HAMILTON, NJ – November 9, 2023 – New research from Dodge Construction Network and Projectmates reveals construction business owners can improve their processes and projects by using project management information systems (PMIS) beyond core functions. In the report, Building Better With Technology: How Owners Are Leveraging Software to Improve Project Management SmartMarket Brief, it is clear that most PMIS users experience many benefits. However, more owners who expand their use of PMIS compared to those with limited utilization rate their experience of those benefits at a very high level, including:

• Better informed decisions on their projects (74% versus 39%).
• Improved design solutions (67% versus 31%).
• Better cost predictability (61% versus 35%).
• Ability to mitigate design and construction risks (51% versus 30%).

“At Projectmates, we’ve witnessed the remarkable impact that a fully optimized PMIS can have on construction programs,” says Varsha Bhave, President and CTO of Projectmates. “Dodge’s survey findings serve as further validation of what we’ve long understood: the utilization of a PMIS can significantly enhance construction programs, making owners more efficient and promoting sustainability when this technology is fully harnessed.”

STRONG STRATEGY BRINGS STRONG OUTCOMES

When surveyed, owners fell into three types: those who ensured each division in their company had at least one competent PMIS user, those that centralized their PMIS expertise into a few users, and those with no strategic approach to PMIS competence. Those with a more centralized approach report the strongest results from their PMIS strategy.

• Most of those with centralized expertise report high levels of satisfaction with the document management (78%) and schedule management (75%) capabilities of PMIS, far more than those with an unstructured approach (21% and 24% respectively).
• A large majority of those with a strategic approach to PMIS reported the tool exceeding their performance expectations compared to those with an unstructured approach. This is particularly notable when it comes to effective document management (80% versus 53%) and risk issue tracking (71% versus 45%).

“Establishing a deliberate and strategic approach to utilizing PMIS across an organization is imperative to the success of their capital program,” says Steve Jones, senior director of industry insights at DCN. “Those who manage more of their processes in the PMIS from the start are set up to achieve more than those who take a more passive approach. Our findings reveal that by creating a specific, deliberate strategy for the means and the breadth of their PMIS implementation, owners achieve far more in the long run.”

The report contains more detailed findings and additional analysis as well as two case studies on owners’ PMIS implementation and use. It can be downloaded here.

About Projectmates: Projectmates, part of Hexagon, is an owner-focused, SaaS-based enterprise construction project management software provider. Projectmates’ configurable and centralized platform enables owners to keep all project documents and data within a construction program up to date in one, easily accessible location — from the planning stages through closeout and handover to the facilities team. With powerful reporting and a concise view of an entire project portfolio, owners can improve communication and collaboration with architects, engineers, and contractors to streamline workflows, control costs, and deliver projects faster.

Hexagon (Nasdaq Stockholm: HEXA B) has approximately 24,000 employees in 50 countries and net sales of approximately 5.2bn EUR. Learn more at hexagon.com and follow us @HexagonAB.

Learn more at Projectmates.com.

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HAMILTON, NJ – October 26, 2023 – Research findings released today indicate construction contractors continue to make progress responding to issues affecting worker safety and health, such as heat and mental health, but many areas for improvement remain.

The new study, Safety Management in the Construction Industry 2023 SmartMarket Report, examines occupational safety and health challenges across the industry and shines a light where more effort is needed. It was conducted by Dodge Construction Network (DCN), the industry-leading source of construction data and insight, and CPWR, a nonprofit dedicated to reducing occupational injuries, illnesses and fatalities in construction.

HEAT

Working in extreme heat is increasingly common in construction, posing significant safety and health risks to workers. To combat this problem:

• 52% of contractors in the study report making changes at their company in the last three years to prevent heat-related illnesses onsite.
• 66% of contractors implemented a heat-safety policy at their company.

The most common practices to address heat-related issues are providing water, rest and shade and worker training. Less common practices are monitoring the environment for heat hazards and administrative controls such as pausing work in the hottest parts of the day.

But while the data indicate progress, there are large disparities by company size.  Only 21% of employers with less than 20 employees made changes to address heat in the last three years, and another 21% of the small contractors do not consider heat stress an issue at all.

“Employers need to provide workplaces that control recognized hazards, including heat,” said Chris Trahan Cain, CPWR’s executive director. “Many firms are showing that protecting their workers from excessive heat is good for safety and good for business, but this report shows many still are not.”

MENTAL HEALTH, SUICIDE, AND OPIOID USE

When asked about topics about which they want additional training and information, such as through webinars, factsheets, infographics, and toolbox talks, the study revealed a high level of interest on worker wellbeing. Fifty-two percent of contractors wanted more resources for managing mental health, suicide, and opioid use.

The next most frequently cited topic was lifting or ergonomics, safety at 34%. This is a striking finding considering that the rest of the list consists of well-known hazards that still plague the industry.

Contractors were asked whether their company provides a program for substance use or mental health, such as access to professional services. There were major differences depending on company size:

• 80% of large contractors (100 or more employees) offer programs for substance use or mental health.
• Only 29% of small companies (fewer than 20 employees) offer these programs.

Strategies like having a peer network to address substance use or mental health are relatively uncommon, but more frequent among large contractors and those that employ union craftworkers.

PRE-PROJECT AND PRE-TASK ENGAGEMENT

The study also examines the use and subsequent advantages of other good safety practices on the jobsite, including during pre-construction and pre-task planning. Both strategies show the clear benefits of engaging multiple viewpoints in these processes:

• 94% of contractors who engaged in most (7 or more) of these activities reported an increase in worker engagement with safety measures.
• 84% of those contractors reported a reduction in recordable injury rates.
• 60% of those contractors saw an improvement in productivity.

The study also examined other good safety practices, including the use of right-sized PPE, online training, and the use of technology. It found that one of the biggest opportunities for contractors to improve safety is to use data gathered on their projects more effectively: nearly one-quarter of the contractors who collect project safety data said they do not analyze it.

IMPLEMENTATION ACROSS COMPANIES

The study also dives into the effective implementation of safety practices among firms of different sizes, as well as ways to improve. For example, the study highlights safety measures that smaller firms could use that larger firms have already adopted. These methods include getting workers more engaged in pre-task planning and using free online tools to promote worker well-being.

“Many small companies don’t have dedicated safety managers like you would see at a larger company, so data like this is particularly valuable to help provide education about how the industry is improving worker safety, health and well-being,” says Donna Laquidara-Carr, industry insights research director at Dodge Construction Network.

Since 2012, DCN and CPWR have partnered to deliver studies on construction safety management. Previous reports examined commonly used safety practices and the corresponding benefits contractors experience from investments in safety. The Safety Management in the Construction Industry 2023 SmartMarket Report contains more detailed findings and analysis on each of these topics including feature articles and case studies illuminating how these insights can be more widely implemented across the industry. The report can be downloaded here.

About CPWR: CPWR – The Center for Construction Research and Training is a 501(c)(3) not-for-profit created by North America’s Building Trades Unions (NABTU). Its mission is to reduce occupational injuries, illnesses and fatalities in the construction industry through research, training, and service programs. CPWR is uniquely situated to serve U.S. construction workers, contractors and the research community, having partnered with the National Institute for Occupational Safety and Health (NIOSH) in NIOSH’s construction safety and health research initiative for three decades.

The post Contractors Are Addressing Safety and Health Issues, But They Can Do More appeared first on Dodge Construction Network.

HAMILTON, NJ – September 19, 2023 – It is widely known that general contractors face persistent schedule, quality, safety and profitability challenges on their projects. A new study from Dodge Construction Network (Dodge) and Versatile® reveals that greater use of site data as an analytical tool allows contractors to surmount those challenges.

The new report, Measuring What Matters: Unleashing the Power of Site Data to Enhance Construction Performance SmartMarket Report, is based on a recent Dodge survey of over 200 general contractors across the United States. The findings show that most report significant performance improvements from their use of site data. Those who use automated technology to gather data and software to analyze it report above-average improvements compared with those still using manual methods.

Although the tools to efficiently gather and analyze site data are readily available, the study also shows that many general contractors have not yet integrated these practices into their standard operating processes:

• Only 28% of general contractors track their performance frequently, with just 24% highly rating their company’s capability for doing it.
• Digital tools are still not widely used, with nearly half still relying on manual methods.
• Less than one-third report having frequent access to current site data for analysis.
• About half (46%) experience frequent quality issues (e.g., accuracy, completeness, consistency) with the data that is being gathered.
• Only 20% apply metrics at least half of the time to determine the success of their process improvement initiatives.

The study examines 12 project management activities and seven performance metrics, establishing maturity levels and reflecting how many contractors are currently using site data effectively. Unfortunately, this analysis reveals that less than half of contractors do so.

There is a notable shortfall in contractors’ internal capability to track performance by using site data: less than half of current users rating their company as highly or very highly-effective in leveraging data for either project management or performance measurement. The report reveals a correlation between higher tracking skills and better project performance, identifying an important area of improvement for construction company skills.

“The findings point to a great opportunity for contractors,” said Steve Jones, senior director of industry insights at Dodge. “Proven methods are achievable for all companies to meaningfully improve performance by focusing more attention on gathering and analyzing site data, especially with automated digital technologies. This report can serve as a roadmap and benchmark as general contracting companies continue to advance in their digital journeys.”

Additionally, the report also features an interview with James Barrett, vice president and chief innovation officer of Turner Construction Company, focusing on how data analysis is generating remarkable value for his company.

Importantly, the findings show that contractors who are taking advantage of automated technologies to gather site data and software solutions to analyze it show markedly better performance. The report includes a case study from Clark Pacific demonstrating specific benefits of this approach.

“We really hope this report gets people talking and taking action,” says Meirav Oren, CEO and co-founder of Versatile, whose company sponsored this research. “We want everyone to see how important it is to collect and use data on every job site. Together, we can make the construction industry better, smarter and future-ready for whatever comes next.”

The report contains more detailed findings and analysis on all of these topics and can be downloaded here.

About Versatile, Inc.

Headquartered in Los Altos, CA, Versatile creates technology that gives construction professionals unmatched visibility into their production rates. By delivering the right data to the right people at the right time while naturally fitting existing processes, a fragmented industry becomes a controllable process. The result? Increased productivity, predictability and safety with the insights needed to manage and bid future projects more competitively. Want to learn more? Reach out at letstalk@versatile.ai.

Media Contact:

Jackie Guilbault

Versatile

jackie.guilbault@versatile.ai

The post Contractors’ Key to Better Project Performance? Automated Site Data Tools appeared first on Dodge Construction Network.

HAMILTON, NJ – September 12, 2023 – Architects, engineers and contractors are facing a heightened risk environment currently, with challenges ranging from not being able to find qualified employees, to supply chain challenges, to the constant pressure of staying competitive in a transforming digital landscape to the risk of cyberattacks. A new study from Dodge Construction Network (DCN), published in partnership with Egnyte, reveals that data resiliency is key to handling these challenges.

The new report, entitled Data Resilience in Design and Construction: How Digital Discipline Builds Stronger Firms, defines data resilience as the ability to access all project and business documents and data to support work at any time, from anywhere and on any device. The study reveals that only 39% of architects, engineers and contractors currently have this unimpeded level of access at least 90% of the time, meaning that most of the industry struggles with this issue.

The top challenges are an inability to access all documents on mobile devices, software that limits their ability to work digitally with other project team members, and a lack of timely access to documents. The findings also reveal wide variances among architects, engineers and contractors, suggesting that, while the overall industry struggles with these challenges, each type of company has a different set of priorities when they tackle them.

A majority of respondents say that these access deficiencies result in numerous performance issues, such as unplanned rework and schedule delays. “Previous studies conducted by DCN show the impact that unplanned rework and schedule delays have on construction projects,” says Steve Jones, senior director of industry insights at DCN. “As the digital transformation of the design and construction industry continues, companies with universal access to their documents will be better poised for success.”

The data suggests that cloud-based functionality can help to avoid these challenges since 85% of those who report no issues with document access are currently utilizing the cloud.

“The architecture, engineering, and construction industries have seen a surge in migrating data to the cloud in recent years empowering them to collaborate more efficiently and effectively,” says Kevin Soohoo, senior director of AEC Industry Solutions at Egnyte. “This study demonstrates how the digital revolution has empowered companies to adapt to new ways of work despite the unique challenges each of these industries have faced with the opportunities and risks that come with technology today.”

In addition, the study examines several other top risks that design and construction companies face, such as supply chain disruptions and the challenge of attracting and retaining talent. The report reviews the ways companies are managing these challenges and highlights the most frequent and most effective strategies.

One of the most concerning risk-related findings is the degree to which the design and construction industry underestimates their exposure to cyberattack.

• Fifty-nine percent say that they have experienced a cybersecurity threat in the last two years. General contractors in particular struggle with this, with 70% who have experienced a threat and 30% who have had a ransomware attack since 2021.
• The majority (72%) of architects, engineers and contractors rate themselves as having a moderate or higher degree of preparation for an attack that would cause them to lose access to documents. However, 77% say they cannot go more than five days without access to documents before they experience serious schedule impacts on their projects, and the average duration of a successful ransomware attack is considerably longer than five days, potentially leaving many firms more vulnerable than they realize.

Many other types of risks are also cited by respondents as having the potential to have a major impact on their business, including market risks and technology issues.

For all these types of risks, the study looks at the most commonly utilized and most effective strategies to mitigate and manage them.  Thus, the SmartMarket Brief provides a series of approaches for designers and contractors that have worked for their peers, thereby helping to increase awareness of the best risk mitigation strategies. Those include using cloud-based collaboration solutions, increasing automation to reduce the time needed for tasks, upskilling the workers they have and identifying alternative sources for materials.

The report contains extensive detailed findings and analysis, and can be downloaded here.

For more information, Egnyte will be hosting a webinar on September 27 with Dodge Construction Network’s Steve Jones on the findings of the report. Sign up here.

About Egnyte: Egnyte is the secure multi-cloud platform for content security and governance that enables organizations to better protect and collaborate on their most valuable content. Established in 2008, Egnyte has democratized cloud content security for more than 17,000 organizations, helping customers improve data security, maintain compliance, prevent and detect ransomware threats, and boost employee productivity on any app, any cloud, anywhere. For more information, visit www.egnyte.com.

The post Enhanced Data Resilience Will Help the Design and Construction Industry Face the Risks That Impact Their Businesses appeared first on Dodge Construction Network.

HAMILTON, NJ – August 23, 2023 — A new report from Dodge Construction Network in partnership with Smartapp.com found that 53% of general contractors do not utilize a technology solution for the majority of their processes. The report, “Optimizing Digital Project Management SmartMarket Brief,” reveals that the digital maturity of general contractors varies widely across their core project management processes.

The study compares the performance of two sets of general contractors: those who have automated most of their processes, and those with less automation. It contrasts the contractors that rely on a mix of specific software solutions for every process to those that utilize a platform integrating these core processes together. Together the findings expose a trend toward digital transformation and platform use emerging in construction will help general contractors improve their projects and their businesses.

The study shows:

• The top five benefits reported by those using a technology solution for their project management processes are improved schedule and cost performance, better overall data collection from the jobsite, increased profitability and labor productivity.
• Currently, those who use technology solutions are largely deploying platforms (39%) or commercial point solutions (34%). However, the approach to technology use is fragmented, preventing greater integration.
• 86% of those with higher levels of digital engagement for processes experience notable value from their overall technology stack, far more than those with lower levels of digital engagement (58%).
• There is a striking contrast between those utilizing a platform approach to integrate most of their technology stack (93%) compared with those with fewer solutions integrated together on their platforms (70%).

“The findings show we are still in the midst of transforming how construction projects are managed,” says Steve Jones, senior director of Industry Insights at Dodge Construction Network. “Technology adoption has already taken hold among general contractors, but the value they experience will be magnified as they continue to integrate their solutions together.”

The study also demonstrates the challenges caused by the current lack of integration: 76% report experiencing data integration challenges, with many reporting both construction process and project outcome impacts. This can include, but is not limited to, accurate analytics, good budget control and cost predictability during construction, profitability for the general contractor, and slippage of the final delivery date on their projects. General contractors recognize these challenges, with 77% who find that consolidating functionality into more comprehensive solutions would improve the value of their technology investments.

“Building a sustainable forward-thinking strategy that uses data and technology-based solutions to solve every day jobsite problems is critical,” said Michael Colapietro, CEO & Co-founder at Smartapp. “At Smartapp, we understand the macro level issues of labor shortage, quality of workmanship, high risk work conditions, burnout, and profit erosion that are at play and we see the potential impact true digital transformation can have. The findings in this report illustrate how moving towards a single easy-to-use, unifying platform can better ensure efficiency, productivity and safety across the industry.”

The report contains more detailed findings and analysis can be downloaded here.

About Smartapp:

Smartapp is a first-of-its-kind unifying Fusion Platform that can Turn Your Jobsite into a Smartsite, and bring all your construction management automation into one unified place. Our technology connects software, hardware and open APIs together to bring builders a transformative solution that consolidates, connects & configures the tech stack. From project management to safety, communications, automation and finance, we streamline project execution and bridge finance with the field. For more information, visit Smartapp.com

The post New Study Shows Greater Automation of Project Management Processes Improves General Contractors’ Projects and Bottom Lines appeared first on Dodge Construction Network.

HAMILTON, NJ – August 15, 2023 — New data published today by Dodge Construction Network, in partnership with Motive Inc., reveals that contractors still see significant impacts to their projects and businesses due to the operation and maintenance of their fleets of vehicles and equipment. The data comes from “The Safety on the Move: Automated Fleet Management and the Future of Safety for Contractors” e-book, available now.

Key findings include:

• Vehicles: Accidents and near-misses are reported by 57% of contractors. More than half find that these issues lead to productivity declines and increased insurance costs, while more than one third experience schedule delays and profitability declines.
• Equipment: While accidents and near misses for equipment are reported by fewer contractors (27%), they more frequently result in the negative impacts to productivity and schedule. In fact, 60% of those who experience them link them directly to a decline in profitability on their projects.
• Maintenance: 66% of contractors also experience safety issues due to the need for improved fleet maintenance, including both vehicles and equipment.

“Most contractors make jobsite safety a top priority, and they understand its critical role in the success of their projects,” says Steve Jones, senior director of Industry Insights Research at Dodge Construction Network. “But these findings make it clear that vehicle and equipment operation and maintenance need to be a bigger part of the safety conversation than they are now.”

The study also reveals a notable opportunity for contractors to automate how they track and manage their fleet safety. The findings show that while 76% of contractors track vehicle safety and 62% track driver behavior, most rely on paper forms or spreadsheets to do so. Only one quarter (25%) automate data gathering on driver behavior, and even fewer (18%) automate their fleet safety tracking.

The same is true for fleet maintenance, with only 25% using automation or AI to help them manage that process. However, the study reveals that 80% of those using technology for that process find that it improves safety on their projects.

“Too often, safety is seen as a compliance requirement and not what it really is: a key element of a company’s operations that benefits the bottom line, and more importantly protects people, property and reputation,” says Abhishek Gupta, vice president of Product for Fleet Management at Motive. “The improved working conditions, efficiency, and cost savings that come with making safety a priority mean it should be a primary consideration for any business operating in the physical economy.”

For more information about the study findings and the tools available to contractors to help them better manage the safety of their fleet, the Safety on the Move e-book is available for download.

About Motive:
Motive builds technology to improve the safety, productivity and profitability of businesses that power the physical economy. The Motive Automated Operations Platform combines IoT hardware with AI-powered applications to automate vehicle and equipment tracking, driver safety, compliance, maintenance, spend management and more. Motive serves more than 120,000 businesses, across a wide range of industries, including trucking and logistics, construction, oil and gas, food and beverages, field services, agriculture, passenger transit and delivery. Visit gomotive.com to learn more.

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HAMILTON, NJ – June 12, 2023 — A new study from Dodge Construction Network, in partnership with GCPay, reveals that currently, only one in three (34%) of general contractors automate fewer than half of their subcontractor management processes. The report details data-based benefits of greater automation and digital transformation by general contractors, including increased productivity, profitability and cost performance.

Most general contractors rely on subcontractors to generate successful projects, making managing subcontractors vital to their business. Many general contractors are also experienced in utilizing digital tools for these processes; however, as the Optimizing Subcontractor Management with Technology SmartMarket Brief reveals, many general contractors rely on a proliferation of older solutions, making integrating data across processes challenging.

COMBATTING DATA SILOS IN PROCESS MANAGEMENT

The findings show that half of respondents depend on solutions that tend to create data silos, such as generic software (e.g., Excel), internally developed software for a specific task or commercial software that only handles one or two of the many processes needed to manage subcontractors.

To evaluate where new adoption will focus, the study benchmarks the general contractors’ use of technology to manage 12 key processes essential to the management of subcontractors including accounting, finance and contract management. Those using technology report a variety of advantages, with the top benefits spanning performance, process and business improvements, including:

• Improved productivity: 91%
• Improved cost performance: 81%
• Improved profitability: 79%

COMMERCIAL SOLUTIONS FOR CONTRACTOR MANAGEMENT

Those using either platform or single purpose commercial solutions on half or more of the processes they conduct report greater benefits. At least twice as many general contractors frequently experience improved productivity and profitability at a high to very high level when compared to those who are less engaged with commercial solutions.

“Everyone benefits from increasing the automation of these processes — the findings make that clear — but those who do it for the majority of their processes and commit to purpose-built commercial solutions benefit the most,” says Steve Jones, senior director of industry insights research at Dodge Construction Network. “Automated processes open up a whole world of efficiency, analysis and decision support.”

Encouragingly, the report also reveals that the contractors not currently automating some of these processes actively plan to do so in the near future. The highest growth is expected in processes including schedule of values/subcontracts, change orders, applications for payment and general subcontract management.

However, the findings also show that just 9% of companies are planning to automate several other critical processes, such as OSHA compliance and reporting, and tier vendor management, indicating the ongoing need for understanding the value of automation amongst contractors. As the study shows, those that optimize subcontractor management with technology also experience the largest number of benefits.

“With the ongoing concerns of project delays, supply chain constraints, and labor shortages, this study really confirms that contractors are looking to automate as many financial and managerial processes as possible through technology,” according to Mike Milligan, Chief Growth Officer at GCPay.

For more information about the specific finance, accounting and contract management processes for which technology is currently being used, the top processes expecting growth and the benefits associated with automating these processes, the Optimizing Subcontractor Management with Technology SmartMarket Brief is available for download here.

For questions and inquiries, contact:

Cailey Henderson
dodge@104west.com

About GCPay:

GCPay is a cloud-based construction software for managing pay applications, lien waivers, electronic payments and more. GCPay simplifies the application for payment processes between general contractors and subcontractors by automating the payment application process. With GCPay, general contractors can create and exchange lien waivers, organize and collect compliance documents and improve subcontractor communication. Plus, GCPay integrates directly with your Construction ERP platform to save time and get your subs paid faster. Today, thousands of construction companies use GCPay with 10,000+ documents processed each year, making GCPay the proven choice for construction companies.  Learn more at GCPay.com.

The post New Study Shows Significant Benefits for General Contractors utilizing Technology to Manage Subcontractors appeared first on Dodge Construction Network.

However, while there has been an overall increase in the first quarter GDP estimate, certain components experienced contrasting trends. The boost in consumer spending was partially offset by decreases in private inventory investment and residential fixed investment. The decrease in residential fixed investment reflects a slowdown in housing construction as businesses and individuals scaled back their spending on residential structures, such as new housing units, renovations, and improvements. Factors such as rising material costs and mortgage rates, labor shortages, and affordability concerns have been contributors to this decrease. The drop in residential fixed investment calls for renewed focus on addressing affordability issues, improving construction productivity, and fostering innovative housing solutions.

In conclusion, the upward revision of the first-quarter GDP growth to 1.3% reinforces a positive outlook for the US economy. This increase in economic activity serves as an encouraging indicator for the construction projects planned for this year and beyond. Despite the persistent economic challenges, such as elevated costs and a tight labor market, the economy exhibited resilience in the first quarter. Thanks to these optimistic signals, it is expected to maintain its strength in the upcoming months. To successfully navigate these ongoing challenges, it is crucial that we adopt a proactive mindset. By doing so, we can foster a resilient economy that benefits businesses, individuals, and the construction industry as a whole.

The post Positive Outlook for US Economy: GDP Growth and Opportunities Amid Challenges appeared first on Dodge Construction Network.

This increase could impact the construction industry, which heavily relies on raw materials and supplies. The red line on the graph, which represents the year-over-year percent change in a composite index of construction materials, has seen an upturn, which could be concerning as it leads the bid price, represented by the blue line, by 12 months; if sustained, this could potentially lead to a re-acceleration in bid prices in 2024, just as building markets are expected to improve following the slowdown in 2023. As we navigate these uncertain times, construction firms must remain vigilant and adapt to evolving market conditions by closely monitoring their costs and adjusting their pricing strategies to stay competitive. Let’s continue to keep an eye on key indicators like the PPI to make informed decisions for our business and clients. Stay tuned for more updates and insights.

The post Construction Industry Navigates Challenges as April 2023 PPI Shows Slight Increase appeared first on Dodge Construction Network.

HAMILTON, New Jersey — January 31, 2023 —

In 2022, the value of commercial and multifamily construction starts in the top 10 metropolitan areas of the U.S. increased 37% from 2021, according to Dodge Construction Network. Nationally, commercial and multifamily construction starts increased 25%.

Commercial and multifamily construction has made impressive gains in 2022 largely driven by rising demand for apartments and condos. Not to be outdone, commercial starts also posted strong gains fueled by increased demand for hotel, data center, and retail projects.

The New York metropolitan area was the top market for commercial and multifamily starts in 2022 at $37.1 billion, an increase of 37% from 2021. The Dallas, TX, metropolitan area was in second place, totaling $16.7 billion in 2022, a 51% gain. The Washington, D.C., metro area ranked third during 2022 with $11.4 billion in starts — a 38% gain over 2021.

The remaining top 10 metropolitan areas through the first half of 2022 were:

• Miami, FL, up 35% ($11.0 billion)
• Atlanta, GA, up 43% ($9.6 billion)
• Houston, TX, up 41% ($8.7 billion)
• Phoenix, AZ, up 33% ($8.4 billion)
• Austin, TX, up 48% ($8.1 billion)
• Chicago, IL, up 42% ($7.2 billion)
• Seattle, WA, up 1% ($6.8 billion).

In 2022, the top 10 metropolitan areas accounted for 40% of all commercial and multifamily starts in the United States, up from 37% in 2021.

Commercial and multifamily starts are comprised of office buildings, stores, hotels, warehouses, commercial garages, and multifamily housing. Not included in this ranking are institutional projects (e.g., educational facilities, hospitals, convention centers, casinos, transportation terminals), manufacturing buildings, single family housing, public works, and electric utilities/gas plants.

In total, U.S. commercial and multifamily building starts rose 25% from 2021 to $308.4 billion. Commercial starts climbed 25% to $159 billion, and multifamily starts gained 25% to $149.4 billion. In 2022, across the top 10 metro areas, commercial building starts rose 34% to $60.4 billion, and multifamily starts gained 40% to $64.6 billion.

“The year 2022 will go down as a banner year for construction starts,” stated Richard Branch, chief economist for Dodge Construction Network. “Even when adjusted for inflation, commercial and multifamily starts were impressive as construction activity began to move back towards downturn urban cores. This pace of activity, however, is unlikely to be sustained in 2023 as the economy is slated to slow and approach stall speed. Commercial and multifamily construction starts are likely to take this on the chin and post declines for the year.”

In the New York, NY, metropolitan area, commercial and multifamily construction starts rose 37% in 2022 to $37.1 billion. Multifamily starts were up a stellar 76%. The largest multifamily projects to break ground during 2022 were the $800 million Two Bridges mixed-use building and the $680 million first phase of the One Journal Square building. In 2022, commercial starts were down 15% as office and warehouse starts posted sizable declines offsetting gains in retail and hotel starts. The largest commercial projects to get started in 2022 were the $540 million 520 Fifth Avenue mixed-use building and a $400 million hotel on Eighth Avenue.

Commercial and multifamily starts in the Dallas, TX, metro area rose 51% in 2022 to $16.7 billion. Commercial starts increased 52% with only the hotel sector to fall during the year. The largest commercial projects to get underway during the year were the $314 million Hall Park D1 mixed-use building and a $206 million Walmart distribution center. Multifamily starts rose 48% over the year. The largest multifamily projects to start were the $119 million Hanover Preston Hollow residential building and the $177 million third phase of the Trinty Green apartments.

In the Washington, D.C., metropolitan area, commercial and multifamily construction starts rose 38% to $11.4 billion. Multifamily starts moved 3% higher in 2022. The largest multifamily projects to break ground were the $329 million Reston Next Block D tower and the $163 million 113 Potomac Ave SW building. In 2022, commercial starts rose 78% thanks to a large increase in office and hotel starts, while retail construction fell. The largest commercial projects to get underway during the year were the $940 million Digital Dulles Data Center Buildings 7 and 9 and the $675 million Dulles Berry Data Center LC8.

Miami, FL, commercial and multifamily starts were 35% higher in 2022 than the year prior at $11 billion. Commercial starts in Miami gained 38% as office starts more than doubled during the year. The largest commercial projects to get started during 2022 were the $300 million Royal Caribbean headquarters and the $91 million One Flagler office building. In 2022, multifamily construction rose 33% from 2021. The largest multifamily buildings to get started were the $700 million Aria Reserve building and the $450 million Waldorf Astoria hotel and residences.

The Atlanta, GA, commercial and multifamily building starts rose 43% in 2022 to $9.6 billion. Commercial starts in Atlanta gained 55% with hotel starts the only sector to decline. The largest commercial projects to start during the year were the $224 million 1020 Spring Street office building and the $160 million “The Bailey” mixed-use building. Multifamily starts meanwhile rose 29%. The largest multifamily buildings to break ground in 2022 were the $143 million Society mixed-use building and the $135 million Rhapsody apartments.

Commercial and multifamily starts in the Houston, TX, metropolitan area climbed 41% in 2022 to $8.7 billion. For the year, multifamily construction rose 29%. The largest multifamily structures to break ground during the year were the $101 million X Houston apartments and the $90 million Resia Ten Oaks apartments. In 2022, commercial starts in Houston moved 48% higher, fueled by more gains in warehouse and retail starts. The largest commercial projects to get started during the year were the $168 million Project Channel fulfillment center and the $150 million Great Wolf Lodge hotel.

In Phoenix, AZ, commercial and multifamily starts were up 33% in 2022 to $8.4 billion. Multifamily starts were up 16% for the year. The largest multifamily projects to break ground during the year were the $345 million 601 N Central mixed-use building and the $184 million Saiya/McKinley Green residential tower. In 2022, total commercial starts rose 44% compared to 2021. This growth was mostly led by the warehouse sector, although retail and parking structures also posted solid growth while office and hotel starts fell. The largest commercial projects to get underway were the $460 million Park 303 warehouse building and the $224 million The Hub @ 202 industrial complex.

Austin, TX, commercial and multifamily starts were 48% higher at $8.1 billion in 2022. Commercial starts in Austin more than doubled over the year, mainly due to office construction, supplemented by all other commercial sectors. The largest commercial projects to get started during 2022 were the $520 million Waller Creek mixed-use building and the $375 million The Republic office building. In 2022, multifamily construction rose 17% from 2021. The largest multifamily buildings to get started were the $300 million Modern Austin residences and the $262 million Union on 24th building.

Chicago, IL, commercial and multifamily construction starts were up 43% to $7.2 billion during in 2022. Commercial starts moved 86% higher during the year led by sharp gains in office and hotel construction. The largest commercial projects to break ground were the $840 million CloudHQ Data Center and $230 million Microsoft data center. Multifamily starts fell 3% in 2022. The largest multifamily structures to break ground during the year were the $140 million Fulton River District apartment tower and a $140 million apartment building at 210 N Aberdeen St.

In Seattle, WA, commercial and multifamily starts were up 1% to $6.8 billion in 2022. Multifamily starts were up 8% from 2021. The largest multifamily projects to get underway during the year were the $400 million Civic Square condominium building and the $371 million Seattle House mixed-use building. Commercial starts were down 4% for the year due to pullbacks in office and warehouse construction, while retail and hotel starts improved. The largest commercial projects to break ground during the year were the $350 million Omni South Lake Union office building and the $265 million Washington 1000 office tower.

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Media Contact :
Cailey Henderson | 104 West Partners | cailey.henderson@104west.com

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