ConstructConnect Chief Economist Michael Guckes reported in the October Construction Economy Snapshot that regional, nonresidential construction activity has generally been positive for many Coastal regions but more difficult for the nation’s Central, Southern, and Mountainous regions.
Guckes reported that construction spending through September expanded the most in the South Atlantic (up 15.7%) year-to-date. He added that the results include the “steady flow of energy and data center megaprojects” (over $1 billion in cost) in the region. September data for the South Atlantic benefited from multiple new data centers, a warehouse, and an apartment complex—most of them individually valued at over $400 million.
The region has now exceeded $100 billion year-to-date (YTD) in total nonresidential starts spending.
Map: ConstructConnect, The Construction Economy Snapshot through September 2024.
The Pacific region has the second-highest YTD construction starts spending of $70.4 billion, up 12.7% compared to the year prior. In this region, Alaska has been the fastest-growing state (up 106%), followed by Oregon (up 23.3%) and California (up 9.4%).
Excluding the Midwestern states from Wisconsin to Illinois and Ohio, nonresidential construction starts in “much of the middle of the country continues to struggle significantly in 2024”, Guckes reported in The Construction Economy Snapshot. “The region composed of Texas and most of its neighboring states have collectively reported a YTD shrink in spending of 14%,” Guckes added.
Chief Economist Michael Guckes, ConstructConnect
“Mid-America spending is slightly better outside of this region, yet spending remains modestly contractionary when accounting for inflation,” Guckes indicated. He added that spending on heavy engineering projects across the country “has helped improve regional results everywhere, less the previously defined Midwestern states.”
Heavy Engineering is a bright spot in the report. It is up more than 10% YTD in most Mid-America regions and above 30% along most of both coasts. Guckes previously reported that heavy engineering offset the significant contractions occurring in nonresidential building construction.
Chart: ConstructConnect, The Construction Economy Snapshot through September 2024.
Read the Construction Economy Snapshot for more details, including trend graphs, analysis, and commentary from Chief Economist Michael Guckes.
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ConstructConnect reports the top ten nonresidential construction starts monthly in the Construction Economy Snapshot from Michael Guckes Chief...
ConstructConnect Nonresidential Construction Starts with Chief Economist Michael Guckes Construction Economy trend graphs, regional starts data, labor
ConstructConnect Nonresidential Construction Starts with Chief Economist Michael Guckes Construction Economy trend graphs, regional starts data, labor
ConstructConnect Nonresidential Construction Starts with Chief Economist Michael Guckes Construction Economy trend graphs, regional starts data, labor