A significant increase in manufacturing projects has contributed to an overall increase in construction spending, notes a new analysis by the Associated General Contractors of America.
In a statement, Stephen Sandherr, the chief executive officer of AGC, noted: “The manufacturing construction boom is really helping construction weather the softening residential and other nonresidential markets.”
That manufacturing project boom, in fact, contributed to an overall 0.3% increase in national construction spending for the month of March.
Overall, construction spending had a dollar value of $1.8 trillion, with the various segments revealing a variegated market: spending on private nonresidential construction was up by 1.0%, with public construction dollars also enjoying an increase, albeit a smaller one, at 0.2%.
Private office construction was also up, with an increase of 0.3%.
But the fortunes of the private residential construction segment moved in a different direction, with spending off by 0.2%. That segment has been on the downside since last summer.
Commercial construction, which takes in farm, retail and warehouse work, saw a 0.8% decline, with power construction off by 0.3%.
Despite the many transportation projects being spearheaded by the Infrastructure Investment and Jobs Act, highway and street construction posted an investment loss of 0.1%.
Sandherr placed the blame for the slowed pace of such infrastructure work on the current pace of agency approval, remarking: “The Administration is beginning to realize that the permitting problems we have long warned about are real and holding up many of the projects they are eager to get started.”
The AGC is among a number of industry groups calling for a streamlining of that process.
By Garry Boulard
