In August, planned commercial construction projects rose 3.3% while planned institutional construction projects fell 1.2%, according to The Momentum Index, published by Dodge Data & Analytics, a provider of commercial construction project data, market forecasting and analysis services.
The momentum index is a monthly key figure for non-residential construction projects in the planning phase, which demonstrably leads to construction expenses. According to the report, the index rose to 126.5 in August from 124.2 in July – a modest 1.8% increase in commercial construction projects that keep the sector alive while institutional construction projects continue to decline.
Eleven commercial construction projects worth $ 100 million or more were planned in August. Leading the way are a US $ 262 million UPS distribution facility in Mebane, NC and an Amazon distribution center (Project Star) in San Antonio, TX. The major institutional projects mentioned in the report were the BayCare South Florida Baptist Hospital in Plant City, FL and the second phase of the Veterans Memorial Arena in Binghamton, NY, valued at $ 125 million.
Institutional projects related to planned structures related to health, education, leisure or public works are 34% below their most recent high and have been in decline for five consecutive months with the bottom nowhere in sight. "The public side of the hardware store is suffering from the fact that state and municipal revenues have declined and have led to budget cuts across the country," the authors write. A significant retreat in educational projects that are incorporated into planning puts the institutional component of the Momentum Index under considerable pressure.