Quarry Equipment Marketplace

AUG 2017

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Page 22 of 51

August 2017 QEM – Quarry Equipment Marketplace Page 21 Page 21 QEM – Quarry Equipment Marketplace August 2017 The public works categories as a group dropped 6 percent in June, making a partial retreat after a 26 percent jump in May. The miscellaneous public works category, which includes such diverse project types as site work, pipelines, and mass transit, fell 16 percent in June. Although June included $1.4 billion for work on the high- speed rail line project in central California, May had featured the start of several large natural gas pipeline projects, such as the $1.5 billion Revolution Pipeline expansion in western Pennsylvania and the $690 million Gulf South Coastal Bend Header Pipeline in Texas. Highway and bridge construction in June decreased 7 percent, although the latest month did include the $396 million Interstate 95 Scudder Falls Bridge replacement project over the Delaware River in New Jersey and Pennsylvania. During the first half of 2017, the top five states in terms of the dollar amount of new highway and bridge construction starts were – California, Florida, Texas, Pennsylvania, and Georgia. Two of the environmental public works categories registered gains in June, with water supply construction up 37 percent and river/harbor development up 14 percent. The river/harbor development category was boosted by $350 million for Superfund remedial action at the New Bedford, Mass., harbor. Sewer construction, the third environmental public works category, receded 1 percent in June. Residential Building Residential building was $274.9 billion (annual rate) in June, down 4 percent. Single-family housing slipped 4 percent, continuing to settle back in June from the strengthening that took place during the first two months of 2017. June's pace for single-family housing was still 3 percent above the average monthly amount reported during 2016. Multifamily housing in June dropped 7 percent, sliding back for the third month in a row. Large multifamily projects that reached groundbreaking in June were led by a $287 million apartment complex in Anaheim, Calif., a $185 million apartment building in New York, and a $164 million condominium complex in Pompano Beach, Fla. Year-to-Date Through the first six months of 2017, total construction starts on an unadjusted basis were $342.7 billion, down 4 percent from the same period a year ago. If the manufacturing plant and electric/utility gas plant categories are excluded, total construction starts during the first half of 2017 would be up 1 percent from last year. The 4 percent decline for total construction starts on an unadjusted basis during the January-June period of 2017 was due to reduced activity for nonbuilding construction, while residential building was flat and nonresidential building experienced moderate growth. By major region, total construction starts during the first six months of 2017 showed this pattern – the South Atlantic, up 11 percent; the West, unchanged; the Northeast, down 5 percent; the South Central, down 13 percent; and the Midwest, down 16 percent. The 13 percent year-to-date decline in the South Central reflected in part the comparison to the first half of 2016 that included $6.2 billion for two liquefied natural gas terminals, while the 16 percent year-to-date decline in the Midwest reflected in part the comparison to the first half of 2016 that included the $3.8 billion Dakota Access pipeline. "The first half of 2017 has seen nonresidential building advance, reflecting further growth for office buildings and warehouses, combined with the boost coming from the start of several massive airport terminal projects such as the $3.4 billion Central Terminal Building at LaGuardia Airport in New York City," stated Robert A. Murray, chief economist for Dodge Data & Analytics. "Residential building so far in 2017 has been mixed, with some growth for single family housing earlier this year, while multifamily housing appears now to be trending downward after peaking in 2016. Public works construction has been sluggish so far in 2017, although on the plus side it's received support from the start of several huge pipeline projects, including the $4.2 billion Rover natural gas pipeline located in Michigan, Ohio, West Virginia, and Pennsylvania. On balance, the volume of construction starts so far in 2017 is slightly ahead of last year, if one excludes the often volatile manufacturing building and electric utility/gas plant project types." • Nonbuilding construction year-to-date fell 22 percent, with electric utilities/gas plants down 60 percent and public works down 4 percent. • The "no change" for residential building year-to-date was the result of an 8 percent increase by single- family housing offsetting an 18 percent slide by multifamily housing. • Nonresidential building year-to-date advanced 6 percent, with institutional building up 11 percent while commercial building held steady, combined with a 13 percent increase for manufacturing building that marks a change from this category's steep retrenchment during 2015 and 2016. Regards, Mark Kuhar, Editor Rock Products Magazine Mining Media International

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