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.
***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).
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