Manufacturing projects boost starts in Western states – Construction Dive


This story is the second in a collection wanting On the well being of The enhancement enterprise in areas all by way of the nation.

Complete enhancement starts Inside the U.S. West area climbed 13% final yr to $223.73 billion, primarily Based mostly on nationwide start progress of 14%, in accordance to a Dodge Knowledge & Analytics enhancement outlook webinar. 

Manufacturing, education and data center tasks largely accounted for the increase. For 2022, Dodge forecasts manufacturing starts To Obtain $14.39 billion, a 47% enhance from 2021. 

“Producers are Looking for a extra reliable current chain, so concerted efforts have begun to convey extra chip manufacturers into the U.S.,” said David Reaves, senior economist at Dodge, Through the webinar.

Optionally available Caption

Sebastian Obando/Construction Dive, data from Dodge Knowledge & Analytics


Begins Inside the manufacturing sector, Which incorporates electrical car problemies, chip crops, meals associated manufacturing amenities and pharmaceutical labs, have been on a wild journey As a Outcome of The start of the pandemic.

In 2020, manufacturing starts fell to $1.74 billion, A few 37% drop from its 2019 diploma of $2.74 billion. However that rebounded to $9.81 billion in 2021, and starts Inside the sector are enterpriseed To enhance Greater than sevenfold in 2022 from pandemic lows, in accordance to Dodge.

The two largest starts Inside the six months Led to March included the $9.98 billion Intel chip problem enterprise and the Taiwan Semiconductor problemy, each in Arizona. 

Largest starts in West from October 2021 by way of March 2022
Project Type Location Start month Worth Intel FAB 52 & FAB 62 Chip Factories Manufacturing Chandler, Arizona February 2022 $9.98 billion Taiwan Semiconductor Manufacturing unit Half 1 Manufacturing Phoenix October 2021 $5.98 billion Terminal One and Roadways Ph I Airport San Diego November 2021 $2.35 billion L. a. Museum of Artwork Enlargement Education L. a. December 2021 $650 million Intel Manufacturing Facility Upgrades Manufacturing Rio Rancho, New Mexico February 2022 $550 million Change SuperNap Knowledge Center Tahoe Ph II Knowledge center Sparks, Nevada March 2022 $505 million Airport Metro Connector Station Airport L. a. October 2021 $471 million Park 303 PH2 Warehouse Glendale, Arizona March 2022 $460 million Amazon Obtainment Center Project Basie Warehouse Woodburn, Oregon November 2021 $451 million Fontainebleau Las Vegas renovations Lodge Las Vegas December 2021 $400 million

SOURCE: Dodge Knowledge & Analytics

For all of 2022, Dodge forecasts education starts To Obtain $16.5 billion, a 6% enhance from 2021.

The $650 million L. a. Museum of Artwork expansion, included beneath the education class, wAs a Outcome of the 4th largest enhancement enterprise since October 2021, in accordance to Dodge.

The hospitality sector general Inside the West area reprimarys Solely a fraction of what it was earlier than the pandemic. For all of 2022, Dodge tasks hotel and motel enhancement starts Inside the West will attain $2.38 billion. Which Might Even be a 14% enhancement from 2021, but would nonetheless be down about 45% from its 2019 diploma of $4.32 billion, in accordance to Dodge. 

Optionally available Caption

Sebastian Obando/Construction Dive, data from Dodge Knowledge & Analytics


West leaders and laggards

California led the West area in 2021 with over $86.32 billion of total enhancement starts, a 17% enhance from 2020.

However for The primary 4 months in 2022, nonresidential enhancement exercise Inside the L. a. area and San Diego area dropped 41% and 37%, respectively. 

At The identical time, nonresidential exercise Inside the Las Vegas area jumped 125% Through The primary 4 months of 2022. The $400 million renovation On the Fontainebleau resort and on line casino enterprise on the Strip (pictured above) ranked As a Outcome of the Tenth largest enterprise Inside the West area since October 2021.

Arizona ranked second Inside the West area, with Shut to $32 billion in total enhancement starts, a 29% enhance from a yr in the past. 

At The beneathside of the West area, total enhancement starts in Hawaii attained $4 billion in 2021, a 11% drop from a yr in the past. That’s As a Outcome of of state’s publicity as a tourism hub, which has been severely affected by the pandemic, said Reaves.

Dodge forecasts the state GDP of Wyoming to rise about 4.6% this yr, In all probability the most Inside the West area. That’s largely due to the wrestle in Ukraine, which ought to revenue power-producing states like Wyoming. 

State GDP progress of the West area
State 2017 2018 2019 2020 2021 *2022 enterpriseion Wyoming -2.0% 1.5% 1.7% -6.1% 1.1% 4.6% Arizona 3.8% 3.7% 3.3% -1.0% 5.3% 4.2% Oregon 3.9% 4.6% 2.0% -3.0% 5.4% 4.1% Utah 4.3% 5.8% 4.8% 0.1% 6.7% 4.0% Colorado 3.5% 3.8% 4.2% -3.0% 5.8% 3.9% California 4.7% 4.0% 3.6% -2.8% 7.8% 3.8% New Mexico -0.1% 2.2% 4.3% -2.3% 2.5% 3.8% Washington 5.4% 6.8% 3.9% -0.6% 6.7% 3.5% Hawaii 2.1% 1.2% -0.9% -10.8% 4.6% 3.4% Nevada 4.0% 3.4% 4.1% -7.4% 7.1% 3.4% Idaho 2.3% 6.1% 4.0% -0.3% 5.8% 3.1% Alaska -0.2% -1.6% 0.2% -6.0% 0.3% 3.0% Montana 3.3% 1.5% 0.4% -1.3% 6.7% 2.5%

SOURCE: Dodge Knowledge & Analytics


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