Properties Magazine November 2012 : Page 10

September Construction Jumps 16% N ew construction starts in September climbed 16% to a seasonally adjusted annual rate of $507.2 billion, it was reported by McGraw-Hill Construction, a division of The McGraw-Hill Companies. total construction starts on an unadjusted basis came in at $349.6 billion, up 5% compared to the same period a year ago. The latest month’s data lifted the Dodge Index to 107 (2000=100), up from 92 in August. This marked the second highest reading for the Dodge Index so far in 2012, following the 115 reported in April, which benefitted from the start of an $8.5 billion nuclear power plant in South Carolina. “The robust pace for electric utility and gas plant construction during 2012 has occasionally produced volatility for total construction on a month-to-month basis,” says Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. “If electric utilities and gas plants are excluded, the level of construction starts in 2012 would be up 2% year-to-date, helped by this year’s further growth for multifam-ily housing and the emerging recovery for single family housing. As for the other construction sectors, commercial building has shown some strengthening during 2012 – while its dollar amount has grown less than 1% year-to-date, square footage is up 16%. However, decreased activity continues to be reported in 2012 for institutional building, manufacturing plants, and public works. Going into 2013, it’s not expected that electric utili-ties will be able to maintain the record pace witnessed in 2011 and 2012, and tight government budgets will restrain the institutional building and public works sectors. It will be up to hous-ing and commercial building to provide upward momentum, and the impending ‘fiscal cliff’ makes continued growth for these sectors less certain.” The nonbuilding construction sector (public works and electric utilities) led the way, helped in particular by a mas-sive natural gas plant and several very large electric utility projects. Meanwhile, nonresidential building retreated after its improved performance in August, and residential building eased back slightly. Through the first nine months of 2012, :HZRXOGEHSURXGWRSURYLGH LQVWDOOWKHSOXPELQJ ÀUHSURWHFWLRQV\VWHPVRQ\RXUQH[WSURMHFW $UPRU $UPRU3OXPELQJ  )LUH3URWHFWLRQ&#0f;//& +LJK
(QG5HVLGHQWLDO&#0f;&RPPHUFLDO ,QGXVWULDO $QQXDO7HVWLQJ ,QVSHFWLRQ‡6SULQNOHUV‡'HVLJQ%XLOG‡,QVWDOODWLRQV Exciting Recently Completed Projects: • Mount St. Joseph Rehab Center-Euclid • Ulta-Sandusky • Firelands Regional Medical Center • Ray and Joan Kroc Salvation Army • Ashland University Stadium Complex • Joyce Buick-Avon • Joe Firment Chevrolet-Avon • Avon City Centre • Oberlin College Service Building Renovation • MTD Expansion 

‡PIRUG#DUPRUÀUHSURWHFWLRQFRP Parking Planning, Design & Consulting Parking Technologies Parking Assessment & Studies Signage Programming Design/Build Services Nonbuilding construction Nonbuilding construction in September soared 67% to $197.9 billion (annual rate). The main lift came from a 335% surge for the electric utility and gas plant category, as a $4.8 billion lique-fied natural gas plant in Louisiana (the Sabine Pass Liquefaction Project) was included as a September construction start. Without this project, the gains for several levels of construction activity in September would have been more mod-erate – electric utilities and gas plants, up 60%; nonbuilding construction, up 19%; and total construction, up 3%. There were six electric utility projects, each valued in excess of $100 million, listed as September construction starts – a $750 million wind farm in Texas, a $484 million transmission line in Nevada and 3URSHUWLHV | November 2012 5455 Broadview Road, Suite 202, Parma, OH 44134 216-335-9910 10

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