Commercial and institutional sectors shake off worries to post solid gains
HAMILTON, New Jersey – October 7, 2021 –
The Dodge Momentum Index gained 11% in September to 164.9 (2000=100) from the revised August reading of 148.0. The Momentum Index, issued by Dodge Construction Network, is a monthly measure of the initial report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. The commercial planning component increased by 13% in September, while the institutional component rose 8%.
Nonresidential building projects entering planning staged a solid recovery in early 2021, as the economy began to awaken from its pandemic-induced slumber. Entering summer, those gains turned to losses as higher material prices and shortages of labor and goods weighed on the construction sector. The strength in projects entering planning was widespread during the month, with most sectors moving higher. Excluding healthcare, which experienced a downshift in the dollar value of planning projects in recent months. On a year-over-year basis, the Momentum Index was 30% higher than September 2020; the commercial component was up 32%, while institutional planning was 25% higher.
A total of 17 projects with a value of $100 million or more entered planning during September. The leading commercial projects were the $500 million “The Star” office building in Los Angeles, CA, and a $250 million office project in Cambridge, MA. The leading institutional projects were the first and third phases of a lab facility in Boston, MA, valued at $450 million and $225 million respectively.
The gain in the Momentum Index and its components in September is certainly good news and a sign that owners and developers are looking past the current concerns over pricing, Delta, and politics and are moving forward with projects to meet demand. This does not mean there are no problems ahead for the sector. Month-to-month volatility in the data is likely to remain for some time.
SEPTEMBER 2021 DODGE MOMENTUM INDEX
About Dodge Construction Network
Dodge Construction Network leverages an unmatched offering of data, analytics, and industry-spanning relationships to generate the most powerful source of information, knowledge, insights, and connections in the commercial construction industry. The company powers four longstanding and trusted industry solutions—Dodge Data & Analytics, The Blue Book Network, Sweets, and IMS—to connect the dots across the entire commercial construction ecosystem. Together, these solutions provide clear and actionable opportunities for both small teams and enterprise firms. Purpose-built to streamline the complicated, Dodge Construction Network ensures that construction professionals have the information they need to build successful businesses and thriving communities. With over a century of industry experience, Dodge Construction Network is the catalyst for modern commercial construction.
Media Contact: Allison Heard | 104 West Partners | dodge@104west.com
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About Dodge Construction Network Dodge Construction Network leverages an unmatched offering of data, analytics, and industry-spanning relationships to generate the most powerful source of information, knowledge, insights, and connections in the commercial construction industry. The company powers four longstanding and trusted industry solutions—Dodge Data & Analytics, The Blue Book Network, Sweets, and IMS—to connect the dots across the entire commercial construction ecosystem. Together, these solutions provide clear and actionable opportunities for both small teams and enterprise firms. Purpose-built to streamline the complicated, Dodge Construction Network ensures that construction professionals have the information they need to build successful businesses and thriving communities. With over a century of industry experience, Dodge Construction Network is the catalyst for modern commercial construction. To learn more, visit construction.com
Media Contact :
Cailey Henderson | 104 West Partners | cailey.henderson@104west.com