Australia's Newest Construction Boom Driven by Infrastructure
Top Tips for Successful Cash Flow Management
What the Shergold-Weir Reforms Mean for Building Industry
Asset Management Made Easy
Healthy Tradie Project: Bringing Wellness to the Jobsite
The Dangers of Silica Dust, What you Should Know
Matchmaker: Connecting People and Jobs Through Technology
Driving Efficiency and Safety through Fleet Management Software
By Anirban Basu
December 11, 2017
Spending, However, Unchanged on Yearly Basis
According to data released by the U.S. Census Bureau, nonresidential construction spending expanded 2.1% in October, totaling $717.6 billion on a seasonally adjusted basis. The level of spending, however, remains virtually unchanged from a year ago. Ten of the sixteen subcategories experienced positive growth, with educational spending topping the list with an increase of 9.0%. Public safety (6.8%), Office (5.3%), and Conservation and Development (4.3%) were the next highest subcategories. Religious (-3.7%), and Amusement and Recreation (-3.5%) spending saw the largest decreases over the previous month.
One could scarcely imagine circumstances more consistent with rapid growth in nonresidential construction spending. The U.S. economy is humming, coming up on two consecutive quarters of 3% growth on an annualized basis. Consumers, the driving force of the recovery to date, are more confident than they have been in 17 years.
Stock prices have surged, due in part to liquidity swirling around the growth. The worldwide economy has not been this healthy for roughly eight decades and global policy makers continue to pursue pro-growth agendas. Interest rates remain extraordinarily low, resulting in greater demand for assets that have the capacity to generate significant income, including commercial real estate. On top of this, there are hopes in corporate America for tax reform, which would presumably accelerate economic growth and bolster corporate profitability.
In October, nonresidential construction rose, which could be expected given broader macroeconomic dynamics. There were even signs of life in certain publicly-financed categories. Numerous factors, including growing confidence among policymakers in rapidly expanding communities, suggest construction growth will pick up further next year.. That confidence should translate into more spending on public works. Of course, whether this logic prevails will depend in part on the outcomes associated with tax reform efforts now underway in Washington, D.C.
Nonresidential Spending Growth, Millions of Dollars, Seasonally Adjusted Annual Rate
Source: U.S. Census Bureau
The Anatomy of a Request for Information (RFI)
The widest used rating system for green building is Leadership in Energy and Environmental Design (LEED), developed by the U.S. Green Building Council (USGBC). It’s no surprise, then, that major U.... Read More
July 1, 2018
Hear Brad Hyatt, Associate Professor at California State University Fresno, discuss what students are learning in school to prepare them for const... Read More
Budget. Schedule. Quality. The trifecta of a project. But balancing that trifecta isn't easy to do. Our webinar, led by construction industry exper... Read More
Building in the "Big Easy" sometimes isn't. The challenges faced by Landis Construction aren't often understood by out-of-towners, because when it'... Read More
Improving safety and efficiency on projects is an important consideration for any construction company, and to that end, some are turning to unmann... Read More
An RFI is used to obtain information not contained or inferable in the contract documents. Someone, usually a general contractor or subcontractor, ... Read More
The construction industry is on the rebound after the Great Recession and spending is at an all-time high. In November, investment in new projects ... Read More
May 21, 2018