Florida Contracts Drop 14% in April

The bad news for Florida contractors returned in April, as the value of new contracts fell by 14% overall, according to McGraw-Hill Construction, publisher of ENR Southeast. The downward slide returned after a strong March—the state’s only positive month for the year—and pushed the latest total for new construction contracts down to approximately $2 billion.

All three sectors declined during April, but nonresidential fell by the greatest percentage. This category’s total dropped 33% compared to the same period of a year ago, for a $401.6-million total. The nonbuilding category, which includes infrastructure projects, declined by 12% and tallied $780.3 million for the month. The value of residential contracts totaled $817.8 million, or 2% lower than the previous April.

On a year-to-date basis, McGraw-Hill Construction estimates the value of 2011 Florida contracts at nearly $7.1 billion through April, or 25% below last year’s pace of more than $9.5 billion.

The nonresidential construction category has declined the most, dropping 38% through the first four months of the year and totaling just over $1.6 billion so far—or $1 billion lower than last year’s $2.6 billion total. The value of nonbuilding contracts is estimated at roughly $2.6 billion, or 30% behind last year’s pace. Residential construction, initially forecast to grow significantly in 2011, is nevertheless 10% behind 2010’s pace, with approximately $2.8 billion in new contracts so far this year.

Scott Judy is Deputy Editor for Regions, and editor of ENR Southeast, one of Engineering News-Record's 10 Regional publications. His roughly 27 years as a construction journalist began with an 11-year stint covering Midwest construction projects. In 2000, Judy helped launch the publication now known as ENR Southeast. He often delves into controversial aspects of the construction industry such as bankruptcies and fatal accidents, and wishes he would never have to cover another accident but suspects that he might.