Construction Spending Shows a Year-Over-Year Increase

The National Association of Home Builders monitors the construction industry so it can be the first to report both positive and negative news to the real estate industry and if necessary, to Congress.  Since the housing industry is one of the leaders in economic growth and development in the United States, and the national economy depends on real estate for a good portion of the GDP, the health of the real estate industry if of prime importance to those vendors, contractors, and builders who are involved in its day-to-day production.

To that end, construction spending was reported by the National Association of Home Builders (NAHB) to have grown in November, 2015.  Private residential construction which includes homeowner improvements, DIY remodeling and renovations, and other types of repairs saw an increase in construction spending of 5.9% from November, 2014.  Single-family construction spending was up 9% over the same period and multi-family construction spending was up 12%.
From November, 2015, to December, 2015, private residential construction spending increased by .12%.  Single-family home construction spending increased to $231 billion which is a 1% increase from November.  Multi-family spending increased to $53 billion – a 2.66% increase.  Interestingly, if multi-family spending levels off to a steadier pace, which it is predicted to do in 2016, the trend in real estate suggests that single-family home construction will begin to increase.

In the commercial sector, an increase of 45% in the manufacturing-related construction from December, 2014, to December, 2015, drove an overall increase of 8% year-over-year in commercial construction spending.

Since the Great Recession, the real estate industry has been on a continuous climb of recovery once the housing market started to turn around.  The numbers at the end of 2015 reflect this slow but steady progress for builders, contractors, remodelers, and renovators, as well as all of the construction employees involved in projects nationwide.

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Construction Work in Mandeville, Louisiana, in St. Tammany

New jobs in the form of construction work and employee hiring is happening in Mandeville, Louisiana, in St. Tammany Parish.  Florida Marine, LLC, currently located off of the west side service road between Fairway (Judge Tanner) Drive and Hwy. 22, is doubling its commercial construction space from 27,500 square feet to 55,000 square feet and is expected to cost approximately $7.2 million.  The move will bring in 40 new Florida Marine jobs and approximately 180 jobs in construction including contractors and sub-contractors.

As part of the nonprofit business retention program offered by the St. Tammany Parish Economic Development Foundation, Florida Marine has focused on retention and expansion of its business and services over the past 14 years in Mandeville, Louisiana.  It purchased the present office building which it is now expanding in 2004.

“We have been very happy in St. Tammany Parish and are pleased to be expanding our offices,” said Dennis A. Pasentine, owner and CEO of Florida Marine.

In addition to the much needed commercial work space that the expansion of new construction will offer, the new campus-style building will also have an outdoor kitchen and courtyard for employee and customer events.  In case of inclement weather, the buildings will be fitted and retrofitted to include backup generators to restore power. The project has been designed by Greenleaf Architects and is being constructed by Kent Design Build.

“We congratulate Florida Marine on their expansion,” Parish President Pat Brister said. “The maritime industry is woven into the fabric of our community, and this growth will provide job opportunities and positive economic impact.”

In addition to the commercial construction of office space in Mandeville, LA, in St. Tammany Parish, Florida Marine is also expanding its shipyard in Harvey.  This West Bank expansion will create 200 additional jobs as well.

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