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WEBINAR SERIES – U.S. NORTHEAST CONSTRUCTION MARKET OVERVIEW Hosted by Steve Kelly, Export Development Executive
| Date post: | 21-Jan-2018 |
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WEBINAR SERIES – U.S. NORTHEAST CONSTRUCTION MARKET OVERVIEW
Hosted by Steve Kelly, Export Development Executive
ABOUT OPPORTUNITIES NB
Opportunities NB (ONB) is New Brunswick’s lead business development organization working with companies inside and outside the province to drive economic growth and job creation in New Brunswick.
A nimble, results-driven and client-centric organization, ONB is a Crown Corporation, strategically led by a private sector Board of Directors made up of business leaders from New Brunswick companies and academia.
ONB believes strongly in the future of New Brunswick and since its inception on April 1, 2015, has successfully been the catalyst for competitive and innovative economic growth and job creation for the benefit of New Brunswick today and for generations to come.
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US Building Sector: 2017 Outlook and Takeaways for New Brunswick Suppliers
Michael G. Lange, Esq. 617-216-5552 (cell) [email protected]
www.graycliffventures.com
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2017 US Building Sector: Housing Starts
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2017 US Building Sector: Permits
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2017 US Building Sector: Outlook to 2020
Last Q3/17 Q4/17 Q1/18 Q2/18 2020
Building Permits 1230 1150 1141 1266 1266 1315
Housing Starts 1155 1190 1160 1100 1090 1280
New Home Sales 571 550 570 610 560 590
Pending Home Sales -1.3 -1.9 3 -0.6 0.5 1.2
Existing Home Sales 5440 1.5 5300 5220 5190 5000
Construction Spending -0.6 2 1.9 1.5 0.8 0.4
Housing Index 0.1 0.3 0.3 0.6 0.5 0.5
Nahb Housing Market Index 68 62 56 60 61 53
Mortgage Rate 4.06 4.07 4.12 4.16 4.21 6.5
Mortgage Applications 3.3 0.45 0.46 0.46 0.46 0.46
Home Ownership Rate 63.7 63.93 64.02 63.97 64.03 64.35
Case Shiller Home Price Index 201 196 197 198 199 211
Source: Tradingeconomics.com 6
US Building Sector Outlook: 2017 and Beyond
• Hurricanes Harvey and Irma
• Exchange Rate – 2017 to date
– Rest of 2017
– Forecast 2018-2020
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US Building Sector Outlook: 2017 and Beyond
• US Canada Trade Relations
• Infrastructure Spending
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2017 New England Economic Outlook
• Economic conditions
– Increased job growth and lower unemployment
• Particularly in NH and Maine
– Continued increase in housing prices
• All six states had y-o-y increases
• Only Rhode Island exceeded national average
• Building sector
– Commercial • Strong growth in hospitality sector
• State budget woes limiting infrastructure spending
• Universities renovating rather than replacing older facilities
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2017 New England Building: Residential
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MA: Current Private Sector Projects
• Projects with budgets >$5 million = about 460 – By stage
• Design/Planning = 262
• Bidding = 86
• Under construction = 90
• Occupancy = 10
• Abandoned (past 90 days) = 12
– By size of budget
• $5M-$10M = > 100
• $10M-$100M = 315
• $100M+ = 53
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Massachusetts: Boston Construction Starts
Source: ENR New England
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2017 Outlook: Green Technologies
The global market for green building materials is expected
to grow at an annual rate of 11.9% through 2022. - Green Building Materials Market Report, Allied Market Research
• Consumer demand and building codes
• LEED Certification
• Zero-Net and Positive Net Buildings
• Timber construction
• Others including – Smart windows
– Eco-friendly flooring
– Air purifying and zero VOC paints
– Cabinets and counters from recycled, salvaged or sustainable materials
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2017 Outlook: Other Trends
• Bringing procurement in-house, using outside consultants
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Concluding Remarks & Questions
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