Through the first four months of 2009 the total value of construction starts reached $117 billion, which was 39% less than the first four months of last year, according to McGraw-Hill Construction. “The pattern of construction starts over the past two months suggests a transition from extended declines to more of an up-and-down pattern, which generally takes place when a bottom gets established,” says Robert Murray, MHC’s chief economist. “This process of establishing a bottom is still in its early stages.” The public-works market is expected to see more strength as the impact of the stimulus bill begins to emerge.
Contractors are feeling the impact of the changing economy, but many are failing to prepare for what may not be just a normal recession, according to industry management consultant FMI Corp. in a new report. In its survey conducted in February of 230 executives of U.S. construction firms in various revenue categories and market segments, Raleigh, N.C.-based FMI says respondents anticipate much uncertainty ahead. Three-quarters of respondents foresee workforce cuts, and 77% expect profits to drop. While 74% of firms have boosted business development in the last six months, only 56% are formally evaluating their capabilities and constraints and only
Federal agencies are not relying enough on each other’s contractor past-performance data in making new awards, due to the unreliability of the information or difficulty assessing its relevance, says a new study by the U.S. Government Accountability Office. The report, requested by Henry Waxman (D-Calif.), chairman of the House Energy and Commerce Committee, says even with the creation in 2002 of a governmentwide retrieval system for such data, its use is not widespread. It reviewed 62 fiscal 2007 and 2008 solicitations in the Depts. of Energy, Defense and Homeland Security, among oth- ers, and interviewed 121 contracting officials.
The pace of contracting for American Recovery and Reinvestment Act funds is picking up in the highway and transit sectors. A new House Transportation and Infrastructure Committee report on the economic-stimulus legislation shows as of April 30, 2,901 highway and transit projects, valued at almost $10 billion, have been put out for bid in 50 states, territories and the District of Columbia. It adds that 1,099 of those projects, totaling $3.5 billion, are under contract. The committee report, released on May 21, says work has started on 545 projects, totaling $2.1 billion. The new figures show gains from March 31
In the American Recovery and Reinvestment Act’s first 77 days on the books, only $28.5 billion of the law’s $787.2-billion total has turned into actual outlays. Few of those hard dollars have flowed into construction programs. ARRA outlays by the Dept. of Transportation, Environmental Protection Agency and General Services Administration for buildings totaled only $42.5 million as of May 12. Sources: Congressional Budget Office, Office of The Vice President, Quarterly Report On ARRA The Obama administration’s first quarterly report on the economic stimulus, released on May 13, says obligations—binding spending agreements—totaled more than $88 billion as of May 5, which
People age 55 and over, who as a group have taken the hardest hit to their net worth in the slumping economy, are waiting out the recession. When they return as homebuyers, they will not be looking for the same kind of house they would have been a year ago, say housing experts. The value of baby boomers’ homes currently is equivalent to 2003 prices. That has softened the formerly solid baby-boomer and senior market and has homebuilders scrambling to figure out what boomers and seniors will want and how to deliver it. That market’s numbers are significant: More than
The Dept. of Housing and Urban Development has announced plans for $995 million in American Recovery and Reinvestment Act discretionary grants to upgrade public housing units and the National Science Foundation is seeking applicants for $200 million in ARRA aid to rehabilitate academic research facilities at colleges and universities. Related Links: HUD's Notice of Funding Availability HUD on May 11 said it will award a total $995 billion in ARRA Public Housing Capital Funds in four categories: $600 million for energy-efficiency improvements; $200 million for projects delayed for lack of funding; $100 millin to "transform" old public housing projects through
Construction of a new, $107-million United States District Courthouse building on a long-dormant block in rapidly redeveloping downtown Austin will soon get under way thanks to federal stimulus funds. Funding from the American Recovery and Reinvestment Act also allowed the project’s original construction timetable to be moved up. Rendering courtesy of White Construction Co. U.S. Courthouse site in downtown Austin was abandoned by Intel in 2001. White Construction Co. of Austin signed on in March 2004 as construction-manager-as-constructor for the design and preconstruction phase on the seven-story, 211,590-sq-ft structure (with one level of underground parking). “We were told at the
Federal agencies are disclosing more American Recovery and Reinvestment Act construction plans. The Housing and Urban Development Dept. on May 5 outlined how it will allot $980 million in Community Development Block Grants, some of which is expected to go for infrastructure. The Dept. of Transportation on May 7 announced it will divide $743 million in stimulus aid among 11 transit projects. On May 8, the U.S. Environmental Protection Agency announced $111.9 million for brownfield cleanups, including $37.3 million from the stimulus. HUD’s stimulus CDBGs will be split among some 1,200 states, cities and counties by a formula that includes
With President Obama’s May 7 release of his detailed budget proposal for the coming fiscal year, the tussle over 2010 federal funding will intensify. Taking a tougher line on spending, Obama highlighted a plan to terminate or trim 121 programs, aiming to save $16.7 billion. Cuts would include about $1.5 billion from construction accounts. The Democratic Congress is likely to defer to Obama’s first budget request, but only to a degree. Lawmakers are not expected to rubber-stamp every line. Photo: AP/Wideworld OMB Director Orszag and Obama spell out cuts in some federal programs. Jeffrey D. Shoaf, Associated General Contractors’ senior