Create your Own Recovery

Many economists are now saying that there will be no general economic recovery in the short term. However, Chusid Associates continues to work with building product manufacturers that are making their own recovery by becoming more competitive, launching breakthrough products, taking advantage of niche growth opportunities, and getting better results from their sales and marketing investments. Stop waiting for another construction boom, and create your own. MD-June2011graphCrop
New construction starts in May fell 6% to $376.1 billion (annual rate). Nonresidential building plunged 12%, retreating after its improved pace in March and April. Substantial declines were registered by hotels (down 64%) and transportation terminals (down 59%) after each had been lifted in April by the start of several large projects. More moderate declines in May were reported for offices (down 8%) and schools (down 7%). Helping to cushion May’s nonresidential downturn were gains for manufacturing plants (up 35%) and healthcare facilities (up 15%). Residential building in May dropped 7%, reflecting more weakness for single family housing as well as a pullback by multifamily housing from its elevated April amount. Nonbuilding construction in May climbed 5%, boosted by a 68% jump for electric utilities that featured the start of a $2.0 billion solar power facility in Arizona. The public works side of nonbuilding construction decreased 10% in May.

For more information, read here for the full press release on construction start statistics.