Three major projects innovate to push start-ups up, low activity elsewhere
HAMILTON, New Jersey – November 17, 2021 – Total construction starts rose 16% in October to a seasonally adjusted annual rate of $ 1.01 trillion, according to Dodge Construction Network. Non-residential building starts rose 29% and non-construction building starts rose 52% in October, while residential starts fell 8%. The big gains for the month came from the start of three major projects: two massive manufacturing plants and an LNG export facility. Without these projects, total construction starts would have declined 6% in October.
âEconomic growth picked up after Delta’s slowdown in the third quarter. However, the construction industry’s grip on growth remains tenuous, âsaid Richard Branch, chief economist for Dodge Construction Network. âIn the long term, housing starts are expected to improve, fueled by an increase in non-residential construction projects in the planning pipeline and the recent passage of the Infrastructure Bill. Both will provide significant support and growth for construction over the coming year. This expectation, however, must be tempered by the significant challenges facing the industry: high prices, shortages of key materials and the continuing shortage of skilled labor. As the healing from the pandemic continues, there is still a long way to go to a full recovery. “
Below is the breakdown of construction beginnings:
- Non constructible construction departures rose 52% in October to a seasonally adjusted annual rate of $ 268.4 billion. This increase was solely due to the start-up of an $ 8.5 billion LNG export facility, which significantly increased the category of utility / gas facilities. However, even without this project, the utility / gas plant category would still have recorded strong growth due to the very low level of activity in September. The public works side of non-building construction was more dismal. Miscellaneous non-construction starts fell 43% on the month, and highway / bridge and environmental public works starts fell 14% and 16% respectively. Year-to-date, total non-construction housing starts rose 2% through October. Environmental public works rose 23% and gas plant starts rose 14%. At the same time, highway and bridge starts fell 7%, starts of various non-construction items fell 13%, and utility plant starts / of gas fell 10% in the first ten months of the year.
For the 12 months ending October 2021, total non-construction housing starts were 1% lower than for the 12 months ending October 2020. Environmental public works starts rose 22%, but highway and bridge starts fell 7%. Utility and gas plant starts fell 10% and miscellaneous non-construction starts fell 7% on a rolling 12-month basis.
The largest non-constructive projects will be launched in October were the $ 8.5 billion LNG Venture Global export facility in Plaquemines Parish, LA, the $ 484 million Moses-Adirondack SMART PATH 1 & 2 line reconstruction project in Lewis and St. Lawrence counties. in New York, and the $ 454 million RiverRenew Tunnel in Alexandria, Virginia.
- Start of non-residential construction rose 29% in October to a seasonally adjusted annual rate of $ 357.2 billion. The catalyst for the increase was a big gain in the manufacturing sector as two very large projects were launched. Without these projects, total non-residential building starts would have been down 3% for the month. In October, commercial starts fell 4%, with only hotels registering an increase. Institutional starts rose 4%, all categories up. In the first ten months of 2021, non-residential building starts rose 11%. Commercial starts rose 9%, manufacturing starts rose 94% (39% excluding major projects this month) and institutional starts rose 3%.
For the 12 months ending October 2021, non-residential building starts increased 4% from the 12 months ending October 2020. Commercial and institutional starts both increased 2%, and Manufacturing starts rose 24% in the 12 months ending October 2021..
Biggest non-residential construction projects to launch in October were the $ 6.0 billion first phase of the Taiwan Semiconductor plant in Phoenix, AZ, the $ 1.3 billion Methanex Methanol plant in Geismar, LA, and the $ 550 million second phase of the Loews Hotel and Convention Center in Arlington, TX.
- Start of residential construction fell 8% in October to a seasonally adjusted annual rate of $ 388.6 billion. Single-family housing starts rose less than 1%, while multi-family housing starts fell 24%. In the first ten months of 2021, residential starts are up 21% from the same period a year ago. Single-family housing starts rose 22% and multi-family housing starts rose 10%.
For the 12 months ending October 2021, total residential starts were 20% higher than for the 12 months ending October 2020. Single-family housing starts are up 23% and housing starts are up 23%. collective housing increased by 11% on a 12-month sum basis.
The largest multi-family structures inaugurate in October was the $ 286 million first phase of Archer Towers in Jamacia, NY, the $ 120 million residential portion of one in 3 mixed-use buildinge Ave in the Bronx, NY, and the $ 106 million Su Development Yesler Terrace apartment block in Seattle, WA.
- At the regional level, Total housing starts improved in the South-Central and Western regions, while they declined in the Northeast, Midwest and South Atlantic regions.
OCTOBER 2021 START OF CONSTRUCTION