Construction Report: Florida, North Carolina Up; Georgia, South Carolina Down

The volume of May contracts for future construction activity was down in half of the four states covered by Southeast Construction, with only Florida maintaining a positive pace for the year to date. According to the Dodge Analytics unit of McGraw-Hill Construction, May’s construction activity followed this pattern:

• Florida construction in May ’03 was approximately 13 percent ahead of the year-ago figure. The month saw approximately $3.6 billion in contracts, up ahead of last year’s roughly $3.2 billion.
  
• Georgia activity for the month declined by 12 percent from May 2002. The most recent activity report indicated almost $1.6 billion in contracts, versus the roughly $1.8 billion figure of a year ago.
  
• North Carolina’s total for May was 7 percent ahead of a year ago, with just over $1.6 billion in contracts reported. A year ago, the monthly figures tallied roughly $1.5 billion.
  
• South Carolina construction dove by 32 percent, down to $729 million for May 2003 from $1.1 billion a year ago.
  

By state, the 2003 year-to-date totals were as follows:

• Florida was the only state to remain positive for 2003 to date, with $18.1 billion reported so far this year, compared to the almost $17.5 billion of last year. Its overall 4 percent growth was due to the residential sector’s 13 percent growth, as the nonresidential and nonbuilding sectors were all negative.
  
• Year-to-date, Georgia is 6 percent below 2002’s pace. Construction activity is currently at roughly $7.8 billion, down from last year’s estimate of nearly $8.3 billion.
  
• To date, North Carolina contract activity is also down, by 7 percent, from last year’s $7.4 billion to this year’s $6.9 billion.
  
• South Carolina construction activity has declined 12 percent, from last year’s roughly $4 billion to this year’s $3.5 billion.
  

AGC, CHINCA Create Alliance at McGraw-Hill Construction Event

Engineering News-Record’s second annual Top 1000 Contractors Leadership Forum was the site of a signing ceremony of a cooperative agreement between America’s largest construction trade association and the China International Contractors Association (CHINCA). The agreement between the Associated General Contractors of America and CHINCA encourages joint project opportunities and collaborative media and training efforts between the associations’ members, while establishing a joint mechanism of liaison, communication and exchange.

ENR, part of McGraw-Hill Construction, invited the 17-person delegation from China to take part in its annual Top 1000 Conctractors Leadership Forum, held recently in Chicago. During their visit, the delegation presented a panel discussion on China’s construction market, discussed the reconstruction of Iraq with relevant parties, and signed cooperation agreements with both AGC and McGraw-Hill Construction.

NationsRent Emerges from Chapter 11

NationsRent announced it has emerged from the Chapter 11 reorganization process after completing all required actions and satisfying all remaining conditions to its consensual plan of reorganization. In conjunction with its emergence from Chapter 11, the company has obtained a $150 million senior secured revolving credit facility from a syndicate of lenders. In addition, The Baupost Group has invested $80 million of new capital into the company.

As a result of the consummation of the reorganization plan, the company emerges as a privately held company controlled by Baupost and Phoenix Rental Partners, L.L.C.