3. About Reed Construction Data
Reed Construction Data is a leading construction
information provider.
We deliver targeted and timely project leads, market intelligence,
marketing solutions and RSMeans cost data to construction
professionals throughout the US and Canada.
Maximize
Productivity
Increase
Profits
Drive
Growth
Our products and services simplify decision-making and help
organizations:
5. Our coverage and penetration
Private projects
22%increase year over year
80%acquisition rate
Plans and specs
TOTAL ACTIVE PROJECTS: 15.2% increase over 4 years
130,000public and private
Non-residential construction information
industry sources
22.9%increase over four years
Plans and specs
6. Every state and
every area in
USAcovered
including
Alaska and Hawaii
More coverage in
Canada
than anyone in the
construction industry
Our coverage and penetration
8. 8
๏ง Economic growth โ improving, but should be better
๏ง Employment growing, but should be faster
๏ง Inflation remains moderate, too low?
๏ง Washington less of an obstacle, but will wrangling
break out again and hinder basic business?
๏ง Federal Reserve has started to taper, when do
interest rates rise?
Overview of the economy
9. 9
Risks to the economy
๏ง Spike in interest rates due to Fed unwinding its
Quantitative Easing program too fast
๏ง Sharp cuts to federal government spending in the
near term
๏ง European government debt default
๏ง The euro
๏ง Energy (oil) prices
๏ง Russia?
12. 12
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
02 03 04 05 06 07 08 09 10 11 12 13 14 15
Residential Nonresidential Building Heavy Construction
$ Billions
History
Source: History โ U.S. Census Bureau; Forecast โ Reed Construction Data
Forecast
Forecast: Construction to improve
Construction Spending and its Components
Overview of construction
16. 16
2002 Total - $848 Billion 2013 Total - $900 Billion
Construction Spending Components
Source: U.S. Census Bureau
Overview of construction
38%
33%
29%
2013
Residential
Nonresidential Building
Heavy Construction
47%
32%
20%
2002
Residential
Nonresidential Building
Heavy Construction
17. 17
Residential construction is
recovering, but from a low level
๏ง Single-family housing market is on the mend, but much
further to go before it is back to normal
๏ง Multifamily market has largely recovered, but still some
room for growth
Overview of housing
18. 18
0
250
500
750
1,000
1,250
1,500
1,750
2,000
2,250
2,500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Thousands of Units, SAAR
Nationโs long-run (trend)
need for the next decade
Low Estimate
(1.4 million starts per year)
Nationโs long-run (trend)
need for the next decade
High Estimate
(1.8 million starts per year)
Total Housing Starts
(3-Month Moving Average)
Source: U.S. Census Bureau
Shaded areas represent recession
Overview of housing
19. 19
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Thousands of Units, SAAR
Nationโs long-run (trend)
need for the next decade
Low Estimate
(1.15 million starts per year)
Nationโs long-run (trend)
need for the next decade
High Estimate
(1.45 million starts per year)
Single-Family Housing Starts
(3-Month Moving Average)
Overview of housing
Source: U.S. Census Bureau
Shaded areas represent recession
20. 20
0
50
100
150
200
250
300
350
400
450
500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Thousands of Units, SAAR
Nationโs long-run (trend)
need for the next decade
Low Estimate
(250,000 starts per year)
Nationโs long-run (trend)
need for the next decade
High Estimate
(350,000 starts per year)
Multifamily Housing Starts
(3-Month Moving Average)
Overview of housing
Source: U.S. Census Bureau
Shaded areas represent recession
21. 21
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14
Thousands of Units, SAAR
Nationโs long-run (trend)
need for the next decade
High Estimate
(350,000 starts per year)
Nationโs long-run (trend)
need for the next decade
Low Estimate
(250,000 starts per year)
Multifamily Housing Starts
(3-Month Moving Average)
Overview of housing
Source: U.S. Census Bureau
Shaded areas represent recession
26. 26
Headwinds for housing
๏ง Buildersโ inventory of land for development and
construction is low ๏จ prices for land rising
๏ง Shortages of skilled labor in some markets
๏ง Lending standards easing, but still rigorous by
historical standards
๏ง Debt burden by young adultsโstudent debt
๏ง Fear of homeownership?
27. 27
Would you lend to a person
carrying a large amount of
student debt?
Would you want to borrow
more money if you were
such a person?
The debt burden headwind
31. 31
0
5
10
15
20
25
30
15-24 25-34 35-44 45-54 55-64 65-74 75-84 85+
2006
2008
2010
2012
Millions
Head of Household by Age Cohort in 2012
Source: U.S. Census Bureau, American Community Survey (ACS)
Demographics and housing
44. 44
0
10
20
30
40
50
60
70
80
90
100
Highway Water and Sewer Conservation
$ Billions
2006 to 2013 โ14 โ15
Heavy Engineering Construction Spending
Source: History โ U.S. Census Bureau; Forecast โ Reed Construction Data
45. 45
Connect with Reed Construction Data
๏ง Twitter
twitter.com/Bmarkstein
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twitter.com/ReedConstrData
๏ง Facebook
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๏ง LinkedIn
www.linkedin.com/company/reed-construction-data
๏ง web
www.reedconstructiondata.com
Contact
46. 46
Contact Information and Links
Bernard M. Markstein
๏ง Office: 301-588-5190
๏ง Mobile: 404-952-3381
๏ง b.markstein@reedbusiness.com
๏ง U.S. Forecast and Commentary:
http://www.reedconstructiondata.com/market-
intelligence/articles/
๏ง Blog:
http://www.reedconstructiondata.com/market-
intelligence/bernie-markstein/
Contact