Residential Gives Life to Florida Contracts in May

A 70% surge in new residential projects overcame downturns in the other sectors to boost the overall value of Florida’s May construction contracts to nearly $2.2 billion, according to McGraw-Hill Construction. The total was a 19% improvement over the same period of a year ago.

Image courtesy Plaza Construction Group Florida

Plaza Construction of Miami recently started work expanding the Dadeland Mall, a project the contractor reports is valued at more than $100 million.

For the month of May, McGraw-Hill recorded just over $1.3 billion in new residential construction contracts, a 70% gain compared to the $771.5-million total of May 2011.

The nonbuilding sector, which includes infrastructure projects, went negative, however—about 38% below last May’s pace, with about $295.1 million in new contracts. Nonresidential slipped 3% compared to the same period of a year ago, resulting in about $553.2 million in new contracts.

For the year to date, McGraw-Hill Construction estimates that all three construction sectors to be significantly ahead of last year’s pace. Residential has gained the most ground, with its nearly $5-billion total through May representing a 38% gain over 2011’s pace.

Florida’s nonresidential sector has improved by 25% through May, with roughly $2.9 billion in new contracts moving forward so far. The nonbuilding category, with about $3.7 billion in new contracts to date, is 15% ahead of a year ago.

Through May, McGraw-Hill estimates the overall value of new Florida contracts at about $11.6 billion, or 27% better than last year’s $9.1-billion tally for the same period.

Scott Judy is Deputy Editor for Regions, and editor of ENR Southeast, one of Engineering News-Record's 10 Regional publications. His roughly 27 years as a construction journalist began with an 11-year stint covering Midwest construction projects. In 2000, Judy helped launch the publication now known as ENR Southeast. He often delves into controversial aspects of the construction industry such as bankruptcies and fatal accidents, and wishes he would never have to cover another accident but suspects that he might.