Full speed ahead.

With the first half of 2005 on the books, the pace of business for the building industry remains frantic, according to contractors' statistics compiled from throughout the industry.

Construction contract values gathered by McGraw-Hill Construction, Lexington, Mass., for the first half of 2005 show the residential and infrastructure construction segments as having gained some 9 percent in contract values compared to first half of last year. Out of step with these two segments, non-residential (retail, office and industrial) construction contract values have declined by 6 percent in the first six months of the year.

In the most recent month for which statistics are available--June--even this lagging sector I picked up the pace, with new June non-residential contacts being worth 19 percent more than those recorded in May.

"The construction industry in June moved closer to running at full throttle," says Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "The improved pace for nonresidential building in June, following gains during March and April, suggests that this sector is beginning to re-establish the moderate upward trend witnessed last year."

Among the sub-sectors lifting the nonresidential construction sector are school construction (up 13 percent in June over May, and up the most in dollar volume); office construction (up 45 percent); health care construction (up 15 percent); churches (up 23 percent); and amusement industry projects (up 16 percent).

August's signing of a federal transportation bill by President George W. Bush should bolster an already strong infrastructure sector. Strong June contract numbers included the start of large highway projects in Louisiana, New Jersey and New York; a major light rail project in Seattle; and a new water treatment plant in Nebraska.

The residential building market remains hot in most regions of the country. Single-family housing new contract values grew another 1 percent in June over May, while multi-family housing contracts climbed 11 percent. The multi-family figured was boosted by the start of large projects in San Francisco and Irvine, Calif., and in Miami, Tampa and West Palm Beach, Fla.

"Single-family housing continues to be robust, and the brisk pace of condominium development is boosting the multi-family side of the housing market," says Murray.

Regionally (and across all sectors) in the first half of 2005, the South Atlantic, South Central and Western segments each exhibited 7 percent growth in new contract values while the Northeast gained 6 percent in new contracts. At odds with the nation's other regions, the Midwest demonstrated a 3 percent decline in new construction contract values compared to the first half of 2004.

U.S. CONSTRUCTION CONTRACT VALUES

                          % Change   Jan.-June 2005   Jan.-June 2004

Residential               +9%        $181.4 *         $166.2 *
Non-Residential Const.    -6%          77.8 *           82.7 *
Infrastructure            +9%          50.4 *           46.3 *
Total                     +5%        $309.6 *         $295.2 *

* in billions

Source: McGraw-Hill Construction

Note: Table made from bar graph.