Quarry Equipment Marketplace

SEP 2018

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Page 19 of 39

Page 20 QEM – Quarry Equipment Marketplace September 2018 Q E M Q uarry Equipment M a r k e tpl a ce ¨ June Construction Starts Jump 11 Percent New construction starts in June climbed 11 percent to a seasonally adjusted annual rate of $896.3 billion, according to Dodge Data & Analytics. The increase marked the second double-digit gain in a row, following the 15 percent hike that was reported for May. Highway and bridge construction was up 25 percent Boosting activity in June was a sharp 57 percent advance for nonresidential building, which benefitted from the start of two massive manufacturing plant projects and two massive office-building projects. The two large manufacturing projects were a $6.5 billion uranium processing facility in Oak Ridge Tenn., and a $1.7 billion petrochemical plant in Port Arthur, Texas, while the two large office projects were the $1.8 billion Spiral office tower in New York and a $665 million office tower in Chicago. Residential building in June grew 4 percent, helped by growth for multifamily housing. The nonbuilding construction sector (public works and electric utilities) retreated 28 percent in June, pulling back after the sharp 37 percent increase reported in May that reflected the start of several large natural gas pipelines and rail-related projects. Nonresidential Building Nonresidential building in June was $402.3 billion (annual rate), up 57 percent from May. The manufacturing building category received an 18-fold increase in June relative to a weak May, with the primary boost coming from the June start of the U.S. Department of Energy's $6.5 billion uranium processing facility in Oak Ridge, Tenn. This massive project will support the nation's nuclear weapons stockpile and provide uranium for fuel for U.S. Navy submarines and aircraft carriers. If this project is excluded from the June construction start statistics, manufacturing building in June would still have shown a five-fold increase, while nonresidential building would have been up 26 percent and total construction starts would have been up 2 percent. The other large manufacturing building project entered as a June start was a $1.7 billion petrochemical plant expansion and ethane steam cracker plant in Port Arthur Texas. The commercial building categories as a group climbed 25 percent in June, advancing further after moderate gains in April (up 5 percent) and May (up 7 percent). Office construction surged 53 percent in June, led by the start of the $1.8 billion, 64-story Spiral office tower in the Hudson Yards district of New York, as well as the start of a $665 million, 54-story office building on North Wacker Drive in Chicago. Other large office projects in June were a $200 million data center in Ashburn, Va., a $200 million office tower in Denver and a $145 million data center in Mesa, Ariz. Other commercial categories posting June gains were commercial garages, up 22 percent; store construction, up 18 percent; and warehouses, up 14 percent. The warehouse category was helped by such large projects as a $150 million Amazon distribution center in the Birmingham, Ala., area and a $107 million warehouse complex in Fremont, Calif. Hotel construction was the one commercial project type to report a June decline, sliding 15 percent, although the latest month did include the start of several large hotel projects in New York, such as a $125 million Hard Rock hotel and a $120 million Ritz Carlton hotel. The institutional building side of nonresidential building increased 11 percent in June. Healthcare facilities had a strong month, jumping 103 percent compared to a lackluster May, led by the $250 million New Trinity Hospital in Minot, N.D., and the $148 million Penn State Health Children's Hospital in Hershey, Pa. Educational facilities strengthened 16 percent in June, featuring such university projects as a $230 million facility at the University of Washington in Seattle and a $225 million facility at the University of Oregon in Eugene, Ore., plus the start of large high school projects in Somerville, Mass., ($202 million), Frisco, Texas ($200

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