Rock Products

JAN 2019

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www.rockproducts.com ROCK products • January 2019 • 65 ECONOMICS $1.0 billion mixed-use development in Detroit at the site of the former Hud- son's department store. Hotel construction in October advanced 59 percent, boosted by the $301 mil- lion hotel portion of Detroit's $1.0 billion mixed-use development and the $218 million hotel portion of the $400 million expansion of the Resorts World Hotel and Casino in South Ozone Park, N.Y. Warehouse construction in October grew 17 percent, helped by groundbreaking for a $225 million ful- fillment center in Rialto, Calif., and a $125 million Dollar Tree distribution center in Marengo, Ohio. There were two commercial structure types that registered declines in October – com - mercial garages, down 5 percent; and store construction, down 16 percent. The amusement and recreational cat- egory in October climbed 89 percent, reflecting groundbreaking for the $860 million expansion of the Las Vegas Con- vention Center in Las Vegas, the $182 million convention center and casino portion of the Resorts World Hotel and Casino expansion in South Ozone Park, N.Y., and the $177 million convention center portion of Detroit's $1.0 billion mixed-use development. The healthcare facilities category had a strong October, rising 60 percent with the support of six projects valued at $100 million or more, including a $282 million outpatient facility in Rich- mond, Va., and a $242 million hospital in Wexford, Pa. Also showing growth in October was the public buildings category, up 95 percent from a weak September. It was helped by the start of a $140 million courthouse addition in Charlotte, N.C. Educational facilities, the largest insti- tutional category, ran counter to most of the other institutional structure types with an 18 percent decline in October. The largest educational facility proj- ects entered as October construction starts were an $85 million renovation to a research laboratory in Boston, a $77 million high school in Cottonwood Heights, Utah, and a $71 million high school in Seaside, Ore. The religious building category also weakened in October, dropping 18 percent. Nonbuilding Construction Nonbuilding construction in October was $184.0 billion (annual rate), up 14 percent following September's 13 percent decline. The electric utility/ gas plant category increased 187 per- cent relative to a very weak September, although October's volume was still 32 percent less than the average monthly pace reported during 2017. Large electric utility projects that reached groundbreaking in October were a $334 million wind farm in Kansas and a $300 million wind farm in Minnesota. The public works categories as a group rose 6 percent in October, with a varied performance by individual category. Highway and bridge construction starts climbed 26 percent, with Octo- ber coming in as the highest seasonally adjusted monthly amount so far in 2018. Large highway and bridge projects in October were led by the $1.3 billion U.S. portion of the Gordie Howe Inter- national Bridge (estimated at $2.6 billion in U.S. dollars for the entire bridge), connecting Detroit and Wind- sor Ontario. Other large highway and bridge proj- ects in October were the $802 million I-395 project in Miami and the $673 million I-10 Corridor project in San Bernardino, Calif. The top five states ranked by the dollar amount of highway and bridge construction starts in October were – Texas, Michigan, Florida, California and Pennsylvania. River/harbor development in October advanced 114 percent, reflecting a $210 million harbor dredging project in Jacksonville, Fla. Water supply con- struction grew 30 percent in October, boosted by a $121 million water supply conduit project in Burbank, Calif. The miscellaneous public works cate- gory pulled back 33 percent in October from its heightened September pace, which included the start of one major pipeline project – the $2.0 billion Gray Oak oil pipeline that will transport crude oil from the Permian Basin to the Corpus Christi, Texas, area. Year-to-Date The 1 percent increase for total construction starts on an unad- justed basis during the first ten months of 2018 was due to mixed behavior by the three major con- struction sectors. • Residential building maintained its 6 percent lead over last year, with the dollar amount for both single-family housing and multi- family housing up 6 percent. • Nonresidential building year- to-date slipped 2 percent, with institutional building down 8 percent, commercial building down 3 percent, and manufac- turing building up 32 percent. • Nonbuilding construction year- to-date dropped 4 percent, as a 5 percent increase for public works was outweighed by the 45 percent plunge for electric utilities/gas plants. By major region, total construction starts during the January-October period of 2018 showed this pat- tern compared to a year ago – the South Central, up 11 percent; the Midwest and South Atlantic, each up 5 percent; the West, down 1 percent; and the Northeast, down 18 percent. The year-to-date decline in the Northeast was relative to the robust first 10 months of 2017 that included such construction starts as the $7.6 billion LaGuardia Air- port project in Queens, N.Y., a $5.8 billion ethane cracker facility in Monaca, Pa., the $1.7 billion 50 Hudson Yards office tower in New York, the $1.6 billion Moyni- han Station rail terminal project in New York and the $1.4 billion Penn Medicine Patient Pavilion in Philadelphia.

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