Fourth year of decline marked by losses in all sectors despite federal stimulus funding
New York – July 14, 2009 – McGraw-Hill Construction, part of The McGraw-Hill Companies (NYSE: MHP), has released the 2009 California Construction Outlook: Mid-Summer Update. “The California economy has further to fall,” says the report. “The budget crisis has undermined the California economy, reducing state tax revenues and worsening the state’s construction declines.” Construction starts for the state are expected to drop 22% in 2009 to $36.5 billion.
Highlights of the 2009 report conclude:
- Single family starts are expected to fall 31% and multifamily starts will decline 39% in 2009, but both residential building sectors are establishing a bottom after four years of decline.
- Commercial and industrial construction is set to drop 37% this year, a consequence of the weak California economy and continuing budget crisis.
- Institutional building project starts are expected to slip 23% in 2009, due to pressures on federal, state and local tax revenues from the budget crisis.
- Public works projects, despite the legislature’s inability to balance the state budget, are expected to benefit from the federal stimulus package and 2006’s Proposition 1 bond referenda, so this sector will slip only 5% in 2009. Utility construction, given the focus on alternative energy, will gain 4% over the year.
In addition to the 2009 forecast, the report provides an in-depth analysis of federal stimulus funding and presents historical construction data since 2003 by major metropolitan area and by major sector in more than 10 major categories, including stores and shopping centers, offices, hotels, manufacturing buildings, educational buildings, healthcare, public works, utilities, and multifamily and single family housing.
To purchase and download a copy of the report, visit http://www.analyticsstore.construction.com or call 1-800-591-4462 for more information. Media may contact Lisa Jaycox at 212-512-3272 or lisa_jaycox@mcgraw-hill.com for complimentary copies of McGraw-Hill Construction reports.
About McGraw-Hill Construction
McGraw-Hill Construction connects people, projects and products across the design and construction industry. For more than a century, the Company has remained North America’s leading provider of construction project information, plans and specifications, product information, industry news, and industry trends and forecasts. In print and online, the Company offers a variety of tools, applications, and resources that easily integrate with its customers’ workflows. Backed by the power of Dodge, Sweets, Architectural Record, Engineering News-Record (ENR), GreenSource, HQ and 11 regional publications, McGraw-Hill Construction serves more than one million customers within the $4.6 trillion global construction community. To learn more, visit www.construction.com.
About The McGraw-Hill Companies:
Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion. Additional information is available at www.mcgraw-hill.com.
# # #
Media Contacts:
Lisa Jaycox, Communications Specialist,
The McGraw-Hill Companies Information & Media, +1 212-512-3272, lisa_jaycox@mcgraw-hill.com
Kathy Malangone, Senior Director, Marketing Communications,
McGraw-Hill Construction, +1 212-904-4376, kathy_malangone@mcgraw-hill.com
© The McGraw-Hill Companies, Inc. All Rights Reserved
