WASHINGTON — U.S. developers ramped up construction spending in February to the largest amount in nearly 11 years, led by more building of homes, highways and schools.
Construction spending rose 0.8 percent in February to the highest level since April 2006, after two months of declines, the Commerce Department said.
Builders are rapidly putting up more homes in response to strong demand that has pushed up prices for existing homes. Yet it hasn't yet been enough to relieve a shortage of homes for sale. The accelerated building could boost the economy this year.
State and local governments spent 0.9 percent more on construction, driven by roads, schools and recreational buildings.
The federal government, meanwhile, cut construction spending for the second straight month and has cut back 9 percent from a year ago.
President Donald Trump has pledged to reverse that trend by boosting infrastructure spending by $1 trillion over the next decade. Yet it's unclear when legislation to bring about such an increase will be introduced.
State and local governments have also spent less on construction in the past year. They are spending 8 percent less compared with February 2016. Infrastructure concerns have resurfaced after a large fire last week caused the collapse of a highway bridge outside Atlanta, snarling rush-hour traffic.
The construction of commercial buildings such as hotels, office towers, and hospitals fell 0.3 percent in February, the second straight decline. Yet commercial construction has risen 7.5 percent in the past year.
Spending on new home building, as well as renovations, rose nearly 10 percent in the final three months of 2016, the most in a year and providing a critical boost to growth.
The nation's economy expanded at a 2.1 percent annual rate in the fourth quarter, with housing-related construction accounting for one-third of a percentage point.Eversource to replace two miles of Meriden gas lines in $3 million project
MERIDEN — Eversource Energy has started to replace almost two miles of gas lines underneath several city streets as part of a $3 million project expected to be completed by mid-June.
About 9,800 feet of cast iron and steel gas lines will be replaced with plastic pipe, which is considered to be “safer, more durable and better able to handle fluctuations in underground temperatures,” according to Eversource spokesman Mitch Gross.
“They handle temperature fluctuations better, that’s the primary reason,” Gross said. “That’s especially advantageous in areas like New England.”
Beginning in March, crews started to replace lines on Home, Reservoir, Ames and Fowler avenues, Golden, Morse, Pasco and Lockwood streets, Lockwood Street Extension and Fowler Avenue Extension. Work will take place Monday through Saturday between 7 a.m. and 4:30 pm Gross said crews often can replace lines on a street in less than a week.
“It’s done relatively quickly,” he said.
In the second phase of the project in May, crews will replace lines on Wilcox Avenue, Colony Street and Colony Place.
“These investments allow us to further modernize the gas distribution system, minimizing repairs and any service interruptions,” Eversource Vice President Al Marsocci said in a statement. “Proactively upgrading the system helps to ensure the continued safe and reliable delivery of natural gas to our 229,000 customers in Connecticut.”
Motorists may experience traffic delays and customers may experience a disruption to their service during the work, Gross said. City Manager Guy Scaife said he was encouraged to see infrastructure upgrades despite the temporary inconveniences.
Eversource has replaced more than 120 miles of gas lines across the state since 2012. In 2014 and 2015, Eversource replaced gas lines on Cook Avenue, West Main Street and State Street, among others roads, part of an $8 million project.
That’s according to Mayor David Cassetti, who on Monday announced that his administration and the Board of Aldermen are moving forward with plans to establish a new, state-of-the-art police station at 65 Main St., which for decades housed Farrel’s administrative and engineering offices. The property is in adjacent to the Eagle House Hook & Ladder Co. firehouse.The change in location, Cassetti said, not only is expected to save taxpayers’ money, but will enable the new police station to open much sooner and afford police significantly more space than the new construction originally promised“This is the best possible site for the new police station and a tremendous opportunity for the City of Ansonia,” said Cassetti.
Residents at a referendum last November gave approval for the city to use a $12 million, 40-year loan from the U.S. Department of Agriculture for the new construction. However, with the change in location, Cassetti said the city instead would use the money to purchase the 85,000-square-foot building at 65 Main St., and do a major renovation to accommodate the new police station, perhaps even with some money left over. Cassetti said the pros and cons of both parcels were weighed over the past three months. It wasn’t until recently that the property at 65 Main St., owned by Shaw Management LLC, became available for purchase through foreclosure.
The main considerations for choosing this property over Olson Drive, Cassetti said, were “value for taxpayers’ money and time.”Cassetti said the purchase must be approved by aldermen. A public hearing will take place at 7 p.m. May 2 at City Hall for residents to learn about the changes.The sprawling office building, Cassetti said, boasts two indoor parking garages, an outdoor parking lot and a central location “perfectly suited for law enforcement activity.” In addition, the space will enable creation of an indoor shooting range. Police currently share range time with the Ansonia Rod & Gun Club, but do not have a dedicated facility for shooting practice and training.Police Chief Kevin Hale said the change in location has numerous benefits, and will be in use far sooner than new construction would start, which was more than two years out. “You always want the brand new, but this (Farrel) building is a great alternative that we will be able to do so much with,” Hale said. “It’s wide open and we’ll still get everything we need.” Cassetti said the Olson Drive site became complicated by flood plain regulations, which would have delayed construction.There are no environmental issues with the existing Farrel building, Cassetti noted. CLICK TITLE TO CONTINUE
Turner Construction Exec Talks to Congress About Crucial Industry Need
With 1,500 projects going on in 35 states, Turner Construction approximates that it will complete $11 billion in construction in 2017. With this kind of expansive business and an impressive company history that goes back 115 years, Turner has the kind of experience that can speak to this issue.
DeJohn told the committee that although construction employment is up from what it was in 2008, there are still fewer people working in the industry than there were prior to that time. He also mentioned that although the industry relies now on technology for many of the jobs that were once done by workers, there's still a great need for skilled labor positions that technology cannot replace.
Without the issue of skilled trades employment being addressed, company's like Turner, he said, will have a hard time meeting the demands of the market — a market that is seeing growth in both the private house sector and public works projects.
DeJohn also addressed the professional side of the industry stating that science, technology, engineering and math (STEM) education is vital to developing better engineers, developers and construction management teams.
“I believe the future of our students, as well as our collective future, is extremely bright, but only with our continued and increased support of their education beginning in elementary school and continuing through high school and into college,” he said.
DeJohn offered solutions geared toward both skilled labor and professional aspects of the industry. He suggested that in order to attract younger generations to these positions, it would take a collaborative effort from the community to encourage not just kids in high school, but also military veterans who are transitioning to civilian life. He spoke of increasing recognition of industry trade groups and supporting avenues such as internships, scholarship programs and other training opportunities that provide a direct path into the industry that is inclusive to people of all backgrounds.In closing he stated,” We must also work together and act strategically to prepare more people to enter the construction industry, and to extend the careers of the people working in our industry.”—CEG
For DeJohn's full testimony, visit the link here. CLICK TITLE TO CONTINUE