Spending growth slows in non-residential building market
Non-residential construction activity continues at a high level but has not expanded since last fall, after adjusting for project cost inflation, according to Reed Construction Data. However five markets continue to expand—mostly in the plants, utilities, and hotels sectors.
Non-residential construction activity continues at a high level, but has not expanded since last fall, after adjusting for project cost inflation, according to Reed Construction Data . However five markets continue to expand. The growth in construction spending from November to June is 19% for manufacturing, 17% for power (electric and gas utilities plus energy industries), 15% for water (entirely new treatment plants), 15% for hotels (mostly destination hotels), and 8% for public safety buildings.
The slowdown is evident in the construction starts totals from Reed Construction Data. The YTD (July) value of starts was down 6% compared to the first seven months of last year. July starts were relatively weak after strong totals in May and June. Only a few small markets have clearly expanded: government offices (100%), libraries and museums (43%), dams and marine (22%), parking garages (21%), and airports (18%).
Among major markets the largest decline is for commercial buildings (mainly retail buildings) where reduced returns on investment prospects quickly caused project deferrals and cancellations. This slowdown is in response to the recession in the domestic economy and will quickly reverse when the recession end by year end. Then renewed, if modest, expansion in the commercial sector will resume.
Case Study Database
Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.
These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.
Click here to visit the Case Study Database and upload your case study.
Annual Salary Survey
In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.
Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.