Nonresidential project abandonments show improvement despite discouraging performance in the public sector

2024-05-10T17:39:00-04:00

Project abandonments remain on an upswing across the country, according to an analysis of construction project data in the latest ConstructConnect Project Stress Index for the week ending April 27th. Over the past month, Delayed Bid, On Hold, and Abandoned activity have increased by 4%, 7%, and -6%, respectively. The number of Abandoned projects in the public sector is now up 44% when compared to year-ago levels.

Meanwhile, ConstructionConnect says: “The PSI continues to trend within a narrow range of between 120 and 130, indicating a steady level of industry project stress that is 20% to 30% greater than our 2021 base period."

“We traded a more severe form of stress for a lesser form of stress,” said Michael Guckes, senior economist at ConstructConnect, told Construction Dive in reference to last month's more concerning declines. “[This] is a positive. We would rather see more on-holds than abandonments. For this reason, it has been harder for us to be excited about the latest dec...

Project abandonments rose sharply across the country during March

2024-04-05T15:48:00-04:00

Project abandonments have spiked recently across the country, according to a new analysis of construction project data contained in the ConstructConnect Project Stress Index for the week ending on March 31st.

Construction Dive has more on the latest economic indicators impacting nearly every sector of commercial architecture, including the startling revelation that outright abandonments have increased by 60% from 2021 base levels.

“Not many months after interest rates started rising in early 2022, the private sector was quick to respond with greatly heightened levels of abandoned projects,” Michael Guckes, ConstructionConnect's senior economist, explained. “This volatility, coupled with overall elevated weekly readings, has continued with little exception through present.”

However, the total number of privately funded abandoned projects was down 10.7% compared with the same month las...

Archinect - News

Nonresidential project abandonments show improvement despite discouraging performance in the public sector

Project abandonments rose sharply across the country during March