{"id":41388,"date":"2023-09-25T10:46:00","date_gmt":"2023-09-25T10:46:00","guid":{"rendered":"https:\/\/www.my-equipment.com\/blog\/?p=41388"},"modified":"2023-09-25T10:33:38","modified_gmt":"2023-09-25T10:33:38","slug":"manufacturing-and-transportation-drove-construction-growth-in-august","status":"publish","type":"post","link":"https:\/\/www.my-equipment.com\/blog\/2023\/09\/manufacturing-and-transportation-drove-construction-growth-in-august\/","title":{"rendered":"Manufacturing and Transportation Drove Construction Growth in August"},"content":{"rendered":"<blockquote><p>In August, the construction sector experienced a notable 6 percent increase in construction starts, reaching a seasonally adjusted annual rate of 1.3 trillion dollars. This growth was primarily attributed to the mass activity in the manufacturing and <strong>transportation building sectors<\/strong>, while other areas faced some challenges. This became the highlight of construction trends in August.<\/p><\/blockquote>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/09\/manufacturing-and-transportation-drove-construction-growth-in-august\/#The_Surge_of_Nonresidential_Building_Starts\" >The Surge of Nonresidential Building Starts&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/09\/manufacturing-and-transportation-drove-construction-growth-in-august\/#Notable_Nonresidential_Projects\" >Notable Nonresidential Projects&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/09\/manufacturing-and-transportation-drove-construction-growth-in-august\/#Nonbuilding_Construction_Sees_a_Downturn\" >Nonbuilding Construction Sees a Downturn&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/09\/manufacturing-and-transportation-drove-construction-growth-in-august\/#Prominent_Nonbuilding_Projects\" >Prominent Nonbuilding Projects&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/09\/manufacturing-and-transportation-drove-construction-growth-in-august\/#Residential_Construction_Challenges\" >Residential Construction Challenges&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/09\/manufacturing-and-transportation-drove-construction-growth-in-august\/#Multifamily_Projects\" >Multifamily Projects&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/09\/manufacturing-and-transportation-drove-construction-growth-in-august\/#Challenges_Ahead\" >Challenges Ahead&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"The_Surge_of_Nonresidential_Building_Starts\"><\/span><b>The Surge of Nonresidential Building Starts&nbsp;&nbsp;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The manufacturing and transportation industries played a big, big role in boosting nonresidential building starts by a remarkable 40 percent. Manufacturing projects, in particular, witnessed an impressive 285% increase, contributing a lot to the surge in nonresidential building starts. If manufacturing were excluded, this category would still have grown by a substantial 24%. <a href=\"https:\/\/www.my-equipment.com\/blog\/2023\/08\/weilers-new-commercial-tracked-asphalt-pavers\/\">Commercial construction<\/a> starts also saw an 8% increase, driven by advances in parking garages and hotels. Institutional construction starts rose by 35%, with all sectors except dormitories experiencing some growth.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Notable_Nonresidential_Projects\"><\/span><b>Notable Nonresidential Projects&nbsp;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Some non-residential projects also broke ground in August.<\/p>\n<p>John Palmour Manufacturing Center for Silicon Carbide in Silver City, North Carolina, costing $2.5 billion.<\/p>\n<p>VinFast electrical car manufacturing facility in New Hill, North Carolina, with a budget of $2 billion.<\/p>\n<p>Midfield Satellite Concourse at Los Angeles International Airport, amounting to $1.4 billion.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Nonbuilding_Construction_Sees_a_Downturn\"><\/span><b>Nonbuilding Construction Sees a Downturn&nbsp;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While nonresidential building starts thrived, the nonbuilding construction sector on the other hand faced a 14% decrease in August, reaching a seasonally adjusted annual pace of $380 billion. This decline followed a month of growth in July, primarily driven by Bechtel&#8217;s 12 billion dollar LNG project in Brownsville, Texas. However, year-to-date through August, nonbuilding starts remained up by 22%, and for the 12 months ending in August 2023, they were 20% higher than the previous year.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Prominent_Nonbuilding_Projects\"><\/span><b>Prominent Nonbuilding Projects&nbsp;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><em><strong>Some of the major nonbuilding projects that commenced in August are;<\/strong><\/em><\/p>\n<p>TransWest Transmission Project spanning Wyoming, Colorado, Utah, and Nevada, valued at $3.5 billion.<\/p>\n<p>Mid-Barataria Sediment Diversion projects in Port Sulphur, Louisiana, costing $2.9 billion.<\/p>\n<p>The Maine section of the $1.5 billion New England Clean Energy Connect Power Line.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Residential_Construction_Challenges\"><\/span><b>Residential Construction Challenges&nbsp;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In contrast to the growth of the nonresidential and nonbuilding construction, residential building starts actually saw a 1% decrease in August, with a seasonally adjusted annual rate of $418 billion. Despite a surge in apartment demand over the summer, single-family starts increased by 2%, while the multifamily starts declined by 5%. Total residential starts were down by 18% year-to-date through August 2023, and for the 12 months ending in August 2023, residential starts were down by 17% compared to the previous year.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Multifamily_Projects\"><\/span><b>Multifamily Projects&nbsp;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The most substantial multifamily projects that started construction in August were;<\/p>\n<p>Hub on Campus building in Knoxville, Tennessee, with a budget of $530 million.<\/p>\n<p>The tower at 250 Water Street in New York City, costing $425 million.<\/p>\n<p>Ritz Carlton homes in North Palm Beach, Florida, totaling $340 million.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Challenges_Ahead\"><\/span><b>Challenges Ahead&nbsp;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Despite the overall growth with new construction projects, the industry faces several challenges. Rising interest rates, a <strong><a href=\"https:\/\/www.my-equipment.com\/blog\/2023\/06\/construction-companies-face-labor-shortage-amidst-strong-demand\/\">shortage of available labor<\/a><\/strong>, and stricter lending rules may become a problem for construction projects in the final quarter of the year. The American Institute of Architects&#8217; Architecture Billings Index also indicates a potential slowdown in activity, reflecting sluggish business conditions at architecture firms and limited monthly changes in the new project work and ongoing project activity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In August, the construction sector experienced a notable 6 percent increase in construction starts, reaching &hellip; <a href=\"https:\/\/www.my-equipment.com\/blog\/2023\/09\/manufacturing-and-transportation-drove-construction-growth-in-august\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Manufacturing and Transportation Drove Construction Growth in August&#8221;<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":41395,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,126],"tags":[211,441,831],"class_list":["post-41388","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-heavy-construction-equipment","category-news","tag-construction-projects","tag-construction-sector","tag-institute-of-architects"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Manufacturing and Transportation Drove Construction Growth in August - Heavy Equipment Market Insights | News | Guides &amp; 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