Has the Construction Industry Recovered Since the Recession?...It's Complicated. Part 1:

A 2014 report from construction software research and reviews website, Software Advice, helps us understand the construction industry today by comparing it to its pre-recession state. The report does a deep dive into the following information…

*The decrease in total monthly valuation for all construction. *

As shown in the graph above, in July of 2014, the total monthly valuation of both public and private construction projects was $981 billion. Prior to the recession, in March of 2006, it was at $1.2 trillion. Total monthly valuation of private construction fell about 50% between March of 2006 (at $961 billion) and January 2011 (at $466 billion).

Residential construction makes somewhat of a comeback.

In February of 2006 (pre-recession), the monthly valuation of the private-sector (the construction of single-family homes) was at $470 billion. In May of 2009 (after the bubble popped), monthly spending was at $91 billion. By last July, construction spending bounced back to $187 billion (this is still just 40% of what it was before the recession).

Residential improvements and renovations have exhibited slightly better performance. In February of 2006, monthly spending was at $150 billion. During the recession, monthly spending only decreased to $100 billion and by December of 2013 it moved up to $144 billion (the highest point since the recession). As of July of 2014, monthly spending on home improvements stood at about $127 billion.


Monthly valuation of residential construction

*Construction of schools and private health care decline. *

Despite the federally-funded stimulus package, the monthly valuation of public education construction went from $93 billion in March 2009 to its 2014 value of $63 billion.

Private health care accounts for between two-thirds and three-fourths of all health care construction monthly valuations. Its value fell from $40 billion in 2009 to $29 billion in 2014. (It is important to note that the monthly valuation of public health care construction has stayed more or less the same).

Monthly valuation of health care and education construction 

Read the full article…

Source

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