In what is surely good news for both contracting firms and those working construction jobs in the densely populated New York City metropolitan area, the value of contracts for future construction projects in the area went up 25 percent year over year. The increase was the same for both residential building deals as well as commercial and industrial construction, showing a steady growth for all types of development. Long Island-based newspaper Newsday highlighted figures from McGraw-Hill Construction showing that the value of all such contracts signed in May 2014 was approximately $1.9 billion, up about $469 million from one year ago.
While residential and non-home construction both saw value at about the same rate during the past 12 months, the market share of industrial and commercial building is somewhat larger. The nonresidential portion of overall building added up to roughly $1 billion, with home construction coming in at about $875 million. The metropolitan region isn't just limited to the five boroughs of New York City proper, with most of New Jersey, surrounding areas in New York and even an edge of Pennsylvania all being counted in the construction funding numbers. Although this large geographical region has influenced the overall number of contracts signed, the 25 percent increase in pricing is a positive sign that is independent of the size of the region.
Longer-Term Averages Also Up
The Long Island Business News pointed out that the growth experienced in the New York City metro area has been developing for some time. It cited the five-month average from January through May 2014 as also having risen as compared to the same figures from 2013. Specifically, spending on contracts rose 27 percent year to year. This steady growth, with similar percentage increases in the month-to-month and longer terms cited, is likely an indicator that demand for construction is developing well in the area.
The best part of the recently released statistics seems to be that no area of building is suffering or growing noticeably less than others. No matter what area a contractor specializes in, they're likely to be encouraged by the statistics. Builders in the area can even consider the acquisition of new equipment and bringing on new employees as economic conditions improve. Meeting the increasing demand for building will require some additional resources for contractors.