The value of nonresidential building starts slightly fell in 2015, and was particularly soft in the latter months of the year, according to CMD Research Group.
The total value for nonresidential building stood at $186.307 billion in 2015, down 3.3% from 2014. Starts in December 2015 were 9.4% lower than the same month a year ago, and 7.3% lower than November 2015.
When heavy engineering, such as airport and highway construction, is thrown into the mix, the total value of nonresidential construction starts rose 1.9% to $309.221 billion. But heavy engineering, too, was softer in November and December.
The Industrial sector took the biggest hit last year, as manufacturing-related construction starts fell in value by 32.8% to $12.769 billion. Analysts have posited that manufacturing in the U.S. is suffering, in part, from the steady downturn in China’s economic growth.
The last few months of 2015 were unkind to builders and developers, and pulled down the value of nonresidential construction starts, which ended the year up 1.9%. Nonresidential building starts were off 3.3%. Image courtesy of CMD Research Group.
Commercial construction was on shaky ground, too, as five of the 10 sectors that CMD tracks were negative. Private office building starts were down 32.6% to $11.828 billion, and the “amusement” category fell by 20.4% to $5.413 billion. On a positive note, Alex Carrick CMD’s chief economist, notes that commercial starts were buoyed by retail, which was down by 30.6% in December 2015 vs. December 2015, but still managed to show a positive full-year gain of 7.3% to $18.952 billion.
The wildest swing occurred in the warehouse sector, which cratered by 55.2% in December to December, but nonetheless finished full-year 2015 up 42.7% increase to $10.524 billion.
Schools and colleges accounted for 60% of the Institutional sector’s total starts. However, the category was off 18.7% in December compared to the same month in 2014, and down 4.5% for the full year, to $52.382 billion. The biggest institutional gainer was the police/prison/courthouse category, up 46.3% for the year to $5.664 billion.
CMD also provided a list of the 10 largest projects under construction in the U.S., led by the 40-story, $221 million mixed-use Milennium Tower in Boston. That’s followed by the 69-story commercial building at 401 9th Avenue in New York, whose start value CMD estimates at $317 million.
Related Stories
Contractors | Oct 19, 2023
Crane Index indicates slowing private-sector construction
Private-sector construction in major North American cities is slowing, according to the latest RLB Crane Index. The number of tower cranes in use declined 10% since the first quarter of 2023. The index, compiled by consulting firm Rider Levett Bucknall (RLB), found that only two of 14 cities—Boston and Toronto—saw increased crane counts.
Market Data | Oct 2, 2023
Nonresidential construction spending rises 0.4% in August 2023, led by manufacturing and public works sectors
National nonresidential construction spending increased 0.4% in August, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.09 trillion.
Giants 400 | Sep 28, 2023
Top 100 University Building Construction Firms for 2023
Turner Construction, Whiting-Turner Contracting Co., STO Building Group, Suffolk Construction, and Skanska USA top BD+C's ranking of the nation's largest university sector contractors and construction management firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking includes revenue for all university/college-related buildings except student residence halls, sports/recreation facilities, laboratories, S+T-related buildings, parking facilities, and performing arts centers (revenue for those buildings are reported in their respective Giants 400 ranking).
Construction Costs | Sep 28, 2023
U.S. construction market moves toward building material price stabilization
The newly released Quarterly Construction Cost Insights Report for Q3 2023 from Gordian reveals material costs remain high compared to prior years, but there is a move towards price stabilization for building and construction materials after years of significant fluctuations. In this report, top industry experts from Gordian, as well as from Gilbane, McCarthy Building Companies, and DPR Construction weigh in on the overall trends seen for construction material costs, and offer innovative solutions to navigate this terrain.
Data Centers | Sep 21, 2023
North American data center construction rises 25% to record high in first half of 2023, driven by growth of artificial intelligence
CBRE’s latest North American Data Center Trends Report found there is 2,287.6 megawatts (MW) of data center supply currently under construction in primary markets, reaching a new all-time high with more than 70% already preleased.
Contractors | Sep 12, 2023
The average U.S. contractor has 9.2 months worth of construction work in the pipeline, as of August 2023
Associated Builders and Contractors' Construction Backlog Indicator declined to 9.2 months in August, down 0.1 month, according to an ABC member survey conducted from Aug. 21 to Sept. 6. The reading is 0.5 months above the August 2022 level.
Contractors | Sep 11, 2023
Construction industry skills shortage is contributing to project delays
Relatively few candidates looking for work in the construction industry have the necessary skills to do the job well, according to a survey of construction industry managers by the Associated General Contractors of America (AGC) and Autodesk.
Market Data | Sep 6, 2023
Far slower construction activity forecast in JLL’s Midyear update
The good news is that market data indicate total construction costs are leveling off.
Giants 400 | Sep 5, 2023
Top 80 Construction Management Firms for 2023
Alfa Tech, CBRE Group, Skyline Construction, Hill International, and JLL top the rankings of the nation's largest construction management (as agent) and program/project management firms for nonresidential buildings and multifamily housing work, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Sep 5, 2023
Top 150 Contractors for 2023
Turner Construction, STO Building Group, DPR Construction, Whiting-Turner Contracting Co., and Clark Group head the ranking of the nation's largest general contractors, CM at risk firms, and design-builders for nonresidential buildings and multifamily buildings work, as reported in Building Design+Construction's 2023 Giants 400 Report.
