In The Spotlight
AgroParisTech and VINCI Construction announce the creation of Urbalia, a start-up dedicated to integrating biodiversity and urban agriculture into urban development projects.
Galliford Try, the housebuilding, construction and regeneration group, announces that its Building business has been appointed to a new £40 million contract to build the new Centre for Teaching and Learning at Durham University
ConstructConnect, a leading provider of construction information and technology solutions in North America, announced today the release of its Q4 2017 Forecast Quarterly Report. The Winter 2017-18 starts forecast includes year-over-year estimates for 2017 that have become more upbeat than a quarter ago. Groundbreakings on several mega projects late this year have provided exceptional lift to the industrial and engineering type-of-structure categories.
“Out to 2021, residential will be the main driver of total construction starts, recording year-over-year increases of nearly +6.0% or more,” explained Chief Economist Alex Carrick. “Non-residential building will disappoint, with gains of only about +2.0% each year. Engineering will be strong in 2018 and 2019, as energy initiatives and infrastructure work are promoted by Washington, but will then moderate in 2020-21.”
The forecast which combines ConstructConnect’s proprietary data with macroeconomic factors and Oxford Economics econometric expertise, shows some of the more robust 2018 starts forecasts:
- Single-family residential, +8.8%
- Warehouses, +4.7%
- Nursing homes, +5.9%
- Educational facilities, +4.2%
- Roads, +5.9%
- Bridges, +10.2%
- Miscellaneous civil (power, oil and gas), +13.8%
2017 total starts are now expected to be +7.9% (versus an earlier calculated +4.5%). Residential has been upgraded to +10.1% and engineering/civil to +23.1%. Non-residential building has been left essentially flat at -0.5%.
For 2018, the new forecasts shave a bit off what was previously expected. Total starts are now projected to be +4.8%, a little slower than the +5.9% of a quarter ago. Residential will be +6.7% in 2018; non-res building, +1.9%; and heavy engineering/civil, +6.6%.
In residential construction, the multi-family market has had its turn and it will be the single-family market that will expand more rapidly moving forward, aided by family-formations among the millennial generation.
The forecast reports that educational facilities will grow faster than hospitals in 2018, but beginning in 2019 their positions will reverse. Some other non-residential building type-of-structure categories with bullish outlooks include: courthouses and prisons; warehouses; and nursing homes. Airports and sports stadiums will also be stepping into the construction spotlight.
The report noted a few ongoing economic trends:
- A synchronous world expansion is underway, with North America, Japan, China and Europe all experiencing GDP growth
- Based on demographics, housing starts have fallen short of potential for almost a decade
- Office space demand will increasingly come from firms engaged in high-tech
- Prices for many internationally traded commodities are on the mend
To learn more about ConstructConnect or get a free copy of the Forecast Quarterly Report, visit constructconnect.com
ConstructConnect is a leading provider of construction information and technology solutions in North America. Through the combination of its four legacy brands (iSqFt, Construction Market Data, BidClerk and Construction Data), ConstructConnect brings project participants together with the most complete, accurate and actionable construction data and tools to drive success in national, regional and local markets. Its collaborative network empowers the construction industry to be more successful with access to relevant information through easy to use technology. For more information, visit constructconnect.com
Gilbane Building Company has been selected by the city of Reynoldsburg to provide construction management at-risk services for the new Reynoldsburg Community Center YMCA.
Aberdeen Asset Management and regeneration specialist U+I have completed the leasing of 43,664 sq. ft. of offices at their iconic office development, 12 Hammersmith Grove, taking the building to 45% let.
Trading in the first half has been strong, driven primarily by margin and profit growth in Fit Out and by margin improvement in Construction & Infrastructure.
Deere & Company has signed a definitive agreement to acquire the Wirtgen Group, a privately-held international company that is the leading manufacturer worldwide of road construction equipment.
Galliford Try plc confirms that its Galliford Try Partnerships business has completed the acquisition of the Drew Smith group, a leading contracting and mixed-tenure developer in the south of England.
Sterling Construction Company announced that it has completed the previously announced acquisition of Tealstone Construction (“Tealstone”), a leading Texas-based concrete construction company, for approximately $85 million.
Balfour Beatty, the international infrastructure group, today announces that it has reached an agreement with its joint venture partner to sell the Group’s entire share in Dutco Balfour Beatty and BK Gulf, subject to regulatory approval, for a total cash consideration of £11 million.