November Decline Sinks North Carolina's 2011 Momentum
At the end of October, McGraw-Hill Construction’s data showed that North Carolina’s 2011 total volume of new contracts was 6% ahead of 2010. A disastrous November changed all of that, wiping out the year’s gains and sending the state’s total back down into negative territory for the year.
The volume of North Carolina’s construction contracts fell 52% overall in November, compared to the same period of a year ago, according to McGraw-Hill. The value of all new contracts was just over $1 billion for the month.
The nonbuilding sector, which includes infrastructure projects, experienced the steepest decline. It fell 76% compared to last November and tallied $261.1 million for the month. The value of new nonresidential contracts also dropped sharply, totaling $315.9 million, for a 47% drop. Only the residential sector posted positive gains. It improved by 8%, for roughly $442.5 million in contracts.
Despite the poor showing in November, the nonbuilding category is the only positive sector on a year-to-date basis. Through November, McGraw-Hill estimates the value of nonbuilding contracts at nearly $4.2 billion, or 25% ahead of 2010’s pace. Nonresidential is now 17% behind last year, with nearly $4.1 billion in new work. The residential market is 8% behind the same period of a year ago, with an estimated $5.2 billion in new contracts.
Overall, North Carolina’s 2011 contracts are estimated at $13.4 billion through November, or 3% behind 2010’s pace.