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Construction crews had no shortage of groundbreaking work in May, especially for those on infrastructure sites.
Total starts rose 34.1% month over month in May at a seasonally adjusted annual rate of $1.78 trillion, according to the Dodge Construction Network. Growth has largely come from key sectors that have has boosted activity in recent monthssaid Sarah Martin, director of economic research for Dodge Construction Network.
In other words, construction activities are still very much focused on particular categories that have continued to be in high demand. This means, on the other hand, that contractors with work outside these fashion sectors continue to see a market with much less progress.
“Megaprojects starting within healthcare, manufacturing, utilities and data centers generated sizable gains throughout the month,” Martin said in the statement. “Outside this activity, however, pockets of weakness remain in institutional construction, warehouses and residential construction.”
Nonresidential building starts rose 17.8% month over month in May. Manufacturing construction rebounded 116.1% during this period, primarily due to a A groundbreaking $5 billion Rivian electric vehicle plant in Georgia, according to Dodge. Institutional construction, which includes both education and healthcare, also rose 17.4% month-over-month in May due to a massive 138.8% increase in healthcare construction new.
Commercial construction, however, was essentially flat, supported by a 20% month-over-month gain in May in the office and data center category. Other trade sectors fell notably during the month, including 36.8% and 17% month-on-month declines in hotel and warehouse construction, respectively.
Year-to-date through May, total non-residential starts improved 12.3%, led by a 32.9% growth in commercial new starts. Institutional starts are down 8.8% over the same period, according to Dodge.
Nonbuilding construction posted the month’s strongest gains, up 91.9% from May, according to Dodge. According to Dodge, highway and bridge starts soared 111.3% from the previous month, as well as a massive 195.6% monthly jump in utility starts.
In the year to May, non-building construction rose 32.9% alongside a 125.9% year-to-date increase in electric power and utility work. Meanwhile, highway and bridge work improved 12.1% year-to-date through May, according to Dodge.
Residential construction moved in the opposite direction, falling 2.1% month-on-month in May, according to the report. Both single-family and multi-family starts were down 1% and 3.7% month-on-month, respectively.
According to Dodge, the biggest projects to start in May included:
- The $13.5 billion LNG export facility in Hackberry, Louisiana.
- Rivian’s $5 billion electric vehicle plant in Social Circle, Georgia.
- The $4.2 billion SR 400 Express Toll Lanes Phase 3 project in Sandy Springs, Georgia.
- The $4.1 billion Brent Spence Bridge corridor project in Covington, Kentucky.
- The $3 billion Nebius Data Center Buildings 1 and 2 project in Birmingham, Alabama.
- The $2.8 billion World Trade Center commercial tower project in New York City.
- The $867 million 111 Wall Street residential conversion project in New York City.
- The $633 million River’s Edge Continuing Care Retirement Community Phase 1 project in New York City.
- The $271 million Cherry Lane Residential Tower Phase 1 project in Denver.
