Quarry Equipment Marketplace

SEP 2017

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Page 22 of 51

September 2017 QEM – Quarry Equipment Marketplace Page 21 Regards, Mark Kuhar, Editor Rock Products Magazine Mining Media International in Chicago, the $225 million multifamily portion of the $280 million mixed-use redevelopment of the Domino sugar factory in Brooklyn, N.Y., and a $225 million condominium tower in Honolulu. Single-family housing in July was flat with the previous month, not yet showing renewed growth after settling back 4 percent in the second quarter following its first quarter 6 percent gain. By geography, single family housing in July performed as follows relative to June – the Northeast, up 3 percent; the South Central, up 2 percent; the South Atlantic, up 1 percent; the West, unchanged; and the Midwest, down 3 percent. Nonresidential Building Nonresidential building in July was $231.2 billion (annual rate), down 7 percent. The commercial categories as a group dropped 22 percent, retreating after climbing 24 percent in June. Office construction in June had surged 82 percent, boosted by the start of 8 office projects valued at $100 million or more, led by a $585 million Facebook data center in Omaha and the $400 million office portion of the $500 million renovation of the Willis Tower in Chicago. In July office construction fell 52 percent, with only one project valued at $100 million or more – the $118 million Wheaton Town Center in Wheaton, Md. A similar pattern was present for hotels, which surged 65 percent in June with the push coming from the start of the $575 million hotel portion of the $900 million Seminole Hard Rock Hotel and Casino expansion in Hollywood, Fla. In July hotel construction fell 42 percent, with the largest project being the $78 million hotel portion of a $115 million hotel/apartment mixed-use project near the Seattle-Tacoma International Airport. On the plus side, warehouse construction jumped 46 percent in July, lifted by the start of a $144 million warehouse complex in Stockton, Calif., a $135 million Wal-Mart distribution center in Mobile, Ala. and a $100 million Amazon distribution center in Fresno, Calif. July gains were also reported for commercial garages, up 9 percent; and stores and shopping centers, up 7 percent. Manufacturing plant construction in July fell 29 percent from its June amount that included the start of a $1.8 billion methane plant in Louisiana. While down from June, manufacturing plant construction did see the start of several large projects in July, such as a $1.1 billion polyethylene plant expansion in Beaumont, Texas. The institutional side of the nonresidential building market climbed 16 percent in July, in contrast to the declines reported for the commercial and manufacturing segments. Healthcare facilities jumped 108 percent after a weak June, led by groundbreaking for the $1.5 billion Penn Medicine Patient Pavilion in Philadelphia. Transportation terminal construction also posted a large percentage increase after a weak June, rising 85 percent with the help of a $121 million aircraft maintenance facility at Tinker Air Force Base in Oklahoma City. The religious building category, while still at a very low level, increased 24 percent in July. On the negative side, educational facilities slipped 3 percent in July, although the category did include the start of several large school construction projects, including a $104 million high school renovation in Cleburne, Texas, a $104 million high school in Buda, Texas, a $96 million public school complex in Willoughby, Ohio and a $91 million high school in Stoughton, Mass. Year-to-Date During the first seven months of 2017, total construction starts on an unadjusted basis were $411.9 billion, down 1 percent from the same period a year ago. Dampening the year-to-date performance for total construction was a steep 44 percent decline for the electric utility/gas plant category, even with the two massive power plants reported as July starts. If the electric utility/gas plant category is excluded, total construction starts in this year's January-July period would be up 3 percent from a year ago. The 1 percent slippage for total construction starts on an unadjusted basis during the January-July period of 2017 was due to diminished activity for nonbuilding construction, as both residential building and nonresidential building managed to post gains. • Nonbuilding construction dropped 15 percent year- to-date, with electric utilities/gas plants down 44 percent and public works down 2 percent. • Residential building year-to-date was up 1 percent, with a 9 percent increase for single family housing slightly outweighing a 14 percent slide for multifamily housing. • Nonresidential building year-to-date climbed 8 percent, with institutional building up 12 percent while commercial building held steady, combined with a 27 percent increase for manufacturing building that marks a shift from this category's sharp declines in 2015 and 2016.

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