The latest Dodge Construction Network figures show a decline in construction starts by 9% after a July spike that was propelled mostly by the nonresidential and nonbuilding sectors. 

Total starts now stand at an adjusted annual rate of $1.25 trillion. The August dip was caused by a 36% decrease in nonbuilding starts and minor increase in residential starts, which was recorded at only 1%. Year-to-date construction is now 16% higher in the first eight months of 2022 than it was in the same period of 2021, with nonresidential starts up 35% on the year overall.

The largest nonbuilding projects that commenced in August were the $1.9 billion third phase of the New Soo Lock Chamber in Sault Ste. Marie, MI, a $738 million paving project in Honolulu, HI, and a $460 million first phase wastewater treatment project plant in the same city. Gensler's $9.5 billion JFK Terminal One project led the nonresidential list, followed by the $8.5 billion Samsung semiconductor plant project in Texas, and the $1.1 billion Gaylord Pacific Hotel and Convention Center outside of San Diego from Walter P. Moore.

“While construction starts activity continues to be dominated by mega-projects like chip fabrication plants, the middle and lower end of the value spectrum is holding up well,” Richard Branch, the chief economist for Dodge Construction Network, said in a statement. “This is a sign that organic growth in the construction sector has not yet been undermined by the concern of a potential recession in 2023. While higher interest rates may undo this support in the coming months, the industry is in a very good position to continue modest growth.”

The Network also notes a continued rise in the number of manufacturing starts, which have seen a 231% increase on a year-to-date basis when compared to 2021.

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