PICK UP THOSE HAMMERS

Flickr: Michelllaurence
Too many hard hats laying about! Construction starts declined sharply the first half of this year, we learned from the New York Building Congress, which did some crunching of McGraw-Hill Construction Dodge data points. Only $6.4B of construction projects (including new construction, alterations and renovations to existing structures, and non-building infrastructure) launched from January through June, a nearly 40% decline from the first half of ’10, when construction starts reached $10.6B. (In ’09, that same number was $7B, and in ’08, $10.8B.) The $1.2B expansion of JFK International Airport’s Terminal 4 was the single-largest start by value, accounting for more than one-quarter of non-residential construction.
Bob Wallace
NYBC prez Dick Anderson (right, with Boston Properties’ Mort Zuckerman and STV Group’s Dominick Servedio earlier this year) called the activity “extremely disappointing,” considering the nearly $11B in construction starts for the same time last year—which had been a sign of a slowly strengthening economy and offered hope that the building industry was turning the corner. Although the initial data tells a story of relative weaknesses in each sector, there are signs of improvement for the second half. Building permits are up 12%, which may mean a modest rebound in residential construction. Moving ahead with major projects: The Whitney Museum, Fordham University, and Boston Properties, while the MTA and Port Authority have unveiled proposals that will fully fund their multi-billion dollar capital plans.

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