Recession coupled with credit freeze cripple construction in nation’s financial capital
New York – July 15, 2009 – McGraw-Hill Construction, part of The McGraw-Hill Companies (NYSE: MHP), has released the 2009 New York Metro Construction Outlook: Mid-Summer Update. “The recession has combined with the credit freeze to create an unusually difficult environment for construction, both in the New York metro area and across the nation as a whole,” says the report. Total construction starts for the New York metro area, which includes the New York City boroughs, as well as other counties in New York, New Jersey and Pennsylvania, will be down 34% to $22.1 billion.
Highlights of the report conclude:
- Commercial and industrial construction will drop 60% to $3.3 billion, due partly to last year’s robust activity but also this year’s lack of demand and lack of credit.
- A 12% decline in institutional construction is expected in 2009, bringing starts down to $5.8 billion.
- The New York metro's largest nonresidential construction market in 2009 will be education. Construction starts will fall 13% to $3.3 billion, but cuts would have been much deeper if not for the federal stimulus package.
- Following a 5% gain in 2008, nonbuilding construction will retrench 17% in 2009 to $8.1 billion.
- Fueled by a weak and regionally important multifamily sector, the housing decline will continue, dropping 46% to $5.0 billion in 2009.
In addition to the 2009 forecast, the report provides an in-depth analysis of the impact of stimulus funding on the metro area and presents historical construction data since 2003 for more than 10 major construction 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.
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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
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