Although many of the indicators measuring the health of the overall construction market are mixed so far this year, EM’s editors still found quite a few interesting projects breaking ground in recent months, particularly in the multi-family, hospital and college & university markets. Click here to view more than 100 large construction projects that have broken ground during the past few months.
Two key factors have tamped down growth in the overall market: labor shortages and the high cost of materials. In his analysis of construction market conditions at mid-year, Richard Branch, chief economist for Dodge Data & Analytics, said, “The recovery from the COVID-19 pandemic has begun but is very uneven. Commercial construction has been buoyed by strength in the warehouse sector as large e-commerce companies build out their logistics infrastructure while office, retail and hotel activity is subdued. Multi-family starts, meanwhile, have rebounded solidly following a weak 2020. The dollar value of commercial and multi-family starts should continue to improve over the coming six months. However, growth will remain muted due to high material prices and a shortage of skilled labor in the construction sector.”
Multi-family projects. New multi-family construction through June 2021 hit $99.09 billion — an increase of +19.7% over June 2020, according to a U.S. Census Bureau report on construction spending. Some of the large construction projects contributing to this increase (see table on page 2) include the $400-million Courthouse Commons project in San Diego and the $230-million Mather Senior Living Facility in McLean, VA. Another large multi-family project will be the residential component of the $287-million mixed-use West Tower that Drexel University and the Brandywine Realty Trust are building as part of the $3.5-billion Schuykill Yards development planned for the University City neighborhood of downtown Philadelphia. The West Tower will have 326 apartments in it, and according to a Drexel University press release announcing the groundbreaking, the building will be a big part of Schuykill Yards’ master plan for 4.8-million sq ft in life science/lab and office space; 132,000-sq ft in retail space; and 1.9-million sq ft in residential space near the city’s 30th Street Amtrak Station.
Another multi-family project of note is the 303 Battery apartment tower Sustainable Living Solutions (SLI) is building in Seattle. SLI is promoting the 112-unit as “the world’s most sustainable high-rise apartment building” because it will meet net zero energy requirements.
Another interesting design feature for 303 Battery is the use of 900 premanufactured panels, which SLI builds offsite with electrical wiring, plumbing and mechanical equipment pre-installed. The SLI press release said “Ten primary panel types will be used in the construction of 303 Battery, with panels for walls, floors and ceilings of each room — living room, kitchen, bedroom, bathroom, even specialized elevator panels.”
Hospital projects. At $47.5 billion in new construction spending and a -3.3% decline through June, the health-care market segment isn’t currently showing the same amount of growth as the multi-family segment. However, several large hospital projects are now under way, including the $920-million, 690,000-sq-ft Michigan Medicine Clinical Inpatient Tower being built on the University of Michigan’s medical campus in Ann Arbor, MI; the $236-million UH Ahjua Medical Center expansion in Beachwood, OH, that’s part of $1.4 billion in medical construction across northeast Ohio; a 42.5-acre Flagler Health+ medical campus being built in Augustine, FL; and the 52-bed, 365,000-sq-ft Texas Children’s Hospital now underway in Austin, TX.
Campus construction. EM’s editors also spotted some sizeable dorm and classroom projects underway on college campuses. These include the $475-million University of California Living and Learning dorm project in San Diego; the $288-million Tarrant County College redevelopment project in Arlington, TX; the University of South Carolina’s $210-million, 1,800-bed Campus Village in Columbia, SC; Vanderbilt University’s 615-bed housing project for graduate and professional students in Nashville, TN; Lehigh University’s 74,000-sq-ft College of Business building in Bethlehem, PA: and the University of California’s 1,600-bed student housing tower on its Davis, CA, campus.
Summary. Some construction economists agree the second half of 2021 could be much busier the first six months of the year if materials pricing and pricing shortages don’t inject any unnecessary uncertainty into the market, and the United States gets a handle of the Delta variant of COVID-19. Two key leading indicators for the electrical market point to a stronger second half. Nationally, electrical contractors are employing 87,400 more workers in June 2021 than they did in June 2020 – a +9.8% increase in hiring.
Another encouraging sign for electrical contractors, electrical engineers, facility maintenance personnel and other electrical professionals is that architects are seeing more inquiries for their design services. According to the American Institute of Architects (AIA), in June its Architecture Billings Index (ABI), an indicator of future construction activity, is at 57 points on a scale of 100, and new project inquiries at AIA architectural firms logged another near-record high score at 71.8 points in June, compared to 69.2 points in May.
Two key factors have tamped down growth in the overall market: labor shortages and the high cost of materials. In his analysis of construction market conditions at mid-year, Richard Branch, chief economist for Dodge Data & Analytics, said, “The recovery from the COVID-19 pandemic has begun but is very uneven. Commercial construction has been buoyed by strength in the warehouse sector as large e-commerce companies build out their logistics infrastructure while office, retail, and hotel activity is subdued. Multi-family starts, meanwhile, have rebounded solidly following a weak 2020. The dollar value of commercial and multi-family starts should continue to improve over the coming six months. However, growth will remain muted due to high material prices and a shortage of skilled labor in the construction sector.”
MULTI-FAMILY CONSTRUCTION
New multi-family construction through June 2021 hit $99.09 billion an increase of +19.7% over June 2020 according to a U.S. Census Bureau report on construction spending. Some of the large construction projects contributing to this increase (see table on page 2) include the $400-million Courthouse Commons project in San Diego and the $230-million Mather Senior Living Facility in McLean, VA. Another large multi-family project will be the residential component of the $287-million mixed-use West Tower that Drexel University and the Brandywine Realty Trust are building as part of the $3.5-billion Schuykill Yards development planned for the University City neighborhood of downtown Philadelphia. The West Tower will have 326 apartments in it, and according to a Drexel University press release announcing the groundbreaking, the building will be a big part of Schuykill Yards’ master plan for 4.8-million sq. ft. in life science/lab and office space; 132,000-sq. ft. in retail space; and 1.9-million sq. ft. in residential space near the city’s 30th Street Amtrak Station.
Another multi-family project of note is the 303 Battery apartment tower Sustainable Living Solutions (SLI) is building in Seattle. SLI is promoting the 112-unit as “the world’s most sustainable high-rise apartment building” because it will meet net zero energy requirements.
Another interesting design feature for 303 Battery is the use of 900 premanufactured panels, which SLI builds offsite with electrical wiring, plumbing, and mechanical equipment pre-installed. The SLI press release said “Ten primary panel types will be used in the construction of 303 Battery, with panels for walls, floors and ceilings of each room -- living room, kitchen, bedroom, bathroom, even specialized elevator panels.” SLI panels are manufactured and assembled at its factory in Tacoma, WA.
HOSPITAL CONSTRUCTION
At $47.5 billion in new construction spending and a -3.3% decline through June, the health-care market segment isn’t currently showing the same amount of growth as the multi-family segment. However, several large hospital projects are now under way, including the $920-million, 690,000-sq.-ft. Michigan Medicine Clinical Inpatient Tower being built on the University of Michigan’s medical campus in Ann Arbor, MI; the $236-million UH Ahjua Medical Center expansion in Beachwood, OH, that’s part of $1.4 billion in medical construction across northeast Ohio; a 42.5-acre Flagler Health+ medical campus being built in Augustine, FL; and the 52-bed, 365,000-sq.-ft. Texas Children’s Hospital now underway in Austin, TX.
CAMPUS CONSTRUCTION
EM’s editors also spotted some sizeable dorm and classroom projects underway on college campuses. These include the $475-million University of California Living and Learning dorm project in San Diego; the $288-million Tarrant County College redevelopment project in Arlington, TX; the University of South Carolina’s $210-million, 1,800-bed Campus Village in Columbia, SC; Vanderbilt University’s 615-bed housing project for graduate and professional students in Nashville, TN; Lehigh University’s 74,000-sq-ft College of Business building in Bethlehem, PA: and the University of California’s 1,600-bed student housing tower on its Davis, CA, campus.
Summary. Some construction economists agree that the second half of 2021 could be much busier the first six months of the year if materials pricing and pricing shortages don’t inject any unnecessary uncertainty into the market, and the United States gets a handle of the Delta variant of COVID-19. Two key leading indicators for the electrical market point to a stronger second half. Nationally, electrical contractors are employing 87,400 more workers in June 2021 than they did in June 2020 – an +9.8% increase in hiring. Another encouraging sign for electrical contractors, electrical engineers, facility maintenance personnel and other electrical professionals is that architects are seeing more inquiries for their design services. According to the American Institute of Architects (AIA), in June its Architecture Billings Index (ABI), an indicator of future construction activity, is at 57 points on a scale of 100, and new project inquiries at AIA architectural firms logged another near-record high score at 71.8 points in June, compared to 69.2 points in May.