2021 Top 500 Sourcebook: COVID Hits Hard

Manufacturing is down almost $20 billion in 2020

U.S. Manufacturing Building Starts — Manufacturing took a hit during the pandemic, but data center construction is on the rise.
*Chart courtesy Steve Jones, Dodge Data and Analytics*

U.S. Warehouse Building Starts — Manufacturing took a hit during the pandemic, but data center construction is on the rise.
*Chart courtesy Steve Jones, Dodge Data and Analytics*

Manufacturing construction was hit hard during the pandemic, Steve Jones, senior director of industry insights and research for Dodge Data & Analytics, told ENR’s FutureTech conference.

In 2019, the sector had more than $32 billion in construction starts. But in 2020, manufacturing starts fell to one-third of that and are expected to stay flat in 2021, with only a modest increase of 8% in 2022, Jones said. “It’s been choppy,” he said. “When consumers stop buying,” the supply chain just falls off.

But he said construction of data centers, warehouses and distribution centers are off the charts. While work in the latter two groups used to have almost no impact on the commercial building sector, warehouse construction now comprises about 30% of its total.

(Subscription Required)

“Everything is becoming more and more digital and the need for digital drives the need for e-commerce, and it drives the need for data centers,” Anthony Johnson, executive vice president of Clayco, told ENR. He says Clayco has been working on projects for electric vehicle manufacturers and battery manufacturers. “We’ve been able to play a pretty significant role in the electric vehicle movement, which has been fun,” Johnson says.

Brasfield & Gorrie

Techtronic Industries

Brasfield & Gorrie will provide design-build services for an $85-million power tools assembly and distribution operations center for Techtronic Industries North America in Anderson, S.C. The project includes construction of 1 million sq ft of space. The facility will be used to assemble, recondition and distribute electric power tools, according to Industrial Reports. Construction is expected to begin in the second quarter. Techtronic recently built a new warehouse and distribution facility in Gaffney, S.C.

87.6%
Of manufacturers are somewhat or very positive about their company’s outlook.
—National Association of Manufacturers First Quarter 2021 Outlook Survey

Spiber America

Polymers Manufacturing

Construction of a Spiber America polymers manufacturing plant in Clinton, Iowa, is expected to begin this year at an Archer Daniels Midland Co. biorefinery. The company is currently finalizing selection of an engineering, procurement and construction firm for the project. Its scope includes construction of building and equipment foundations; modification of existing building space; and purchase and installation of stainless steel tanks, process and fermentation vessels and extraction, purification, drying, storage and packaging equipment and systems. The plant will process corn-based dextrose to produce biopolymers for use in manufacturing clothing and other consumer products.

Pam Radtke Russell is a New Orleans-based journalist with more than a decade covering energy, environment and climate for ENR, Platts, CQ Roll Call in Washington D.C. and the Times-Picayune in New Orleans.

Post a comment to this article

60% of workers are exposed to heights greater than 5 ft daily, and workers' compensation from injury is more than $7B - it's time for construction leaders to take measures to reduce risk and create a safer work environment. We'll explore how technology can improve construction site safety and help prevent accidents before they happen.