1 Value of Construction Put in Place (VIP) Recent Trends March 2006 (all-time high of $1.213 trillion) – July 2009 ($958.0 billion)

2 Overview of the VIP series

3 The VIP series provides monthly and annual estimates of the value of construction work done on all projects in a given time period. Data are shown in seasonally adjusted dollars.

4 Total Construction Spending Recent Trends Total construction spending hit an all-time high of $1.213 trillion in March Total spending has since dropped 21% to $958.0 billion. Total spending dipped below the $1 trillion dollar mark in January 2009, which has not happened since June –Spending was above the $1 trillion dollar mark for 54 consecutive months (July 2004 – December 2008).

5 Total Construction Spending Recent Trends

6 Total Construction Spending Residential –New single family –New multi-family –Improvements Nonresidential (categories of interest) –Lodging –Office –Commercial –Health Care –Public Safety –Transportation –Power –Manufacturing –Highway and Street –Sewage and Waste –Water Supply

7 Total Construction Spending

8 Residential Spending Private Residential Spending Private residential spending makes up 99% of all residential spending. Private residential hit an all-time high of $676.4 billion in March Spending in July 2009 was $245.6 billion, down 64% from March 2006, to levels not seen since early consecutive decreases from March 2007 to July Over the first 7 months of 2009, spending is down 32% from the same time period in 2008.

9 Residential Spending

10 Residential Spending Private Residential Spending –New Single Family In March 2006 spending was $464.3 billion. Spending has since dropped 78% to $100.9 billion in July –New Multi-family In March 2006 spending was $53.1 billion. Spending has since dropped 45% to $29.2 billion in July –Improvements (owner occupied only) In March 2006 spending was $159.3 billion. Spending has since dropped 27% to $115.5 billion in July Currently submitting a new budget initiative to fund a new residential remodeling survey.

11 Residential Spending

12 Residential Spending Housing Starts – March 2006 starts were 1.97 million and have fallen 71% to 581 thousand in July –Single family March 2006 starts were 1.6 million and have fallen 69% to 490 thousand in July –Multi-family March 2006 starts were 331 thousand and have fallen 76% to 80 thousand in July 2009.

13 Nonresidential Spending Private nonresidential Hit an all-time high of $426.3 billion in October –31 months from March Spending in July 2009 was $384.9 billion, up 35% from March 2006 ($285.6 billion). Public nonresidential Hit an all-time high of $321.6 billion in June Spending in July 2009 ($319.0 billion) is up 30% from March 2006 ($245.3 billion).

14 Nonresidential Spending

15 Private Nonresidential Spending Lodging Private lodging hit an all-time high of $37.7 billion in June 2008, spending has since fallen 36% to $24.0 billion. Regional West –In 2008, 35% of lodging spending was in the west mountain geographic division. »AZ, CO, ID, MT, NV, NM, UT and WY –Spending in the west mountain increased from $3.9 billion in 2006 to $12.5 billion in 2008.

16 Private Nonresidential Spending Office Private office hit an all-time high of $58.4 billion in September 2008, spending has since fallen 27% to $42.8 billion. Regional Spending in the South in 2008 ($24.0 billion) was up 22% from 2006 ($19.7 billion). –$13.7 billion out of $24.0 billion in 2008 was spent in the South Atlantic division. »DE, FL, GA, MD, NC, SC, VA, WV and D.C. Billions of Dollars

17 Private Nonresidential Spending Commercial Private commercial spending was $71.8 billion in March Spending hit an all-time high of $88.9 billion in October Spending has since fallen 39% to $54.1 billion in July Spending in the first 7 months of 2009 is down 29% from the same time period in –Automotive »Service/parts – Spending is up 30% in the first 7 months of 2009 from the same time period in »Sales – Spending is down 11% in the first 7 months of 2009 from the same time period in 2008.

18 Private Nonresidential Spending

19 Private Nonresidential Spending Health Care Spending hit an all-time high of $40.9 billion in November 2008, up 34% from March 2006 ($30.5 billion). Spending in July 2009 is at $38.8 billion.

20 Private Nonresidential Spending Transportation Spending in July 2009 ($9.7 billion) is up 11% from March 2006 ($8.7 billion). Hit an all-time high of $10.7 billion in February 2008.

21 Private Nonresidential Spending Educational Spending in July 2009 was $17.2 billion, up 26% from March 2006 ($13.6 billion). Spending hit an all-time high of $19.3 billion in October Regional Northeast private educational spending is up 53% from 2006 ($4.3 billion) to 2008 ($6.6 billion). Northeast private educational spending makes up 36% of total educational spending in –CT, ME, MA, NH, RI, VT, NJ, NY, and PA

22 Private Nonresidential Spending Power Private power makes up approximately 85% of total power construction spending. Spending has increased 153% from March 2006 ($30.9 billion) to July 2009 ($78.3 billion). June 2009 spending was at an all-time high of $79.0 billion. –Coal Power –Wind Power

23 Private Nonresidential Spending Manufacturing Spending has increased 154% since March 2006 ($33.1 billion) to July 2009 ($84.0 billion). May 2009 was at an all-time high of $85.4 billion. –Petroleum/coal – Spending in 2008 ($17.6 billion) is up over 870% from 2006 ($1.8 billion). –Fabricated metal –Spending in July 2009 ($1.2 billion) is up 82% from March 2006 ($660 million). Regional Northeast – Spending in 2008 was $6.2 billion, up 63% from $3.8 billion in Midwest – Spending in 2008 was $16.5 billion, up 39% from $11.9 billion in 2006.

24 Private Nonresidential Spending Regional South – Spending in 2008 was $30.4 billion, up 176% from 11.0 billion in –In the South West Central geographic division from 2007 to 2008, private manufacturing increased $10.8 billion – a 150% increase in spending. »AR, LA, OK, TX West – Spending in 2008 was $7.7 billion, down 8% from $8.3 billion in Manufacturing Construction by Region Billions of Dollars

25 Private Nonresidential Spending

26 Private Nonresidential Spending By Geographic Division Northeast – Spending in 2008 was $52.1 billion, up 45% from $36.0 billion in Middle Atlantic (NJ, NY, PA) –Spending is up from $24.7 billion in 2006 to $35.8 billion in 2008, a 45% increase in spending. New York- spending is up 44% from $12.6 billion in 2006 to 18.1 billion in Pennsylvania- spending is up 51% from $7.0 billion in 2006 to $10.6 billion in 2008.

27 Private Nonresidential Spending By Geographic Division Midwest – Spending in 2008 was $62.0 billion, up 17% from $52.8 billion in West North Central (IA, KS, MN, MO, NE, ND, and SD) –Spending in 2008 was $21.0 billion, up 26% from $16.7 billion spent in Nebraska – Spending in 2008 ($2.7 billion) is up 69% from 2006 ($1.6 billion). Iowa – Spending in 2008 ($5.3 billion) is up 43% from 2006 ($3.7 billion).

28 Private Nonresidential Spending By Geographic Division Midwest (cont.) – East North Central (IL, IN, MI, OH, and WI) Michigan – Spending in 2008 ($6.4 billion) is down 10% from 2006 ($7.1 billion). Ohio – Spending in 2008 ($9.2 billion) is down 7% from 2006 ($9.9 billion).

29 Private Nonresidential Spending By Geographic Division South – Spending in 2008 was $125.9 billion, up 42% from $88.8 billion in South Atlantic (DE, DC, FL, GA, MD, NC, SC, VA, WV) –Spending is up 20% from $49.1 billion in 2006 to $58.8 billion in Florida- spending is up 27% from $16.6 billion in 2006 to $21.1 billion in 2008.

30 Private Nonresidential Spending By Geographic Division South (cont.) – West South Central (AR, LA, OK, TX) –Spending is up 82% from $27.0 billion in 2006 to $49.2 billion in Louisiana – spending is up 159% from $2.9 billion in 2006 to $ 7.5 billion in Texas – spending is up 79% from $20.3 billion in 2006 to $36.3 billion in 2008.

31 Private Nonresidential Spending By Geographic Division West – Spending in 2008 was $73.4 billion, up 22% from $60.2 billion in Mountain (AZ, CO, ID, NV, NM, UT, WY) –Spending is up 38% from $28.3 billion in 2006 to $39.0 billion in Nevada – spending is up 87% from $6.8 billion in 2006 to $12.7 billion in New Mexico – spending is up 154% from $1.3 billion in 2006 to $3.3 billion in 2008.

32 Private Nonresidential Spending By Region

33 Public Nonresidential Spending All-time high June $321.6 billion Office –State and Local Hit an all-time high of $9.7 billion in April Spending in July 2009 ($9.3 billion) is up 90% from March 2006 ($4.9 billion). –Federal Hit an all-time high of $6.7 billion in July 2009 and is up 148% from March 2006 ($2.7 billion).

34 Public Nonresidential Spending Health Care –State and Local Hit an all-time high of $7.9 billion in July Spending has increased 49% from March 2006 ($5.3 billion). –Federal Hit an all-time high in July 2009 of $3.1 billion. Spending has increased 274% from March 2006 ($829 million). Spending in the first 7 months of 2009 is up 70% from the same time period in 2008.

35 Public Nonresidential Spending Educational –State and Local State and Local makes up 98% of public educational spending. Spending in July 2009 ($88.5 billion) is up 27% from March 2006 ($69.8 billion). Hit an all-time high of $89.5 billion in June –Primary/secondary education – July 2009 ($57.3 billion) is up 19% from March 2006 ($48.0 billion). –Higher education – July 2009 ($26.9 billion) is up 45% from March 2006 ($18.5 billion).

36 Public Nonresidential Spending Power –State and Local State and Local makes up over 90% of public power spending. Currently spending is up 45% from March 2006 ($8.0 billion) to $11.6 billion in July April 2009 was at an all-time high of $13.7 billion.

37 Public Nonresidential Spending Public Safety –State and Local Spending is up 53% from March 2006 ($6.4 billion) to July 2009 ($9.8 billion). Hit an all-time high of $10.2 billion in May –Federal Spending is up 475% from March 2006 ($794 million) to July 2009 ($4.6 billion). Hit an all-time high of $5.1 billion in January Spending for the first 7 months of 2009 is up 99% from the same time period in 2008.

38 Public Nonresidential Spending Transportation –State and Local Makes up over 93% of public transportation spending. Spending in July 2009 ( $23.8 billion) is up 37% from March 2006 ($17.4 billion). Hit an all-time high of $23.9 billion in June –Land transportation (passenger terminal, mass transit, railroad, etc…) - hit an all- time high of $10.3 billion in July 2009; a 59% increase from March 2006 ($6.5 billion).

39 Public Nonresidential Spending Highway and Street –State and Local Makes up 99% of total highway and street spending. Hit an all-time high of $83.8 billion in June Spending in July 2009 was $83.0 billion, up 20% from March 2006 ($69.4 billion). –Bridge – July 2009 ($23.7 billion) is up 29% from March 2006 ($18.4 billion).

40 Public Nonresidential Spending Sewage and waste disposal –State and Local Makes up 99% of sewage and waste disposal spending. Hit an all-time high of $26.1 billion in March 2009, up 20% from March 2006 ($21.8 billion). Spending in July 2009 was $24.7 billion. Water supply –State and Local Makes up 98% of public water supply spending. Currently at $16.5 billion in July 2009, up 15% from March 2006 ($14.4 billion). Hit an all-time high of $17.2 billion in July 2008.

41 Total Construction Spending Recent Trends Since the peak of total construction spending in March 2006 of $1.213 trillion, total spending has fallen 21% to $958.0 billion in July –Private residential spending has fallen 63.7% from $676.4 billion to $245.6 billion. –Private nonresidential spending has increased 34.8% from $285.6 billion to $384.9 billion. Power spending has increased 145% from $32.2 billion to $79.0 billion. Manufacturing spending has increased 167% from $31.2 billion to $83.2 billion. –In July 2009, power and manufacturing spending made up 42% of the private nonresidential spending. All other nonresidential categories have increased 0.5%. –Public residential spending has increased 40.5% from $6.1 billion in March 2006 to $8.6 billion in July –Public nonresidential spending has increased 30% from $245.3 billion in March 2006 to $319.0 billion in July 2009.

42 Total Construction Spending Recent Trends

43 Total Construction Spending Recent Trends March 2006 ($1.213 billion) – July 2009 ($958.0 billion)