A special report titled “Green Outlook 2011,” published by McGraw-Hill Construction, points to green buildings as one of construction’s fastest-growing sectors. Starts increased 50% from 2008 to 2010. This year, MHC estimates green buildings will account for a third of all new non-residential construction, totaling $54 billion in starts. “This growth would be notable under any circumstances, but [it] is particularly dramatic given the decline in overall construction during the same period,” says MHC. It predicts that, by 2015, non-residential green building markets will nearly triple, growing to between $120 billion and $145 billion. It predicts the retrofit and renovation
The value of merger and acquisition deals among global engineering and construction firms rose to $13.03 billion in the third quarter of 2010, says financial services firm PricewaterhouseCoopers, New York City. The figure was up from $11.43 billion in the previous quarter, even though the number of transactions tracked dropped to 35 from 43. But the firm claims the value of “megadeals”—those worth at least $1 billion—more than doubled in the quarter, to $7.2 billion from $3.55 billion . Kent Goetjen, the firm’s E&C sector leader, credits the megadeal increase partly to “reduced capital constraints and low activity in 2009.”
If the stimulus measure is keeping construction workers employed, the months just past represented a new high point--depending on how you add it all up. Related Links: Build America Bonds Volume Jumps as Expiration Looms The White House estimates that the 2009 stimulus act's spending on "public investment," which includes most of the measure's construction outlays, rose sharply in the three months ended Sept. 30, hitting a new quarterly high of $33 billion. In its latest quarterly American Recovery and Reinvestment Act (ARRA), update, released on Nov. 18, the White House Council of Economic Advisers (CEA) estimates that the statute's
Voter frustration with the economy was evident on Nov. 2 in statehouse and congressional changes, but it also played out in how ballot funding and other initiatives fared. Some big-ticket state and local finance measures were rejected by voters, while others passed less enthusiastically than in better times. Also enacted were new restrictions that could complicate public-works procurement. Alabama voters turned down a proposed constitutional amendment to earmark $1 billion over a decade for road construction projects, but Rhode Island, Fairfax County, Va., and Austin, Texas, each approved close to $100-million-a-year transportation funding measures, says the American Road & Transportation
The Canadian economy managed to weather the Great Recession in rather good form compared to the U.S. economy. In 2009, Canada’s real GDP dropped 2.5%, compared to a 2.6% decline in the U.S. GDP. However, total employment only fell by 1.6% in Canada compared to a 4.2% drop in the U.S. Related Links: A Stalled Recovery Ready To Rev Up As the recovery took hold in late 2009 and early 2010, Canada managed to add back almost two-thirds of the jobs lost during the recession. As a result, the Canadian housing market was able to remain fairly solid. After falling
Thousands Of Units, Percent Change Year To Year. Thousands Of Units, Percent Change Year To Year. Related Links: A Stalled Recovery Ready To Rev Up Residential construction will rebound 33% next year and another 47% in 2012, following this year’s disappointing 8% gain, according to a forecast by the National Association of Home Builders. Washington, D.C. Despite the large percentage gains projected for the next two years, NAHB predicts single-family housing in 2012 still will be well below 2006’s peak year. NAHB predicts a similar scenario for multifamily housing, with that market making steady gains through the next few years
This year started out well, with a stimulus jolt to the depressed homebuilding and public-works markets. But it ended badly when the tax credits to home buyers expired, federal stimulus spending fell short of expectations, and the non-residential building market tanked all on its own. As a result, 2010 will probably become known in the economic lexicon as “the stalled recovery.” In a word, what stalled is housing, which traditionally leads the construction industry out of a recession. A year ago economists were predicting 30% increases in the housing market, but that turned into a mere 6% gain, not enough
Construction’s unemployment rate rose slightly in October to 17.3% from September’s 17.2%, but the good news was that it was better than October 2009’s 18.7% rate. The Bureau of Labor Statistics’ latest monthly employment report, released on Nov. 5, also shows that construction posted an increase in jobs for the month, though the gain was only 5,000. October marks only the second month so far this year that the industry’s unemployment rate improved from 2009’s levels. BLS says that, in October, non-residential specialty trade contractors added 7,300 jobs and heavy-civil construction’s workforce rose by 4,800. On the negative side, the
The construction market has yet to see signs of recovery from the current recession, but the recovery may be coming next year if factors such as employment and bank lending fall into place, according to a forecast released by McGraw-Hill Construction. Photo: Bruce Buckley For ENR If construction employment shows growth, banks loosen credit, and state and local governments get a handle on budget difficulties, next year could see an increase of 8% in new starts. Robert Murray, MHC’s vice president of economic affairs, foresees an 8% increase in total construction starts to $445.5 billion in 2011. Much of that
Republicans’ newly won majority in the House will result in new committee leaders in the chamber. Construction industry officials say that under those new chairmen, House panels will be focused on curbing spending and holding oversight hearings on the Obama administration’s implementation of federal laws and programs like the American Recovery and Reinvestment Act. Although the Republican Steering Committee has not yet announced its roster of committee chairman, several current ranking members are expected to take the helm of their panels. For example, Rep. Jerry Lewis (R-Calif.), is expected to assume the chairmanship of the Appropriations Committee. Lewis previously chaired
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