Construction spending in the six Gulf Cooperative Council nations is expected to rise from about $315 billion this year to $350 billion in 2010, according to new data from Proleads Global released on Aug. 13 in a SmartMarket Executive Brief, by McGraw-Hill Construction, the publisher of ENR, along with the Chartered Institute of Building. + Image Image: McGraw-Hill Construction Rapid spending on construction has been affected by the downturn in development in the United Arab Emirate of Dubai, says the report. Overall, residential and commercial activity in the GCC, which consists of Bahrain, Kuwait and Oman, Qatar, Saudi Arabia and
State highway agencies have taken the term “shovel-ready” to heart, so far devoting nearly half of the American Recovery and Reinvestment Act dollars to pavement improvements, according to a recent report from the U.S Government Accountability Office. That information has drawn a mixed response in Congress. House Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn.) says the focus on such projects was expected. But Rep. John Mica (Fla.), the committee’s top Republican, wants to see more stimulus funds used for large projects. Source: GAO analysis of FHWA data Highway obligations by project type In another stimulus development, the U.S. Dept.
The White House Office of Management and Budget on July 29 issued new guidelines that require all federal agencies to reduce contracts by 3.5% in 2010 and another 3.5% in fiscal 2011. Agencies must also reduce cost-reimbursement contracts by 10% in 2010 and for the first time track contractor performance. The guidance is part of an effort to streamline federal contract acquisition as outlined by President Barack Obama. OMB says it plans to release more detailed guidance in September.
As the American Recovery and Reinvestment Act approaches its sixth month on the books, the General Services Administration’s $5.5-billion ARRA-funded program to build or upgrade scores of federal buildings suddenly has begun to take off. But critics continue to complain that other agencies are not turning their construction stimulus money into jobs-producing contracts fast enough. Photo: Grunley Construction Co. Commerce Dept. job tops list. After taking about six weeks just to produce its list of stimulus projects, GSA has shifted into overdrive. It has awarded contracts totaling nearly $1.1 billion for projects involving about 120 buildings. Twenty of those projects
The dollar value of construction starts during the first half of this year was $195 billion, or 36% less than the same period a year ago, according to McGraw-Hill Construction. The residential market continues to be a drag, showing a 46% decline from last year’s already depressed market. However, the nonresidential building market also is in a steep decline, falling 41% below 2008’s first-half total. “Non-residential building, hampered by the weak economy and tight bank lending, would see further erosion,” says Robert Murray, chief economist for MHC. “On the plus side, the boost to public works from the federal stimulus
Single-family housing permits increased 5.9% in June to an annual rate of 430,000 units, with permits increasing in the South and West and remaining unchanged in the Northeast and Midwest, according to the U.S. Dept. of Commerce. Multifamily permits improved for the first time in 11 months after sinking to an all-time low in May, according to Commerce. “This was the most positive housing report in ages,” says Patrick Newport, an economist with IHS Global Insight, Lexington, Mass. “Based on June’s numbers, we should continue to see improving housing starts nationally and across all regions over the next two months,”
The entire economy is reeling from the recession, but construction particularly has been hit hard. In June, the total construction unemployment rate was 17.4%, according to the Bureau of Labor Statistics. By comparison, the unemployment rate for the overall economy was 10%. Both numbers are not seasonally adjusted. Construction employment rose only in North Dakota and Louisiana, up 5% and 4%, respectively. Jobs disappeared at an alarming rate in the remaining 48 states, including year-to-year declines of 26% in Arizona, 23% in Nevada, 22% in Connecticut and 20% in Tennessee, according to BLS. The impact of federal stimulus spending is
The industry is in the midst of its worst recession in a generation, and most major firms worry the market will not come out of its slump any time soon. However, the latest ENR Construction Industry Confidence Index shows industry leaders are beginning to see some light at the end of the tunnel. + Image How different groups view the market The ENR Construction Industry Confidence Index was launched in April, when the market looked its bleakest. At that time, executives from 752 large contractors, design firms, specialty firms and subcontractors, and construction-management firms saw little about which to be
Infrastructure spending is expected to decline 4.3% in 2009 despite the federal stimulus boost, says market analyst IHS Global Insight, Lexington, Mass. It attributes the projected falloff to state deficits and municipal funding shortfalls. The analysis projects a spending decline of 1.6% in 2010 and then a 2.4% increase the next year “as tax receipts improve and the federal stimulus is fully implemented.” IHS Global Insight projects power spending will increase by 1% this year but that “slumping demand” will reduce sector spending by 16% in 2010. Related Links: IHS Q2 Infrastructure Spending Market Analysis IHS Q2 Infrastructure Spending Press
State departments of transportation have passed their first “use it or lose it” test under the American Recovery and Reinvestment Act, obligating half of their highway stimulus funds at least 10 days before the June 29 deadline set under the economic-stimulus statute. In another positive sign, the number of ARRA highway and transit project starts has climbed sharply, but critics point out that actual outlays remain small. ARRA required states to obligate—commit to specific projects—at least 50% of their highway stimulus allocations by June 29. If not, the unobligated portions would revert to U.S. DOT to be redistributed to other
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