Report: Nonresidential Construction Starts Rise 16% in August

Nonresidential construction starts nationwide rose by 16% from July to August, according to Massachusetts-based Dodge Data & Analytics. The growth was attributed in large part to a 201% growth in industrial starts.

Some of the largest industrial projects that contributed to the growth were Facebook’s $1 billion data center project in Gallatin, TN and Texas Instruments’ $740-million fabrication plant in Richardson, TX. Construction starts in the commercial category (office, hospitality and mixed-use) rose by 36% for the month. Year-to-date, the volume of total nonresidential starts remains 24% lower than the first eight months of 2019.

“Construction starts continue to make up ground following the nadir of activity in April,” said Richard Branch, chief economist at Dodge. “The nascent recovery in starts, however, as summer turns to fall. The expiration of enhanced unemployment insurance benefits and small business loans that were provided in the CARES Act, the budget crises facing state and local governments and the impending expiration of the FAST Act on September 30 will all have a dampening effect on starts.”

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