In today’s construction US news, learn about Wednesday, which will now mark the start of construction on two new bridges in Columbia, close to the intersection of Interstate 70 and U.S. Route 63. It has been rescheduled from its original Monday start time. Meanwhile, the Portland Cement Association (PCA), which represents the cement industry in America, employs Ed Sullivan as its chief economist and senior vice president of market intelligence. Ed believes that the recent actions taken by the Federal Reserve to lower interest rates and ease inflation point to a significant decline in interest rates by the end of the year, which will be advantageous for the building industry. On the other hand, according to research published on October 4 by the consulting firm Rider Levett Bucknall, with its headquarters in New York City, the overall count of cranes in the United States and Canada decreased by 5%, or 15 cranes, between the first and third quarters of 2023. Lastly, the most recent analysis of building input pricing was presented on Friday by Associated Builders and Contractors (ABC). The U.S. Bureau of Labor Statistics’ Producer Price Index data has improved from the previous year, based on the group’s study.
Construction on the U.S. 63/i-70 Link Will Begin Wednesday
Original Source: Construction on U.S. 63/I-70 connector to begin Wednesday
Work on two new Columbia bridges near the Interstate 70/U.S. Route 63 intersection will begin Wednesday. The start date was moved from Monday.
This is the Missouri Department of Transportation’s Improve I-70 project’s initial step, taking 10 months.
Until the bridges are built, many lanes of traffic between the Broadway flyover and the Conley Road underpass in Columbia’s northeast end will be eliminated.
With traffic control devices segregating northbound and southbound traffic, all U.S. 63 traffic will be pushed north. The speed limit will be lowered and both lanes shortened to 10 feet. All entrance and exit ramps will remain, however traffic will change.
Construction will start with the southbound bridge. Traffic will switch to the new southbound bridge until the northbound side is finished.
Before year’s end, Business Loop’s westbound exit will be removed. Ageing infrastructure, vehicle capacity, and incident management are the reasons for the project, according to first phase director Jeff Gander.
“If you’ve driven over I-70, you’ll realize that it’s been there a long time,” he remarked. “A lot of it was built in the ’60s, so it’s starting to show its age a lot.”
The I-70 initiative hopes to add a third lane between Blue Springs and Wentzville. June marked the start of the $2.8 billion project. From Columbia to Kingdom City, west of St. Charles Road to Cedar Creek, Cedar Creek to west of Route M, and west of Route M to the U.S. Route 54 intersection, work will take four phases.
“Our design philosophy in everything we did was trying to take as much traffic out of there as possible, but make it function better,” he said.
In rural Missouri Routes 137 and 144, construction began in July 2024. The entire project should finish by 2027. Gander seeks to reduce traffic by encouraging drivers to slow down and drive carefully.
“If we can just get drivers to slow down and put their phones down, it would help us out a lot,” he remarked.
Visit https://www.modot.org/improvei70/columbiakingdomcity for visuals and information about the Columbia-Kingdom City Improve I-70 initiative.
Missouri School of Journalism students and editors write Missouri News Network content for Missouri Press Association member publications.
Top Economist for the U.S. Cement and Construction Industries Releases 2025 Forecast
Original Source: Top Economist for U.S. Cement and Construction Industries Releases 2025 Forecast
Predicts The Fed’s interest rate drop may mark the start of a decline.
Portland Cement Association Chief Economist Ed Sullivan
According to Ed Sullivan, Chief Economist and Sr. Vice President of Market Intelligence for the Portland Cement Association (PCA), the Federal Reserve’s recent interest rate reduction and inflation reduction indicate a significant interest rate retreat by the end of next year, benefiting construction activity.
Last week during PCA’s annual Fall Meeting in Aurora, Colorado, Sullivan presented cement business leaders with the industry’s 2025 economic prognosis. Highlights include:
The Fed’s policy shift won’t affect the economy and construction immediately. Overly high loan rates will hinder construction development in the near future. Construction loan rates are projected to fall as more rate reduction occur, revitalizing the sector. It should start around mid-2025.
Mortgage interest rates should drop to 5.5% by mid-2025 and 5.0% by year-end. This may increase housing affordability and consumer demand.
Lower rates will also boost housing supply. This should more than offset demand and lower new and existing housing prices. This increases affordability.
Lower interest rates help nonresidential building. Unfortunately, increasing occupancy and Net Operating Income will take time. These will arrive next year as the economy improves. Thus, nonresidential recovery is projected in 2026.
The Bipartisan Infrastructure Law should boost public construction spending. For an interview with Mr. Sullivan, contact Remi Braden at rbraden@cement.org or 202.235.4163.
US Crane Population Remains Stable in Q3
Original Source: US crane count holds steady in Q3
In the third quarter of 2024, American and Canadian cities had 15 fewer cranes than in the first, although construction remained strong.
According to an Oct. 4 analysis by New York City-based Rider Levett Bucknall, the number of cranes in the U.S. and Canada declined 5%, or 15 cranes, from the first quarter to the third quarter of 2023.
RLB reports that 37% of cranes are on residential and 31% on mixed-use projects, but healthcare, education, and infrastructure are all doing considerable work.
Despite high office vacancy rates and crane shortages in several sectors and locations, RLB said Q3 construction activity was strong, “indicating a dynamic and evolving urban development.”
Seattle, the second-most crane-rich city, lost 10 cranes, a 26% decline. Since February, crane activity in the city, especially in residential areas, has decreased, RLB added.
At 7%, crane developments were mostly commercial, after mixed-use and residential.
Q3 crane counts in US cities were stable.
RLB crane counts for each city for the past four quarters.
Boston lost five cranes, but RLB said mixed-use work accounts for two-thirds of crane activity. Educational projects make up 22% of the city’s cranes.
RLB claimed Los Angeles has more cranes than any other U.S. city, although its count declined from Q1 to Q3 due to multifamily and mixed-use building completions. The city’s 42 tower cranes assist healthcare and cultural endeavors.
Toronto boasts the most cranes in the U.S., 83 in the “core area.” Since the Q3 report released this month, RLB has focused on downtown to better reflect project development and scale.
ABC Says Construction Input Prices Down
Original Source: Construction Input Prices Down, ABC Says
Associated Builders and Contractors analyzed U.S. Bureau of Labor Statistics Producer Price Index data to find that construction input prices fell 0.9% in September.
ABC presented its latest building input price research on Friday. The committee found that U.S. Bureau of Labor Statics Producer Price Index data has improved since last year.
Long-term, ABC Chief Economist Anirban Basu forecasts rising global container-shipping costs and supply chain concerns to raise pricing for contractors, who believe their profit margins will drop in six months.
According to ABC:
September construction input prices fell 0.9%.
Nonresidential construction input prices fell 0.9% monthly.
Two of three energy subcategories had price drops last month:
Crude oil fell 16.7% and unprocessed energy materials fell 12.6%.
Natural gas prices jumped 2.4% in September.
Nonresidential construction input prices are 2.1% lower than a year earlier, while overall prices are 1.9% lower.
“The decline in construction input costs observed in September was almost entirely due to a large decrease in oil prices,” stated ABC Chief Economist Anirban Basu. “Gypsum, fabricated structural-metal products, asphalt, and lumber saw large price increases this month. Domestic freight costs are low by historical standards, but rising global container-shipping rates and supply chain difficulties could raise materials prices in the coming months. Contractors worry about their profit margins shrinking over the next six months, according to ABC’s Construction Confidence Index.
Associated Builders and Contractors analyzed U.S. Bureau of Labor Statistics Producer Price Index data to find that construction input prices fell 0.9% in September.
Summary of today’s construction news
In simple terms, rural sections such as Missouri Routes 137 and 144 saw the start of construction in July 2024. The project should be finished in its entirety by 2027. Although more traffic is anticipated, Gander wants to keep it to a minimum and advises drivers to use caution and stay under posted speed limits.
Meanwhile, lower loan rates will also help nonresidential buildings. Regretfully, increasing net operating income and improving occupancy rates will take time. These will appear as the economy picks up steam in 2019. In light of this, it is anticipated that nonresidential will not recover until 2026. The Bipartisan Infrastructure Law is likely to result in higher spending, which will help the public construction industry.
On the other hand, with 83 in the “core area,” Toronto has considerably more cranes than any other American city. However, RLB stated that starting with this month’s Q3 report, it has been updated to center on the city’s downtown to more accurately reflect the scale and growth of projects located there.
Lastly, based on an examination of U.S. Bureau of Labor Statistics’ Producer Price Index data by Associated Builders and Contractors, construction input prices fell 0.9% in September over the same month last year.
