Rock Products

MAR 2017

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

Issue link: http://rock.epubxp.com/i/791883

Contents of this Issue

Navigation

Page 95 of 107

94 • ROCK products • March 2017 www.rockproducts.com ECONOMICS the slight 1 percent gain reported in 2015. Educational facilities, the largest insti- tutional category, rose 3 percent with the upward push coming from K-12 schools while college/university con- struction settled back from earlier gains. The top five states for K-12 school construction in 2016, with their per- cent change from the prior year, were Texas, up 24 percent; New York, down 5 percent; California, up 30 percent; Washington state, down 4 percent; and Minnesota, up 44 percent. Healthcare facilities grew 9 percent, led by such projects as the $631 million Loma Linda University Medical Center in Loma Linda, Calif., and the $500 mil- lion Vassar Brothers Medical Center patient pavilion in Poughkeepsie, N.Y. As for the smaller institutional catego- ries, amusement-related construction posted a sizeable 25 percent gain in 2016, aided by such projects as the $3.0 billion football stadium for the Los Angeles Rams and the $974 million casino portion of the Wynn Casino. The transportation terminal category climbed 18 percent in 2016, with the lift coming from such projects as the $663 million rail terminal cavern work at Grand Central Terminal in New York, and the $537 million North Terminal building at Louis Armstrong Inter- national Airport in New Orleans. On the negative side, 2016 declines were reported for public buildings, down 3 percent; and religious buildings, down 28 percent. Residential Building The 2016 amount for residential build- ing was $287.0 billion, up 6 percent and a smaller gain than the 16 percent hike reported for 2015. Much of the deceler- ation was due to a considerably slower increase for multifamily housing, which grew just 3 percent as opposed to the 22 percent jump in 2015. The nation's leading multifamily market by dollar volume, New York, dropped 28 For the full year 2016, nonbuilding con- struction dropped 11 percent to $161.8 billion, retreating after the 24 percent increase reported in 2015. Much of the nonbuilding decline was due to a 25 per- cent reduction for the electric utility/gas plant category following its sharp 127 percent ascent in 2015. While the dollar amount of gas plant projects fell 67 per- cent in 2016, the electric power-related portion of the category came through with a 12 percent gain. Large electric power projects that started construction during 2016 included the $1.3 billion Dominion Resources natural gas-fired power plant in Virginia, the $1.2 billion Lacka- wanna Energy Center natural gas-fired plant in Pennsylvania, and the $900 million Wind X wind farm in Iowa. The public works categories as a group retreated 5 percent in 2016 after a 3 percent pickup in the previous year. Highway and bridge construction fell 14 percent in 2016, essentially returning to the 2014 amount after increasing 13 percent in 2015. Annual declines for 2016 were also reported for river/harbor develop- ment, down 11 percent; and sewer construction, down 14 percent; while water supply construction was able to edge up 2 percent. The miscellaneous public works cat- egory registered a strong 21 percent gain in 2016, helped by a 162 per- cent increase for pipeline work that reflected the start of two large projects – the $3.8 billion Dakota Access Pipe- line in the upper Midwest and the $3.0 billion Sabal Trail and Florida South- east Connection natural gas pipeline upgrade in the southeastern U.S. The mass transit portion of the mis- cellaneous public works category held steady in 2016 with the previous year, with support coming from the start of the $1.7 billion Mid-Coast Corridor Transit Project in San Diego. percent in 2016 after surging 53 per- cent in 2015. Multifamily construction in New York City had been supported by the 421-a program, which provided tax incentives to developers who included affordable housing in their projects. During 2015, the pending expiration of the 421-a program contributed to developers moving up the start date for projects, while the expiration of the program in January 2016 removed the incentives. If the New York metro- politan area is excluded, multifamily housing for the nation in 2016 would be up 13 percent in dollar terms, essen- tially the same as the corresponding 14 percent increase in 2015. After New York, the next metropolitan areas for multifamily housing in the top 10 by dollar volume all registered dou- ble-digit increases in 2016. Rounding out the top five markets, with their percent change from 2015, were Los Angeles, up 50 percent; Miami, up 14 percent; Chicago, up 82 percent; and Washington, D.C., up 20 percent. Metropolitan areas ranked six through 10 for multifamily housing by dollar volume were Boston, up 45 percent; Dallas-Ft. Worth, up 22 percent; San Francisco, up 63 percent; Atlanta, up 52 percent; and Denver, up 29 percent. Single-family housing in 2016 grew 8 percent in dollar terms, a more mea- sured pace compared to its 14 percent gain in 2015. By geography, single-fam- ily housing in 2016 showed this pattern for the five major regions – the Mid- west, up 10 percent; the South Atlantic, up 9 percent; the West, up 8 percent; the Northeast, up 5 percent; and the South Central, up 4 percent. Nonbuilding Construction

Articles in this issue

Links on this page

Archives of this issue

view archives of Rock Products - MAR 2017