1 Value of Construction Put in Place (VIP) Recent Trends March 2006 (all-time high of $1.213 trillion) – July 2009 ($958.0 billion)

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 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

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$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

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s o

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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.

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Residential SpendingPrivate Residential Spending

March 2006 - July 2009 Seasonally Adjusted

0

100

200

300

400

500

600

700

800

Bill

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s o

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$676.4

$245.6

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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.

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Residential SpendingPrivate Residential Spending


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

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200

700

1,200

1,700

2,200

2,700

Th

ou

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tart

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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).

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Nonresidential SpendingNonresidential Spending


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

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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

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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.

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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

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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

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s o

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$8.7

$9.7

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• 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

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• 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

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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.

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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

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Private Nonresidential SpendingPrivate Power and Manufacturing Spending


0

10

20

30

40

50

60

70

80

90

2006

2007

2008

2009

Bil

lio

ns

of

Do

llar

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Power

Manufacturing

$79.0

$84.0

$33.1

$31.0

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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


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).

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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).

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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


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.

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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.

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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

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f D

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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.

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• 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


• 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 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

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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


60.0

65.0

70.0

75.0

80.0

85.0

90.0

Bil

lio

ns o

f D

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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


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.

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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

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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

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300

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To

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Total ConstructionPrivate ResidentialPrivate NonresidentialPublic

Documents

1 Value of Construction Put in Place (VIP) Recent Trends March 2006 (all-time high of $1.213 trillion) – July 2009 ($958.0 billion)