{"id":9781,"date":"2022-05-31T14:25:00","date_gmt":"2022-05-31T21:25:00","guid":{"rendered":"https:\/\/essential.construction\/news\/?p=9781"},"modified":"2022-05-31T14:25:00","modified_gmt":"2022-05-31T21:25:00","slug":"manufacturing-projects-boost-starts-in-western-states","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/manufacturing-projects-boost-starts-in-western-states\/","title":{"rendered":"Manufacturing projects boost starts in Western states"},"content":{"rendered":"

This story is the second in a series looking at the health of the construction industry<\/a> in regions throughout the country.<\/em><\/p>\n

Total construction starts in the U.S. West region climbed 13% last year to $223.73 billion, essentially in line with national start growth of 14%, according to a Dodge Data & Analytics construction outlook webinar.\u00a0<\/p>\n

Manufacturing, education and data center projects largely accounted for the boost. For 2022, Dodge forecasts manufacturing starts to reach $14.39 billion, a 47% increase from 2021.\u00a0<\/p>\n

“Manufacturers are looking for a more reliable supply chain, so concerted efforts have begun to bring more chip manufacturers into the U.S.,\u201d said David Reaves, senior economist at Dodge, during the webinar.<\/p>\n

\n
<\/div>\n<\/div>\n

Optional Caption
\nSebastian Obando\/Construction Dive, data from Dodge Data & Analytics<\/p>\n

Starts in the manufacturing sector, which includes electric vehicle factories, chip plants, food related production facilities and pharmaceutical labs, have been on a wild ride since the beginning of the pandemic. <\/p>\n

In 2020, manufacturing starts fell to $1.74 billion, about a 37% drop from its 2019 level of $2.74 billion. But that rebounded to $9.81 billion in 2021, and starts in the sector are projected to increase more than sevenfold in 2022 from pandemic lows, according to Dodge.<\/p>\n

The two biggest starts in the six months ended in March included the $9.98 billion Intel chip factor project and the Taiwan Semiconductor factory, both in Arizona.\u00a0<\/p>\n

\n
Largest starts in West from October 2021 through March 2022<\/h6>\n

Project
\nType
\nLocation
\nStart month
\nValue
\nIntel FAB 52 & FAB 62 Chip Factories
\nManufacturing
\nChandler, Arizona
\nFebruary 2022
\n$9.98 billion
\nTaiwan Semiconductor Factory Phase 1
\nManufacturing
\nPhoenix
\nOctober 2021
\n$5.98 billion
\nTerminal One and Roadways Ph I
\nAirport
\nSan Diego
\nNovember 2021
\n$2.35 billion
\nLos Angeles Museum of Art Expansion
\nEducation
\nLos Angeles
\nDecember 2021
\n$650 million
\nIntel Manufacturing Facility Upgrades
\nManufacturing
\nRio Rancho, New Mexico
\nFebruary 2022
\n$550 million
\nSwitch SuperNap Data Center Tahoe Ph II
\nData center
\nSparks, Nevada
\nMarch 2022
\n$505 million
\nAirport Metro Connector Station
\nAirport
\nLos Angeles
\nOctober 2021
\n$471 million
\nPark 303 PH2
\nWarehouse
\nGlendale, Arizona
\nMarch 2022
\n$460 million
\nAmazon Fulfillment Center Project Basie
\nWarehouse
\nWoodburn, Oregon
\nNovember 2021
\n$451 million
\nFontainebleau Las Vegas renovations
\nHotel
\nLas Vegas
\nDecember 2021
\n$400 million<\/p>\n

SOURCE: Dodge Data & Analytics<\/p>\n<\/div>\n

For all of 2022, Dodge forecasts education starts to reach $16.5 billion, a 6% increase from 2021. <\/p>\n

The $650 million Los Angeles Museum of Art expansion, included under the education category, was the fourth largest construction project since October 2021, according to Dodge.<\/p>\n

The hospitality sector overall in the West region remains just a fraction of what it was before the pandemic. For all of 2022, Dodge projects hotel and motel construction starts in the West will reach $2.38 billion. That would be a 14% improvement from 2021, but would still be down about 45% from its 2019 level of $4.32 billion, according to Dodge.\u00a0<\/p>\n

\n
<\/div>\n<\/div>\n

Optional Caption
\nSebastian Obando\/Construction Dive, data from Dodge Data & Analytics<\/p>\n

California led the West region in 2021 with over $86.32 billion of total construction starts, a 17% increase from 2020. <\/p>\n

But for the first four months in 2022, nonresidential construction activity in the Los Angeles region<\/a> and San Diego region<\/a> dropped 41% and 37%, respectively.\u00a0<\/p>\n

At the same time, nonresidential activity in the Las Vegas region jumped 125%<\/a> during the first four months of 2022. The $400 million renovation at the Fontainebleau resort and casino project<\/a> on the Strip (pictured above) ranked as the 10th largest project in the West region since October 2021.<\/p>\n

Arizona ranked second in the West region, with close to $32 billion in total construction starts, a 29% increase from a year ago.\u00a0<\/p>\n

At the bottom of the West region, total construction starts in Hawaii reached $4 billion in 2021, a 11% drop from a year ago. That\u2019s because of the state\u2019s exposure as a tourism hub, which has been severely affected by the pandemic, said Reaves.<\/p>\n

Dodge forecasts the state GDP of Wyoming to rise about 4.6% this year, the most in the West region. That\u2019s largely due to the war in Ukraine, which should benefit energy-producing states like Wyoming.\u00a0<\/p>\n

\n
State GDP growth of the West region<\/h6>\n

State
\n2017
\n2018
\n2019
\n2020
\n2021
\n*2022 projection
\nWyoming
\n-2.0%
\n1.5%
\n1.7%
\n-6.1%
\n1.1%
\n4.6%
\nArizona
\n3.8%
\n3.7%
\n3.3%
\n-1.0%
\n5.3%
\n4.2%
\nOregon
\n3.9%
\n4.6%
\n2.0%
\n-3.0%
\n5.4%
\n4.1%
\nUtah
\n4.3%
\n5.8%
\n4.8%
\n0.1%
\n6.7%
\n4.0%
\nColorado
\n3.5%
\n3.8%
\n4.2%
\n-3.0%
\n5.8%
\n3.9%
\nCalifornia
\n4.7%
\n4.0%
\n3.6%
\n-2.8%
\n7.8%
\n3.8%
\nNew Mexico
\n-0.1%
\n2.2%
\n4.3%
\n-2.3%
\n2.5%
\n3.8%
\nWashington
\n5.4%
\n6.8%
\n3.9%
\n-0.6%
\n6.7%
\n3.5%
\nHawaii
\n2.1%
\n1.2%
\n-0.9%
\n-10.8%
\n4.6%
\n3.4%
\nNevada
\n4.0%
\n3.4%
\n4.1%
\n-7.4%
\n7.1%
\n3.4%
\nIdaho
\n2.3%
\n6.1%
\n4.0%
\n-0.3%
\n5.8%
\n3.1%
\nAlaska
\n-0.2%
\n-1.6%
\n0.2%
\n-6.0%
\n0.3%
\n3.0%
\nMontana
\n3.3%
\n1.5%
\n0.4%
\n-1.3%
\n6.7%
\n2.5%<\/p>\n

SOURCE: Dodge Data & Analytics<\/p>\n<\/div>\n

This item was originally posted here: Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

This story is the second in a series looking at the health of the construction industry in regions throughout the … Read more<\/a><\/p>\n","protected":false},"author":0,"featured_media":9782,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1066,457],"tags":[],"class_list":["post-9781","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-posts","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\/9781","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"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=9781"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/9781\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media\/9782"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=9781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=9781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=9781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}