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.

“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 nonresidential buildings higher, while a nascent recovery in single-family starts has been supporting residential growth. Construction starts began the year with gusto, but that is likely to erode as the year progresses, as seen by the declining trend in the Dodge Momentum Index, which tracks projects entering the earliest stages of planning.”

The biggest nonresidential building starts recorded for the month were the $5.5 billion Hyundai EV plant in Georgia and the $3 billion Panasonic Energy North America Battery Manufacturing Plant in Nevada. A $400 million mixed-use project in Jamaica, Queens led all multifamily starts, followed by a $225 million project in nearby Cypress Hills, Brooklyn. 

Residential starts were 11% lower than the 12 months ending in March 2022. Overall, construction starts in March rose in all five regions.