At a seasonally adjusted annual rate of $417.6 billion, new construction starts in November dropped 11% from October’s elevated pace, according to McGraw-Hill Construction, a division of The McGraw-Hill Cos. Nonresidential building retreated after being boosted in October by the start of a massive manufacturing plant, and nonbuilding construction showed electric utilities pulling back from the brisk pace of recent months. Meanwhile, residential building in November registered moderate growth, helped by further strengthening for multifamily housing. During the first eleven months of 2011, total construction on an unadjusted basis was reported at $390.5 billion, down 2% from the same period a
The Regional Transportation District FasTracks program celebrated numerous milestones throughout the past year. Here are the top 10 FasTracks milestones in 2011. 1. $1.03-Billion Grant – U.S. Dept. of Transportation Secretary Ray La Hood and Federal Transit Administration Administrator Peter Rogoff awarded RTD a $1.03-billion Full Funding Grant Agreement for the East Rail Line to Denver International Airport and the Gold Line to Arvada and Wheat Ridge. It is the largest transit grant awarded by the Obama Administration to date.2. Gold Line Groundbreaking – RTD celebrated the groundbreaking for the Gold Line in historic Olde Town Arvada. The event also
United Rentals Inc. and RSC Holdings Inc. recently announced that they have entered into a definitive merger agreement under which United Rentals will acquire RSC in a cash-and-stock transaction valued at $18 per share, or a total enterprise value of $4.2 billion, including $2.3 billion of net debt. The boards of directors of both companies have unanimously approved the proposed transaction and recommended that their respective stockholders approve the proposed transaction. The proposed transaction will create a leading North American equipment rental company with a more attractive business mix, greater scale and enhanced growth prospects. The combination is also expected
The Conference Board Consumer Confidence Index, which had improved in November, increased further in December. The index now stands at 64.5 (1985=100), up from 55.2 in November. The Present Situation Index increased to 46.7 from 38.3. The Expectations Index rose to 76.4 from 66.4. The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary results was December 14. Consumers’ assessment of current conditions improved in December. Those stating business conditions are
Continuing the positive momentum of a nearly three-point bump in October, the Architecture Billings Index in November reached its first positive mark since August. As a leading economic indicator of construction activity, the ABI reflects the approximate nine- to 12-month lag between architecture billings and construction spending. The American Institute of Architects reported the November ABI score was 52.0, following a score of 49.4 in October. This score reflects an overall increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 65.0, up dramatically from a reading of
Careful construction industry people (and others) may want to make the following New Year's resolutions for 2012: • Resolve—to make all reasonable efforts to settle disputes directly with the other party and leave your attorney alone;• Resolve—to carefully document every event that might give rise to a claim or dispute through letters, e-mails and notes of meetings and conversations (that should be written during or immediately after the events) and with photographs, videos, etc.;• Resolve—to consider segregating your e-mail correspondence by job and subject matter to make it accessible if the need arises;• Resolve—to be aware that what you say
Construction spending totaled $807 billion in November, the highest level since June 2010, as homebuilding, private nonresidential construction and public construction all increased compared to October, the Associated General Contractors of America reported in a recent analysis of new Census Bureau data. Association officials cautioned, however, that public spending will drop even further in 2012 because of delays in enacting needed infrastructure bills and planned cuts to many federal construction programs.“Several segments of construction appear to be climbing out of a hole,” said the association’s chief economist, Ken Simonson. “The new year should reinforce recent year-over-year gains in apartment, power,
Construction employment declined in 146 out of 337 metropolitan areas between November 2010 and November 2011, increased in 131 and stayed level in 60, according to a new analysis of federal employment data recently released by the Associated General Contractors of America. Association officials noted that construction employment is likely to continue declining in many areas because of a planned 6.2% cut in federal investments in construction and infrastructure for the 2012 fiscal year.“There is no avoiding the pain that comes any time the single largest purchaser of construction services cuts investments by nearly 20% in two years,” said Ken
The Equipment Leasing & Finance Foundation has released its 2012 Equipment Leasing & Finance U.S. Economic Outlook, focused on the $628-billion equipment finance sector. It forecasts equipment investment and capital spending in the United States predicts that investment in equipment and software will grow by 9% in 2012. Key findings of the report are that investment in equipment and software has grown steadily for eight straight quarters. Expectations for 2012 are that growth will moderate slightly but remain positive overall. Trends in equipment investment include: • Agriculture equipment investment is likely to decelerate slightly in the next three to six
No matter how you slice it, the outlook for the 2012 transportation construction market is mixed, said the senior economist for the American Road & Transportation Builders Association on December 12 in her annual economic forecast. “There is good news and bad news for 2012, depending on the mode of transportation,” said ARTBA’s Alison Premo Black.The bad news: the highway and bridge construction market is expected to contract 6%, to $72.6 billion from an estimated $77 billion in 2011. The subway and light rail markets will be down even more.“The main factors driving the decline in highway and bridge construction are
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