The Construction Economy: Positive Trends Everywhere
Each month various metrics are released from firms that are specifically focused on the economic conditions of the construction world. These measurements look at the various demographics and landscape of the industry and assign results based on whatever factor or formula they have devised. Some are current performance, some are future based but all of them catch our attention as our lifeblood does depend on the success of the construction realm.
So needless to say we have been quite pleased that many of the index reports in recent months have been positive and there’s been great comparisons when looking in a year over year window as well.
Here are some statistics/notes that caught our eye. (Sources: Ed Zarenski, Bernard Markstein, McGraw Hill, Dodge Data & Analytics, American General Contractors (AGC) and American Institute of Architects (AIA)
- Every month in 2015 Construction Spending on office buildings will be 20% or more above same month in 2014. 6 months more than 25%+.
- Construction Starts via Dodge Data; average annual growth last 3 years. Residential +19%/yr; Nonresidential Buildings +18%/yr;
- Construction Starts for Nonresidential buildings in last 5 quarters all highest since Q3 2008
- Best quarter and best ½ year in Nonresidential construction starts since 2006.
- 2nd quarter 2015 construction spending vs same quarter year ago is the 2ND FASTEST GROWTH rate in over 9 years.
- With the institutional sector finally kicking in, a more balanced market should produce healthy growth in 2015 and 2016
- June’s Architectural Billings Index rating of 55.7 reading represents the strongest growth in design activity since mid-2007.
Add the above to the staggering number of 1 trillion dollars, which happens to be the overall pace the US is on in 2015 for construction spend, and you can see why there’s a positive aura right now.