Private nonresidential construction is up 12.7% in the past year, and lodging construction (hotels) has surged 51%.
He thinks new nonresidential construction activity will progress much more slowly and unevenly this year, offering less demand for workers than residential.
FORBES: As Construction Begins Rebound, Looming Labor Shortages Raise Concern
The revisions offset each other, continuing the recent pattern in which the slowdown in housing is being offset by the pickup in nonresidential construction.
Nonresidential construction is expected to grow 11% this year, says Reed.
Manufacturing and commercial construction projects have been some of the biggest drivers of nonresidential construction over the last year, according to the Associated General Contractors of America, a trade group.
Nevertheless, nonresidential construction companies have been a major contributor to the overall industry growth in the last year or so, according to an analysis of private-company financial statements by Sageworks Inc.
Nonresidential construction companies analyzed by Sageworks posted an average sales increase of about 10 percent in 2011, marking the sixth year out of the last seven in which nonresidential builders outperformed privately held residential builders.
We note that nonresidential construction, even with the jump in the second quarter, is still near its all-time low relative to GDP, so gains there should continue, given the high levels of liquidity in the economy.
Construction is 2.1% undervalued with nonresidential real estate construction down 21.7% year over year.
Meanwhile construction of new hotels, roads, offices and factories-the nonresidential projects that account for 90% of United's business-is likely to improve.
应用推荐