ized by slower rates of growth for total construction compared with the 11 percent to 13 percent yearly gains during the 2012-2015 period. “For 2018, the construction expansion is anticipated to continue at a modest pace,” Murray said. The tax reform package is expected to provide a near-term lift to overall economic growth, and the likely beneficiaries would be commercial building and multifamily housing. Funding support for institutional building will come from the state and local bond measures passed in recent years. Passage of a new infra- structure program at the federal level could be a plus for public works, although the impact at the construction site is likely to be felt more in 2019 than in 2018, as the program would feature incentives to boost funding from state, local, and private sources.” Nonresidential building For 2017 as a whole, nonresidential building advanced 7 percent to $270.7 billion. The institutional building categories as a group climbed 14 percent, a stronger gain than the 9 percent increase reported dur- ing 2016. Transportation terminal work had a banner year in 2017, as new construction starts soared 121 percent. Noteworthy transportation terminal projects that reached groundbreaking were led by two projects at LaGuardia Airport in New York — the $4 billion Delta Airlines Ter- minal and the $3.4 billion Central Terminal replacement project. The next three largest transportation terminal projects were the $1.9 billion Delta relocation to Terminals 2 and 3 at Los Angeles Inter- national Airport, the $1.3 billion Farley Train Hall redevelopment in New York, and the $1.2 billion South Terminal C project (phase 1) at Orlando International Airport. The educational facilities category in 2017 increased 6 percent, as college and university construction starts jumped 20 percent after experiencing a 3 percent decline in the previous year. Large college and university projects that reached groundbreaking in 2017 included a $421 million research laboratory at the University of California in Merced, Calif., and a $327 million school of engineering and applied sciences at Harvard University in Allston, Mass.
For all of 2017, total construction starts grew 3 percent to $745.9 bil- lion, according to Dodge Data & Analytics, which followed the 6 per- cent increase reported for 2016. The full-year 2017 gain was dampened by a 35 percent downturn for the electric utility/gas plant category. If electric utilities and gas plants are excluded, total construction starts for 2017 would be 5 percent higher than the corresponding amount for 2016 (see Table 1 on page 18). “On a quarterly basis, growth in 2017 was reported during the first and third quarters, while activity retreated during the second and fourth quarters, continuing the up-and-down pattern around an upward trend that was present during 2016,” said Robert A. Murray, chief economist for Dodge Data & Analytics. “On the positive side for 2017, institutional building assumed a leading role in keeping the nonresidential building expansion going, reflecting elevated activity for transportation terminal starts and further improve- ment by educational facilities,” Murray said. “Manufacturing plant construction starts strengthened, ending a two-year decline, and com- mercial building was able to stay close to its heightened 2016 amount. Residential building in 2017 showed more growth for single-family housing, offsetting a downturn for multifamily housing. And, public works construction in 2017 was able to strengthen, helped by the start of several very large pipeline projects and a moderate gain for highway and bridge construction.” According to Murray, the construction industry during the last two years has transitioned to a more mature stage of expansion, character- Market sector spending review and forecast New construction starts advanced in 2017 at a slower, uneven pace, with modest growth expected in 2018.
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