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Dodge Momentum Index at 14-year high

By |  November 5, 2021

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The Dodge Momentum Index increased 10 percent in October to 181.2.

The index, issued by Dodge Construction Network, is a monthly measure of the initial report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year.

In October, commercial planning rose 14 percent and institutional gained 3 percent.

According to Dodge, the value of nonresidential building projects entering planning staged a solid recovery this fall, lifting the index to its highest level in nearly 14 years following a near-moribund summer of activity.

The commercial sector has shown strength, Dodge adds, having reached its highest level since the inception of the index. Increased planning in warehouses, offices and health care structures drove the October index gain, Dodge says.

The index is currently 47 percent higher than where it was one year ago, commercial planning component is 59 percent higher and institutional is 26 percent higher.

Specific projects

A total of 20 projects with a value of $100 million or more entered planning in October, Dodge says.

The leading commercial projects were a $450 million Walmart distribution center in Lyman, South Carolina, and a $400 million Facebook data center in Los Lunas, New Mexico. The leading institutional projects were the second and third phases of the California Northstate University Medical Center in Sacramento, valued at $500 million for each phase.

The dollar value of projects in the planning stage is impressive, Dodge says, and portends a healthy rise in nonresidential building construction starts on tap for 2022. Still, Dodge says that expectation must be balanced against rising material costs, shortages of key goods and a lack of skilled labor that will work to keep growth rates modest next year.

Kevin Yanik

About the Author:

Kevin Yanik is the editor-in-chief of Pit & Quarry magazine. Yanik can be reached at 216-706-3724 or kyanik@northcoastmedia.net.

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