Georgia Contracts Slow 15% in June
The volume of new building construction contracts in Georgia fell during June, leading to a 15% overall decline for the month, according to McGraw-Hill Construction. The company estimated that roughly $1.1 billion in new projects moved forward during the month.
The nonresidential market dropped the most, diving 30% compared to the same period of a year ago for a $541.5-million June total. Residential contracts slipped 1%, delivering an estimated $408.7 million in new contracts.
On the positive side, the nonbuilding category—which includes infrastructure contracts—gained 28% compared to last June, with an estimated $192.1 million in new work.
On a year-to-date basis, Georgia’s overall contracts total is still well ahead of 2011’s pace, thanks to McGraw-Hill Construction’s reporting of the start of construction at Southern Co.’s Plant Vogtle nuclear powerplant project, estimated at more than $8 billion. With that, Georgia’s new contracts total for the first half of 2012 equals approximately $13.8 billion, more than double 2011’s mid-year total of $5.4 billion.
Georgia’s building markets are mixed, though. Nonresidential remains on the downswing, with its year-to-date total of $2.2 billion representing a 20% slide from 2011. Meanwhile, residential contracts are on the upswing, with a $2.3-billion total so far, up 25% from a year ago.
McGraw-Hill estimates the nonbuilding sector—which includes the Vogtle contract—at nearly $9.3 billion.