{"id":13862,"date":"2023-03-06T00:44:45","date_gmt":"2023-03-06T08:44:45","guid":{"rendered":"https:\/\/essential.construction\/news\/manufacturing-sector-props-up-construction-spending\/"},"modified":"2023-03-06T00:44:46","modified_gmt":"2023-03-06T08:44:46","slug":"manufacturing-sector-props-up-construction-spending","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/manufacturing-sector-props-up-construction-spending\/","title":{"rendered":"Manufacturing sector props up construction spending"},"content":{"rendered":"<p> <a href=\"https:\/\/essential.construction\/files\/membership-default-internal\/\" class=\"memberhide\"><img decoding=\"async\" src=\"https:\/\/essential.construction\/news\/wp-content\/uploads\/sites\/15\/2023\/01\/20220718_175041000_iOS.jpg\" alt=\"-\"><\/a><br\/><br \/>\n<\/p>\n<div>\n<h3>Dive Brief:<\/h3>\n<ul>\n<li><span><span><span><span><span><span>National nonresidential construction spending increased 0.3% in January to a seasonally adjusted annualized basis of $968.7 billion, according to an <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.abc.org\/News-Media\/News-Releases\/entryid\/19824\/nonresidential-construction-spending-inches-higher-in-january-says-abc\" target=\"_blank\"><span><span><span><span><span><span><span><span>Associated Builders and Contractors analysis<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>The slight increase is attributable to manufacturing-related construction spending, which increased about 5.9% in January, according to ABC. Boosted by CHIPS Act funding, spending in the segment has jumped \u201can astonishing\u201d 53.6% since January 2022, said Anirban Basu, ABC chief economist.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>\u201cNonresidential construction spending inched higher to start the year and is just below the all-time high established in November,\u201d said Basu. \u201cWith the CHIPS and Science Act directing $280 billion into semiconductor manufacturing and an ongoing desire to reshore manufacturing capacity, the segment should continue to thrive.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3>Dive Insight:<\/h3>\n<p><span><span><span><span><span><span>Spending in the nonresidential sector continues to outpace inflation on a year-over-year basis, said Basu.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>That\u2019s because of massive spending in the manufacturing sector. Manufacturing construction spending jumped 5.9% in January, reaching $139.78 billion. Meanwhile, transportation spending increased 1.7% in January, totaling $61.45 billion, according to the report.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>However, without manufacturing-related construction, nonresidential spending actually declined in January, Basu said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In fact, seven of the 16 nonresidential subcategories posted declines in January, according to ABC. Water supply construction spending dipped 5.9% in January, followed by a 3.1% drop in commercial construction spending.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span><span><span><span><span><span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>That\u2019s due to a combination of headwinds, including severely elevated borrowing costs, ongoing labor shortages and enduring high input costs, added Basu.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Nevertheless, despite the gloomy economic outlook, a majority of contractors continue to expect their sales to increase over the next six months, according to <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/contractors-confident-falling-backlog-construction-economy\/642779\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>ABC\u2019s construction confidence index<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span><span><span><span><span><span><img decoding=\"async\" src=\"https:\/\/essential.construction\/news\/wp-content\/uploads\/sites\/15\/2023\/03\/j-iuGB7fzJBY3bnK6jnhrTW-E1sv54-Mqs0xUPhZK6MBktaKitRR4shY4PQkUrg6nZtBFq_3JgnrXJo1263bv7kY54jUzB36s_kb7fIaV1wfyxbyVc7mA8IpBzX3lYjLwoleCiQNVmm08cxbasMBXU8.png\" alt=\"-\"><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-5143531171910809\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- News - Bottom -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-5143531171910809\"\r\n     data-ad-slot=\"8320848692\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/manufacturing-sector-props-up-construction-spending\/643928\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dive Brief: National nonresidential construction spending increased 0.3% in January to a seasonally adjusted annualized basis of $968.7 billion, according &#8230; <a title=\"Manufacturing sector props up construction spending\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/manufacturing-sector-props-up-construction-spending\/\" aria-label=\"Read more about Manufacturing sector props up construction spending\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-13862","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/13862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=13862"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/13862\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=13862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=13862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=13862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}