An experimental data product directly in the wheelhouse of Site
Selection stakeholders was released early this month by the U.S. Census
Bureau. To be published monthly, the data features monthly construction spending estimates at the
Census Division level for private manufacturing. “These
estimates measure the construction work done on private new
manufacturing structures or improvements to existing structures and
include the cost of labor and materials, architectural and engineering
work, overhead, interest and taxes paid during construction, and
contractor’s profits,” the Bureau stated. “Monthly estimates will be
available from January 2017 forward.”
The data come with a caveat befitting the experimental moniker: “Users
should take caution using estimates — sample sizes may be small and the
standard errors may be large.” Nevertheless, the numbers are there and
they say this:
The preliminary figures for December 2022 indicate the South leads
the West, Midwest and Northeast by a long shot, with nearly $4.8
billion of private manufacturing construction put in place. The
region’s highest total since December 2021 was in September 2022 at
more than $5.1 billion — more than $2 billion higher than the
region’s December 2021 total.
The highest total in December 2022 by sub-region was more than $2.5
billion put in place in the West South Central region (Texas,
Louisiana, Oklahoma and Arkansas), just ahead of the eight-state
Mountain region (see map).
Monthly figures have shown healthy and gradual growth in all regions
except the Northeast and the Pacific sub-region. Since September the
monthly national figures have hovered north of $10.5 billion, with
the December preliminary figure of more than $10.6 billion nearly
45% higher than the December 2021 total of $7.36 billion.
For context, examine other construction activity reports from the
Bureau. And view the latest annual “Economic Impacts of Commercial Real Estate”
report from NAIOP, released January 30. “The combined economic
contributions of new commercial building development and the operations
of existing commercial buildings in 2022 resulted in direct expenditures
of $826.9 billion,” says NAIOP, and the following impacts on the U.S.
economy:
Contributed $2.3 trillion to U.S. gross domestic product (GDP).
Generated $831.8 billion in personal earnings.
Supported 15.1 million jobs.
“The data in the report are strong economic indicators of commercial
real estate development investment, job growth, and subsequential
contributions to the U.S. economy,” said Marc Selvitelli (pictured),
president and CEO of NAIOP. “Our success could be met with headwinds as
inflation, workforce constraints and higher interest rates create
uncertainty. Our Research Foundation, legislative team and education
will keep our members and industry professionals informed on these
issues and offer resources as the industry navigates potentially choppy
waters.”
NAIOP cites Dodge Construction Network data showing a significant
(143.4%) increase in non-warehouse (manufacturing) industrial building
construction in 2022, making it the largest segment of new commercial
real estate construction in 2022. Data behind the report are also downloadable by state. — Adam Bruns
“The data in the report are strong economic indicators of commercial
real estate development investment, job growth, and subsequential
contributions to the U.S. economy,” says NAIOP President and CEO
Marc Selvitelli, pictured here at the organization’s chapter
leadership and legislative retreat held in January.
Photo courtesy of NAIOP
SITE SELECTION
RECOMMENDS
One group keeping No. 1 New York City walkable is the staff of the
Central Park Conservancy, whose management of the park is key to
welcoming 42 million annual visitors — more than the top 10 national
parks combined.
Photo from 2022 staff breakfast courtesy of Central Park Conservancy
Smart Growth America’s 2023 “Foot Traffic Ahead” report “takes
stock of the nation’s 35 largest metropolitan areas to
identify how walkability in these places has transformed,
and how walkable urban places compare across the country,”
especially in light of seemingly indelible effects on those
places from the pandemic. Among other findings: In the
largest 35 metros, walkable urban land comprises only 1.2%
of the regions’ total land mass, but accounts for 19.1% of
the nation’s annual GDP. “In the top 35 metros,
approximately one-third of all jobs are in significant
walkable urban places,” the report states.
The report’s rankings find New York at the No. 1 spot,
followed by Boston; Washington, D.C.; Seattle and Portland,
Oregon. San Francisco, despite its current “urban doom loop”
diagnosis, is No. 6, followed by Chicago at No. 7. “These
places host the largest concentrations of knowledge economy
industries along with large, connected transit systems, and
a history of more compact urbanism that pre-dates 1940,”
Smart Growth America explains. “For example, Chicago
contains most of its walkable urbanism along its MARTA and
CTA network. In Boston, the T anchors walkable urbanism in
and outside the center city. The same goes for the San
Francisco Bay Area with the BART Caltrain and MUNI rail
systems.”
The seeds of food processing success are planted in the soil of the
Sunflower State. The seeds of happiness can be found at places like
Gella’s Diner in downtown Hays.
Dig into the data from Pitchbook and the National Venture Capital
Association and you’ll find Kansas playing a more and more prominent
role in sparking innovation.
The founders of Munich-based direct-to-consumer e-commerce fulfillment
company Alaiko this month were joined by UK Minister of State for
Investment Lord Dominic Johnson to announce an expansion to the UK with
that includes this warehouse location in Milton Keynes and an office in
Birmingham. The company aims to create up to 200 jobs in the UK overall
in the next few years. The idea is to smooth the way for re-entry into
the UK market post-Brexit by European e-commerce companies. “Regulatory
adjustments and streamlined trade processes will greatly benefit German
e-commerce companies looking to expand into the UK — and vice versa,”
said Moritz Weisbrodt, founder and CEO of Alaiko. “Germany is the UK’s
second largest trading partner worldwide and a key ally for free and
fair trade,” said Lord Johnson. “Therefore, it is our priority to
further strengthen our economic ties with Germany. We look forward to
welcoming a greater number of tech companies like Alaiko into the UK’s
unrivalled $1 billion tech ecosystem.”
Gland Pharma, a maker of generic injectables, has added capabilities to
its Pashamylaram facility in the Genome Valley area of Hyderabad.
According to press reports, the expansion follows a 200-job investment
announced in February 2022. Citing the State of Telanga’s Industries and
IT Ministry, The Hindu reports, “Genome Valley, which is India’s first
organized cluster for life sciences research and development and clean
manufacturing activities, is home to more than 200 companies with a
scientific workforce of about 15,000 professionals,” including companies
such as Novartis, GlaxoSmithKline, Ferring Pharma, DuPont and Lonza. “We
are delighted to collaborate with the government of Telangana on its
vision of making the state a hub for global pharmaceutical requirements,
by expanding our bio-CDMO facilities in Shamirpet,” said Srinivas Sadu,
Gland Pharma CEO. The company currently operates eight manufacturing
facilities across India.
This photo shows the historic Anheuser-Busch brewery complex in St.
Louis, originally opened in the 1850s. It’s just one part of a St. Louis
brewing legacy that goes well beyond this one site’s massive acreage.
Last year the company committed to a $50 million investment that
includes upgrading of one of the can lines and a dedicated seltzer
building to house new systems and equipment for brewing products such as
Bud Light Seltzer and Michelob ULTRA Organic Seltzer, among others.
Additionally, the brewery is being outfitted with advanced technical
equipment that allows for the streamlined addition of flavors to the
seltzer liquid. The project is part of the company’s 2021 commitment to
invest $1 billion in its facilities across 26 states over two years.
