Masonry Magazine February 2000 Page. 49
2000 Construction Outlook
Continued from page 40
the growth in 1999 was $22 billion and the decline in 2000 will be $2 billion.
Multifamily construction is a hybrid between demographics-driven single family construction and profit-driven nonresidential construction. Both factors seem to be still favorable for this category of construction, but some of the zing has gone. Between the recession-induced low of 1993 and 1999, the value of multifamily construction has grown at a compounded rate of 14% per year. However, the first two years in that string averaged 24.6% per year while the last two averaged only 8.8%. As the economy cools, this area will look less attractive and multifamily construction will decline from 1999's growth of 11% to 3% growth in 2000, which is equal to $2.9 billion in 1999 and $0.9 billion in 2000.
Residential improvements grew only 1% in 1999, the lowest rate since 1995, and will grow at that same rate again in 2000. The value of that growth was $1.0 billion in 1999 and will be $0.7 in 2000.
Nonresidential Construction
Strong demand for technologically and aesthetically up-to-date facilities and low vacancy rates are two reasons why new privately-owned office and professional buildings will enjoy an eighth consecutive year of growth in 2000. While CB Richard Ellis reports that U.S. office vacancy rates have risen slightly to 9.6%, this figure is still low by historical standards. Areas reporting high vacancy rates include Riverside/San Bernardino, California (20.5%), Oklahoma City, Oklahoma (20.4%), and Dallas, Texas (17.3%). The two lowest rates were reported by Seattle, Washington (4.9%) and Austin, Texas (6.2%). Overall, office construction grew $5.3 billion, or 16% in 1999 and will rise $3.4 billion, or 9% in 2000.
After a 5% decline in 1999, construction of nonresidential improvements will rebound with a 3% increase in 2000. This represents a dollar growth of almost $2.8 billion. Educational improvements will grow 9% in 2000, for an increase of $1.2 billion. Other growth activity within the nonresidential building improvements sector will include retail, up nearly $500 million (4%) and healthcare, up over $300 million (3%).
The educational sector has enjoyed increased activity during 14 of the past 15 years. This growth will continue in 2000 due to widespread overcrowding in schools, rapidly rising enrollment figures, and the dire need to upgrade current facilities. Although construction of private educational buildings will drop slightly (-2%), public educational construction will grow 11% next year. After jumping 8%, or $2.0 billion in 1999, new school and educational construction will rise 9%, or $2.6 billion in 2000.
Contractor and Supplier Self-Defense
We don't think there is anything to worry about with the Y2K problem, but we do think that December, 1999 should be a great month for burglars there's a lot of cash squirreled away in unprotected places. Our point is that everything brings opportunities. In most places, in most lines of work, 2000 will be a lot like 1999 with a little less growth. A great time to review all the things that you know you should be doing planning your future, improving your relationships and sharpening up your control. The following year is stacking up as a bit more of a crunch, and if you're ready, you'll be more able to take advantage of the opportunities.
Reprinted with permission from FIMI Coruporation (919 787 8400)
Anchor Mfg. Co.
Mortor, Plaster, Refractory & Terrazzo Mixers
2922 West 26th Street, Chicago, IL 60623
Phone (773) 247 2530 Fax (773) 247 4907
E-mail: anchormxrs.com
Web Site: http//chicago.i-challenge.com/anchormanufacturing
SERIES 600 MIXER
Most popular mixer in use today from the standpoint of size, quality, dependability and cost. Clutch conveniently located, high torque, trouble free, eccentric type sealed bearings throughout, sealed gear reduction, high speed 48" trailing axle. Spiral elliptical blades for fast and thorough mixing. This model comes in a variety options (gasolene or electric) to accommodate materials from very light weight and wet to very dense, dry and heavy materials.
SERIES 1000 MIXER
Extra heavy duty mixer designed to take the toughest and biggest jobs in stride. Clutch conveniently located. High torque, trouble free, eccentric type sealed bearings throughout, sealed gear reduction, high speed trailing axle. This machine, with its range of high horse power options (gasolene or electric), can handle the whole range of heavy-dense materials such as TERRAZZO, EPOXY and HEAVY REFRACTORIES in sufficient volumes to cover any condition.
EQUIPMENT OPTIONS
Refractory blades, Rubber Refractory Blades
Frame Spacer, Duo-Tread Collapsible Axle
Drum Liner, Water Meter and Locking Device
MASONRY-JANUARY/FEBRUARY, 2000 49