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56 • ROCK products • May 2016 www.rockproducts.com ECONOMICS At a seasonally adjusted annual rate of $660.5 billion, new construction starts in March receded 1 percent from Feb- ruary's pace, according to Dodge Data & Analytics. Total construction starts had jumped 13 percent in February, led by a huge gain for the electric utility and gas plant category. While the dollar amount of electric util- ity and gas plant starts fell considerably in March, accompanied by a pullback for public works – highways retreated 8 percent – the latest month featured a substantial increase for nonresiden- tial building as this sector is provid- ing more evidence that it's regaining upward momentum. In addition, res- idential building in March registered moderate growth, helped by the contin- ued strength for multifamily housing. "While March construction activity was down slightly from February, it stayed above the lackluster perfor- mance witnessed during the second half of last year that continued through January," stated Robert A. Murray, chief economist for Dodge Data & Analytics. "What's noteworthy about the March report is the renewed strength shown by nonresidential building, and in par- ticular its institutional building seg- ment. Nonresidential building had set- tled back 5 percent in 2015 after its 24 percent surge in 2014, reflecting not only a steep 36 percent plunge for man- ufacturing plant construction but also a slight 1 percent decline for institutional building. The strength shown by institu- tional building in March provides some indication that it's beginning to shift back into expansion mode, helped by growth for educational facilities as well as by the start of several large transpor- tation terminal projects. Assuming this pattern gets repeated over the course of 2016, it would be an important factor behind nonresidential building reestab- lishing an upward trend." Nonresidential Building Nonresi dent i al b ui l di ng i n M a rch climbed 23 percent to $228.1 billion (annual rate), strengthening for the sec- ond month in a row after February's 5 percent gain. The institutional building group soared 44 percent, with most of the structure types reporting growth. Leading the way was the transportation terminal category, up 339 percent, as it was lifted by the start of two very large projects – $663 million for work on the rail terminal caverns at Grand Central Station in New York and $537 million for the new North Terminal building at Louis Armstrong International Airport in New Orleans. Other large transporta- tion terminals included as March starts were the $132 million Andrews Federal Center bus garage in the Washington, D.C., area and the $112 million Terminal 4 expansion at Fort Lauderdale-Holly- wood, Fla., International Airport. Educational facilities, the largest non- residential building category by dol- lar volume, advanced 20 percent in March. Several large university build- ings reached groundbreaking, includ- ing a $131 million research building at the University of Kentucky in Lexing- ton, Ky., and the $110 million seismic replacement of Tolman Hall at the Uni- versity of California Berkeley. The amusement and recreational cat- egory had a strong March, rising 38 percent with the boost coming from the $284 million casino portion of the $630 million Montreign Resort and Casino in Kiamesha Lake, N.Y., and the $192 mil- lion casino portion of the $500 million MGM Resort and Casino in Springfield, Mass. The public buildings category and healthcare facilities rebounded from weak February amounts, rising 55 percent and 53 percent, respectively. Church construction, sliding 54 percent in March, ran counter to the general upward trend for institutional building. The commercial categories as a group increased 5 percent in March, reflecting a mixed pattern by project type. Hotel construction rose 47 percent, lifted by the $332 million hotel portion of the Montreign Resort and Casino, and sup- port was also provided by the $78 million hotel portion of the Springfield, Mass., MGM Resort and Casino. Other large hotel projects included as March starts were the $285 million expansion of the Pechanga Resort and Casino in Teme- cula, Calif., and the $217 million Turn- berry JW Marriott Hotel in Nashville. Store construction in March increased March Construction Eases Back One Percent Nonresidential Building Climbs Sharply; Public Works and Highways Down. By Mark S. Kuhar MONTHLY CONSTRUCTION STARTS (Seasonally Adjusted Annual Rates, In Millions of Dollars) Mar. 2016 Feb. 2015 % Change Nonresidential Building $228,104 $185,081 +23 Residential Building $292,028 $284,336 +3 Nonbuilding Construction $140,400 $200,665 -30 TOTAL Construction $660,532 $670,082 -1