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1
Value of Construction Put in Place (VIP)
Recent TrendsMarch 2006 (all-time high of $1.213 trillion) –
July 2009 ($958.0 billion)
2
Overview of the VIP series
P riva te S p e nd ing
S ta te an d L oca l S pe nd ing F e de ra l S pe nd ing
P u b lic S p e nd ing
C o n stru ctio n S p en d ingR e s ide n tia l
N o n re sid e n tia l
3
Overview of the VIP series
• The VIP series provides monthly and annual estimates of the value of construction work done on all projects in a given time period.
• Data are shown in seasonally adjusted dollars.
4
Total Construction SpendingRecent Trends
• Total construction spending hit an all-time high of $1.213 trillion in March 2006.
• Total spending has since dropped 21% to $958.0 billion.
• Total spending dipped below the $1 trillion dollar mark in January 2009, which has not happened since June 2004. – Spending was above the $1 trillion dollar mark for 54
consecutive months (July 2004 – December 2008).
5
Total Construction SpendingRecent Trends
Total Construction SpendingMarch 2006-July 2009
Seasonally Adjusted
900
950
1,000
1,050
1,100
1,150
1,200
1,250
2006
2007
2008
2009
Bill
ion
s o
f D
olla
rs
$1,213.0
$958.0
6
Total Construction Spending• Residential
– New single family
– New multi-family
– Improvements
• Nonresidential (categories of interest)– Lodging
– Office
– Commercial
– Health Care
– Public Safety
– Transportation
– Power
– Manufacturing
– Highway and Street
– Sewage and Waste
– Water Supply
7
Total Construction SpendingTotal Construction Spending
March 2006 - July 2009Seasonally Adjusted
200
400
600
800
1,000
1,200
2006
2007
2008
2009
Bill
ion
s o
f D
olla
rs
Total Spending
Residential
Nonresidential
$1,213.0
$958.0
$254.2
$530.9
$682.6 $703.8
8
Residential Spending
• Private Residential Spending• Private residential spending makes up 99% of all
residential spending.• Private residential hit an all-time high of $676.4 billion in March 2006.• Spending in July 2009 was $245.6 billion, down 64%
from March 2006, to levels not seen since early 1996.• 16 consecutive decreases from March 2007 to July 2008.• Over the first 7 months of 2009, spending is down 32%
from the same time period in 2008.
9
Residential SpendingPrivate Residential Spending
March 2006 - July 2009 Seasonally Adjusted
0
100
200
300
400
500
600
700
800
Bill
ion
s o
f D
olla
rs
$676.4
$245.6
10
Residential Spending• Private Residential Spending
– New Single Family• In March 2006 spending was $464.3 billion.• Spending has since dropped 78% to $100.9 billion in July 2009.
– New Multi-family• In March 2006 spending was $53.1 billion.• Spending has since dropped 45% to $29.2 billion in July 2009.
– Improvements (owner occupied only)• In March 2006 spending was $159.3 billion.• Spending has since dropped 27% to $115.5 billion in July 2009.• Currently submitting a new budget initiative to fund a new
residential remodeling survey.
11
Residential SpendingPrivate Residential Spending
March 2006 - July 2009Seasonally Adjusted
25
75
125
175
225
275
325
375
425
475
2006
2007
2008
2009
Bill
ion
s o
f D
olla
rs
Single FamilyMulti-familyImprovements
$53.1
$464.3
$29.2
$100.9
$159.3 $115.5
12
Residential Spending• Housing Starts – March 2006 starts were 1.97 million and have fallen
71% to 581 thousand in July 2009.
– Single family March 2006 starts were 1.6 million and have fallen 69%
to 490 thousand in July 2009.
– Multi-family March 2006 starts were 331 thousand and have fallen 76% to 80 thousand in July 2009.
Total Residential Spending vs. Housing StartsMarch 2006 - July 2009
Seasonally Adjusted
100
200
300
400
500
600
700
800
Bil
lio
ns o
f D
oll
ars
200
700
1,200
1,700
2,200
2,700
Th
ou
san
ds o
f S
tart
s
Total Residential Spending
Housing Starts
$682.6
1,970
$254.2
581
13
Nonresidential Spending• Private nonresidential
• Hit an all-time high of $426.3 billion in October 2008.– 31 months from March 2006.
• Spending in July 2009 was $384.9 billion, up 35% from March 2006 ($285.6 billion).
• Public nonresidential• Hit an all-time high of $321.6 billion in June 2009.• Spending in July 2009 ($319.0 billion) is up 30% from March 2006 ($245.3 billion).
14
Nonresidential SpendingNonresidential Spending
March 2006 - July 2009Seasonally Adjusted
200
250
300
350
400
450
2006
2007
2008
2009
Bil
lio
ns
of
Do
llar
s
Private
Public
$285.6
$245.3
$384.9
$319.0
15
Private Nonresidential Spending• Lodging
• Private lodging hit an all-time high of $37.7 billion in June 2008, spending has since fallen 36% to $24.0 billion.
Regional• West
– In 2008, 35% of lodging spending was in the west mountain geographic division.» AZ, CO, ID, MT, NV, NM, UT and WY
– Spending in the west mountain increased from $3.9 billion in 2006 to $12.5 billion in 2008.
2008 Private Lodging Spending ($35.4 billion)
13%
12%
48%
26%
27%74%
West
Northeast
Midwest
South Mountain
Pacific
US Regions West Divisions
16
Private Nonresidential Spending• Office
• Private office hit an all-time high of $58.4 billion in September 2008, spending has since fallen 27% to $42.8 billion.
Regional• Spending in the South in 2008 ($24.0 billion) was up 22% from 2006
($19.7 billion).– $13.7 billion out of $24.0 billion in 2008 was spent in the South Atlantic division.
» DE, FL, GA, MD, NC, SC, VA, WV and D.C.
0
5
10
15
20
25
2006 2007 2008
Northeast
Midwest
South
West
Billions of Dollars
17
Private Nonresidential Spending• Commercial
• Private commercial spending was $71.8 billion in March 2006.
• Spending hit an all-time high of $88.9 billion in October 2007.
• Spending has since fallen 39% to $54.1 billion in July 2009.
• Spending in the first 7 months of 2009 is down 29% from the same time period in 2008.
– Automotive » Service/parts – Spending is up 30% in the first 7 months
of 2009 from the same time period in 2008.» Sales – Spending is down 11% in the first 7 months of
2009 from the same time period in 2008.
18
Private Nonresidential Spending
Private Commerical Spending March 2006 - July 2009
Seasonally Adjusted
45
55
65
75
85
95
2006
2007
2008
2009
Bil
lio
ns
of
Do
llar
s
$71.8
$88.9
$54.1
19
Private Nonresidential Spending• Health Care
• Spending hit an all-time high of $40.9 billion in November 2008, up 34% from March 2006 ($30.5 billion).
• Spending in July 2009 is at $38.8 billion.
Private Health Care Spending March 2006 - July 2009
Seasonally Adjusted
25
27
29
31
33
35
37
39
41
43
2006
2007
2008
2009
Bil
lio
ns o
f D
oll
ars
$30.5
$38.8
20
Private Nonresidential Spending• Transportation
• Spending in July 2009 ($9.7 billion) is up 11% from March 2006 ($8.7 billion).• Hit an all-time high of $10.7 billion in February 2008.
Private Transportation Spending March 2006 - July 2009
Seasonally Adjusted
5
6
7
8
9
10
11
12
Bill
ion
s o
f D
olla
rs
$8.7
$9.7
21
Private Nonresidential Spending
• Educational• Spending in July 2009 was $17.2 billion, up 26% from March 2006 ($13.6 billion).• Spending hit an all-time high of $19.3 billion in October 2008.
Regional• Northeast private educational spending is up 53% from 2006 ($4.3 billion) to 2008 ($6.6 billion).• Northeast private educational spending makes up 36%
of total educational spending in 2008.– CT, ME, MA, NH, RI, VT, NJ, NY, and PA
22
Private Nonresidential Spending
• Power • Private power makes up approximately 85% of total power construction spending.• Spending has increased 153% from March 2006
($30.9 billion) to July 2009 ($78.3 billion).• June 2009 spending was at an all-time high of
$79.0 billion.– Coal Power– Wind Power
23
Private Nonresidential Spending• Manufacturing
• Spending has increased 154% since March 2006 ($33.1 billion) to July 2009 ($84.0 billion).
• May 2009 was at an all-time high of $85.4 billion.– Petroleum/coal – Spending in 2008 ($17.6 billion)
is up over 870% from 2006 ($1.8 billion).– Fabricated metal –Spending in July 2009 ($1.2 billion) is up 82%
from March 2006 ($660 million).
Regional• Northeast – Spending in 2008 was $6.2 billion, up 63% from $3.8 billion in 2006.• Midwest – Spending in 2008 was $16.5 billion, up 39% from $11.9 billion in 2006.
24
Private Nonresidential SpendingRegional
• South – Spending in 2008 was $30.4 billion, up 176% from 11.0 billion in 2006.– In the South West Central geographic division from 2007 to 2008, private
manufacturing increased $10.8 billion – a 150% increase in spending.» AR, LA, OK, TX
• West – Spending in 2008 was $7.7 billion, down 8% from $8.3 billion in 2006.
Manufacturing Construction by Region2006-2008
0
5
10
15
20
25
30
35
2006 2007 2008
Northeast
Midwest
South
West
Billions of Dollars
25
Private Nonresidential SpendingPrivate Power and Manufacturing Spending
March 2006 - July 2009 Seasonally Adjusted
0
10
20
30
40
50
60
70
80
90
2006
2007
2008
2009
Bil
lio
ns
of
Do
llar
s
Power
Manufacturing
$79.0
$84.0
$33.1
$31.0
26
Private Nonresidential SpendingBy Geographic Division
Northeast – Spending in 2008 was $52.1 billion,
up 45% from $36.0 billion in 2006.
• Middle Atlantic (NJ, NY, PA)– Spending is up from $24.7 billion in 2006 to $35.8 billion
in 2008, a 45% increase in spending.• New York- spending is up 44% from $12.6 billion in 2006 to 18.1 billion in 2008.• Pennsylvania- spending is up 51% from $7.0 billion in 2006 to $10.6 billion in 2008.
27
Private Nonresidential SpendingBy Geographic Division
Midwest – Spending in 2008 was $62.0 billion, up 17% from $52.8 billion in 2006.
• West North Central (IA, KS, MN, MO, NE, ND, and SD)– Spending in 2008 was $21.0 billion, up 26% from $16.7 billion spent in 2006.
• Nebraska – Spending in 2008 ($2.7 billion) is up 69%
from 2006 ($1.6 billion).• Iowa – Spending in 2008 ($5.3 billion) is up 43%
from 2006 ($3.7 billion).
28
Private Nonresidential SpendingBy Geographic Division
Midwest (cont.) –
• East North Central (IL, IN, MI, OH, and WI)• Michigan – Spending in 2008 ($6.4 billion) is down 10% from 2006 ($7.1 billion). • Ohio – Spending in 2008 ($9.2 billion) is down 7% from 2006 ($9.9 billion).
29
Private Nonresidential SpendingBy Geographic Division
South – Spending in 2008 was $125.9 billion, up 42% from $88.8 billion in 2006.
• South Atlantic (DE, DC, FL, GA, MD, NC, SC, VA, WV)– Spending is up 20% from $49.1 billion in 2006 to $58.8
billion in 2008.• Florida- spending is up 27% from $16.6 billion in 2006 to
$21.1 billion in 2008.
30
Private Nonresidential SpendingBy Geographic Division
South (cont.) –
• West South Central (AR, LA, OK, TX)– Spending is up 82% from $27.0 billion in 2006 to $49.2 billion in 2008.
• Louisiana – spending is up 159% from $2.9 billion in 2006 to $ 7.5 billion in 2008.• Texas – spending is up 79% from $20.3 billion in 2006 to $36.3 billion in 2008.
31
Private Nonresidential SpendingBy Geographic Division
West – Spending in 2008 was $73.4 billion, up 22%
from $60.2 billion in 2006.
• Mountain (AZ, CO, ID, NV, NM, UT, WY)– Spending is up 38% from $28.3 billion in 2006 to $39.0 billion in 2008.
• Nevada – spending is up 87% from $6.8 billion in 2006 to $12.7 billion in 2008.• New Mexico – spending is up 154% from $1.3 billion in 2006
to $3.3 billion in 2008.
32
Private Nonresidential SpendingBy Region
0
20
40
60
80
100
120
140
Billions of Dollars
2006 2007 2008
Private Nonresidential Spending 2006-2008
Northeast
Midwest
South
West
33
Public Nonresidential SpendingAll-time high June 2009 - $321.6 billion
• Office– State and Local
• Hit an all-time high of $9.7 billion in April 2009.
• Spending in July 2009 ($9.3 billion) is up 90% from March 2006 ($4.9 billion).
– Federal• Hit an all-time high of $6.7 billion in July 2009 and is up 148% from March 2006 ($2.7
billion).Public Office Spending March 2006 - July 2009
Seasonally Adjusted
1
2
3
4
5
6
7
8
9
10
11
Bil
lio
ns o
f D
oll
ars
State and Local
Federal
$6.7
$9.3
$2.7
$4.9
34
Public Nonresidential Spending
• Health Care– State and Local
• Hit an all-time high of $7.9 billion in July 2009.• Spending has increased 49% from March 2006 ($5.3 billion).
– Federal• Hit an all-time high in July 2009 of $3.1 billion.• Spending has increased 274% from March 2006 ($829
million).• Spending in the first 7 months of 2009 is up 70% from the same time period in 2008.
35
Public Nonresidential Spending
• Educational– State and Local
• State and Local makes up 98% of public educational spending.
• Spending in July 2009 ($88.5 billion) is up 27% from March 2006 ($69.8 billion).
• Hit an all-time high of $89.5 billion in June 2009.– Primary/secondary education – July 2009 ($57.3
billion) is up 19% from March 2006 ($48.0 billion).– Higher education – July 2009 ($26.9 billion) is up 45% from March 2006 ($18.5 billion).
36
Public Nonresidential Spending
• Power– State and Local
• State and Local makes up over 90% of public power spending.
• Currently spending is up 45% from March 2006 ($8.0 billion) to $11.6 billion in July 2009.
• April 2009 was at an all-time high of $13.7 billion.
37
Public Nonresidential Spending
• Public Safety– State and Local
• Spending is up 53% from March 2006 ($6.4 billion) to July 2009 ($9.8 billion).
• Hit an all-time high of $10.2 billion in May 2009.– Federal
• Spending is up 475% from March 2006 ($794 million) to July 2009 ($4.6 billion).
• Hit an all-time high of $5.1 billion in January 2009.• Spending for the first 7 months of 2009 is up 99%
from the same time period in 2008.
38
Public Nonresidential Spending• Transportation
– State and Local• Makes up over 93% of public transportation spending.• Spending in July 2009 ( $23.8 billion) is up 37% from March 2006 ($17.4
billion).• Hit an all-time high of $23.9 billion in June 2009.
– Land transportation (passenger terminal, mass transit, railroad, etc…) - hit an all-time high of $10.3 billion in July 2009; a 59% increase from March 2006 ($6.5 billion).
State and Local Transportation Spending March 2006 - July 2009
Seasonally Adjusted
15
16
17
18
19
20
21
22
23
24
25
Bil
lio
ns o
f D
oll
ars
$17.4
$23.8
39
Public Nonresidential Spending• Highway and Street
– State and Local• Makes up 99% of total highway and street spending.• Hit an all-time high of $83.8 billion in June 2009.• Spending in July 2009 was $83.0 billion, up 20% from March 2006 ($69.4 billion).
– Bridge – July 2009 ($23.7 billion) is up 29% from March 2006 ($18.4 billion). State and Local Highway and Street Spending
March 2006 - July 2009 Seasonally Adjusted
60.0
65.0
70.0
75.0
80.0
85.0
90.0
Bil
lio
ns o
f D
oll
ars
$69.4
$83.0
40
Public Nonresidential Spending• Sewage and waste disposal
– State and Local• Makes up 99% of sewage and waste disposal spending.• Hit an all-time high of $26.1 billion in March 2009, up 20% from
March 2006 ($21.8 billion).• Spending in July 2009 was $24.7 billion.
• Water supply– State and Local
• Makes up 98% of public water supply spending.• Currently at $16.5 billion in July 2009, up 15% from March 2006 ($14.4 billion).• Hit an all-time high of $17.2 billion in July 2008.
41
Total Construction SpendingRecent Trends
Since the peak of total construction spending in March 2006 of $1.213 trillion,
total spending has fallen 21% to $958.0 billion in July 2009.
– Private residential spending has fallen 63.7% from $676.4 billion to $245.6 billion.
– Private nonresidential spending has increased 34.8% from $285.6 billion to $384.9 billion.
• Power spending has increased 145% from $32.2 billion to $79.0 billion.
• Manufacturing spending has increased 167% from $31.2 billion to $83.2 billion.
– In July 2009, power and manufacturing spending made up 42% of the private nonresidential spending.
• All other nonresidential categories have increased 0.5%.
– Public residential spending has increased 40.5% from $6.1 billion in March 2006
to $8.6 billion in July 2009.
– Public nonresidential spending has increased 30% from $245.3 billion in March 2006
to $319.0 billion in July 2009.
42
Total Construction SpendingRecent Trends
March July Percent Level 2006 2009 Change Change
Private $961,967 $630,423 -34.5 -$331,544Residential $676,412 $245,566 -63.7 -$430,846
Nonresidential $285,555 $384,857 34.8 $99,302
Pow er $32,228 $78,960 145.0 $46,732
Manufacturing $31,206 $83,194 166.6 $51,988
Other $221,553 $222,595 0.5 $1,042
Public $251,493 $327,615 30.3 $76,122Residential $6,146 $8,637 40.5 $2,491
Nonresidential $245,347 $318,978 30.0 $73,631
43
Total Construction SpendingRecent Trends
March 2006 ($1.213 billion) – July 2009 ($958.0 billion)
Total Construction Spending March 2006 - July 2009
Seasonally Adjusted
500
600
700
800
900
1,000
1,100
1,200
1,300
2006
2007
2008
2009
Bill
ion
s o
f D
olla
rs
200
300
400
500
600
700
800
To
tal C
on
stru
ctio
n (
Bill
ion
s o
f D
olla
rs)
Total ConstructionPrivate ResidentialPrivate NonresidentialPublic
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