Third year of declines expected in all sectors except nonbuilding construction, which is buoyed by Stimulus Bill
New York – July14, 2009 – McGraw-Hill Construction, part of The McGraw-Hill Companies (NYSE: MHP), has released the 2009 Chicago Construction Outlook: Mid-Summer Update. “Worsening economic conditions will usher in a third consecutive year of declining construction starts for the Chicago metro area,” says the report. “The expected plunge of 39% will be the worst in at least 40 years according to McGraw-Hill Construction statistics. For the full year, starts will total $11 billion, just half of the 2006 peak.” The Chicago metropolitan area includes Chicago-Naperville-Joliet, IL; Kenosha County, WI; and Gary, IN.
Highlights of the report conclude:
- Due to state and federal stimulus funding support, nonbuilding construction starts will provide the one bright spot this year, expanding 11% and ending the year at $3.8 billion in total starts.
- Residential construction starts will decline 22% to $2.6 billion, with the greatest drag coming from the multifamily sector, which will drop 26%. Single family housing starts are expected to decline 20%. Although the housing market appears to be approaching bottom, it does so as it sinks to the second lowest level of activity on record.
- Now that all avenues of strength are exhausted for the nonresidential building sector, which saw a 49% increase in 2008, starts are expected to fall a precipitous 59% to $4.5 billion in 2009, led by declines in the manufacturing and healthcare sectors.
In addition to the 2009 forecast, the report provides in-depth analysis of stimulus funding and presents historical construction data since 2003 by metropolitan area and by major sector in more than 10 major categories, including stores and shopping centers, offices, hotels, manufacturing buildings, educational buildings, healthcare, public works, utilities, and multifamily and single family housing.
To purchase and download a copy of the report, visit http://www.analyticsstore.construction.com or call 1-800-591-4462 for more information. Media may contact Lisa Jaycox at 212-512-3272 or lisa_jaycox@mcgraw-hill.com for complimentary copies of McGraw-Hill Construction reports.
About McGraw-Hill Construction
McGraw-Hill Construction connects people, projects and products across the design and construction industry. For more than a century, the Company has remained North America’s leading provider of construction project information, plans and specifications, product information, industry news, and industry trends and forecasts. In print and online, the Company offers a variety of tools, applications, and resources that easily integrate with its customers’ workflows. Backed by the power of Dodge, Sweets, Architectural Record, Engineering News-Record (ENR), GreenSource, HQ and 11 regional publications, McGraw-Hill Construction serves more than one million customers within the $4.6 trillion global construction community. To learn more, visit www.construction.com.
About The McGraw-Hill Companies:
Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion. Additional information is available at www.mcgraw-hill.com.
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Media Contacts:
Lisa Jaycox, Communications Specialist,
The McGraw-Hill Companies Information & Media, +1 212-512-3272, lisa_jaycox@mcgraw-hill.com
Kathy Malangone, Senior Director, Marketing Communications,
McGraw-Hill Construction, +1 212-904-4376, kathy_malangone@mcgraw-hill.com
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