National nonresidential construction spending increased 0.8% in July, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $847.6 billion for the month.
Spending was up on a monthly basis in 13 of the 16 nonresidential subcategories. Private nonresidential spending was up 0.4%, while public nonresidential construction spending was up 1.5% in July.
“The nonresidential sector continues to grapple with rising borrowing costs, elevated materials and labor costs and pervasive economic pessimism,” said ABC Chief Economist Anirban Basu. “Despite a modest increase in July, nonresidential construction spending remains below its pre-pandemic level. There is, however, at least one bright spot for the industry: publicly financed construction. State and local governments are flush with cash, and considerable funding is slated for various forms of infrastructure. In July, spending in the highway and street category increased 4.4%, while spending in the public safety category rose 2.3%.
“For privately financed construction, circumstances could get worse before they get better,” said Basu. “The Federal Reserve recently recommitted to further tightening monetary policy. Market sentiment quickly turned negative. Rather than disappear, supply chain challenges are proliferating in much of the world, including in Europe and China, and the risk of recession is elevated. This is simply not a set of circumstances conducive to rapid nonresidential construction spending growth, and according to the most recent Construction Confidence Index, just 31% of contractors expect their profit margins to grow over the next six months.”
Related Stories
| Nov 3, 2010
Recreation center targets student health, earns LEED Platinum
Not only is the student recreation center at the University of Arizona, Tucson, the hub of student life but its new 54,000-sf addition is also super-green, having recently attained LEED Platinum certification.
| Nov 3, 2010
New church in Connecticut will serve a growing congregation
Tocci Building Companies will start digging next June for the Black Rock Congregational Church in Fairfield, Conn. Designed by Wiles Architects, the 103,000-sf multiuse facility will feature a 900-person worship center with tiered stadium seating, a children’s worship center, a chapel, an auditorium, a gymnasium, educational space, administrative offices, commercial kitchen, and a welcome center with library and lounge.
| Nov 3, 2010
Senior housing will be affordable, sustainable
Horizons at Morgan Hill, a 49-unit affordable senior housing community in Morgan Hill, Calif., was designed by KTGY Group and developed by Urban Housing Communities. The $21.2 million, three-story building will offer 36 one-bed/bath units (773 sf) and 13 two-bed/bath units (1,025 sf) on a 2.6-acre site.
| Nov 3, 2010
Designs complete for new elementary school
SchenkelShultz has completed design of the new 101,270-sf elementary Highlands Elementary School, as well as designs for three existing buildings that will be renovated, in Kissimmee, Fla. The school will provide 48 classrooms for 920 students, a cafeteria, a media center, and a music/art suite with outdoor patio. Three facilities scheduled for renovations total 19,459 sf and include an eight-classroom building that will be used as an exceptional student education center, a older media center that will be used as a multipurpose building, and another building that will be reworked as a parent center, with two meeting rooms for community use. W.G. Mills/Ranger is serving as CM for the $15.1 million project.
| Nov 3, 2010
Chengdu retail center offers a blend of old and new China
The first phase of Pearl River New Town, an 80-acre project in Chengdu, in China’s Wenjiang District, is under way along the banks of the Jiang’an River. Chengdu was at one time a leading center for broadcloth production, and RTKL, which is overseeing the project’s master planning, architecture, branding, and landscape architecture, designed the project’s streets, pedestrian pathways, and bridges to resemble a woven fabric.
| Nov 3, 2010
Rotating atriums give Riyadh’s first Hilton an unusual twist
Goettsch Partners, in collaboration with Omrania & Associates (architect of record) and David Wrenn Interiors (interior designer), is serving as design architect for the five-star, 900-key Hilton Riyadh.
| Nov 3, 2010
Virginia biofuel research center moving along
The Sustainable Energy Technology Center has broken ground in October on the Danville, Va., campus of the Institute for Advanced Learning and Research. The 25,000-sf facility will be used to develop enhanced bio-based fuels, and will house research laboratories, support labs, graduate student research space, and faculty offices. Rainwater harvesting, a vegetated roof, low-VOC and recycled materials, photovoltaic panels, high-efficiency plumbing fixtures and water-saving systems, and LED light fixtures will be deployed. Dewberry served as lead architect, with Lord Aeck & Sargent serving as laboratory designer and sustainability consultant. Perigon Engineering consulted on high-bay process labs. New Atlantic Contracting is building the facility.
| Nov 3, 2010
Dining center cooks up LEED Platinum rating
Students at Bowling Green State University in Ohio will be eating in a new LEED Platinum multiuse dining center next fall. The 30,000-sf McDonald Dining Center will have a 700-seat main dining room, a quick-service restaurant, retail space, and multiple areas for students to gather inside and out, including a fire pit and several patios—one of them on the rooftop.
| Nov 2, 2010
11 Tips for Breathing New Life into Old Office Spaces
A slowdown in new construction has firms focusing on office reconstruction and interior renovations. Three experts from Hixson Architecture Engineering Interiors offer 11 tips for office renovation success. Tip #1: Check the landscaping.
| Nov 2, 2010
Cypress Siding Helps Nature Center Look its Part
The Trinity River Audubon Center, which sits within a 6,000-acre forest just outside Dallas, utilizes sustainable materials that help the $12.5 million nature center fit its wooded setting and put it on a path to earning LEED Gold.
