Policy & Finance

    Total Construction Starts Slide 5% in June

    Total construction starts fell 5% in June to a seasonally adjusted annual rate of $932.3 billion, according to Dodge Construction Network. Nonresidential building starts lost 14% during the month and residential was 6% lower. On the contrary, nonbuilding starts gained 13% in June due to the start of several large solar projects. Year-to-date, total construction was 5% higher in the first six months of 2022 compared to the same period of 2021. Nonresidential building starts rose 13% and residential starts gained… Read More »Total Construction Starts Slide 5% in June

      Starts Stay Strong in First Half as Possible Recession Looms

      Adapted from an article published on ENR on July 13, 2022. While commodity prices have begun to stabilize following the extreme volatility of the past several years, recession fears continue to mount. Inflation and labor shortages remain ongoing issues within the construction industry as well as the broader U.S. economy. “Bid price increases on a year-over-year basis have finally caught up with material cost increases, which will bring smiles of relief to many contractors,” says Alex Carrick, chief economist at… Read More »Starts Stay Strong in First Half as Possible Recession Looms

        Dodge Momentum Index Hits 14-Year High With Slight Gain in June

        The Dodge Momentum Index (DMI) increased less than one percentage point in June to 173.6 (2000=100) from the revised May reading of 173.1, pushing the measure to a 14-year high. The Momentum Index, issued by Dodge Construction Network, is a monthly measure of the initial report for nonresidential building projects in planning. The index is shown to lead construction spending for nonresidential buildings by a full year. In June, the commercial component of the Momentum Index rose 4.1%, while the institutional component… Read More »Dodge Momentum Index Hits 14-Year High With Slight Gain in June

          Supply Chain Woes Prompt Manufacturers to Reshore and Nearshore Production

          The ‘Covid-19 outbreak and the supply chain disruptions that followed prompted many U.S. manufacturers to abandon production in China and build new plants back home. Two years on, the trend continues unabated, Bloomberg and Yahoo! Finance both report. The construction of new manufacturing facilities in the US has soared 116% over the past year, dwarfing the 10% gain on all building projects combined, according to Dodge Construction Network. There are massive chip factories going up in Phoenix: Intel is building two just… Read More »Supply Chain Woes Prompt Manufacturers to Reshore and Nearshore Production

            With Smart Cities, Technology Shouldn’t Be the Goal

            The urban IT movement known as “Smart Cities” offers a seemingly infinite toolset for making cities and their infrastructure more efficient. But tech isn’t the point, cautions Riad Meddeb and Calum Handforth of the United Nations Development Programme, in the pages of the MIT Technology Review. Truly smart cities recognize the ambiguity of lives and livelihoods, and they are driven by outcomes beyond the implementation of “solutions.” They are defined by their residents’ talents, relationships, and sense of ownership—not by… Read More »With Smart Cities, Technology Shouldn’t Be the Goal

              Is the Interest Rate Hike Slowing Construction?

              Following the Federal Reserve’s recent increase in interest rates, consumer confidence has plummeted, manufacturing imports have decreased, and housing markets are cooling. The rate hike is the largest since the 1980s, CNBC reports. A corresponding decline in consumer sentiment and spending has been followed more recently by a slowdown in purchases of home appliances, DIY products, and construction materials. On the flip side, demand for clothing and sporting goods remains strong, perhaps due to vacation, return-to-work, and back-to-school shopping. Spending cutbacks… Read More »Is the Interest Rate Hike Slowing Construction?

                Construction Index Prices Show 21% Increase Over Last Year

                Construction input prices have increased dramatically since this time last year, according to an analysis of Labor Department data by the trade group Associated Builders and Contractors. More specifically, construction input prices are up 21.4%, while nonresidential construction input prices are up 21.9%. Input prices are the costs directly incurred by the creation of a good or service, such as direct materials and labor. The increases occurred in 10 of 11 subcategories in May. The largest were in natural gas… Read More »Construction Index Prices Show 21% Increase Over Last Year

                  Dodge Momentum Index Shows Gains in May, Recession Fears Notwithstanding

                  The Dodge Momentum Index (DMI) jumped 7% in May to 176.2 (2000=100), up from the revised April reading of 165.2. The Momentum Index, issued by Dodge Construction Network, is a monthly measure of the initial report for nonresidential building projects in planning shown to lead construction spending for nonresidential buildings by a full year. In May, the institutional component of the Momentum Index rose 9%, and the commercial component increased 6%. May’s increase in the Dodge Momentum Index pushed the level of… Read More »Dodge Momentum Index Shows Gains in May, Recession Fears Notwithstanding

                    The Biden Administration Is Making a Big Investment in Hydrogen Energy

                    A big downside of renewable energy is its periodicity: There are times when the sun doesn’t shine and wind doesn’t blow. The solution is storing surplus energy for use during lean times. Unfortunately, conventional lithium-ion batteries are too expensive to play a major role. The Biden administration believes there may be a viable alternative in hydrogen energy. The U.S. Department of Energy is making a $504.4 million loan to the the Advanced Clean Energy Storage Project, The Hill reports. The… Read More »The Biden Administration Is Making a Big Investment in Hydrogen Energy

                      Total Construction Starts Inched Higher in April

                      Total construction starts rose 3% in April to a seasonally adjusted annual rate of $945.8 billion, according to DodgeConstruction Network. Nonresidential building starts rose 6% and residential starts increased by 4%, while nonbuildingstarts fell 4%. Year-to-date, total construction was 6% higher in the first four months of 2022 compared to the same period of 2021.Nonresidential building starts rose 19%, residential starts gained 3%, while nonbuilding starts were 2% lower. For the12 months ending April 2022, total construction starts were 12%… Read More »Total Construction Starts Inched Higher in April