The Dodge Momentum Index increased to 126.3 (2000=100) in February, a gain of 4.3% from January’s 121.1, according to Dodge Data & Analytics. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. The Momentum Index has been exhibiting somewhat of a saw-tooth pattern of late, up in December, down in January and now up in February. Despite the volatility that is sometimes visible in planning data, the overall trend for the index continues to be
The Equipment Leasing & Finance Foundation’s March 2015 Monthly Confidence Index revealed that confidence in the equipment finance market is at 72.1, the highest level in four years, and an increase from the February index of 66.3. Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $903-billion equipment finance sector.Other March 2015 survey results include:• 50% of executives who responded said they believe business conditions will improve over the next four months, up from 30.3% in February. 50% of respondents believe
At a seasonally adjusted annual rate of $724.3 billion, new construction starts in February advanced 16% compared to the previous month, according to Dodge Data & Analytics. Much of the lift came from three massive projects valued each in excess of $1 billion that were included as February construction starts. The nonbuilding construction sector was boosted by an $8.4-billion liquefied natural gas export terminal in Louisiana and a $1.2-billion solar power facility in California, while nonresidential building registered a sharp gain partly as the result of a $3.0-billion petrochemical plant in Texas. Residential building also strengthened in February, as growth
After its first negative score in 10 months, the Architecture Billings Index showed a nominal increase in design activity in February and has been positive for 10 out of the past 12 months. As a leading economic indicator of construction activity, the ABI reflects the approximate nine- to 12-month lead time between architecture billings and construction spending.The American Institute of Architects reported the February ABI score was 50.4, up slightly from a mark of 49.9 in January. This score reflects a minor increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index
At the close of its March 18 meeting, the Federal Reserve Board issued a statement that modestly adjusted monetary policy regarding future interest rate changes. Although the change was slight, it is one that could ultimately impact U.S. construction activity. In its newest statement, the Fed removed language that said it will be “patient” about an upcoming decision to raise interest rates. Removing this language is generally believed to open the door for the Fed to raise rates sometime later this year—possibly as early as June.Ultimately, the Fed’s timing on raising rates will heavily depend on its confidence in the
Having a debt resulting from the violation of the Colorado’s Mechanic’s Lien Trust Fund Statute, commonly known as the Construction Trust Fund Statute, declared non-dischargeable in bankruptcy may be more difficult due to a 2013 U.S. Supreme Court ruling. The Construction Trust Fund Statute provides that “all funds disbursed to any contractor or subcontractor under any building, construction or remodeling contract or on any construction project shall be held in trust for the payment of the subcontractors, laborer or material suppliers, or laborers who have furnished laborers, materials, services, or labor, who have a lien, or may have a lien,
A May-December romance is drawing cheers from Salt Lake City residents. Salt Lake City's historic Capitol Theatre celebrated its centennial in 2014 with some cosmetic touch-ups, but then also emerged with a new companion next door: the Jesse Eccles Quinney Ballet Centre. The newcomer is infusing energy into downtown and breathing life into the historic theater, though the structural balance of pairing the old and new "performers" had engineers keeping a close eye on the choreography. Image courtesy of HKS Inc. - Jack E. Madsen III The ballet center provides Utah's Ballet West with larger rehearsal space and a headquarters
Construction employment across the Southwest dipped by 3,400 jobs in January compared to December, led by a month-over-month decline of 1,800 construction jobs in Nevada, a loss of 1,700 jobs in New Mexico and tempered by a very moderate gain in Arizona, according to data by the states and the U.S. Bureau of Labor Statistics.In the three states that comprise the Southwest, preliminary statistics reveal there were 230,400 working in the construction industry in January 2015, compared to 233,800 in December 2014.While the month-over-month totals show a decline, year-over-year construction employment in the Southwest states has increased by 6,900, once
Costs for the Dept. of Veterans Affairs replacement hospital in Aurora, Colo., have ballooned to $1.73 billion, more than five times the project’s original cost and twice the spending cap set for it by Congress. VA Deputy Secretary Sloan Gibson delivered the bad news about revised cost estimates to congressional leaders in March 17 phone call. The new price tag, up sharply up from the $800 million claimed by the VA in early March, comes from the U.S. Army Corps of Engineers, which is advising VA on the project. USACE will assume full management of the project this summer. The
Average construction backlogs in the South, including Texas and Louisiana, surpassed nine months during the final quarter of 2014, a feat regional builders haven't achieved since the first quarter of the year, according to data compiled by Washington, D.C.-based Associated Builders and Contractors (ABC). Backlogs in the region rose .30 months, to 9.29 months, in quarter-to-quarter comparisons but declined .36 months, from 9.65 months, in year-over-year comparisons for the same period, data indicate. The Midwest and Eastern regions also logged increases in quarter-to-quarter comparisons, though a 21% decrease in the West, from 9.42 months to 7.42 months, contributed to a
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