{"id":29347,"date":"2025-03-07T01:12:56","date_gmt":"2025-03-07T09:12:56","guid":{"rendered":"https:\/\/essential.construction\/news\/more-private-construction-projects-face-delays\/"},"modified":"2025-03-07T01:12:56","modified_gmt":"2025-03-07T09:12:56","slug":"more-private-construction-projects-face-delays","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/more-private-construction-projects-face-delays\/","title":{"rendered":"More private construction projects face delays"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><\/p>\n<p>            <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/images\/audio_icon.svg?482016190122\" alt=\"-\"><\/p>\n<p>        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">3 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1741274979\/news\/text_to_speech\/private-construction-headwinds_kcacqq.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<p><span><span><span><span><span><span>Construction activity posted a notable drop in project stress, but the improvement was far from uniform across sectors, according to the latest data from Cincinnati-based ConstructConnect.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The Project Stress Index, a measure of construction projects that have been paused, abandoned or have a delayed bid date, fell 9.7% in February from the previous month. Civil work, such as infrastructure builds, drove much of that improvement, said Michael Guckes, chief economist at ConstructConnect.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Private projects, on the other hand, continued to face pressure, posting a sharp rise in abandonments and on-hold activity. As a result, the PSI remains 12.4% above 2021 levels, the benchmark year for the index.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe early months of this year have seen an unusual and even unexpected divergency by sector,\u201d Guckes told Construction Dive in an email. \u201cFor those of us who anticipated the new presidential administration would generate a boost in private business confidence thanks to easing regulations and a drop in taxes, we have yet to see any benefits as measured by the PSI.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Overall abandonments and on-hold projects dropped 14.7% and 5.9% respectively. However, private projects put on hold jumped 36.7% year over year, while private abandonments ticked down only 2.4%, indicating little relief, said Guckes.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In contrast, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/tutor-perini-trump-tariff-funding-earnings\/741487\/\" target=\"_blank\"><span><span><span><span><span><span><span>public projects fared much better<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, with on-holds dropping 25.3% and abandonments falling 25.8% compared to February 2024.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cSuch divergence is rarely seen, especially at the beginning of a calendar year,\u201d said Guckes. \u201cThis divergence is very interesting as one would think that public projects under the new presidential administration would be at heightened risk of funding losses and cut backs.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The contrasting trends suggest that uncertainty among private developers could be contributing to a hesitation to break ground. Total construction starts, for example, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/9-largest-commercial-construction-starts-january-2025\/740834\/\" target=\"_blank\"><span><span><span><span><span><span><span>dropped 6% in January<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, according to Dodge Construction Network. Nonresidential building starts, such as office and hotel projects, dipped 18% in January.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Nevertheless, Guckes expects private sector confidence to improve, leading to a rebound in activity.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cOur full year expectations remain that private work will benefit from more relaxed regulations this year while public projects struggle to find funding,\u201d said Guckes.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/private-construction-headwinds\/741735\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 3 min This audio is auto-generated. 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Construction &#8230; <a title=\"More private construction projects face delays\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/more-private-construction-projects-face-delays\/\" aria-label=\"Read more about More private construction projects face delays\">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-29347","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\/29347","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=29347"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/29347\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=29347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=29347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=29347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}