A Bird's Eye View of the Expanding & Contracting Market
From bidding to project completion, it is important to monitor project activity throughout the construction process, especially as a credit professional. LienFinder™, powered by NCS, can assist you with monitoring project activity, once a legal document has been filed (i.e. from Notice of Commencement through Notice of Completion). However, we recommend you begin monitoring construction growth at the bidding stage. The Expansion Index and McGraw-Hill Construction Dodge are two terrific resources, which provide a bird’s eye view of which markets are expanding or contracting.
First, let’s take a look at The Expansion Index from Reed Construction Data.
The Expansion Index is updated monthly and provides a “…12 to 18 month "look ahead" at the construction marketplace. It indicates whether a location's construction volume is expected to expand or shrink in the upcoming 12 months.”
In Reed’s April report, the following markets are expecting dramatic volume expansion over the next 12-18 months:
Columbia (MO), Grand Forks (ND-MN), Greenville (NC), Laredo (TX), Logan (UT-ID), Macon (GA), Manchester-Nashua (NH), Ocala (FL), Salem (OR), Spartanburg (SC), St. George (UT-ID), Duluth (MN-WI), Durham (NC), Muskegon-Norton Shores (MI), Bellingham (WA), El Centro (CA), South Bend-Mishawaka (IN-MI), Florence (AL), Abilene (TX) and Auburn-Opelika (AL).The Expansion Index can be reviewed for free via Reed Construction Data’s website – click here to take a look.
Next, let’s take a look at McGraw-Hill Construction Dodge
McGraw-Hill Construction Dodge “…understands how critical it is to know the market. Utilizing the power of Dodge, you will stay informed about the projects, people, companies, and other resources in your market allowing you to capitalize on every opportunity.”
Dodge reports which states have the most active projects in the bidding phase, including the number of projects and the estimated cumulative value. For example, California has 2638 Projects for total value of $6,828 Million.
First quarter, Dodge reported the following states with the highest number of projects: California (2638 projects), Texas (2081), Illinois (1851), New York (1642), Florida (1452), Massachusetts (1424), Pennsylvania (1392), New Jersey (1312), Ohio (1237) & Wisconsin (1028)
McGraw-Hill Construction Dodge can be reviewed for free via the company’s website – click here to take a look.
Once bidding is complete and a project has officially commenced, it is important to continue to monitor the project activity. LienFinder™ captures construction project data nationwide, from hundreds of recording offices daily. Search and review notices, mechanics liens, payment/performance bonds, leases, amendments, releases & agreements. Set email alerts, to receive notification when a particular project or party is involved in the filing of a legal document. Be “in-the-know” throughout the process – reduce your risk.