The decline in construction activity this year was broader, steeper and faster than many economists anticipated as private non-residential building markets succumbed to the credit crunch and many public markets waited for stimulus funding to be delivered. The consensus of this year’s batch of forecasts for construction in 2010 says the worst is over, but most gains will be the result of percentage comparisons with dismal 2009 numbers, while market fundamentals will be unable to sustain much forward momentum. Wall Street analyst sometimes call this activity a “dead-cat bounce.” Slide Show Source: McGraw-Hill Construction. Annual percent change for dollar volume
New construction starts in September fell 7% from the previous month to a seasonally adjusted annual rate of $399.1 billion, according to McGraw-Hill Construction, of which ENR is a unit. On a year-to-date basis, starts through the first three quarters of the year were down 32% from 2008’s level, including annual declines of 385 for housing, 37% for nonresidential building and 17% for nonbuilding construction. “September’s decline is one more reminder that the very modest upward trend that seemed to take hold during the spring will be uneven and at times halting,” Robert Murray, MHC’s chief economist. Source: McGraw-Hill Construction
The economic downturn has provided a good climate for the rare water utility that has available cash. Potential bidders are crowding pre-bid meetings, materials prices have fallen steeply, and many bid prices have dropped 15% to 40% below engineering estimates. “If you’re an owner, it’s a good environment for bidding,” says John Boisvert, chief engineer with Pennichuck Water Works, an investor-owned water utility in New Hampshire. Photo: CH2M Hill The Buckman Direct Diversion project, the largest municipal water-supply project in New Mexico, did not receive any stimulus funds. Photo: San Francisco Public Utilities Commission Pipes will feed a new $114-million
Between nearly $50 billion in federal stimulus money and massive bond programs moving ahead in several states, funding for the transportation sector has been flying high this year. But the realities of the recession, coupled with heated debate over future funding streams, could bring the market back to earth in the coming years. Photo: Sanbag Stimulus funding is helping support an $800-million Interstate widening project through downton San Bernardino. Photo: WSDOT The $595-million Snoqualmie Pass East, which broke ground in August, is part of Washington state’s $5.8-billion 2009-2011 plan. Related Links: The Top Owners Sourcebook Complete Report Story Overview: The
The U.S. Energy Dept. has awarded $3.4 billion for “smart-grid investment grants” to modernize the electric power network and boost its efficiency and reliability. The 100 federal grants, funded by the American Recovery and Reinvestment Act, will be supplemented by more than $4.7 billion from the private sector, DOE says. The program will include installation of hundreds of thousands of “smart” meters, “phasor measurement” sensors and other equipment. Among the six smart-grid grant categories, integrated and crosscutting systems will receive $2.15 billion and advanced metering infrastructure projects $818 million.
Following three years of precipitous decline, the construction market may have finally hit bottom and be in the early phase of a rebound with housing leading the way. McGraw-Hill Construction is forecasting that total construction starts will climb 11% to $466.2 billion in 2010, following an estimated 25% decline in 2009. The forecast was announced at the 2010 Construction Outlook conference in Washington, D.C. Photo: Bruce Buckley Robert Murray delivered the McGraw-Hill Construction forecast. Related Links: See How Last Year’s Forecast Measured Up After a 39% drop in construction between 2006 and 2009, an improving residential market and signs of
Federal Spending 10/14/2009 A Snapshot of Shovel-, Wrench- and Pencil-Ready Projects By Tom Ichniowski As the American Recovery and Reinvestment Act reaches the eight-month mark, the construction industry is seeing a decidedly mixed picture. The $787-billion stimulus package’s estimated $130 billion of construction money is flowing out through many federal and nonfederal agency channels, but those agencies are moving their ARRA money out at varying rates on diverse projects across the U.S. See profiles of 24 projects below. Click here for full introduction » TRANSPORTATION Osage River Bridge The new $8.5-million bridge being built over the Osage River near Tuscumbia,
An infusion of $16 million from the American Recovery and Reinvestment Act will enable the rural California city of Live Oak’s wastewater treatment plant to avoid tens of thousands of dollars in fines and meet state wastewater quality standards by 2011. Live Oak, Calif. Photo: ECO:LOGIC Site prep begins under a construction contract that came in $1 million below earlier bids. Related Links: Stimulus: A Snapshot of Top Shovel-, Wrench- and Pencil-Ready Projects A 2007 California Water Resources Control Board order mandated upgrading the 1.4-million-gallon-per-day plant to meet standards for disinfection and metals, including aluminum and copper. “We were facing
“Grateful.” That was the reaction of Lester Robinson, chief executive officer for the Wayne County Airport Authority, upon receiving news this May of $15 million in stimulus funds for a crucial rehabilitation of a crosswinds runway in Detroit. Detroit, Mich. Photo: WCAA Reconstruction of crosswinds runway in Detroit will now be complete this year. Related Links: Stimulus: A Snapshot of Top Shovel-, Wrench- and Pencil-Ready Projects Five months later, Ajax Paving Industries Inc., Troy, Mich., is about 80% complete on the $34-million reconstruction of a 8,700-ft-long runway at Detroit Metro Airport. “The stimulus allowed us to accelerate construction to complete
Construction will have to wait. For now, a $2.7-million stimulus award to a Michigan power cooperative will stimulate nothing more than the coop’s chance to receive more stimulus money for a possible carbon-capture and -storage project at a coal-fired powerplant not yet built. Cadillac, Mich. Related Links: Stimulus: A Snapshot of Top Shovel-, Wrench- and Pencil-Ready Projects There is still a “great deal of work to be done” before the co-op can answer questions about what the carbon-capture project would entail and what its impact will be, says Nancy Tanner, spokeswoman for Wolverine Power Supply Cooperative Inc., Cadillac, Mich. Wolverine
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