March Contracts Increase 8 Percent
McGraw-Hill Construction, a division of The McGraw-Hill Cos., New York, has reported construction starts increased 8 percent in March. Total construction starts in March were unchanged compared with March 2012.
"After the slowdown in early 2013, the March improvement for total construction is in line with what's been seen during the past year—that being, an up-and-down pattern around a gradual rising trend," says Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "The support for total construction in March came from public works and electric utilities, which bounced back from a particularly weak February. Still, both segments are not expected to register much growth for 2013 as a whole, as public works construction is facing federal budget constraints while electric utility construction is pulling back from the record high achieved in 2012.
"Residential building in March paused from its steady increases during the past year, with growth likely to resume in coming months," he continues. "The modest decline for nonresidential building in March was consistent with its struggle to establish upward momentum, as the gains for commercial building stay tenuous while institutional building remains in the process of bottoming out."
Nonresidential building construction fell 2 percent in March. In the commercial category, manufacturing plant construction jumped 175 percent; warehouse construction surged 45 percent; hotel construction dropped 18 percent; store construction decreased 19 percent; and office construction fell 34 percent. In the institutional category, health care facility construction climbed 21 percent; educational building construction rose 4 percent; amusement-related construction fell 5 percent; public buildings fell 21 percent; and transportation terminal construction dropped 23 percent.
Residential building construction fell 1 percent in March. Single-family housing held steady, and multifamily construction dropped 2 percent.
Nonbuilding construction jumped 42 percent in March.
During the 12 months ending in March, nonresidential building decreased 5 percent compared with the 12 months ending March 2012. Residential building was up 32 percent, and nonbuilding construction decreased 5 percent. By geographic region, the South Central grew 16 percent; Northeast increased 11 percent; Midwest increased 8 percent; South Atlantic rose 1 percent; and West fell 2 percent.
(From NRCA Newsletter)
Trenton H. Cotney
Florida Bar Certified Construction Lawyer
Trent Cotney, P.A.
1211 N Franklin St
Tampa, FL 33602