Prices for construction materials moved higher in January, propelled by large jumps in items used in new housing and nonresidential building renovations, according to an analysis of new federal figures recently released by the Associated General Contractors of America. Association officials said that contractors were paying more for materials even as the pending federal spending “sequestration” threatens to cancel an estimated $4 billion worth of construction activity this year. “Contractors had to contend with huge leaps in prices for gypsum, wallboard and lumber, as well as significant increases in the cost of insulation and architectural coatings such as paint,” said
The value of new construction starts dropped 12% in January to a seasonally adjusted annual rate of $469.1 billion, according to McGraw-Hill Construction, a division of McGraw-Hill Financial. The decline followed a sharp 23% increase for total construction in December and brought the level of contracting back to the average pace reported during 2012. Much of January’s downturn was due to decreased activity for nonresidential building and housing, while the nonbuilding construction sector (public works and electric utilities) held close to its December volume. On an unadjusted basis, total construction starts in January were reported at $33.1 billion, up 11%
As the prognosis for the design and construction industry continues to improve, the Architecture Billings Index (ABI) is reflecting its strongest growth since November 2007. As a leading economic indicator of construction activity, the ABI reflects the approximate nine- to 12-month lag time between architecture billings and construction spending. The American Institute of Architects reported the January ABI score was 54.2, up sharply from a mark of 51.2 in December. This score reflects a strong increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 63.2, much higher than
University of Arizona’s $100-million cancer center formally broke ground in downtown Phoenix on Feb. 21, though actual construction is likely still several months away. Image courtesy ZGF Architects LLP ZGF Architects designed the five-story building, which will feature 85 examination rooms and two linear accelerators. Photo courtesy University of Arizona College of Medicing - Phoenix Hundreds of people attended the long-anticipated groundbreaking this week in downtown Phoenix. Related Links: Slideshow: Newest Biomedical Campus Building Opens in Downtown Phoenix Innovative Bioscience High School Breaks the Mold in Phoenix Located on the Phoenix Biomedical Campus at the northwest corner of Fillmore and
The city of Henderson, Nev., southeast of Las Vegas, claims it got duped into a sweetheart public land deal by Austin, Texas-based developer Christopher F. Milam, who proposed building a multi-arena sports complex, according to a Jan. 28 lawsuit filed in Clark County District Court. The city contends that Milam "conspired" to falsely buy 485 acres of federal land southeast of Interstate 15 and St. Rose Parkway "below what a true competitive bidding process would yield" and "sell it piecemeal to residential and commercial developers at a substantial profit," court papers say. Image courtesy IDM The lawsuit centers around purchase
Revised government data issued recently show the construction industry is contributing substantially to economic and employment growth, according to an analysis by the Associated General Contractors of America. Association officials noted that construction employment in January rose for the eighth consecutive month, while construction spending in December increased for the ninth month in a row. Both totals were the highest levels in more than three years.“The new employment data show the industry lost even more jobs in the recession than previously estimated but has added almost 300,000 jobs in the past two years, including nearly 100,000 since September,” said Ken
Until the developer of Las Vegas' newest attraction—the $300 million SkyVue observation wheel—had filled in the gaps in the project's finances, the contractors' legal bills seemed to be climbing higher than the structure. Photo by Tony Illia SkyVue broke ground in late 2011 along the Las Vegas Strip. Image courtesy SkyVue SkyVue includes a two-story, 200,000-sq-ft base building with two dozen retail shops, restaurants and convention space. Related Links: Caesars to Renovate Las Vegas Strip Property into $185M Boutique Hotel/Casino Now, according to developer Howard Bulloch, his steel observation wheel and retail complex on the Las Vegas Strip across from
Denver's Regional Transportation District General Manager Phil Washington announced Jan. 22 that RTD has identified another item for the FasTracks Internal Savings Account that may allow it to take advantage of favorable debt interest savings. Refinancing a portion of the transit agency’s debt could offer RTD an opportunity to build the North Metro Rail Line to 72nd in Commerce City sooner than expected. Map courtesy of RTD The new debt restructuring plan may allow Denver's RTD to issue a request for proposal to build the North Metro rail line to 72nd Avenue within the next 10 months. Washington said RTD
New construction starts in December climbed 23% to a seasonally adjusted annual rate of $530 billion, according to McGraw-Hill Construction, a division of The McGraw-Hill Cos. The sharp increase for total construction followed two months of lackluster activity, as several very large projects in December helped to lift the pace of contracting. By major sector, substantial gains in December were reported for nonresidential building and nonbuilding construction while housing maintained the steady upward trend that’s been present for much of the past year. For all of 2012, total construction starts grew 6% to $463.6 billion, a moderate yet stronger rate
The Conference Board’s Consumer Confidence Index, which had declined in December, fell further in January. The index now stands at 58.6 (1985=100), down from 66.7 in December. The Expectations Index declined to 59.5 from 68.1. The Present Situation Index decreased to 57.3 from 64.6 last month. Consumers’ appraisal of current conditions deteriorated in January. Those claiming business conditions are “good” declined to 16.7% from 17.2%, while those stating business conditions are “bad” increased to 27.4% from 26.3%. Consumers’ assessment of the labor market has also grown more negative. Those saying jobs are “plentiful” declined to 8.6% from 10.8%, while
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