Economic Update

/img/economic-update_bw.jpgDirectly from the experts about the state of the economy
/img/bernie-g.jpgBernie Markstein
Reed US
Chief Economist
/img/alex-g.jpgAlex Carrick
Reed Canadian
Chief Economist
View articles, forecasts and webcasts>>

Economic Webcast

/img/Economic-webcast-Apr-2014-430x190-bw.gif

Join chief economists from the AIA, the AGC and Reed to see what the experts expect for 2014 construction. Learn More
/img/mkt-intelligence2_bw.jpg
Market Intelligence
/img/project-leads2_bw.jpg
Project Leads
/img/rsmeans2_bw.jpg
RSMeans

Our insight in every decision

Reed Construction Data is a leading information services provider to the construction industry. With solutions for every aspect of the AEC Community, we're sure to bring insight into your every decision.

Get to know more about who we are as a company

In the News

Reed Construction Data reported a significant increase in the value of March construction starts, excluding residential contracts. After a 14.2% decrease in February, March starts surged to $23.7 billion – a 46.9% increase and the highest value for starts since November 2013. Starts were up a modest 0.4% from March 2013. Year-to-date starts data, which totaled $58.6 billion, were down 2.9% from the same period in 2013. March starts data are an indication construction is bouncing back from the harsh winter weather. Since starts data are not seasonally adjusted (NSA), caution should be used in analyzing monthly movements. Year-over-year comparisons are often used, as they remove much of the seasonal effects. “We believe the economy is on a clear upward trajectory,” stated Bernard Markstein, U.S. chief economist, Reed Construction Data. “The combination of a growing economy and low long-term interest rates will spur an increase in nonresidential building construction starts, exceeding last year’s starts numbers and, as a result, construction activity.” Commercial starts doubled in March (+109.9%) after plunging 35.9% the previous month. Year-to-date, commercial starts were down 24.1% from the same period last year. To some extent, that comparison obscures the bounce back in commercial starts, since there were some unusually large starts in the first quarter of 2013. The $17.1 billion first quarter commercial starts were the second highest since 2008. First quarter lodging (hotel and motel) starts were at their second highest level since 2009. An unusually large starts figure in March 2013 is skewing the year-to-date total for this category. Similarly, first quarter retail starts lagged behind first quarter 2013 starts, but were at their second highest level since 2008. Industrial (manufacturing) building starts, despite a more than five times increase over an unusually low February number, were still down 41.3% on a year-to-date basis. Although the first quarter 2013 starts were on the strong side, they were not unusually so. First quarter 2014 starts were the second lowest on record since the start of the Reed data series in 2003. The hope is that this year’s slow beginning is weather related and will be offset by stronger numbers in coming months. Institutional building starts are showing strength largely due to a strong gain in hospital and clinic starts, which more than doubled in March (+111.9%). On a year-to-date basis, these starts were up 98.2% from the same period a year ago. In spite of improvements in March (+20.1%), starts for schools and colleges were down 10.8% on a year-to-date basis from last year. Heavy engineering (non-building) starts strengthened 19.2% in March. Year-to-date, starts were up 15.7% from the same period in 2013. Road and highway starts, although off 15.0% in March, were up 9.3% on a year-to-date basis. Surprisingly, heavy engineering starts are doing much better than nonresidential building starts. The weather appears to have adversely affected the latter more than the former. As the weather improves, starts of both should also improve. To view the complete report, click here. The value of construction starts each month is summarized from the Reed database of all active construction projects in the U.S., excluding residential construction. Missing project values are estimated with RSMeans building cost models. A start is determined by taking the announced bid date and adding 30 days. It is then assumed the project will actually break ground within 30-60 days of the start date. Reed continues to follow the project via our network of researchers, so if the project is abandoned or rebid, the start data are subsequently updated to reflect the new information. About Reed Construction Data Reed Construction Data, a division of Reed Business Information and the Inaugural Strategic Partner of the AIA, is a leading North American provider of construction information. Reed provides actionable insight to construction professionals through a diverse portfolio of innovative products and services, including national, regional and local construction project data, accurate and reliable construction cost data, effective marketing solutions and dynamic market intelligence. To learn more about Reed, visit www.reedconstructiondata.com.  
Construction economy experts, Bernard Markstein of Reed Construction Data, Kermit Baker of the AIA and Ken Simonson of the AGC join forces in an all-new webcast to discuss what’s ahead for 2014 construction. Reed Construction Data announces its sixth annual spring economic webcast:  2014, Breakthrough Year for Construction. The complimentary webcast, featuring chief economists Kermit Baker of the AIA, Ken Simonson of the AGC and Bernie Markstein of Reed, is set for April 17, 2014. With many anticipating growth and a generally positive outlook for construction this year, find out what economists inside the industry expect in the months ahead. “Construction professionals have a lot of reason to be optimistic this season,” stated Bernard Markstein, U.S. chief economist, Reed Construction Data. “While weather has hindered the early months, and despite a few obstacles still ahead, 2014 is certainly heading in the right direction.” The webcast is open to everyone and will cover topics important to all industry professionals: Trends helping construction growth Bright spots for non-residential construction Competition for skilled labor and difficult-to-fill positions Housing trends - continuing upward? Regions showing the strongest growth Risks and wild cards that can affect the upcoming season The live, interactive webcast airs on April 17, 2014, 2 - 3:30 p.m., EDT. AIA members who attend the live broadcast can receive AIA CEU credit, and all who register can download the presentation slides and view the webcast archive. All three economists will take questions from the audience in the last half hour. To take part in the webcast, register here. “We are excited to once again bring together this panel of economic experts, who can speak to issues that affect all of us,” stated Wendy McBay, Senior Director of Marketing, Reed. “Their insight can benefit everyone who wants to stay up-to-the-minute on trends and issues that affect our industry.” About The American Institute of Architects For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. Members adhere to a code of ethics and professional conduct to ensure the highest standards in professional practice. Embracing their responsibility to serve society, AIA members engage civic and government leaders and the public in helping find needed solutions to pressing issues facing our communities, institutions, nation and world. Visit the AIA website at http://www.aia.org. About The AGC of America The Associated General Contractors of America (AGC) is a national trade association, dedicated to furthering the ever-changing agenda of commercial construction contractors, improving job site safety, expanding the use of cutting-edge technologies and techniques, and strengthening the dialogue between contractors and owners. Founded in 1918, the AGC today represents more than 33,500 member firms, including 7,500 of America’s leading general contractors and over 13,000 specialty-contracting firms. Visit the AGC website at www.agc.com. About Reed Construction Data Reed Construction Data LLC (RCD), a division of Reed Business Information and the Inaugural Strategic Partner of the AIA, is a leading North American provider of construction information. Reed Construction Data’s diverse portfolio of innovative products and services includes national, regional and local project leads, accurate and up-to-date RSMeans cost information, marketing solutions and market intelligence to provide insight to construction industry professionals throughout the U.S. and Canada. Visit the Reed Construction Data website at www.reedconstructiondata.com.

See more Press Releases>>

Events

Reed will be at AIA Expo 2014, Booth #1431. Stop by and find out about our game-changing new Intelligent Leads.
Apr 24, 2014
Free RSMeans Introductory Webinar
Apr 25, 2014
Free RSMeans Introductory Webinar

See more upcoming events>>
/img/mkt-solutions2_bw.jpg
Marketing Solutions

Our insight in every decision

Reed Construction Data is a leading information services provider
to the construction industry. With solutions for every aspect of the AEC Community, we're sure to bring insight into your every decision.

Get to know more about who we are as a company
/img/mkt-intelligence_bw.jpg
Market Intelligence
/img/project-leads_bw.jpg
Project Leads
/img/mkt-solutions_bw.jpg
Marketing Solutions
/img/rsmeans_bw.jpg
RSMeans

Behind the Brand

/img/behind-the-brand_bw.jpg

Economic Update

/img/economic-update_bw.jpgDirectly from the experts about the state of the economy
/img/bernie-g.jpgBernie Markstein
Reed US
Chief Economist
/img/alex-g.jpgAlex Carrick
Reed Canadian
Chief Economist

In the News

Reed Construction Data reported a significant increase in the value of March construction starts, excluding residential contracts. After a 14.2% decrease in February, March starts surged to $23.7 billion – a 46.9% increase and the highest value for starts since November 2013. Starts were up a modest 0.4% from March 2013. Year-to-date starts data, which totaled $58.6 billion, were down 2.9% from the same period in 2013. March starts data are an indication construction is bouncing back from the harsh winter weather. Since starts data are not seasonally adjusted (NSA), caution should be used in analyzing monthly movements. Year-over-year comparisons are often used, as they remove much of the seasonal effects. “We believe the economy is on a clear upward trajectory,” stated Bernard Markstein, U.S. chief economist, Reed Construction Data. “The combination of a growing economy and low long-term interest rates will spur an increase in nonresidential building construction starts, exceeding last year’s starts numbers and, as a result, construction activity.” Commercial starts doubled in March (+109.9%) after plunging 35.9% the previous month. Year-to-date, commercial starts were down 24.1% from the same period last year. To some extent, that comparison obscures the bounce back in commercial starts, since there were some unusually large starts in the first quarter of 2013. The $17.1 billion first quarter commercial starts were the second highest since 2008. First quarter lodging (hotel and motel) starts were at their second highest level since 2009. An unusually large starts figure in March 2013 is skewing the year-to-date total for this category. Similarly, first quarter retail starts lagged behind first quarter 2013 starts, but were at their second highest level since 2008. Industrial (manufacturing) building starts, despite a more than five times increase over an unusually low February number, were still down 41.3% on a year-to-date basis. Although the first quarter 2013 starts were on the strong side, they were not unusually so. First quarter 2014 starts were the second lowest on record since the start of the Reed data series in 2003. The hope is that this year’s slow beginning is weather related and will be offset by stronger numbers in coming months. Institutional building starts are showing strength largely due to a strong gain in hospital and clinic starts, which more than doubled in March (+111.9%). On a year-to-date basis, these starts were up 98.2% from the same period a year ago. In spite of improvements in March (+20.1%), starts for schools and colleges were down 10.8% on a year-to-date basis from last year. Heavy engineering (non-building) starts strengthened 19.2% in March. Year-to-date, starts were up 15.7% from the same period in 2013. Road and highway starts, although off 15.0% in March, were up 9.3% on a year-to-date basis. Surprisingly, heavy engineering starts are doing much better than nonresidential building starts. The weather appears to have adversely affected the latter more than the former. As the weather improves, starts of both should also improve. To view the complete report, click here. The value of construction starts each month is summarized from the Reed database of all active construction projects in the U.S., excluding residential construction. Missing project values are estimated with RSMeans building cost models. A start is determined by taking the announced bid date and adding 30 days. It is then assumed the project will actually break ground within 30-60 days of the start date. Reed continues to follow the project via our network of researchers, so if the project is abandoned or rebid, the start data are subsequently updated to reflect the new information. About Reed Construction Data Reed Construction Data, a division of Reed Business Information and the Inaugural Strategic Partner of the AIA, is a leading North American provider of construction information. Reed provides actionable insight to construction professionals through a diverse portfolio of innovative products and services, including national, regional and local construction project data, accurate and reliable construction cost data, effective marketing solutions and dynamic market intelligence. To learn more about Reed, visit www.reedconstructiondata.com.  
Construction economy experts, Bernard Markstein of Reed Construction Data, Kermit Baker of the AIA and Ken Simonson of the AGC join forces in an all-new webcast to discuss what’s ahead for 2014 construction. Reed Construction Data announces its sixth annual spring economic webcast:  2014, Breakthrough Year for Construction. The complimentary webcast, featuring chief economists Kermit Baker of the AIA, Ken Simonson of the AGC and Bernie Markstein of Reed, is set for April 17, 2014. With many anticipating growth and a generally positive outlook for construction this year, find out what economists inside the industry expect in the months ahead. “Construction professionals have a lot of reason to be optimistic this season,” stated Bernard Markstein, U.S. chief economist, Reed Construction Data. “While weather has hindered the early months, and despite a few obstacles still ahead, 2014 is certainly heading in the right direction.” The webcast is open to everyone and will cover topics important to all industry professionals: Trends helping construction growth Bright spots for non-residential construction Competition for skilled labor and difficult-to-fill positions Housing trends - continuing upward? Regions showing the strongest growth Risks and wild cards that can affect the upcoming season The live, interactive webcast airs on April 17, 2014, 2 - 3:30 p.m., EDT. AIA members who attend the live broadcast can receive AIA CEU credit, and all who register can download the presentation slides and view the webcast archive. All three economists will take questions from the audience in the last half hour. To take part in the webcast, register here. “We are excited to once again bring together this panel of economic experts, who can speak to issues that affect all of us,” stated Wendy McBay, Senior Director of Marketing, Reed. “Their insight can benefit everyone who wants to stay up-to-the-minute on trends and issues that affect our industry.” About The American Institute of Architects For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. Members adhere to a code of ethics and professional conduct to ensure the highest standards in professional practice. Embracing their responsibility to serve society, AIA members engage civic and government leaders and the public in helping find needed solutions to pressing issues facing our communities, institutions, nation and world. Visit the AIA website at http://www.aia.org. About The AGC of America The Associated General Contractors of America (AGC) is a national trade association, dedicated to furthering the ever-changing agenda of commercial construction contractors, improving job site safety, expanding the use of cutting-edge technologies and techniques, and strengthening the dialogue between contractors and owners. Founded in 1918, the AGC today represents more than 33,500 member firms, including 7,500 of America’s leading general contractors and over 13,000 specialty-contracting firms. Visit the AGC website at www.agc.com. About Reed Construction Data Reed Construction Data LLC (RCD), a division of Reed Business Information and the Inaugural Strategic Partner of the AIA, is a leading North American provider of construction information. Reed Construction Data’s diverse portfolio of innovative products and services includes national, regional and local project leads, accurate and up-to-date RSMeans cost information, marketing solutions and market intelligence to provide insight to construction industry professionals throughout the U.S. and Canada. Visit the Reed Construction Data website at www.reedconstructiondata.com.
See more Press Releases>>

Events

/img/AEC CARES Project Denver_homebw.pngCome join us at Greenbuild this year at booth #3324N!

We can't wait to see you there!
Apr 24, 2014
Free RSMeans Introductory Webinar
Apr 25, 2014
Free RSMeans Introductory Webinar
May 2, 2014
Free RSMeans Introductory Webinar
See more upcoming events>>