The four U.S. states that amassed the highest dollar value in nonresidential construction starts from 2014-16 accounted for 37 percent of the entire U.S. market, according to Dodge Data and Analytics. Can you name them?
Perhaps it’s not surprising that populous hubs Texas, California, New York and Florida led the way, but it’s nonetheless interesting that Texas made up 14 percent of the total market value, significantly more than California, at 10 percent. The Golden State has the highest population in the U.S. – about 39 million people. That’s 39 percent more people than the Lone Star State (28 million), which is second.
And New York, at 9 percent, almost surpassed California in nonresidential value over that three-year period, despite its population of about 19 million, about half that of California.
Companies that touch the construction industry, such as WillScot, should keep a good eye on both overall construction start performance by state as well as changes in percentage of growth, in order to know where most of the action is and where it may pop up down the road. For us, data such as this helps in the preparation of inventory and staff, so that we can better serve our customers with the modular space they need. That allows them to get working as quickly as possible.
With that in mind, here’s another chart from Dodge, which shows the top 20 U.S. states in value of projected 2017 nonresidential construction starts, when compared to their previous three-year average:
With a value of 100 percent designating 2017 projections that are equivalent to the prior three-year average, Pennsylvania, North Carolina, Georgia and Florida are expected to show the greatest growth.
New Jersey, Michigan, Indiana, New York and Virginia are projected to be the next biggest areas of growth as compared to how they fared from 2014-16.
And growth projections dip into the negative territory once you get to states 16-20: Washington, California, Massachusetts, Minnesota and Louisiana, a state that was boosted from 2014-16 by a lot of energy-related construction projects.
How is the nonresidential construction industry looking in the states in which your company operates?