2. Commercial construction
turned around in 2012
and is expected to
continue to improve

3. Construction spending and its components
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
02 03 04 05 06 07 08 09 10 11 12 13 14
Residential Nonresidential Building Heavy Construction
$ Billions
History Forecast
Source: History – U.S. Census Bureau; Forecast – Reed Construction Data

4. Reed total starts
(3-month moving average year-over-year)
-35
-30
-25
-20
-15
-10
-5
0
5
10
15
20
25
30
35
40
45
3-Month Moving Average, Year-over-Year % Change
Source: Reed Construction Data

5. Total construction spending
Source: History – U.S. Census Bureau; Forecast – Reed Construction Data
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Billion $, SAAR

6. Residential
construction
continues to
improve

7. Residential construction spending components
0
100
200
300
400
500
600
700
800
02 03 04 05 06 07 08 09 10 11 12 13 14
Improvements Single-family Multifamily
$ Billions
History Forecast
Source: History – U.S. Census Bureau; Forecast – Reed Construction Data

8. Reed residential starts
(3-month moving average year-over-year)
Source: Reed Construction Data
-60
-50
-40
-30
-20
-10
0
10
20
30
40
50
3-Month Moving Average, Year-over-Year % Change

9. New residential construction spending
Source: History – U.S. Census Bureau; Forecast – Reed Construction Data
100
150
200
250
300
350
400
450
500
550
93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
Billion $, SAAR

10. Residential construction spending components
Source: History – U.S. Census Bureau; Forecast – Reed Construction Data
0
50
100
150
200
250
300
350
400
450
Single-Family Multifamily Improvements
2002 2003 2004 2005 2006
2007 2008 2009 2010 2011
2012 2013 2014
$ Billions

11. Nonresidential building
construction has
struggled lately, but is
expected to perform
better in the second half
of this year and in 2014

12. Reed nonresidential building starts
(3-month moving average year-over-year)
Source: Reed Construction Data
-40
-35
-30
-25
-20
-15
-10
-5
0
5
10
15
20
25
30
3-Month Moving Average, Year-over-Year % Change

13. Nonresidential construction spending
Source: History – U.S. Census Bureau; Forecast – Reed Construction Data
200
225
250
275
300
325
350
375
400
425
450
475
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Billion $, SAAR

14. Nonresidential spending components
Source: History – U.S. Census Bureau; Forecast – Reed Construction Data
0
10
20
30
40
50
60
70
80
90
100
Hotel/Lodging Office Commerical
2002 2003 2004 2005 2006
2007 2008 2009 2010 2011
2012 2013 2014
$ Billions

15. Nonresidential spending components
Source: History – U.S. Census Bureau; Forecast – Reed Construction Data
0
10
20
30
40
50
60
70
80
90
100
110
Religious Healthcare Education
2002 2003 2004 2005 2006
2007 2008 2009 2010 2011
2012 2013 2014
$ Billions

16. Nonresidential spending components
Source: History – U.S. Census Bureau; Forecast – Reed Construction Data
0
10
20
30
40
50
60
70
Public safety Amusement and recreation Manufacturing
2002 2003 2004 2005 2006
2007 2008 2009 2010 2011
2012 2013 2014
$ Billions

17. Heavy engineering
(non-building)
construction held
up best over the
last few years

18. Despite considerable
challenges, the outlook
for heavy engineering
construction is fairly
positive

19. Reed heavy engineering starts
(3-month moving average year-over-year)
Source: Reed Construction Data
-40
-30
-20
-10
0
10
20
30
40
50
60
70
80
3-Month Moving Average, Year-over-Year % Change

20. Heavy engineering construction spending
Source: History – U.S. Census Bureau; Forecast – Reed Construction Data
150
175
200
225
250
275
300
325
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Billion $, SAAR

21. Heavy engineering spending components
Source: History – U.S. Census Bureau; Forecast – Reed Construction Data
0
10
20
30
40
50
60
70
80
90
100
110
120
130
Transportation Communication Power
2002 2003 2004 2005 2006
2007 2008 2009 2010 2011
2012 2013 2014
$ Billions

22. Heavy engineering spending components
Source: History – U.S. Census Bureau; Forecast – Reed Construction Data
0
10
20
30
40
50
60
70
80
90
100
110
Highway Water and Sewer Conservation
2002 2003 2004 2005 2006
2007 2008 2009 2010 2011
2012 2013 2014
$ Billions

23. Regional
economic
performance

24. Economic performance of the states
Source: Philadelphia Federal Reserve Bank

25. Economic performance of the states
Source: Philadelphia Federal Reserve Bank

26. Connect with Reed Construction Data
 Twitter
twitter.com/BMarkstein
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twitter.com/ReedConstrData
 Facebook
www.facebook.com/Reed-Construction-Data
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www.linkedin.com/company/reed-construction-data
 Web
www.reedconstructiondata.com

27. Contact information and links
Bernard M. Markstein
 Office: 301-588-5190
 Mobile: 404-952-3381
 b.markstein@reedbusiness.com
 U.S. Forecast and Commentary:
http://www.reedconstructiondata.com/market-
intelligence/articles/
 Blog:
http://www.reedconstructiondata.com/market-
intelligence/bernie-markstein/