PaintSquare.com
Follow us on Twitter Follow us on LinkedIn Like us on Facebook Follow us on Instagram Visit the TPC Store
Search the site

 

Advertisement

PaintSquare


Coatings Industry News

Main News Page


Construction Spending Hits 4-Year High

Thursday, December 5, 2013

Comment | More

An “unusual surge” in public construction unexpectedly pushed total U.S. construction spending in October to its highest level in more than four years, the Associated General Contractors of America reports.

The gains, reaching a level not seen since May 2009, came despite declines in some markets, AGC announced Monday (Dec. 2) in an analysis of new Census Bureau data.

AGC also called on Congress to quickly complete legislation to fund water infrastructure and make transportation investment a top priority.

Construction put in place in October was 0.8 percent higher than in September, totaling $908 billion. August and July figures were revised down, below levels that initially exceeded the October estimate. The first 10 months of 2013 totaled 5 percent above the totals for the same period in 2012.

construction spending
AGC

October construction spending totaled $9.8 billionthe highest since May 2009, according to an analysis by the Associated General Contractors of America.

"Nearly every category of public construction increased in October, according to the preliminary Census figures, although for the first 10 months of 2013 combined, public spending continues to lag the 2012 year-to-date total," Ken Simonson, AGC's chief economist, said in a statement.

"Meanwhile, residential spending slipped for the month but still showed strong year-to-date gains, and nonresidential spending remained stuck in neutral," Simonson said.

Breakdown by Sector

Public construction spending was up 3.9 percent for the month, but down by 2.8 percent compared to 2012. The two largest public components were highway and street construction with an increase of 0.6 percent in October and 0.3 percent year-to-date. Educational construction jumped 8.5 percent for the month, but also fell 8.5 percent year-to-date.

Private nonresidential spending dropped down 0.5 percent in October, but increased by 0.8 percent year-to-date. Power, the largest private nonresidential category, including oil and gas and electricity, fell 5.7 percent in October and 5.8 percent year-to-date. The next three biggest categories—manufacturing, commercial (retail, warehouse and farm) and office—saw increases for both time periods, but exact percentages were not provided.

Private residential spending jumped 17 percent for the year to date, but declined 0.6 percent for the month. Although new single-family construction decreased by 0.6 percent in October, it increased by 30 percent in the first 10 months of 2013, compared to the same period of 2012. New multifamily spending saw increases of 2.2 percent for October and 46 percent year-to-date.

"Construction will likely display varied patterns in the next several months," Simonson said. "Multifamily construction will keep burgeoning, but single-family homebuilding may stall. Private nonresidential spending should benefit from more power, energy and manufacturing work. Public construction remains threatened."

Calling on Congress

AGC also called on Congress and the administration to quickly complete the Water Resources Development Act and a new transportation bill to fund repairs to deteriorating highways, bridges and transit infrastructure.

The Water Resources Development Act of 2013 promotes investment in critical water resources infrastructure, accelerates project delivery, and reforms the implementation of Army Corps of Engineers projects. The Senate version (S. 601) passed May 15; the House version (H.R. 3080) passed on Oct. 23. The Senate has since made changes and sent the bill back to the House on Oct. 31.

In June, the U.S. Environmental Protection Agency released the results of its fifth "Drinking Water Infrastructure Needs Survey and Assessment," which found that drinking water infrastructure across the country is rapidly approaching the end of its lifespan and will need more than $384 billion in improvements through 2030.

Associated General Contractors of America
©iStock / tenenit

Nearly every category of public construction increased in October, although total  public spending for the first 10 months of 2013 lagged the same period in 2012, AGC said.

In addition, a new transportation bill must include provisions to aid the nearly depleted federal Highway Trust Fund, the association noted.

"If Congress can act in a bipartisan way on transportation funding as it did on the Water Resources bill, it can avoid a cliff-like drop in highway spending," said Stephen E. Sandherr, AGC's CEO.

Funding's Future

In 2012, President Obama signed into law the federal surface transportation authorization, Moving Ahead for Progress in the 21st Century (MAP-21), which funds highway and transit investments through Sept. 30, 2014.

But AGC says that MAP-21 does not resolve the long-term funding problem. The Highway Trust Fund will have a shortfall of about $8 billion in FY 2015, resulting in a possible 93 percent cut to federal transportation investments that year, the contractors say.

Meanwhile, new legislation proposed Nov. 14 would phase out federal funding of transportation projects and appropriate less and less from the Highway Trust Fund for the federal highway system from 2015 through 2019.

The measure, called the Transportation Empowerment Act (H.R. 3486 and  S.1702), was proposed by Rep. Tom Graves (R-GA) and Sen. Mike Lee (R-UT).

   

Tagged categories: Associated General Contractors; Construction; Economy; Infrastructure; Oil and Gas; Residential Construction; Trends

Comment Join the Conversation:

Sign in to our community to add your comments.

Advertisements
 
SAFE Systems, Inc.
 
Portable Dust Collectors for Tough Environments
 
Trailer and skid-mounted models in numerous sizes, powered by electric and/or diesel. Sloped roofs, multiple dust inlets, high static, dampered fans. Lockable power & drive compartments.
 

 
Industrial Vacuum Equipment Corp.
 
Hurricane Vacuums
& Dust Collectors
 
Vacuum and dust collector hose, filters and related accessories.
IndustrialVacuum.com
 

 
SABRE Autonomous Solutions
 
Quality
 
The ALPHA1 provides a consistent finish day-in
day-out; job to job.
 

 
Safway Services
 
Safeguard Assets. Ensure Productivity. HAKI®
 
Protect assets and equipment. Keep facilities open and operational. Maintain schedules regardless of weather. Ensure smooth and continuous production. Easy to erect. Safway is the primary distributor of HAKI® products including HAKISPAN and HAKITEC® 750 – in North America.
 

 
Jotun Paints Inc.
 
Jotun Jotachar 1709
 
Mesh-free passive fire protection epoxy designed to protect against hydrocarbon pool fire scenarios for up to four hours as defined in the ANSI/UL1709 standard.
 

 
Bullard
 
Upgrade with the Bullard GenVX
 
Click here for your blast helmet.
 

 
PPG Protective and Marine Coatings Group
 
We Protect and Beautify the World
 
PPG is widely recognized as a world leader in protective and marine coatings, developing innovative, cutting-edge products and services.
 

 
Montipower, Inc.
 
The MBX Bristle Blaster
 
Get a 2.7 to 3.3 mil profile and a Near White Metal Clean. For info visit www.mbxit.com or call 877 629-8777
 

 
Polygon
 
POLYGON - Temporary Humidity Control
 
We specialize in innovative climate control solutions for industrial painting, utilizing alternative energy sources and combining desiccants with heating or cooling.
 

 
KTA-Tator, Inc. - Corporate Office
 
Instrument Service Department
 
Are you a QP certified contractor? KTA’s Instrument Service Department can help keep you compliant!
Click or call 1-800-KTA-GAGE.
 

 
 
 

Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@paintsquare.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us