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U.S. Economic Recovery Looks To Texas As Leader

December 1, 2010 1 comment

The Brookings Institution Metropolitan Policy Program reports Texas is one of the leaders in economic recovery.

Four Texas metropolitan areas — Houston, Austin, Dallas and San Antonio — dominate the top 15 U.S. cities in a global study to determine the level of cities’ recovery from the recession.

The Brookings Institution Metropolitan Policy Program report ranks 150 cities: 50 in the United States, 50 in Europe and 50 in the rest of the world. Austin was the highest-ranked U.S. city and No. 26 in the world. Dallas ranks as the No. 4 U.S. city and No. 39 in the world. San Antonio ranks No. 11 in the U.S. and No. 51 in the world.

Houston is ranked No. 15 in the U.S. and No. 61 in the world, according to the report, Global MetroMonitor, which received assistance from the London School of Economics and Political Science.

San Antonio, Houston and Dallas rose in global rankings during the past two years from their pre-recession rankings. Austin stayed about the same, ranking No. 25 among the 150 metro areas before the recession.

The report found that income and job growth in metro areas exceed those of their nations as a whole, which means large cities are leading the global recovery from the 2007-09 recession.

The cities recovering the fastest are outside the United States. Twenty-nine of the 30 best-recovering cities are outside the U.S., with only Austin making that group.

Metro areas in Asia, Latin America and the Middle East are making the strongest recoveries. The top five, in order, are: Istanbul, Turkey; Shenzhen, China; Lima, Peru; Singapore; and Shanghai, China.

Read More: Chron.com – Texas Dominates Economic Recovery Rankings

Categories: News

U.S. Recovery Is Lead by Texas

November 15, 2010 5 comments

Texas sits atop the list as one of the leaders in the slow recovery process this country is facing.

Fueled in part by rising but stable oil prices, Texas continues to lead the country’s recovery, albeit at a relatively slow pace, according to a fourth-quarter regional economic forecast.

A report issued Monday by economists with BBVA Compass bank said that besides rising energy demand, Texas’ relatively stable housing market, continued private job creation, limited fiscal challenges and strong exports – notably petroleum and coal products – will sustain the state’s recovery into 2011.

“Although most states have experienced a growth deceleration in the second half of 2010, Texas’ growth has accelerated and remains solidly positive,” the report said.

The report predicts that Texas’ gross domestic product will grow by 3 percent this year and 2.8 percent in 2011, with both rates above the projected U.S. average of 2.7 percent in 2010 and 2.3 percent next year.

Through the first nine months of the year, Texas created 182,200 private sector jobs – approximately 16 percent of the U.S. total and the highest state total in the country

Read more: Texas leads U.S. recovery, report says | Houston Business Journal

NEWSWEEK has compiled a list of the 10 American cities best situated for the recovery.

These are places where the jobs are plentiful, and the pay, given the lower cost of living, buys more than in bigger cities. In other words, places unlike much of the rest of the country. The cities, most of which lie in the red-state territory of America’s heartland, fall into three basic groups. There’s the Texaplex—Austin, Dallas, San Antonio, and Houston—which has become the No. 1 destination for job-seeking Americans, thanks to a hearty energy sector and a strong spirit of entrepreneurism. There are the New Silicon Valleys—Raleigh-Durham, N.C.; Salt Lake City; and urban northern Virginia—which offer high-paying high-tech jobs and housing prices well below those in coastal California. And then there are the Heartland Honeys—Oklahoma City, Indianapolis, and Des Moines, Iowa—which are enjoying a revival thanks to rising agricultural prices and a shift toward high-end industrial jobs.

Read more from Newsweek: Greetings From Recoveryland

Categories: News

“Slow Progress” Is ABC 2011 Construction Industry Prediction

November 15, 2010 1 comment

Associated Builders and Contractors (ABC) released its 2011 economic forecast for the U.S. commercial and industrial construction industry.  The verdict not so good…”slow progress.”

“The period of rapid improvement in spending levels did not begin in 2010, and will not happen in 2011,” said ABC Chief Economist Anirban Basu.

“ABC’s forecast of nonresidential construction spending for next year suggests that total spending will be 0.1 percent less than 2010 levels. Privately financed construction levels are projected to decline 0.2 percent while publicly financed construction levels are projected to be virtually flat. The bottom line is the nonresidential construction recession is largely over, but 2011 will be associated with grudgingly slow progress,” said Basu.

“To the extent that there has been recovery in nonresidential construction, it has been concentrated in segments closely tied to federal funding and the stimulus package passed in February 2009 in the midst of the recession,” Basu said. “For example, five nonresidential construction categories monitored by the U.S. Census Bureau have experienced rising spending levels from the same time last year, including conservation and development, water supply, sewage and waste disposal, and highway and street, and transportation.

“In contrast, 11 nonresidential construction sectors have experienced year-over-year declines in spending, a reflection of the lack of available capital to finance growth and investment,” said Basu. “The deepest downturns registered in construction were related to lodging, manufacturing, office and commercial. ABC expects that the lack of access to capital will continue to deter economic progress in 2011, and is forecasting 1.7 percent GDP growth next year despite ongoing federal stimulus funding and the expectation of a more expansive monetary policy.

Year-to-Date Performance: 2009 – 2010 and ABC’s 2011 Forecast

Indicator 2009 2010 2011* % Change2010-2011
Construction Put in Place – (millions, seasonally adjusted annual rate)U.S. Census Bureau 
Total Nonresidential
Lodging $25,474 $11,653 $10,814 -7.2%
Office $52,717 $36,225 $34,413 -5.0%
Commercial $55,042 $41,112 $38,645 -6.0%
Health care $45,111 $40,038 $40,338 0.7%
Educational $102,907 $87,650 $85,897 -2.0%
Power $89,405 $79,568 $83,944 5.5%
Manufacturing $58,513 $39,025 $34,342 -12.0%
Total All Industries $654,207 $557,867 $557,242 -0.1%
Private Nonresidential
Lodging $25,350 $11,051 $10,256 -7.2%
Office $37,904 $22,858 $21,716 -5.0%
Commercial $51,286 $38,393 $36,089 -6.0%
Health care $35,651 $29,843 $31,000 3.9%
Educational $16,800 $13,275 $14,500 9.2%
Power $77,622 $66,542 $71,025 6.7%
Manufacturing $57,976 $38,313 $33,715 -12.0%
Total All Industries $347,759 $259,214 $258,716 -0.2%
Public  Nonresidential
Office $14,813 $13,366 $12,698 -5.0%
Commercial $3,756 $2,719 $2,556 -6.0%
Health care $9,460 $10,195 $9,338 -8.4%
Educational $86,107 $74,375 $71,397 -4.0%
Power $11,783 $13,026 $12,919 -0.8%
Total All Industries $306,448 $298,653 $298,526 0.0%
Construction Employment (thousands, not seasonally adjusted)U.S. Department of Labor 
Nonresidential 726.2 676.2 677.2 0.2%
Residential 639.6 579.8 726.9 25.4%
Producer Price Index U.S Department of Labor 
Inputs to Construction Industries – Index Value 188.6 196.2 203.3 3.6%
Gross Domestic Product (2005 billions of dollars) U.S Department of Commerce 
Real GDP 12,880.6 13,353.4 13,587.1 1.75%

*= Data predictions by ABC Chief Economist 

…and the 2011 outlook?

The national recession that began in December 2007 ended in June 2009.  Nonresidential construction typically lags the overall performance of the U.S. economy by 12 to 24 months. Even as the broader U.S. economy entered a period of substantial decline in 2008, nonresidential construction volumes continued to expand and grew 9 percent that year. Eventually, the weakness of the overall U.S. economy, coupled with a deep financial crisis and accompanying credit crunch, wreaked havoc on all sectors of nonresidential construction. According to U.S. Census Bureau data, nonresidential construction spending declined 9 percent in 2009 and ABC projects that spending will fall 14.7 percent this year.

The good news is the period of deep decline in U.S. nonresidential construction spending is over. The bad news is this appears to represent stagnation, with overall construction volumes mired at or near bottom-of-the-cycle levels. In other words, by remaining near 2010 levels, 2011 construction spending is positioned to be nearly a quarter less than 2008 totals.

Viewed from another perspective, the expectations for 2011 represent a stark contrast from what occurred in 2010.  As a year, 2010 was a period of widely variable performance between construction segments as sectors powered by the availability of federal stimulus funds experienced growth, and privately financed activities buckled under the weight of depleted capital availability and excess supply. Next year, the variable in performance between segments will be far diminished, at least in terms of percentage changes in spending volumes.

Read Full Article From Associated Builders and Contracors here.


 
 
 

 

 

 

Categories: Construction, News

Economic Growth On Fast Track

October 29, 2010 Leave a comment

Well that is wishful thinking, but it was on a faster pace in Q3.

The economy grew at a slightly faster pace over the summer as Americans spent a little more freely. The Commerce Department said Friday that the economy expanded at a 2 percent annual rate in the July-September quarter. It marked an improvement from the feeble 1.7 percent growth in the April-June quarter.

Still, the economy isn’t growing at a strong enough pace to make a noticeable dent in high unemployment and nearly 15 million Americans are out of work.

Consumers helped boost last quarter’s economic growth with 2.6 percent growth in spending. That was better than the second quarter’s 2.2 percent growth rate and marked the biggest quarterly increase since a 4.1 percent gain at the end of 2006 before the recession hit.

Full Article from AP: Economy Grows At Slightly Faster Pace In Q3

Categories: News

Decline In Construction Costs Anticipated

March 1, 2010 2 comments

More signs that the construction industry is on a recovery path.  Hard to get a good gauge on things, as the construction industry will be behind the economy recovery and we all know how that is going – [slow].

Turner Construction Company announced that the First Quarter 2010 Turner Building Cost Index, which measures non-residential building construction costs in the United States, has decreased by 0.5% from the Fourth Quarter 2009 and decreased 7.74% from the First Quarter 2009. Construction costs have decreased by 13.06% since their peak at the end of 2008. The Turner Building Cost Index value for First Quarter 2010 is 799.

Categories: News