April Contracts Decrease 1 Percent

McGraw-Hill Construction, a division of The McGraw-Hill Cos., New York, has reported construction starts decreased 1 percent in April. Total construction starts in April were down 5 percent compared with April 2012.

"Total construction starts during the early months of 2013 have been able to stay close to last year's average pace, but the moderate upward trend that was present last year has yet to resume," says Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "The housing market for the most part has maintained its recent strength, even with a slight pause in April, but new electric utility starts have slowed significantly from last year's record volume.

"The boost that had been expected to come in 2013 from nonresidential building is at best only beginning to take hold, as the pickup in April followed weak activity in February and March," he continues. "One relative bright spot so far in 2013 has been a stronger-than-expected amount of public works construction, although its April downturn may well be a sign of diminished activity to come."

Nonresidential building construction grew 6 percent in April. In the commercial category, office construction surged 58 percent; store construction increased 5 percent; hotel construction dropped 9 percent; warehouse construction fell 11 percent; and manufacturing plant construction plunged 49 percent. In the institutional category, transportation terminal construction jumped 238 percent; health care facility construction climbed 48 percent; amusement-related construction grew 6 percent; public buildings decreased 17 percent; educational building construction fell 19 percent; and churches dropped 27 percent.

Residential building construction fell 1 percent in April. Single-family housing decreased 1 percent, and multifamily construction dropped 2 percent.

Nonbuilding construction fell 7 percent in April.

During the 12 months ending in April, nonresidential building decreased 8 percent compared with the 12 months ending April 2012. Residential building was up 33 percent, and nonbuilding construction decreased 33 percent. By geographic region, the Northeast increased 12 percent; South Central grew 10 percent; West grew 6 percent; Midwest decreased 1 percent; and South Atlantic fell 31 percent. 

(From NRCA Newsletter)

Trenton H. Cotney

Florida Bar Certified Construction Lawyer

Trent Cotney, P.A.

1211 N Franklin St

Tampa, FL 33602

www.trentcotney.com