertain timing of Fed interest rates cuts is causing concern, developers and owners are feeling reasonably confident that end-market demand will sustain project starts in some sectors. While risk remains in the sector for ...

Construction starts dip 1% in March despite encouraging signs in the residential sector

2024-04-26T13:56:00-04:00

Construction starts for March have dropped by 1% to a seasonally adjusted annual rate of $1.06 trillion, according to the latest figures released in Dodge Construction Network's new Construction Starts Index.

For the month, nonresidential building starts went down 9%, while nonbuilding starts dipped another 7%, and residential starts were up by 1%. On a year-to-date basis, the total number of all starts was up 13% compared to the same three-month period in 2023. Residential starts increased by 24%, while nonbuilding starts gained 16%, and nonresidential building starts went up by 2%.

“The construction sector has hit a soft patch to start 2024,” Richard Branch, the chief economist for Dodge Construction Network, said. “However, this should not be overly surprising given high rates and restrictive credit. There are bright spots though, as single-family starts are moving higher and federal dollars are lifting nonbuilding starts. The recent hot inflation readings likely mean that rate...

Construction starts fall 8% in February, driven by sharp nonresidential decline

2024-03-21T18:46:00-04:00

The total value of construction starts for February fell by 8% to a seasonally adjusted annual rate of $1.07 trillion, according to the latest data from Dodge Construction Network.

For the month, nonresidential building starts dropped 16%, while nonbuilding starts were down 3%, and residential starts fell by 2%.

For the 12 months ending February 2024, total construction starts were up 2% from the 12 months ending February 2023. Nonresidential building starts were down 2%, while residential starts were 4% lower, and nonbuilding starts were up 19% on a 12-month rolling sum basis.

“Construction activity was hit hard by higher rates and more restrictive credit standards,” Richard Branch, the chief economist for Dodge Construction Network, said in a news release. “Starts struggled over the past several months as the lagged effect of higher rates impacted projects moving forward through the planning process. Additionally, the significant deficit of skilled labor led to further delays — e...

Construction starts up another 1% in January, continuing winter improvements

2024-02-22T18:29:00-05:00

The latest construction starts statistics revealed by Dodge Construction Network for January report that the total number of starts grew 1% to a seasonally adjusted annual rate of $1.16 trillion.

Nonbuilding starts rose 9% during the month, while nonresidential building starts fell by 2% and residential starts remained flat. For the year ending in January 2024, total construction starts were down 1% from the previous 12 months. Nonresidential building starts were down 5%, while residential starts were 8% lower. Nonbuilding starts were also up 17% on a 12-month rolling basis.

“Construction starts are struggling to make headway in the new year,” Richard Branch, the chief economist for Dodge Construction Network, said in a news release. “Construction starts will continue to struggle early on in 2024 as higher interest rates and tight credit standards are slowing down projects moving through the planning cycle to start. The Federal Reserve is expected to cut rates later this year. That...

Construction starts climb 20% in December

2024-01-19T16:46:00-05:00

The latest data from Dodge Construction Network has shown an impressive 20% growth in new construction starts to a seasonally adjusted annual rate of $1.2 trillion for the month of December, offering encouraging statistics for the industry in a turnaround from November’s ten-month low.

For the latest month, nonresidential building starts were up 37%, while the residential and nonbuilding sectors improved by 8% and 13%, respectively. For the full year ending in December, total construction starts were down 4% compared to the previous 12-month cycle.

Graphic courtesy of Dodge Construction Network

“Construction starts ended the year on a positive note,” Richard Branch, chief economist for Dodge Construction Network, said in a statement. “Looking ahead, the new year provides promise that positive momentum will continue to build. The planning queue is stabilizing, and the promise of lower rates should spur construction onward. While hurdles remain, including scarce labor and tight credit,...

Economic Pressures and Labor Challenges: How 2023 Shaped Architecture and Construction Industries

2023-12-28T07:49:00-05:00

The architecture industry was impacted this year by market volatility, rising interest rates, and evolving labor dynamics. This unusual business climate was reflected not only in the Architecture Billings Index (ABI) and the Dodge Momentum Index (DMI) but also in the pattern of job openings around the country, also observed through Archinect Jobs, the leading job board for the architecture industry in the USA.

AIA predicts slower growth in non-residential construction through 2023 and 2024

Hints of 2023's challenges began in late 2022, with a downturn in both the ABI and DMI to kick off 2023. This signaled a cautious approach by firm owners and clients alike amidst tightening credit conditions and rising interest rates. This recessed business landscape was quickly echoed in the job market, as seen by a substantial 51.9% decrease in job advertising volume in January 2023 compared to January 2022. This trend of reduced job postings continued throughout the year, with monthly declines r...

November construction starts drop 15% to new ten-month low

2023-12-20T14:00:00-05:00

Construction starts for the month of November fell by 15% to new ten-month lows at a seasonally adjusted annual rate of $927 billion, according to the latest figures from the Dodge Construction Network.

For the month, nonresidential building starts fell 29%, residential starts lost 6%, and nonbuilding starts dropped 2%. In terms of year-to-date figures through November 2023, total construction starts were down by 4% when compared to the same period last year. Residential and nonresidential starts were also down 14% and 7%, respectively, with nonbuilding starts recorded to be up by 19%.

“Construction starts are deeply feeling the impact of higher rates,” Richard Branch, the chief economist for the Dodge Construction Network, said in a statement. “While the Federal Reserve seems poised to start cutting rates in the New Year, the impact on starts will lag. As a result, starts are expected to be weak through the mid-point of 2024 before growth resumes.”

Graphic: Dodge Construction Net...

Construction starts for October drop 7%, led by declines in the nonbuilding sector

2023-11-22T13:48:00-05:00

New data from the Dodge Construction Network has construction starts falling 7% in October to a seasonally adjusted annual rate of $1.1 trillion. The figures follow September’s 6% decline and represent another 4% year-to-year decline when compared to the same data sets from October 2022.

Nonbuilding and residential starts fell 32% and 1%, respectively. Nonresidential building starts gained 8% during the month.

Nonresidential starts were also up 8% year-to-date, an adjusted annual rate of $490 billion, though Dodge notes the sector would have fallen 28% if not for an abnormally strong spate of manufacturing plants. Residential starts represented another $385 billion. Nonbuilding starts fell to $231 billion year-to-date through October; however, nonbuilding starts were up by 20% overall.

Graphic courtesy of Dodge Construction Network

“Construction starts have weakened over the last two months as high interest rates and tight credit have restrained activity,” Richard Branch, the chief...

Construction starts drop 6% in September, driven by declines in every sector

2023-10-18T17:55:00-04:00

Construction starts for the month of September declined a total of 6% to a seasonally adjusted annual rate of $1.2 trillion, according to the latest Dodge Construction Network report.

The findings come on the heels of a converse 6% increase reported in last month’s index that was driven primarily by the strong performance of the manufacturing sector. Nonresidential starts lost 4% for September, while residential starts declined 6%, and nonbuilding starts fell by 9%.

“Risks continue to mount for the construction sector,” Richard Branch, the chief economist for the Dodge Construction Network, said. “Over the last 12 months, construction starts have essentially froze as rates increased and credit tightened. The industry needs further adjusting as rates are expected to stay higher for longer, along with the potential for higher energy costs and continued political uncertainty. A return to broad-based growth in construction starts is still some time away.”

Graphic courtesy of Dodge Cons...

Construction starts for August rise 6% with huge gains in the manufacturing sector

2023-09-20T14:42:00-04:00

The latest data from the Dodge Construction Network has indicated a 6% total rise in construction starts to a seasonally-adjusted rate of $1.3 trillion for the month of August, following a 17% rise that was recorded in July thanks to gains in the multifamily and nonbuilding sectors.

Nonresidential starts for the month rose by 40% thanks to a 285% increase in the manufacturing sector. Residential and nonbuilding starts both fell by 1% and 14%, respectively, while starts in the commercial and nonresidential building sectors both rose by 8% and 24% each.

“Despite the August gain, the construction sector is running uphill,” Dodge Construction Network chief economist Richard Branch said. “Fear of an imminent recession seems to have abated, which should provide a boost of confidence to the sector. However, higher interest rates, labor shortages and significantly tighter lending standards will weigh down starts in the final quarter of the year. This will persist for the foreseeable future...

Construction starts rose 17% for July, propelled by gains in key areas

2023-08-16T17:43:00-04:00

Construction starts rose a total of 17% for July to a seasonally-adjusted rate of $1.2 trillion, according to the just-released report from Dodge Construction Network.

The latest data also indicated a 7% year-to-date drop in total construction starts when compared to the July 2022 totals. Nonresidential starts fell another 6%, while residential starts went up by another 20%.

“Construction starts have plateaued and are making little headway,” Richard Branch, the chief economist for Dodge Construction Network, said in a press release. “Higher interest rates, labor shortages, and material prices continue to impact the flow of construction starts — resulting in little forward momentum over the last 12 months. The lag in nonresidential building projects entering the planning stage will slow starts as the year progresses, which should be offset by rising infrastructure activity.”

Graphic courtesy of Dodge Construction Network

The sole cause for the 38% rise in the nonbuilding sector was t...

Total construction starts fall in June, continuing wavering trend in 2023

2023-07-24T13:20:00-04:00

Total construction starts continue to fluctuate, with a 9% dip in June resulting in a seasonally adjusted annual rate of $1 trillion, according to the latest Dodge Construction Network report. Nonresidential starts led the decline, falling 14%. Nonbuilding starts fell 9%, and residential starts dropped 4%.

Year-to-date through June 2023, total construction starts were 5% below that of 2022. Residential and nonresidential starts were down 24% and 2%, respectively, while nonbuilding increased by 29%. For the 12 months ending June 2023, total construction starts were 9% higher than that of 2022. Nonbuilding starts were 34% higher, and nonresidential building starts were up 25%; however, residential starts saw a 17% decline.

“Construction starts are oscillating — up one month and down the next,” said Dodge Construction Network chief economist Richard Branch. “The presence, or absence, of mega-projects is a key influencer in this trend. Nevertheless, high interest rates and tightening l...

Construction starts increase again in May following brief April decline

2023-06-20T17:13:00-04:00

New data from the Dodge Construction Network (DCN) has shown construction starts increasing to a seasonally adjusted annual rate of $1.11 trillion for the month of May following the 4% decline for April that ended a steady two-month series of gains.

Nonresidential starts rose 8% over the previous month thanks to gains in the manufacturing sector, while starts in the residential category were recorded to have declined at a 4% rate. Nonbuilding starts for the month rose a dramatic 24%, while the single-family sector recorded a 2% decrease following four consecutive months of gains. On a year-to-date basis, total construction starts were 6% below the first five months of 2022 overall.

Graphic courtesy of Dodge Construction Network

“May’s data is another sign that the construction sector is slowly splitting in two,” Richard Branch, the chief economist for the network, said in a statement. “Public dollars are flooding into the manufacturing and infrastructure sectors, leading to signific...

Construction starts fall 4% in April due to steep decline in manufacturing

2023-05-19T14:21:00-04:00

According to new Dodge Construction Network data, total construction starts fell 4% in April to a seasonally adjusted annual rate of $1.04 trillion. This marks a slowdown after two consecutive months of increases.

Nonresidential starts led the decline, falling 22%. This was balanced by a 7% rise in nonbuilding starts and a 12% increase in residential building starts. On a year-to-date basis through April, total construction starts were 7% below the first four months of 2022. Residential starts were down 27%, and nonresidential and nonbuilding starts rose 7% and 16%, respectively. Total construction starts are 11% higher than the 12 months ending April 2022, with nonresidential and nonbuilding starts showing gains of 34% and 24%, respectively, while residential starts marked a 13% decline.

“The construction sector continues to sweep its economic worries under the rug, even with inflation, unstable banking, and the potential breach of the U.S. debt ceiling,” said Dodge Construction N...

Construction starts rose 19% in March as concerns over the impact of the Silicon Valley Bank collapse loom

2023-04-20T13:40:00-04:00

March data from the Dodge Construction Network (DCN) has shown an increase in construction starts of 19% to what is now a three-month high despite concerns over the industry’s ties with Silicon Valley Bank following the financial institution’s controversial collapse at the beginning of the Month.

Nonresidential starts for the month rose by 33%, with residential starts up by 5%. Nonbuilding starts increased by 17% to a seasonally-adjusted rate of $263 billion, led by a 35% increase in environmental public works projects and a 16% boost in gas and utility plants. Overall year-to-date nonbuilding starts gained a total of 12% for Q1.

Graphic courtesy of Dodge Construction Network

“Construction starts activity has yet to see the impact of tightening financial conditions in the wake of the failure of Silicon Valley and Signature Banks,” Richard Branch, the chief economist for Dodge Construction Network, said in a statement. “Several large manufacturing projects are breaking ground; pushing...

Construction starts rebound for February with 6% rise

2023-03-21T17:10:00-04:00

The latest data from the Dodge Construction Network (DCN) indicates a 6% rise in total construction starts for February, reversing January’s declines to a new seasonally adjusted annual rate of $912.8 billion.

During the month, residential and nonresidential building starts rose by 11% and 9% respectively, while nonbuilding starts declined by 5% overall.

“February construction starts were a mixed bag that led to marginal growth,” said DCN chief economist Richard Branch said. “Single family units posted a gain for the first time in 13 months, and manufacturing starts continued to be very robust, showing signs of promise early into 2023. However, the downturn in commercial and institutional building starts could very well be the beginning of an anticipated slow-down as the construction sector pulls back in the face of higher interest rates and lagging economic growth. While this ebbing should be comparatively mild, some construction verticals could face extreme stress as the year prog...

Construction starts dip in January as fewer mega projects break ground

2023-02-23T14:24:00-05:00

Total construction starts took a turn in January, falling 27% to a seasonally-adjusted annual rate of $865.6 billion, according to Dodge Construction Network. Last month, nonresidential building starts fell 38%, residential starts decreased by 20%, and nonbuilding starts declined by 16%.

Compared to January 2022, total construction was 14% lower in January 2023. Nonresidential building starts were down 2%, residential fell 34%, and nonbuilding starts rose 10%. For the year ending January 2023, total construction starts were 13% higher than the year ending January 2022. Nonresidential starts were 36% higher, residential starts fell 6%, and nonbuilding starts were up 19%.

“January’s decline in construction starts should not be taken as the beginning of a cyclical downturn in the industry,” said Richard Branch, chief economist for Dodge Construction Network. “Numerous mega-projects have begun over the last few months, obscuring the underlying trend in construction activity. While some ...

Construction starts rebound in December, led by strength in manufacturing and infrastructure projects

2023-01-24T14:55:00-05:00

According to a new Dodge Construction Network report, total construction starts jumped 27% in December to a seasonally adjusted annual rate of $1.185 trillion. This figure is a rebound from a dip in November, which saw an 18% decline. Throughout December, nonresidential building starts increased by 51%, nonbuilding starts increased by 30%, and residential starts rose by less than one percent.

Total construction starts last year were 15% higher than in 2021. Nonresidential building starts rose 38% over the year, nonbuilding starts increased 19%, while residential starts were down 3%.

Graphic courtesy of Dodge Construction Network

“December starts revealed where the current strength in the construction lies: manufacturing and infrastructure,” said Dodge Construction Network chief economist Richard Branch. “It is those segments that will provide insulation for the sector as the economy softens in 2023. Recession or not, higher interest rates will weigh on the economy and restrain const...

Construction starts decline again in November, led by losses in commercial projects and manufacturing

2022-12-20T10:00:00-05:00

The latest data from November’s Dodge Construction Network report has revealed an 18% decline in total construction starts nationwide to an adjusted annual rate of $926.3 billion.

The dip follows an October rebound that ended two consecutive months of declining figures. Total year-to-date starts for the first 11 months of the year were 14% higher than in 2021. Nonresidential building starts rose 36% in the same time period, while residential starts dropped by 1%, and nonbuilding starts went up by 16%.

Graphic courtesy of Dodge Construction Network

“Month-to-month volatility in construction activity continues to reign supreme as uncertainty mounts over the economy in 2023,” Dodge's chief economist Richard Branch said in a statement. “Higher interest rates and fear of recession are first and foremost on the mind of most builders and developers, and potentially restraining starts activity. However, as some material prices head lower and more public dollars come into the market for inf...

Total construction starts rebound in October led by gains in nonresidential building and nonbuilding starts

2022-11-18T11:31:00-05:00

According to a new Dodge Construction Network report, total construction starts rose 8% in October to a seasonally adjusted annual rate of $1.12 trillion. This is a rebound following two consecutive months of decline. Last month, nonresidential building starts gained 9% and nonbuilding starts jumped 26%, while residential starts fell by 3%.

Year-to-date, total construction was 16% higher through October 2022 compared to the same period in 2021. Nonresidential building starts rose 37% over the year, residential starts remained the same, and nonbuilding were up 17%.

Graphic courtesy of Dodge Construction Network

“October’s gain in construction starts is a further sign that the construction sector continues to weather the storm of higher interest rates,” said Dodge Construction Network chief economist Richard Branch. “While the residential sector is feeling the pain, the nonresidential building and infrastructure sectors are hitting their stride. Some weakness is to be expected as the...

Construction will stagnate in 2023 as recession looms, warns Dodge Construction Outlook

2022-11-17T11:59:00-05:00

The Dodge Construction Network has produced a forecast for the U.S. construction sector for 2023, in which it signals a slowdown across many typologies. Overall, the dollar value of construction starts will be $1.08 trillion, which, though unchanged from 2022, represents a 3% dip when adjusted for inflation.

Dodge’s analysis suggests the stagnation will not be felt evenly across the industry, with declines in residential and commercial activity offset by growths in manufacturing and infrastructure.

The dollar value of single-family homes starts will hold steady in 2023 versus 2022, which, when adjusted for inflation, represents a decline of 5%. The number of single-family housing units is expected to decline by 6% to 891,000 units, a fall fuelled by higher mortgage rates and continued high construction costs.

The multifamily sector will show similar stagnation with a 1% rise in the value o...

Construction starts fell dramatically in September, but forecasters still hesitate to predict pullbacks industry-wide

2022-10-20T14:13:00-04:00

The latest data from the Dodge Construction Network (DCN) has revealed a 19% decline in the total number of construction starts for September, marking the second consecutive month in which declines were recorded following a 48% increase in July.

The new seasonally adjusted annual rate is now $1.02 trillion. The DCN reports that September’s figures were driven by a 23% drop in nonresidential construction starts, with additional residential and nonbuilding projects dipping by 11% and 25 %, respectively.

Graphic courtesy of Dodge Construction Network

The DCN also notes that year-to-date, total construction was 16% higher in the first nine months of 2022 compared to the same period of 2021. Nonresidential starts rose 37% during that period, while residential starts stagnated and nonbuilding starts increased by 20%.

“September’s decline in construction starts should not be seen as a precursor to a cyclical pullback in the industry,” Richard Branch, chief economist for the Dodge Constructi...

Construction starts dropped 9% in August despite promising gains in the manufacturing and residential sectors

2022-09-23T11:56:00-04:00

The latest Dodge Construction Network figures show a decline in construction starts by 9% after a July spike that was propelled mostly by the nonresidential and nonbuilding sectors.

Total starts now stand at an adjusted annual rate of $1.25 trillion. The August dip was caused by a 36% decrease in nonbuilding starts and minor increase in residential starts, which was recorded at only 1%. Year-to-date construction is now 16% higher in the first eight months of 2022 than it was in the same period of 2021, with nonresidential starts up 35% on the year overall.

The largest nonbuilding projects that commenced in August were the $1.9 billion third phase of the New Soo Lock Chamber in Sault Ste. Marie, MI, a $738 million paving project in Honolulu, HI, and a $460 million first phase wastewater treatment project plant in the same city. Gensler's $9.5 billion JFK Terminal One project led the nonresidential list, followed by the $8.5 billion Samsung semiconductor plant project in Texas, and t...

Construction starts skyrocketed in July, driven by nonresidential and nonbuilding projects

2022-08-16T17:20:00-04:00

According to the Dodge Construction Network (DCN), total construction starts surged 48% in July to a seasonally adjusted annual rate of $1.36 trillion. The gain is due to the start of three large manufacturing plants and two Liquefied Natural Gas (LNG) export facilities. Even without these projects, however, total construction starts would still have increased by 7%. Nonresidential building starts rose 79% last month, and nonbuilding starts jumped 120%. On the other hand, residential starts decreased by 8%.

Year-to-date, total construction is 11% higher through July 2022 compared to the same period in 2021. Nonresidential building starts rose 22% over the year, residential starts gained 1%, and nonbuilding starts were up 16%.

DCN reports, "for the 12 months ending July 2022, total construction starts were 10% higher than the amount during the 12 months ending July 2021. Nonresidential starts were 21% higher, residential starts gained 4%, and nonbuilding starts gained 10%."

Accordin...