News
PICK UP THOSE HAMMERS
August 24, 2011
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| Flickr: Michelllaurence |
| Too many hard hats laying about! Construction starts declined sharply the first half of this year, we learned from the New York Building Congress, which did some crunching of McGraw-Hill Construction Dodge data points. Only $6.4B of construction projects (including new construction, alterations and renovations to existing structures, and non-building infrastructure) launched from January through June, a nearly 40% decline from the first half of ’10, when construction starts reached $10.6B. (In ’09, that same number was $7B, and in ’08, $10.8B.) The $1.2B expansion of JFK International Airport’s Terminal 4 was the single-largest start by value, accounting for more than one-quarter of non-residential construction. |
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| Bob Wallace |
| NYBC prez Dick Anderson (right, with Boston Properties’ Mort Zuckerman and STV Group’s Dominick Servedio earlier this year) called the activity “extremely disappointing,” considering the nearly $11B in construction starts for the same time last year—which had been a sign of a slowly strengthening economy and offered hope that the building industry was turning the corner. Although the initial data tells a story of relative weaknesses in each sector, there are signs of improvement for the second half. Building permits are up 12%, which may mean a modest rebound in residential construction. Moving ahead with major projects: The Whitney Museum, Fordham University, and Boston Properties, while the MTA and Port Authority have unveiled proposals that will fully fund their multi-billion dollar capital plans. |
