The value of nonresidential building starts slightly fell in 2015, and was particularly soft in the latter months of the year, according to CMD Research Group.
The total value for nonresidential building stood at $186.307 billion in 2015, down 3.3% from 2014. Starts in December 2015 were 9.4% lower than the same month a year ago, and 7.3% lower than November 2015.
When heavy engineering, such as airport and highway construction, is thrown into the mix, the total value of nonresidential construction starts rose 1.9% to $309.221 billion. But heavy engineering, too, was softer in November and December.
The Industrial sector took the biggest hit last year, as manufacturing-related construction starts fell in value by 32.8% to $12.769 billion. Analysts have posited that manufacturing in the U.S. is suffering, in part, from the steady downturn in China’s economic growth.
The last few months of 2015 were unkind to builders and developers, and pulled down the value of nonresidential construction starts, which ended the year up 1.9%. Nonresidential building starts were off 3.3%. Image courtesy of CMD Research Group.
Commercial construction was on shaky ground, too, as five of the 10 sectors that CMD tracks were negative. Private office building starts were down 32.6% to $11.828 billion, and the “amusement” category fell by 20.4% to $5.413 billion. On a positive note, Alex Carrick CMD’s chief economist, notes that commercial starts were buoyed by retail, which was down by 30.6% in December 2015 vs. December 2015, but still managed to show a positive full-year gain of 7.3% to $18.952 billion.
The wildest swing occurred in the warehouse sector, which cratered by 55.2% in December to December, but nonetheless finished full-year 2015 up 42.7% increase to $10.524 billion.
Schools and colleges accounted for 60% of the Institutional sector’s total starts. However, the category was off 18.7% in December compared to the same month in 2014, and down 4.5% for the full year, to $52.382 billion. The biggest institutional gainer was the police/prison/courthouse category, up 46.3% for the year to $5.664 billion.
CMD also provided a list of the 10 largest projects under construction in the U.S., led by the 40-story, $221 million mixed-use Milennium Tower in Boston. That’s followed by the 69-story commercial building at 401 9th Avenue in New York, whose start value CMD estimates at $317 million.
Related Stories
Market Data | Jan 4, 2018
Nonresidential construction spending ticks higher in November, down year-over-year
Despite the month-over-month expansion, nonresidential spending fell 1.3 percent from November 2016.
Contractors | Jan 4, 2018
Construction spending in a ‘mature’ period of incremental growth
Labor shortages are spiking wages. Materials costs are rising, too.
Market Data | Dec 20, 2017
Architecture billings upturn shows broad strength
The American Institute of Architects (AIA) reported the November ABI score was 55.0, up from a score of 51.7 in the previous month.
Market Data | Dec 14, 2017
ABC chief economist predicts stable 2018 construction economy
There are risks to the 2018 outlook as a number of potential cost increases could come into play.
Market Data | Dec 13, 2017
Top world regions and markets in the global hotel construction pipeline
The top world region by project count is North America.
Market Data | Dec 11, 2017
Global hotel construction pipeline is growing
The Total Pipeline stands at 12,427 Projects/2,084,940 Rooms.
Market Data | Dec 11, 2017
Construction backlog surges, sets record in third quarter
CBI is a leading economic indicator that reflects the amount of construction work under contract, but not yet completed.
Market Data | Dec 7, 2017
Buoyed by healthy economy, ABC Index finds contractors upbeat
Despite rising construction labor and materials costs, 55% of contractors expect their profit margins to expand in the first half of 2018.
Market Data | Dec 5, 2017
Top health systems engaged in $21 billion of U.S. construction projects
Largest active projects are by Sutter Health, New York Presbyterian, and Scripps Health.
Industry Research | Nov 28, 2017
2018 outlook: Economists point to slowdown, AEC professionals say ‘no way’
Multifamily housing and senior living developments head the list of the hottest sectors heading into 2018, according a survey of 356 AEC professionals.
