News
Real Estate/Development
May 18, 2004
First-Quarter Building Volume Rises in State
Statewide construction activity at the end of first quarter 2004 totaled $16.9 billion, up 6.1 percent from the same period last year, according to the Construction Industry Research Board .
Statewide construction activity at the end of first quarter 2004 totaled $16.9 billion, up 6.1 percent from the same period last year, according to the Construction Industry Research Board.
The board credits the surprising quarterly hike to strong construction in March after two so-so months in February and January.
State construction volume, both private and public, for March was $6.5 billion, up 24.1 percent or $1.26 billion more than in February and up 18.9 percent from March 2003.
Ben Bartolotto, director of the research board, says several factors contribute to the strong March activity.
"For one, there are four more working business days than in February," Bartolotto said. "Second, private nonresidential building totaled $1.28 billion, up 34.2 percent from February. And, third, March brings spring weather and starts the peak construction period."
The research director points out in the first three months of 2004, private nonresidential building, mainly commercial and industrial, totaled $3.19 billion, up 2.7 percent from last year.
"This is the first year-to-date increase in this sector since the first half of 2001," Bartolotto said, "indicating nonresidential building may have bottomed out."
The research board is forecasting total nonresidential building to increase by 2.7 percent in 2004 to $14.28 billion. That forecast increase follows three years of substantial decline. In 2000, private nonresidential building totaled $19.9 billion but by 2003 declined to $13.8 billion.
Another positive indicator that nonresidential building is improving is the slight 1.2 percent increase in the San Francisco Bay region during the first quarter of 2004. In 2003 that region declined by 27.5 percent and accounted for the bulk of the statewide decline in nonresidential building since 2000.
The Bay Area also accounted for nearly all of the increase in nonresidential building statewide in 2000. Overall, the increase in nonresidential activity is statewide with fairly large projects in different regions, suggesting this sector is in a turnaround mode, according to the research board.
However, March was the story. The state's private building activity, including residential and nonresidential construction, totaled $5.18 billion, up 30.8 percent from February and up 25.6 percent from March 2003.
At the same time, public works construction which includes highway-heavy and public buildings (government-owned buildings) totaled $1.33 billion, up 3.7 percent from February C.
However, while private building activity in the first quarter of 2004 totaled $13.16 billion, up 8.1 percent, public works construction year-to-date was down 0.4 percent, totaling $3.75 billion.
The board credits the surprising quarterly hike to strong construction in March after two so-so months in February and January.
State construction volume, both private and public, for March was $6.5 billion, up 24.1 percent or $1.26 billion more than in February and up 18.9 percent from March 2003.
Ben Bartolotto, director of the research board, says several factors contribute to the strong March activity.
"For one, there are four more working business days than in February," Bartolotto said. "Second, private nonresidential building totaled $1.28 billion, up 34.2 percent from February. And, third, March brings spring weather and starts the peak construction period."
The research director points out in the first three months of 2004, private nonresidential building, mainly commercial and industrial, totaled $3.19 billion, up 2.7 percent from last year.
"This is the first year-to-date increase in this sector since the first half of 2001," Bartolotto said, "indicating nonresidential building may have bottomed out."
The research board is forecasting total nonresidential building to increase by 2.7 percent in 2004 to $14.28 billion. That forecast increase follows three years of substantial decline. In 2000, private nonresidential building totaled $19.9 billion but by 2003 declined to $13.8 billion.
Another positive indicator that nonresidential building is improving is the slight 1.2 percent increase in the San Francisco Bay region during the first quarter of 2004. In 2003 that region declined by 27.5 percent and accounted for the bulk of the statewide decline in nonresidential building since 2000.
The Bay Area also accounted for nearly all of the increase in nonresidential building statewide in 2000. Overall, the increase in nonresidential activity is statewide with fairly large projects in different regions, suggesting this sector is in a turnaround mode, according to the research board.
However, March was the story. The state's private building activity, including residential and nonresidential construction, totaled $5.18 billion, up 30.8 percent from February and up 25.6 percent from March 2003.
At the same time, public works construction which includes highway-heavy and public buildings (government-owned buildings) totaled $1.33 billion, up 3.7 percent from February C.
However, while private building activity in the first quarter of 2004 totaled $13.16 billion, up 8.1 percent, public works construction year-to-date was down 0.4 percent, totaling $3.75 billion.
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Ron Mc Nees
Daily Journal Staff Writer
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