Rock Products

AUG 2019

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74 • ROCK products • August 2019 www.rockproducts.com Aggregates Industry Almanac Economic Update At the same time, healthcare facilities strengthened 27% in May, reflecting the start of the $500 million MetroHealth Hos- pital facility in Cleveland, the $331 million University of Texas Southwest Medical Center Brain and Cancer Center building in Dallas and a $182 million hospital tower in Turnersville, N.J. Amusement-related work jumped 54% in May, led by the $237 million casino portion of the Philadelphia Live Casino and Hotel project. The religious building category, while still remaining at a weak volume, increased 19% in May. Residential Building Residential building in May was $295.9 billion (annual rate), a 2% gain that marked the first increase after three straight months of decline. Single-family housing improved 2%, showing some growth after the sluggish performance reported earlier in 2019. By geography, single family housing registered this pattern during May – the South Atlantic, up 4%; the Midwest, up 2%; the Northeast, up 1%; and the South Central and West, each unchanged from the previous month. The pace for single family housing in May was still 7% below the average monthly pace during 2018. Multifamily housing in May also grew 2%, edging up for the second month in a row after a 12% decline back in March. There were eight multifamily projects valued each at $100 million or more that reached groundbreaking in May, led by the $653 million multifamily portion of the $850 million One Chicago Square Apartment Towers in Chicago, the $266 mil- lion multifamily portion of the $360 million Four Seasons mixed-use hotel/condominium project in Nashville and a $160 million multifamily high-rise in Jersey City, N.J. Construction Activity GlobalData is tracking 11,208 construction projects in the United States, both in the public and private sector, at all stages of development from announcement to execution; col- lectively, these projects are valued at $3.7 trillion. The top 10 selected U.S. states account for nearly 60% of the entire U.S. construction market. They are: • California. • Texas. • New York. • Florida • Washington. • Illinois. • Pennsylvania. • Georgia. • Ohio. • North Carolina. With a total of 1,302 projects worth $524.6 billion, Califor- nia has both the largest number and value of projects in the U.S. construction project pipeline. California is home to more megaprojects than any other state, with its top 10 largest projects valued at $139.5 billion. Six of these are transport infrastructure projects and two are energy and utilities projects. Topping the list is the $79 billion California High-Speed Rail Line, the largest project in the U.S. construction pipeline. Thanks to its dominance in the U.S. energy sector, Texas has the highest number and value of energy and utilities projects in the construction project pipeline. GlobalData is tracking 1,034 projects in the state with a total value of $425.1 billion. Energy and utilities projects dominate Dodge Momentum Index The Dodge Momentum Index moved 4.0% higher in June to 146.1 (2000=100) from the revised May reading of 140.5. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. The June increase for the Momentum Index reflected a 6.1% jump by its institutional component and a 2.4% gain by its commercial component. Despite the improvement shown by the Momentum Index in June, planning for commercial and institutional building projects has clearly stepped back from the torrid pace set during the first half of 2018. Indeed, the average of the overall Momentum Index through the first six months of 2019 was 4.3% lower than the same period a year ago, with the commercial component down 5.2% and the institutional component down 3.0%. What June's improvement does affirm is that the broader pullback by the Momentum Index remains gradual, and that there are still ample projects at the plan- ning stage to maintain stability for construction spending in the near term. In June, there were 17 projects each with a value of $100 million or more that entered planning. The leading insti- tutional projects were a $375 million detention facility in Mount Clemmons, Mich., and the $360 million Dignity Health Dominican Hospital in Santa Cruz, Calif. The leading commercial projects were the $250 million Sea- port Square office building in Boston and a $200 million warehouse in Suffolk, Va.

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