Quarry Equipment Marketplace

AUG 2018

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Page 20 of 47

August 2018 QEM – Quarry Equipment Marketplace Page 21 Page 21 QEM – Quarry Equipment Marketplace August 2018 Regards, Mark Kuhar, Editor Rock Products Magazine Mining Media International The electric utility/gas plant category dropped 24 percent in May, although the latest month did include the start of a $325 million wind farm in Illinois and a $250 million transmission line project in Missouri. Nonresidential Building Nonresidential building spending in May was $248.6 billion (annual rate), climbing 18 percent after a 12 percent decline in April. The institutional categories as a group increased 40 percent, reaching the highest level since last September. Amusement and recreational building provided much of the lift, advancing 138 percent in May with the help of these large projects – the $764 million expansion to the Washington State Convention Center in Seattle, the $175 million Wynn Paradise Park Convention Center (phase 1) in Las Vegas and the $168 million Harrah's Northern California Casino in Ione, Calif. The transportation terminal category also advanced sharply in May, rising 132 percent as the result of groundbreaking for the $740 million North Concourse terminal at Salt Lake City International Airport in Utah. Educational facilities, the largest nonresidential building category by dollar amount, grew 29 percent in May after slipping 11 percent in April. Large educational facility projects that reached groundbreaking in May included the $400 million Lucas Museum of Narrative Art in Los Angeles, a $186 million high school in Sherwood, Ore., and a $185 million renovation of an office building into a K-12 private school facility in Washington, D.C. The religious buildings category also strengthened in May, growing 36 percent after a weak amount in April. On the negative side, healthcare facilities slipped 4 percent in May and the public buildings category (courthouses and detention facilities) fell 24 percent. The commercial categories as a group rose 7 percent in May, showing improvement for the second month in a row after April's 6 percent gain. Hotel construction had a strong May, climbing 27 percent as the result of such projects as the $320 million Four Seasons Hotel in New Orleans and the $222 million Kalahari Resort in Round Rock, Texas. Warehouse construction advanced 21 percent in May, reflecting the start of a $200 million warehouse complex in Edgerton, Kan., and an $83 million tire distribution center in the Memphis area. New office construction starts increased 7 percent in May, lifted by a $1.0 billion expansion to a Facebook data center in Papillion, Neb., and a $300 million office building in Charlotte, N.C. Also contributing to May's commercial building upturn was the commercial garage category, which grew 19 percent. However, store construction retreated from its improved Aprilamount, falling 33 percent in May. The manufacturing building category in May plunged 54 percent, showing weaker activity for the second month in a row. Residential Building Residential building spending in May was $312.8 billion (annual rate), essentially unchanged from its April amount. Multifamily housing in May made a partial 13 percent rebound after a 20 percent decline in April. There were six multifamily projects valued each at $100 million or more that reached groundbreaking in May, compared to four such projects in April. Leading the way was the $173 million multifamily portion of a $200 million mixed-use high-rise in Oakland, $162 million for two residential towers in Bethesda, Md., and $155 million for the multifamily portion of a $190 million mixed-use complex in the San Jose, Calif., area. Single-family housing in May retreated 4 percent from the previous month, as the continued expansion for this project type struggles to take hold in early 2018. By geography, single family housing showed this pattern in May relative to April – the South Central, down 8 percent; the West and South Atlantic, each down 6 percent; and the Midwest and Northeast, each up 5 percent. Year-to-Date The 3 percent decline for total construction starts on an unadjusted basis during the first five months of 2018 was due to reduced activity by one of the three main construction sectors. Nonresidential building year- to-date dropped 16 percent, given the comparison to a particularly strong amount during the first five months of 2017 that included such projects as the $3.6 billion Central Terminal Building replacement project at LaGuardia Airport in New York. By segment, nonresidential building year-to- date performed as follows – institutional building down 18 percent, manufacturing building down 15 percent, and commercial building down 13 percent. Nonbuilding construction year-to-date was unchanged from its 2017 amount, with public works up 8 percent while electric utilities/gas plants fell 42 percent. Residential building year-to-date increased 5 percent, with single family housing up 6 percent and multifamily housing up 3 percent. By major region, total construction starts during the first five months of 2018 performed as follows – the Northeast, down 12 percent; the Midwest, down 8 percent; the West, down 4 percent; the South Central, down 1 percent; and the South Atlantic, up 4 percent. Useful perspective comes from looking at 12-month moving totals, in this case the 12 months ending May 2018 versus the 12 months ending May 2017. On this basis, total construction starts were up 1 percent. By major sector, nonresidential building fell 4 percent, with commercial building down 9 percent, institutional building down 3 percent, and manufacturing building up 15 percent. Nonbuilding construction advanced 8 percent, with public works up 11 percent while electric utilities/gas plants dropped 7 percent. Residential building increased 3 percent, with single-family housing up 7 percent while multifamily housing fell 6 percent.

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