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ROCK products • DECEMBER 2014 www.rockproducts.com 56 T he value of new construction starts settled back 4 percent in October to a seasonally adjusted annual rate of $589.8 billion, according to Dodge Data & Analytics (formerly McGraw Hill Construction). The decline fol‐ lowed the 10 percent increase re‐ ported in September, which was the strongest month for total construction starts so far in 2014. Both nonresidential building and non‐ building construction lost momentum in October, while residential building posted a moderate gain given further growth for multifamily housing. During the first 10 months of 2014, total con‐ struction starts on an unadjusted basis were $475.8 billion, up 5 percent from the same period a year ago. Highway and bridge construction in Oc‐ tober surged 27 percent. "Recent months have shown an up‐ and‐down pattern for construction starts around what is still a rising trend," stated Robert A. Murray, chief economist for Dodge Data & Analytics. "Nonresidential building is making a more substantial contribution this year to the construction expansion, notwithstanding its November de‐ cline. Various factors affecting activity for this sector continue to be positive. Market fundamentals such as occu‐ pancies and rents are strengthening, the investment community is turning increasingly to real estate develop‐ ment, and more construction bond measures are getting passed, includ‐ ing several substantial school con‐ struction bond measures that achieved passage in Texas during the most recent election. This year's re‐ treat by nonbuilding construction has stayed measured, helped in the near term by the recent $10.8 billion 'patch' to the Highway Trust Fund, al‐ though the month‐to‐month perform‐ ance for nonbuilding construction still reflects the swings shown by the volatile electric utility category. The continued growth for residential building in 2014 is being led by multi‐ family housing, featuring ground‐ breaking for numerous multifamily high‐rises in major cities, while single family housing remains stalled for now." Nonresidential Building Nonresidential building in October fell 14 percent to $195.2 billion (annual rate), following its 13 percent jump in September. The institutional building group, after especially strong activity in September, pulled back 19 percent. The amusement and recreational cat‐ egory in September had been lifted by the start of such projects as the $948 million Atlanta Falcons stadium in At‐ lanta and a $717 million casino in the Washington, D.C., area. While October did include the start of the $300 mil‐ lion arena for the Sacramento Kings in Sacramento, Calif., the comparison to the exceptional volume in Septem‐ ber produced a 57 percent decline for the amusement and recreational category. Educational facilities in October slipped 5 percent, easing back from earlier gains, although the latest month did include groundbreaking for a $201 million University of Texas research center in Austin. Other educational fa‐ cilities projects that reached ground‐ breaking in October included three large high schools, located respectively in Houston ($128 million), San Antonio ($111 million), and Casper, Wyo. ($102 million). October declines were also reported for transportation terminals, down 16 percent; and public buildings, down 23 percent. The healthcare facilities category in October was able to rise 11 percent, with support coming from the start of a $200 million hospital in Buffalo and a $172 million medical center in Austin. Church construction, while still at a very depressed level, improved 17 percent in October. The commercial building group in Oc‐ tober held steady with its September pace, reflecting a mixed pattern by project type. Store construction grew 12 percent, lifted by a $150 million mall expansion in King of Prussia, Pa., October Construction Backs Off By Mark S. Kuhar Highway And Bridge Construction In October Surges 27 Percent; Residential Building Up. Monthly Construction Starts (Seasonally Adjusted Annual Rates, In Millions of Dollars) Oct. 2014 Sept. 2014 % Change Nonresidential Building $195,153 $227,426 -14 Residential Building $245,885 $221,563 +11 Nonbuilding Construction $148,716 $162,661 -9 TOTAL Construction $589,754 $611,650 -4 ECONOMICS