The latest edition of the Dodge Momentum Index indicates a 4% decrease in November from October. Commercial planning fell 8% while institutional planning moved 5% higher. 

The value of nonresidential building projects continues to move in a sawtooth pattern, in which month-by-month measures alternate between gains and losses. Despite this, the Momentum Index remains near a 14-year high. As reported in Dodge Construction Network’s newest release, the index was 44% higher in November 2021 compared to November 2020. In addition, the commercial planning component was 45% higher and institutional planning was 41% higher. 

Since the start of the pandemic, nonresidential building projects entering planning have been more volatile, which is likely due to higher prices and shortage of labor. 

A total of 10 projects with a value of $100 million or more entered planning in November. The leading commercial projects were a $240 million Seefried Industrial Properties warehouse in Mesa, Arizona and a $158 million Prologis warehouse in Lebanon, Tennessee. The leading institutional projects were the $450 million Wake Forest Baptist Medical Center in Winston-Salem, North Carolina and the $241 million Hoboken High School in Hoboken, New Jersey.

The data continues to suggest a healthy level of construction to come in 2022. However, with the presence of the aforementioned higher prices and labor shortages, growth is expected to be modest. Additionally, the Omicron variant and its potential impact on economic growth also pose a threat to the construction industry.