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October Construction Falls 14 Percent Much of the Decline Was Due To A Sharp Pullback By the Electric Power and Gas Plant Category. By Mark S. Kuhar The value of new construction starts retreated 14 percent in October to a seasonally adjusted annual rate of $434.9 billion, according to McGraw��� Hill Construction, a division of The Mc��� Graw���Hill Companies. Much of the decline was due to a sharp pullback by the electric power and gas plant cate��� gory after a robust September. If this volatile project type is excluded from the month���to���month comparisons, total construction starts in October would register a 3 percent gain. Greater activity was reported in Octo��� ber for the public works sector, while both nonresidential building and hous��� ing settled back. Nonbuilding Construction Nonbuilding construction in October dropped 32 percent to $133.4 billion (annual rate), retreating after the prior month's 68 percent jump. September had been lifted by a 335 percent surge for the electric utility and gas plant cate��� gory, as a $4.8 billion liquefied natural gas plant (the Sabine Pass Liquefaction Project) was included as a September start, along with six power plant and transmission line projects valued each in excess of $100 million. For October, the largest electric utility and gas plant proj��� ect was $88 million for transmission line work in Massachusetts, contributing to a 93 percent decline for the category. In contrast, the public works sector in October climbed 19 percent. The mis��� cellaneous public works category, which includes such diverse project types as site work, mass transit, and pipelines, soared 52 percent in Octo��� ber. The boost to miscellaneous public works came from $2.0 billion related to work on the Keystone Pipeline Gulf Coast Expansion, located in Oklahoma and Texas. 34 ROCKproducts ��� DECEMBER 2012 Highway construction in October ad��� vanced 23 percent, aided by $900 mil��� lion for work on the I���95 HOV/HOT Lanes project in Virginia. The large in��� crease marked a departure from what has been a declining trend in 2012 for highway construction, which on a year��� to���date basis was still down 11 per��� cent. Bridge construction in October retreated 7 percent, although the month did include $94 million for bridge reconstruction work in Ohio. The environmental public works cate��� gories were led by a 41 percent in��� crease for river/harbor development, which reflected the start of a $331 mil��� lion explosives handling wharf in the state of Washington. Sewers and water supply systems dropped a respective 16 percent and 5 percent in October. Nonresidential Building Nonresidential building, at $131.6 bil��� lion (annual rate), decreased 4 percent in October. The manufacturing plant category plunged 73 percent, continu��� ing to pull back from the improved ac��� tivity that was reported earlier in 2012. Warehouse construction also weak��� ened substantially in October, falling 33 percent. Office construction in Octo��� ber slipped 3 percent, although the month did include the start of several noteworthy projects ��� the $216 million Tower at PNC Plaza in Pittsburgh, the $110 million Energy Center III office tower in Houston, a $76 million munic��� ipal office building in Boston, and a $50 million corporate headquarters reno��� vation for TJX in Marlborough, Mass. On the institutional side, the educa��� tional facilities category continued to lose momentum, dropping 3 percent. Even with the decline, several large ed��� ucation projects reached groundbreak��� ing in October. More considerable October declines were registered by amusement���related work, down 22 percent; and transportation terminals, down 50 percent. Residential Building Residential building in October dropped 2 percent to $169.9 billion (annual rate). The downward pull came from multifamily housing, which retreated 7 percent from September Large multifamily projects that reached groundbreaking in October included the $200 million Insignia Residential Towers in Seattle and $149 million for the multifamily por��� tion of the City Point project in Brook��� lyn, N.Y. Single���family housing in October was unchanged from Septem��� ber, maintaining the enhanced activity that's been established over the course of 2012. E Monthly Construction Starts (Seasonally Adjusted Annual Rates, In Millions of Dollars) Nonresidential Building Residential Building Nonbuilding Construction Total Construction Oct 2012 $131,595 $169,920 $133,378 $434,893 Sept 2012 $137,740 $172,724 $196,989 $507,453 % Change -4 -2 -32 -14 www.rockproducts.com