iii

Abstract

The Construction and Building Subcommittee of the National Science and Technology

Council is developing baseline measures of current construction industry practices and

measures of progress with respect to each of the seven National Construction Goals. The

seven National Construction Goals are concerned with: (1) reductions in the delivery time

of constructed facilities; (2) reductions in operations, maintenance, and energy costs; (3)

increases in occupant productivity and comfort; (4) reductions in occupant-related

illnesses and injuries; (5) reductions in waste and pollution; (6) increases in the durability

and flexibility of constructed facilities; and (7) reductions in construction worker illnesses

and injuries. Baseline measures and measures of progress are being produced for each of

the four key construction industry sectors. The four sectors are: (1) residential; (2)

commercial/institutional; (3) industrial; and (4) public works. This document provides a

detailed set of baseline measures for National Construction Goal 2 (reductions in

operations, maintenance, and energy costs). As such, it describes data sources, data

classifications and hierarchies, and the metrics used to develop the baseline measures.

Extensive use of charts and tables is made throughout this document to illustrate the

process by which the baseline measures were developed.

Keywords

building economics; building materials; building maintenance; buildings; construction;

costs; economic analysis; energy costs; energy consumption; energy conservation;

maintenance costs; metrics; operations costs

v

Preface

This study was conducted by the Office of Applied Economics in the Building and Fire

Research Laboratory (BFRL) at the National Institute of Standards and Technology

(NIST). The study was sponsored by the Construction and Building Subcommittee of the

National Science and Technology Council. The BFRL project, of which this study is a

part, seeks to develop baseline measures and measures of progress with respect to each of

the seven National Construction Goals. These measures are to be disseminated both

through publications and, ultimately, electronically via the World Wide Web. The

intended audience for this document is the Construction and Building Subcommittee

member organizations as well as construction industry representatives and other

interested parties.

vii

Acknowledgments

The authors wish to thank all those who contributed so many excellent ideas and

suggestions which they have attempted to incorporate into this document. The authors

wish to thank Drs. Richard N. Wright and Arthur H. Rosenfeld, Co-Chairs of the

Construction and Building Subcommittee, and Dr. Andrew J. Fowell, Secretariat of the

Construction and Building Subcommittee, for their guidance, suggestions, and support.

The authors also wish to thank the British Government, the Royal Academy of

Engineering, and WS Atkins PLC, who provided both financial and technical support

throughout the preparation of this document. Special thanks are extended to Ms Alison

Bowen, Projects Manager at the Royal Academy of Engineering, and Dr. Tim Broyd,

Technology Development Director at WS Atkins. Special appreciation is extended to

Drs. Harold E. Marshall and Sieglinde K. Fuller of the Office of Applied Economics at

NIST’s Building and Fire Research Laboratory (BFRL) for the thoroughness of their

review and for their many insights and Ms. Sandy Kelley for her assistance in preparing

the manuscript for review and publication. Special appreciation is also extended to Ms.

Julia D. Rhoten of Virginia Polytechnic Institute and State University, formerly with

BFRL’s Office of Applied Economics, who helped immensely with the data collection

and analysis effort during her summer and winter internships.

ix

Table of Contents

Abstract.............................................................................................................................. iii

Keywords........................................................................................................................... iii

Preface..................................................................................................................................v

Acknowledgments............................................................................................................. vii

Executive Summary ....................................................................................................... xxix

1. Introduction.....................................................................................................................1

1.1 Background................................................................................................................1

1.2 Purpose ......................................................................................................................2

1.3 Scope and Approach..................................................................................................2

2. The National Construction Goals: A Tool for Promoting Competitiveness Within the

Construction Industry.....................................................................................................5

2.1 Description of the National Construction Goals........................................................5

2.2 Baseline Measures.....................................................................................................8

2.3 Measures of Progress.................................................................................................8

2.4 Interactions Between the National Construction Goals, the Baseline Measures,

and the Measures of Progress....................................................................................9

2.5 Project Approach .....................................................................................................10

2.5.1 Criteria for Data Selection.................................................................................11

2.5.2 Identify and Collect Data...................................................................................12

2.5.3 Consensus on Key Measures and Supporting Data...........................................13

2.5.4 Production and Dissemination of Baseline Measures and Measures of

Progress............................................................................................................13

2.5.5 Limitations of the Project Approach .................................................................13

2.6 How This Document Helps .....................................................................................15

3. Overview of the Construction Industry.........................................................................17

3.1 Value of Construction Put in Place..........................................................................17

3.2 Nature of Construction Activity ..............................................................................21

3.3 Employment in Construction...................................................................................36

3.4 Special Considerations ............................................................................................42

4. Developing Baseline Measures for Reductions in Operations, Maintenance, and

Energy (OM&E) Costs................................................................................................55

4.1 Data Classification Schemes ...................................................................................55

4.1.1 Industry Oriented...............................................................................................55

4.1.2 Data Oriented ....................................................................................................63

4.2 Data Collection and Analysis ..................................................................................67
x

5. OM&E Measures for the Residential Sector.................................................................71

5.1 Key Considerations for the Residential Sector........................................................71

5.1.1 Data Considerations: Sources, Availability, and Constraints............................71

5.1.2 Overview of the Residential Sector...................................................................75

5.2 Baseline Measures for the Residential Sector .........................................................84

5.2.1 Baseline Measures for Operations Costs...........................................................84

5.2.2 Baseline Measures for Maintenance Costs........................................................87

5.2.3 Baseline Measures for Energy Costs.................................................................93

5.2.4 Energy Conservation in the Residential Sector...............................................106

5.3 Summary of Baseline Measures for the Residential Sector...................................112

6. OM&E Measures for the Commercial/Institutional Sector ........................................117

6.1 Key Considerations for the Commercial/Institutional Sector................................117

6.1.1 Data Considerations: Sources, Availability, and Constraints .........................117

6.1.2 Overview of the Commercial/Institutional Sector...........................................122

6.1.2.1 General Overview .....................................................................................122

6.1.2.2 Operations and Maintenance and Repair Overview .................................129

6.1.2.3 Energy Overview ......................................................................................133

6.2 Baseline Measures for the Commercial/Institutional Sector .................................140

6.2.1 Baseline Measures for the Entire Commercial/Institutional Sector................141

6.2.2 Baseline Measures for Commercial Office Buildings.....................................152

6.2.3 Baseline Measures for Educational Facilities .................................................158

6.2.4 Baseline Measures for Shopping Centers........................................................167

6.2.5 Energy Conservation in the Commercial/Institutional Sector.........................174

6.3 Summary of Baseline Measures for the Commercial/Institutional Sector.............179

7. OM&E Measures for the Industrial Sector .................................................................185

7.1 Key Considerations for the Industrial Sector.........................................................185

7.1.1 Data Considerations: Sources, Availability, and Constraints..........................185

7.1.2 Overview of the Industrial Sector ...................................................................187

7.2 Baseline Measures for the Industrial Sector ..........................................................190

7.2.1 Baseline Measures for Operations and Maintenance Costs ............................190

7.2.2 Baseline Measures for Energy Costs...............................................................195

7.2.3 Baseline Measures for Operation, Maintenance, and Energy Costs Using

Data from the International Facility Management Association (IFMA)........209

7.2.4 Energy Conservation in the Industrial Sector..................................................218

7.3 Summary of Baseline Measures for the Industrial Sector .....................................222

8. OM&E Measures for the Public Works Sector...........................................................229

8.1 Key Considerations for the Public Works Sector..................................................229

8.1.1 Data Considerations: Sources, Availability, and Constraints.........................229

8.1.1.1 Primary Data Sources: Transportation Sub-Sector..................................229

8.1.1.2 Primary Data Sources: Power Utilities Sub-Sector..................................232

8.1.1.3 Primary Data Sources: Water Sub-Sector................................................233

8.1.1.4 Primary Data Sources: Pipelines Sub-Sector...........................................233
xi

8.1.2 Overview of the Transportation Sub-Sector - Introduction.............................233

8.1.2.1 General Overview of the Transportation Sub-Sector................................233

8.1.2.2 General Overview of Highway Transportation.........................................239

8.1.2.3 General Overview of Railroad Transportation..........................................252

8.1.2.4 General Overview of Transit Transportation............................................253

8.1.2.5 General Overview of Air Transportation..................................................253

8.1.2.6 General Overview of Water Transportation..............................................255

8.1.3 Overview of the Power Utilities Sub-Sector...................................................258

8.1.4 Overview of the Water Sub-Sector .................................................................259

8.1.5 Overview of the Pipelines Sub-Sector ............................................................260

8.2 Baseline Measures for the Public Works Sector....................................................261

8.2.1 Baseline Measures for the Transportation Sub-Sector....................................261

8.2.1.1 Baseline Measures for Highways Transportation .....................................261

8.2.1.2 Baseline Measures for Railroads ..............................................................276

8.2.1.3 Baseline Measures for Transit Systems....................................................279

8.2.1.4 Baseline Measures for Air Transportation................................................282

8.2.1.5 Baseline Measures for Water Transportation............................................283

8.2.2 Baseline Measures for the Power Utilities Sub-Sector ...................................289

8.2.3 Baseline Measures for the Water Sub-Sector..................................................295

8.2.4 Baseline Measures for the Pipelines Sub-Sector.............................................296

8.3 Summary of Baseline Measures for the Public Works Sector...............................298

9. Summary and Suggestions for Further Research ........................................................307

9.1 Summary................................................................................................................307

9.2 Suggestions for Further Research..........................................................................308

Appendix A. Data Classification Hierarchies for the Residential Sector .......................309

Appendix B. Data Classification Hierarchies for the Commercial/ Institutional

Sector.........................................................................................................313

Appendix C. Data Classification Hierarchies for the Industrial Sector ..........................317

Appendix D. Data Classification Hierarchies for the Public Works Sector ...................321

Appendix E. Assignment of States to Census Regions...................................................329

Appendix F. Two-Digit Standard Industrial Classification (SIC) Codes .......................331

Appendix G. List of Acronyms.......................................................................................333

References........................................................................................................................335
xii

List of Figures

Figure 3-1. Value of New Construction Put in Place........................................................21

Figure 3-2. Total Value of Construction Work: Comparison of Value Put in Place and

1992 Census of the Construction Industry ..................................................................30

Figure 3-3. Distribution of Total Construction Expenditures in 1992 by Nature of

Construction Activity ..................................................................................................30

Figure 3-4. Annual Expenditures for Maintenance and Repair Activities by Sector........31

Figure 3-5. Annual Expenditures for Additions and Alterations by Sector......................31

Figure 3-6. Comparison of Derived Data and Household Survey Data for Total

Expenditures on Improvements and Maintenance and Repairs in the Residential

Sector...........................................................................................................................33

Figure 3-7. Total Value of Construction Work.................................................................33

Figure 3-8. Relative Importance of the Construction Industry to the US Economy .........35

Figure 3-9. Construction Employment as a Proportion of the Total US Civilian

Workforce....................................................................................................................36

Figure 3-10. Number of Establishments with Payroll by Two-Digit SIC Code: 1992 .....39

Figure 3-11. Number of Employees for Establishments with Payroll by Two-Digit SIC

Code: 1992 ..................................................................................................................39

Figure 3-12. Value of Construction Work for Establishments with Payroll by Two-Digit

SIC Code: 1992 ...........................................................................................................40

Figure 3-13. Value Added for Establishments with Payroll by Two Digit SIC Code:

1992.............................................................................................................................41

Figure 3-14. Value Added per Employee for Establishments with Payroll: 1992............41

Figure 3-15. Average Cost per Square Foot and per Square Meter of New Construction

and Major Additions to Buildings...............................................................................42

Figure 3-16. Total US Water Withdrawals and Consumptive Use: 1980 to 1990............48
xiii

Figure 3-17. Comparison of Water Supply and Consumption in the Domestic,

Commercial, Industrial and Power Generation Sectors: 1990 ....................................48

Figure 3-18. Personal Consumption Expenditures for Water and Sanitary Services for

US Households............................................................................................................49

Figure 3-19. Energy Consumption by Sector....................................................................51

Figure 3-20. Energy Consumption in the Residential Sector............................................51

Figure 5-1. Size of US Housing Sector by Type of Structure: 1995.................................78

Figure 5-2. Total US Housing - Detailed Description of Types of Structure : 1995 ........78

Figure 5-3. Occupied Housing Units by Census Region : 1995 .......................................79

Figure 5-4. Total Housing Units by Age of Structure: 1995.............................................79

Figure 5-5. Size of Occupied Detached Single Family Homes and Mobile Homes: 1995

.....................................................................................................................................80

Figure 5-6. External Wall Construction (All Households): 1993 .....................................80

Figure 5-7. New Privately-Owned Housing Units Started................................................81

Figure 5-8. New Apartments Completed as a Percentage of Total New PrivatelyOwned Housing Units Started.....................................................................................81

Figure 5-9. New Mobile Homes Placed as a Percentage of Total New PrivatelyOwned Housing Units Started.....................................................................................82

Figure 5-10. Manufactured Housing Shipped and New Mobile Homes Placed as a

Percentage of New Privately-Owned Housing Started...............................................82

Figure 5-11. Median Sales Price of New Privately-Owned Single Family Housing .......83

Figure 5-12. Monthly Household Costs............................................................................85

Figure 5-13. Deliveries from Public Water Supply ..........................................................87

Figure 5-14. Expenditures by All Residential Properties for Improvements and

Maintenance and Repairs............................................................................................89
xiv

Figure 5-15. Total Expenditures per Household for Improvements and Maintenance and

Repairs.........................................................................................................................89

Figure 5-16. Total Expenditures for Improvements and Maintenance and Repairs by

Type of Unit ................................................................................................................90

Figure 5-17. Number of Owner Occupied Households Carrying Out Repairs Over Two

Years: 1993 .................................................................................................................92

Figure 5-18. Comparison of Maintenance Programs for Single Family Detached

Homes .........................................................................................................................93

Figure 5-19. Total Energy Consumption by End Use and Type of Housing ....................99

Figure 5-20. Total Energy Consumption by End Use and Census Region .....................100

Figure 5-21. Energy Expenditures per Household by End Use by Type of Unit............100

Figure 5-22. Energy Expenditures per Household by End Use and Census Region.......101

Figure 5-23. Total Energy Consumption by End Use and Year of Construction ...........102

Figure 5-24. Energy Expenditures per Household by End Use and Year of

Construction ..............................................................................................................102

Figure 5-25. Energy Expenditures per Household by End Use and Climate Zone.........103

Figure 5-26. Average Energy Expenditures for all Major Energy Sources by Type

of Unit .......................................................................................................................104

Figure 5-27. Average Energy Expenditures for all Major Energy Sources by

Location.....................................................................................................................105

Figure 5-28. Average Energy Expenditures for all Major energy Sources by Year of

Construction ..............................................................................................................105

Figure 5-29. Average Energy Expenditures for All Major Energy Sources by Climate

Zone...........................................................................................................................106

Figure 5-30. Residential Housing Energy Features: Households Participating in

Demand-Side Management Programs/With Set-Back Clocks..................................107

Figure 5-31. Households with Different Types of Glazing.............................................108
xv

Figure 5-32. Households with Different Types of Insulation .........................................108

Figure 5-33. Residential Appliances and Equipment: Electric .......................................110

Figure 5-34. Residential Appliances and Equipment: Natural Gas................................111

Figure 5-35. Residential Appliances and Equipment: Fuel Oil ......................................111

Figure 6-1. Total Number of Buildings by Principal Building Activity: 1992 and

1995...........................................................................................................................124

Figure 6-2. Total Floorspace by Principal Building Activity: 1992 and 1995................124

Figure 6-3. Total Floorspace by Principal Building Activity and Census Region:

1992...........................................................................................................................125

Figure 6-4. Total Number of Buildings by Building Size Category: 1992 and 1995 .....126

Figure 6-5. Total Floorspace by Building Size Category: 1992 and 1995......................126

Figure 6-6. Total Floorspace by Building Size Category and Census Region: 1992......127

Figure 6-7. Total Floorspace by Building Size Category and Number of Floors:

1992...........................................................................................................................127

Figure 6-8. Total Number of Buildings by Year of Construction: 1992 and 1995.........128

Figure 6-9. Total Floorspace by Year of Construction: 1992 and 1995 .........................128

Figure 6-10. Total Floorspace by Year of Construction and Census Region: 1992 .......129

Figure 6-11. Total Energy Consumption by Commercial Sector: 1979 to 1992 ............134

Figure 6-12. Total Primary Energy Consumption by Energy Source: 1992 ...................135

Figure 6-13. Total Site Energy Consumption by Energy Source: 1992..........................135

Figure 6-14. Total Energy Expenditures: 1992...............................................................136

Figure 6-15. Relative Costs of Different Energy Sources: 1992.....................................136

Figure 6-16. Total Energy Expenditures by Principal Building Activity: 1992..............137
xvi

Figure 6-17. Sum of Major Fuel Expenditures by Principal Building Activity and

Census Region: 1992.................................................................................................138

Figure 6-18. Sum of Major Fuel Expenditures by Building Size Category: 1992..........138

Figure 6-19. Sum of Major Fuel Expenditures by Weekly Hours of Operation: 1992...139

Figure 6-20. Sum of Major Fuel Expenditures by Year of Construction: 1992 .............140

Figure 6-21. IFMA Survey Sample: Gross, Rentable, and Usable Floorspace by

Industry Type: 1993 ..................................................................................................143

Figure 6-22. IFMA Survey Sample: Building Floorspace per Employee .......................145

Figure 6-23. Janitorial Costs by Industry Type...............................................................147

Figure 6-24. Environmental Costs by Industry Type ......................................................147

Figure 6-25. Detailed Environmental Costs by Industry Type........................................148

Figure 6-26. Life Safety Costs by Industry Type ............................................................148

Figure 6-27. Indirect Costs by Industry Type..................................................................149

Figure 6-28. Security Costs by Industry Type.................................................................149

Figure 6-29. Maintenance Costs by Industry Type .........................................................150

Figure 6-30. Total Utility Costs by Industry Type ..........................................................150

Figure 6-31. Utility Costs by Fuel Type and by Industry Type.......................................151

Figure 6-32. Comparison of Operating Expenses for All Private Sector Office

Buildings, Excluding Leasing and Fixed Expenses ..................................................156

Figure 6-33. Cleaning Expenses for All Private Sector Office Buildings ......................156

Figure 6-34. Repair/Maintenance Costs for All Private Sector Office Buildings...........157

Figure 6-35. Utilities Costs for All Private Sector Office Buildings..............................157

Figure 6-36. Comparison of Operations Costs for Identical Private Sector Office

Buildings between 1991 and 1995 ............................................................................158
xvii

Figure 6-37. Selected Operations Costs for All College and University Facilities.........161

Figure 6-38. Building and Custodial Maintenance Costs for Colleges and Universities

by Number of Students: 1993 and 1994....................................................................161

Figure 6-39. Electricity Cost by Funding Source for Colleges and Universities............162

Figure 6-40. Mean Gas Cost by Funding Source for Colleges and Universities............164

Figure 6-41. Water and Sewer Costs by Funding Source for Colleges and

Universities ...............................................................................................................165

Figure 6-42. Water and Sewer Costs by Number of Students for Colleges and

Universities ...............................................................................................................166

Figure 6-43. Comparison of Selected Operations Costs for All Open Shopping

Centers.......................................................................................................................168

Figure 6-44. Comparison of Selected Operations Costs for All Enclosed Shopping

Centers with Enclosed Common Areas.....................................................................169

Figure 6-45. Comparison of Selected Operations Costs for Enclosed Shopping

Centers with Non-Enclosed Common Areas ............................................................169

Figure 6-46. Summary of Range of Operations Costs for Open Shopping Centers .......172

Figure 6-47. Median Services Costs for Open Shopping Centers ..................................172

Figure 6-48. Median Maintenance and Repair Costs for Open Shopping Centers.........172

Figure 6-49. Median Utilities Costs for Open Shopping Centers...................................173

Figure 6-50. Building Heating Equipment by Building Size Category ..........................174

Figure 6-51. Building Cooling Equipment by Building Size Category ..........................175

Figure 6-52. Building Lighting Equipment by Building Size Category .........................176

Figure 6-53. Building Demand-Side Management Programs by Building Size

Category ....................................................................................................................176

Figure 6-54. Building Shell Conservation Features by Building Size Category.............177

Figure 6-55. Building HVAC Conservation Features by Building Size Category..........178
xviii

Figure 6-56. Building Lighting Conservation Features by Building Size Category .......178

Figure 7-1. Size of Establishments: 1992 .......................................................................188

Figure 7-2. Comparison of Value of Shipments, Purchased Services and Energy

Costs, All Industries: 1992........................................................................................189

Figure 7-3. Costs for Selected Purchased Services (All Manufactures): 1992 ...............190

Figure 7-4. Total Cost of Purchased Services for the Repair of Buildings by SIC

Code: 1992 ................................................................................................................192

Figure 7-5. Cost of Purchased Services per Employee for the Repair of Buildings by

SIC Code: 1992 .........................................................................................................192

Figure 7-6. Total Cost of Refuse Removal, Including Hazardous Waste, by SIC

Code: 1992 ................................................................................................................193

Figure 7-7. Cost of Refuse Removal per Employee, Including Hazardous Waste, by

SIC Code: 1992 .........................................................................................................193

Figure 7-8. Total Primary Energy Consumption by Type of Fuel: 1991 ........................196

Figure 7-9. Total Primary Consumption of Energy for All Purposes in Trillion Btu/

Trillion MJ: 1991 ......................................................................................................197

Figure 7-10. Total Expenditures for Purchased Energy Sources by SIC Code:

1991...........................................................................................................................199

Figure 7-11. Total Primary Consumption of Energy by Size of Establishment:

1991...........................................................................................................................200

Figure 7-12. Consumption per Employee by Employment Size: 1991...........................200

Figure 7-13. Total Inputs of Energy for Heat Power and Electrical Generation by

Type of Fuel and Primary End Use: 1991 .................................................................202

Figure 7-14. Comparison of Process and Non-Process Uses of Energy for Heat Power

and Electrical Generation for Electricity and Natural Gas: 1991..............................202

Figure 7-15. Total Inputs of Net Electricity for Heat Power and Electricity Generation

by End Use: 1991 ......................................................................................................203
xix

Figure 7-16. Total Inputs of Natural Gas for Heat Power and Electrical Generation by

End Use: 1991 ...........................................................................................................204

Figure 7-17. Non-Process Inputs of Electricity and Natural Gas by End Use: 1991 ......205

Figure 7-18. Total Net Electricity Inputs for Heat Power and Electrical Generation

by SIC Code and End Use: 1991...............................................................................206

Figure 7-19. Total Natural Gas Inputs for Heat and Power and Electrical Generation

by SIC Code and End Use: 1991...............................................................................206

Figure 7-20. Total Net Electricity Inputs for Facility HVAC, Lighting and Facility

Support: 1991............................................................................................................208

Figure 7-21. Total Natural Gas Inputs for Facility HVAC and Facility Support:

1991...........................................................................................................................208

Figure 7-22. IFMA Survey Sample: Gross, Rentable and Useable Floorspace by

Industry Type.............................................................................................................211

Figure 7-23. Janitorial Costs by Industry Type...............................................................213

Figure 7-24. Environmental Costs by Industry Type ......................................................213

Figure 7-25. Detailed Environmental Costs by Industry Type........................................214

Figure 7-26. Life Safety Costs by Industry Type ............................................................214

Figure 7-27. Indirect Costs by Industry Type..................................................................215

Figure 7-28. Security Costs by Industry Type.................................................................215

Figure 7-29. Maintenance Costs by Industry Type .........................................................216

Figure 7-30. Total Utility Costs by Industry Type ..........................................................217

Figure 7-31. Utility Costs by Fuel Type and by Industry Type.......................................217

Figure 8-1. Government Transportation Investment by Mode: 1987 .............................236

Figure 8-2. Proportional Distribution of Freight Traffic by Mode: 1993 .......................238

Figure 8-3. Proportional Distribution of Passenger Traffic by Mode: 1993...................238
xx

Figure 8-4. Total Highway Mileage by Functional Type: 1993......................................239

Figure 8-5. Total Highway Mileage by Geographic Location: 1993 ..............................240

Figure 8-6. Total Highway Mileage by Jurisdiction: 1993 .............................................241

Figure 8-7. Urban Highway Mileage by Jurisdiction: 1994............................................241

Figure 8-8. Rural Highway Mileage by Jurisdiction: 1994.............................................242

Figure 8-9. State Highway Administered Roads in Rural Areas - Mileage by

Functional Type: 1994...............................................................................................243

Figure 8-10. Locally Administered Roads in Rural Areas - Mileage by Functional

Type: 1994.................................................................................................................243

Figure 8-11. State Highway Administered Roads in Urban Areas - Mileage by

Functional Type: 1994...............................................................................................245

Figure 8-12. Locally Administered Roads in Urban Areas - Mileage by Functional

Type: 1994.................................................................................................................245

Figure 8-13. Number of Rural Bridges Greater Than or Equal to 20 Feet: 1994 ...........246

Figure 8-14. Number of Urban Bridges Greater Than or Equal to 20 Feet: 1994 ..........246

Figure 8-15. Rural Pavement Type: 1994.......................................................................247

Figure 8-16. Urban Pavement Type: 1994......................................................................247

Figure 8-17. Rural Pavement Condition by Functional System: 1994 ...........................249

Figure 8-18. Urban Pavement Condition by Functional System: 1994 ..........................249

Figure 8-19. Prices for Selected Federal Highway Construction Activities: 1980 to

1994...........................................................................................................................250

Figure 8-20. Railroads Operated in 1995 by Type..........................................................252

Figure 8-21. Domestic Waterborne Traffic by Type of Traffic: 1980 to 1995 ...............255

Figure 8-22. Highway Disbursements, All Government: 1994 ......................................263

Figure 8-23. Total Highway Disbursements by Type of Government: 1994..................264
xxi

Figure 8-24. State-Administered Highway Disbursements by Type: 1994 ....................264

Figure 8-25. State Highway Disbursements by Type of Disbursement: 1994................266

Figure 8-26. State Highway Capital Outlays in Urban Areas by Functional System:

1994...........................................................................................................................267

Figure 8-27. State Highway Capital Outlays in Rural Areas by Functional System:

1994...........................................................................................................................267

Figure 8-28. State Highway Capital Expenditures for Interstates in Urban Areas:

1994...........................................................................................................................269

Figure 8-29. State Highway Capital Expenditures for Arterial in Urban Areas:

1994...........................................................................................................................269

Figure 8-30. State Highway Capital Expenditures for Urban Collectors: 1994..............270

Figure 8-31. State Highway Capital Expenditures for Rural Interstates: 1994...............271

Figure 8-32. State Highway Capital Expenditures for Arterial in Rural Areas:

1994...........................................................................................................................271

Figure 8-33. State Highway Capital Expenditures for Rural Collectors: 1994...............272

Figure 8-34. State Highway Maintenance Outlays in Urban Areas by Functional

System: 1994.............................................................................................................272

Figure 8-35. State Highway Maintenance Outlays in Rural Areas by Functional

System: 1994.............................................................................................................273

Figure 8-36. Local Government Highway Capital Expenditures by Type: 1993............275

Figure 8-37. Local Government Capital Expenditures in Urban Areas by Type:

1993...........................................................................................................................275

Figure 8-38. Local Government Capital Expenditures in Rural Areas by Type:

1993...........................................................................................................................276

Figure 8-39. Selected Class I Railroad Expenses by Type: 1980 to 1992 ......................277

Figure 8-40. Comparison of Total Class I Operating Expenses by Type: 1996 .............278

Figure 8-41. Selected Class I Railroad Maintenance and Repair Expenses: 1996 .........279
xxii

Figure 8-42. Passenger Transit Industry Operating Expenses by Type: 1985 to

1995...........................................................................................................................281

Figure 8-43. Total Expenditures for Dredging by USACE and Industry, by Type:

1980 to 1995..............................................................................................................288

Figure 8-44. Dredging Expenditures Per Cubic Yard/Cubic Meter: 1980 to 1995 ........288

Figure 8-45. USACE Total Expenditures for Navigation: 1992 to 1996........................289

Figure 8-46. Net Generation at Electric Utilities by Source of Power: 1996..................290

Figure 8-47. Net Generation at Non-Utility Power Producers by Source of Power:

1996...........................................................................................................................290

Figure 8-48. Total Electric Utility Retail Sales by Sector: 1996 ....................................292

Figure 8-49. USACE Total Expenditures for Flood Control: 1992 to 1996...................297

Figure 8-50. USACE Expenditures for Multi-Purpose Power Projects: 1992 to

1996...........................................................................................................................297
xxiii

List of Tables

Table 2-1. Phases in the Development of Baseline Measures ..........................................11

Table 3-1. Value of New Construction Put in Place.........................................................20

Table 3-2 Four-Digit SIC Codes for the Construction Industry........................................25

Table 3-3. Comparison of Derived Data and Household Survey Data for Total

Expenditures on Improvements and Maintenance and Repairs in the Residential

Sector...........................................................................................................................32

Table 3-4. Value of Construction Work in Millions of Constant 1992 Dollars: 1992 to

1996.............................................................................................................................34

Table 3-5. Employment and Output Figures for the Construction Industry: 1992 ...........38

Table 3-6. Background Information Used to Compute Average Cost per Square

Foot and Average Cost per Square Meter Figures ......................................................43

Table 3-7. Total Offstream Water Use by Water Resources Region: 1990......................46

Table 3-8. Costs of Operation Data from the Census of Service Industries: 1992 ...........49

Table 3-9. Energy Consumption by Sector.......................................................................52

Table 5-1. Comparative Costs of Site-Built and Manufactured Housing .........................83

Table 5-2. Domestic Freshwater Use: 1990......................................................................85

Table 5-3. Summary of Expenditures for Additions and Alterations, Major

Replacements, and Maintenance and Repairs: 1980 to 1996......................................90

Table 5-4. Expenditures by Census Region - All Owner Occupied Single Units...........91

Table 5-5. Expenditures by Type of Job - All Owner Occupied Units.............................92

Table 5-6. Total Energy Consumption and Expenditures - All Energy Sources ..............95

Table 5-7. Energy Expenditures per US Household, by End Use - All Energy

Sources........................................................................................................................97
xxiv

Table 5-8. Average Consumption and Expenditures for All Major Energy

Sources........................................................................................................................98

Table 5-9. Residential Housing Conservation Features: 1993........................................109

Table 5-10. Energy Efficiency Recommendations for Selected Residential Appliances

and Equipment ..........................................................................................................112

Table 5-11. Energy Efficiency Recommendations for Refrigerators..............................112

Table 5-12. Summary of Baseline Measures: Residential Sector...................................114

Table 6-1. Operating Expenses by Type and Business: 1992 (Millions of Dollars).......131

Table 6-2. Commercial Freshwater Use: 1990 ...............................................................132

Table 6-3. Summary of Maintenance and Repair Cost Profiles: 1996 ...........................133

Table 6-4. IFMA Survey Sample: Gross, Rentable and Usable Floorspace by Industry

Type...........................................................................................................................142

Table 6-5. IFMA Survey Sample: Area per Employee ...................................................144

Table 6-6. Summary of Office Building Expenses - All Buildings in Private Sector:

1995...........................................................................................................................153

Table 6-7. Mean Expenses for All Private Sector Office Buildings: 1995.....................155

Table 6-8. Selected Operations Costs for College and University Facilities by Funding

Source, Region, and Number of Students.................................................................160

Table 6-9. Mean Electricity Usage by Funding Source, Region, and Number of

Students.....................................................................................................................162

Table 6-10. Mean Gas Consumption by Funding Source, Region and Number of

Students.....................................................................................................................164

Table 6-11. Water and Sewer Consumption by Funding Source, Geographic Location

and Number of Students............................................................................................166

Table 6-12. IREM Sample Distribution for Shopping Centers: 1995.............................168

Table 6-13. Operations Expenses: All Open Shopping Centers.....................................171
xxv

Table 6-14. Water Conservation Recommendations for Selected Fixtures....................179

Table 6-15. Summary of Baseline Measures: Commercial/Institutional Sector.............181

Table 7-1. Industrial Water Use: 1990............................................................................194

Table 7-2. Total Primary Energy Consumption for All Purposes by Fuel Type and

Industry Group: 1991 ................................................................................................198

Table 7-3. Total Net Electricity and Natural Gas Inputs for Heat and Power and

Electrical Generation by SIC Code and Selected End Use: 1991 .............................207

Table 7-4. IFMA Survey Sample: Gross, Rentable and Useable Floorspace by Industry

Type...........................................................................................................................210

Table 7-5. IFMA Survey Sample: Gross, Rentable and Useable Floorspace per

Employee by Industry Type and Facility Use............................................................211

Table 7-6. Participation in Selected Demand Side Management Programs ...................220

Table 7-7. Performance Targets for the Aluminum Industry..........................................221

Table 7-8. Performance Targets for the Aluminum Industry Primary Products

Sector.........................................................................................................................222

Table 7-9. Summary of Baseline Measures: Industrial Sector........................................224

Table 8-1. Government Transportation Investment by Mode : 1983 and 1993..............234

Table 8-2. Transportation Construction Expenditures....................................................235

Table 8-3. Volume of Domestic Intercity Freight and Passenger Traffic: 1980 to

1993...........................................................................................................................237

Table 8-4. Highway Mileage by Functional System, Jurisdiction, and Location:

1994...........................................................................................................................244

Table 8-5. Bridge Conditions by Functional System: 1990 and 1994 ............................248

Table 8-6. Highway Improvement Costs in Urban Areas: 1989.....................................251

Table 8-7. Leading US Airports: 1995............................................................................254

Table 8-8. Summary of U.S. Seaport Terminals and Berths by Coastal Region ............256
xxvi

Table 8-9. US Inland/Riverport Terminal Facilities by State .........................................257

Table 8-10. Number of Establishments in the Power Utilities Sub-Sector: 1992 ..........258

Table 8-11. Number of Establishments in the Water Sub-Sector: 1992.........................259

Table 8-12. Number of Establishments in the Pipelines Sub-Sector: 1992....................260

Table 8-13. Highway Disbursements for All Government by Expending Agency:

1994...........................................................................................................................263

Table 8-14. State Highway Capital and Maintenance Outlays in Rural, Small Urban,

and Urbanized Areas by Functional System: 1994 ...................................................268

Table 8-15. State Highway Maintenance Outlays: 1994.................................................274

Table 8-16. Detailed Description of Operating Expenses for All Class I Railroads.......277

Table 8-17. Selected Class I Railroad Operating Expenses: 1996..................................280

Table 8-18. Passenger Transit Industry Operating Expenses: Source Data ....................281

Table 8-19. Percentage Distribution of Rail Transit Operating Costs by Type of

System: 1989.............................................................................................................282

Table 8-20. Estimated Operating Costs for Denver International Airport: 1996............284

Table 8-21. US Port Capital Expenditures (Thousands of Dollars): 1992 to 1994 ........285

Table 8-22. US Port Capital Expenditures (Thousands of Dollars) by Type of Facility:

1994...........................................................................................................................286

Table 8-23. Dredging Costs and Volumes by USACE and Industry: 1980 to 1995.......287

Table 8-24. Electric Power Industry Net Generation: 1992 to 1996...............................290

Table 8-25. Electric Utility Retail Sales of Electricity by End-Use Sector: 1980 to

1996...........................................................................................................................292

Table 8-26. Water Use By The Thermoelectric Power Industry: 1990...........................293

Table 8-27. Hydroelectric Power Water Use: 1990 ........................................................294

Table 8-28. Construction and Maintenance and Repair Expenditures: 1992 .................295
xxvii

Table 8-29. Construction and Maintenance and Repairs Expenditures: 1992................295

Table 8-30. Total USACE Expenditures for New Construction and Operations and

Maintenance for Flood Control and Power Projects: 1990 to 1996..........................296

Table 8-31. New Construction and Maintenance and Repair: 1992 ..............................298

Table 8-32. Summary of Baseline Measures: Public Works Sector...............................301

xxix

Executive Summary

The Construction and Building Subcommittee of the National Science and Technology

Council has established seven National Construction Goals in collaboration with a broad

cross section of the construction industry.i Data describing current practices of the US

construction industry are needed to establish baselines against which the industry can

measure its progress towards achieving the seven National Construction Goals. The

Goals are: (1) reductions in the delivery time of constructed facilities; (2) reductions in

operations, maintenance, and energy costs; (3) increases in occupant productivity and

comfort; (4) reductions in occupant-related illnesses and injuries; (5) reductions in waste

and pollution; (6) increases in the durability and flexibility of constructed facilities; and

(7) reductions in construction worker illnesses and injuries. Baseline measures and

measures of progress will be produced for each National Construction Goal in each of the

four key construction industry sectors. The four sectors are: (1) residential; (2)

commercial/institutional; (3) industrial; and (4) public works.

This document is the first in a series of studies prepared by NIST’s Building and Fire

Research Laboratory.ii It provides a detailed set of baseline measures for National

Construction Goal 2, reductions in operations, maintenance, and energy costs. The

baseline measures characterize current industry performance for Goal 2. Industry

performance in 1994 is used as the reference point from which the values of the baseline

measures are calculated. Goal 2 was identified as one of the highest priority National

Construction Goals by the construction industry.

Operations, maintenance, and energy (OM&E) costs are a major factor in the life-cycle

costs of a constructed facility. In some cases, OM&E costs over the life of a facility

exceed its first cost. However, because reductions in OM&E costs are often associated

with increased first costs, facility owners may under invest in cost-saving technologies.

Operations is defined as including all non-process or end-product related activities

required to operate a building or structure, with the exception of maintenance and

repair activities, which are considered separately. Examples of operations

components are water consumption, trash removal, and cleaning services.

Maintenance and Repair activities include incidental work which keeps a property in

working order, without adding value to it. Typical cost components might include

roof, plumbing, electrical, or security system maintenance and repair.

 

i

 Wright, Richard N., Arthur H. Rosenfeld, and Andrew J. Fowell. 1995. Construction and Building:

Federal Research and Development in Support of the US Construction Industry. Washington, DC:

National Science and Technology Council.

ii A subsequent companion document focuses on National Construction Goal 1. For information on

reductions in the delivery time of constructed facilities, see Chapman, Robert E., and Roderick Rennison.

1998. An Approach for Measuring Reductions in Delivery Time: Baseline Measures of Construction

Industry Practices for the National Construction Goals. NISTIR 6189. Gaithersburg, MD: National

Institute of Standards and Technology.
xxx

Energy is defined as including all non-process or end-product related energy

consumption required to operate a building or structure. Thus energy consumption

for manufacturing processes or vehicle or vessel operations is generally excluded.

Typically, energy consumption can be categorized by energy source, and by assigned

end-use (e.g., space heating, cooling, and lighting).

Reductions in OM&E costs will produce two types of benefits. First, constructed

facilities will become more affordable because facility owners and operators are making

more cost effective choices among investments (e.g., design configurations) which affect

life-cycle costs. Second, these same facilities will better conserve scarce energy

resources.

The intended audience for this document is the Construction and Building Subcommittee

member organizations, the four sector council member organizations,iii construction

industry representatives, and other interested parties. In addition, because this document

includes both detailed information on the baseline measures for National Construction

Goal 2 and a compilation of statistics on the four sectors and the construction industry as

a whole, it is anticipated that this document will serve as a resource reference for readers

with a wide variety of interests in the construction industry.

This document has nine chapters and seven appendices. Chapter 1 explains the purpose,

scope, and general approach. Chapter 2 introduces the National Construction Goals,

describes how a well-defined set of metrics is used to develop the baseline measures and

measures of progress, and outlines the project approach. Chapter 3 provides an overview

of the construction industry. The overview provides the context within which the

baseline measures are developed. Chapter 4 presents two data classification schemes.

These data classification schemes are used to construct data hierarchies from which key

metrics are derived and used to develop the baseline measures. Chapters 5 through 8

present an overview and detailed baseline measures for each of the four construction

industry sectors: Chapter 5 covers the residential sector; Chapter 6 covers the

commercial/institutional sector; Chapter 7 covers the industrial sector; and Chapter 8

covers the public works sector. The overview of each sector examines the sector size,

changes in the sector, and key sector characteristics. The detailed baseline measures

examine operations, maintenance, and energy categories separately. The key OM&E

baseline measures for each sector are summarized in tabular form at the end of that

sector’s chapter. Chapter 9 concludes the document with a summary and suggestions for

further research. The individual data hierarchies for each construction industry sector are

presented in Appendices A through D. Each sector occupies an appendix: Appendix A

covers the residential sector; Appendix B covers the commercial/institutional sector;

Appendix C covers the industrial sector; and Appendix D covers the public works sector.

Three additional appendices are also included as an aid to cross referencing terms,

 

iii The four sector council member organizations are: (1) National Association of Home Builders Research

Center (residential); (2) National Institute of Building Sciences (commercial/institutional); (3) Construction

Industry Institute (industrial); and (4) American Public Works Association (public works).
xxxi

statistical information, and other material contained in this document. Appendix E lists

the assignment of each state to one of the four census regions: (1) Northeast; (2) Midwest;

(3) South; or (4) West. Appendix F lists the two-digit Standard Industrial Classification

(SIC) Codes. Appendix G provides a list of acronyms and their definitions.

Chapter 2 provides perspective on the overall effort to develop baseline measures and

measures of progress for each of the seven National Construction Goals. First, each

National Construction Goal is introduced and described. Next, the process for developing

baseline measures for each Goal is described. This process involves: (1) specifying a

data-oriented hierarchy; (2) collecting and compiling the key data and supporting

information for the base year, 1994; (3) defining metrics for each goal/sector

combination; and (4) producing the metrics in a summary form (i.e., figures and tables to

depict the metrics). The methods for measuring progress use the baselines as their

reference point. Because the National Construction Goals may be specified as targets

measured against baseline values, “gap analysis” is the preferred method for defining the

measures of progress. The advantage of the gap analysis method is that it employs the

same values for each measure as used in computing the baselines. The gap analysis

method measures how much of the initial gap (i.e., between the baseline value and the

goal value) has been closed by some future date. Criteria are then presented which ensure

that the data selected for analysis are well-defined, consistent, and replicable. The

chapter also outlines a strategy for collecting and disseminating information on each

National Construction Goal.

Chapter 3 provides a snapshot of the US construction industry. As such, it provides the

context within which the baseline measures are developed. An extensive set of statistics

has been compiled on each sector; many of these statistics are included in Chapter 3.

These statistics are useful not only as a tool for defining the baseline measures but also as

a resource reference for readers with a wide variety of interests in the construction

industry.

Chapter 3 contains four sections. Each section deals with a particular topic. The topics

progress from general in nature to very specific. First, information on the value of

construction put in place is provided to show the size of the construction industry and

each of its four sectors—residential, commercial/institutional, industrial, and public

works. Second, information on the nature of construction activity for each sector of the

industry is presented. The SIC Codes for the construction industry are introduced and

described as a means for organizing construction activity. Information on the nature of

construction activity includes breakouts between new construction activities, maintenance

and repair activities, and additions and alterations. The challenge of developing annual

estimates for each sector by nature of construction activity is described. Examples are

given which demonstrate how different data sources result in major differences in a

particular year’s estimates. Third, information on employment in the construction

industry is summarized and a series of employment-related statistics are presented. The

SIC Codes for the construction industry are used as a means for organizing key

employment-related information. Comparisons between employment and output in the
xxxii

construction industry and employment and output in the overall US economy are also

included. Fourth, information on cost trends and on other, special considerations, is

presented.

The construction industry is a key component of the US economy. Total construction

investment represents about 11 percent of Gross Domestic Product. A key indicator of

construction activity is the value of new construction put in place. Data published by the

US Bureau of the Census, a part of the US Department of Commerce, are used to

establish the composition of construction expenditures by type of construction. These

expenditures are then assigned to one of the four key construction industry sectors.

Table ES-1 summarizes both the annual sector totals and the sum total. Since 1992, the

value of new construction put in place has risen slightly from $393.8 billion in 1992 to

$435.5 billion in 1996 in constant 1992 dollars. The largest component of new

construction over this period was in the residential sector (about 32 percent of the total),

with the smallest component in the industrial sector (about 6 percent).

Table ES-1. Value of New Construction Put in Place in Millions of 1992 Dollars:

Sector Totals and Sum Total

Sector Value of Construction Put in Place ($ Millions)

1992 1993 1994 1995 1996

Residential 133,658 141,076 156,576 146,167 157,846

Commercial/Institutional 122,960 125,770 128,116 137,006 149,445

Industrial 30,902 27,212 28,161 30,391 29,219

Public Works 106,311 103,762 103,360 101,593 98,973

Total – All Sectors 393,831 397,820 416,213 415,157 435,483

Chapter 4 covers the data classification schemes, how the sectors were defined, how data

sources were identified, and how key OM&E data were collected. Data classification

hierarchies were developed for each of the four industry sectors. These hierarchies were

essential in order to be able to sort data into relevant sectors, to prioritize the data, and to

establish data linkages. Initially, an “idealized” hierarchy was developed for each sector.

Idealized hierarchies were developed with a view to defining for the four industry sectors

the extent and key components considered relevant to Goal 2. Within each sector

hierarchy, the key components likely to have an impact upon the Goal are examined. The

data oriented hierarchies represent the modification of the idealized hierarchies to reflect

data availability and constraints. This is an important step in ensuring that the baseline

measures remain succinct (see Appendices A through D where the data oriented

hierarchies are presented). The two primary types of data collected were electronic data

and published data. As data were collected, the data oriented hierarchies for each

industry sector were refined to reflect data availability constraints. Section 4.2

summarizes the extensive data searches of publicly accessible Federal Agency databases

carried out by the authors. A further set of data searches focused upon research, trade,
xxxiii

professional, private sector, and academic organizations. In addition, a number of useful

data sources have been identified where organizations are systematically collecting and

publishing data. The key sources of data and information, including those that are

accessible electronically, are listed in Section 4.2 and in the References section.

Chapter 5 describes the residential sector and traces the development of the baseline

measures for the residential sector. The baseline measures for the residential sector are

based on data published by the US Bureau of the Census and the Energy Information

Administration (EIA), a part of the US Department of Energy.

The Census data are used to develop baseline measures for operations costs and

maintenance and repair costs for the residential sector. The Census data are drawn from

the 1995 American Housing Survey (AHS). The AHS collects data on the nation’s

housing, including apartments, single-family homes, mobile homes, and vacant housing

units. National data are collected every other year; the sample covers approximately

55,000 homes. Data from the 1995 AHS are used to develop the baseline measures for

water consumption, trash removal, and maintenance and repair expenditures.

The EIA data are used to develop baseline measures for energy costs for the residential

sector. The EIA data are drawn from the 1993 Residential Energy Consumption Survey

(RECS), the most recent survey data currently available. The EIA has carried out the

RECS triennially since 1984. In the 1993 RECS, data were collected from a

representative sample of seven thousand households. The survey collects data on the type

of housing unit, year of construction, space heating, water heating, air conditioning, fuels,

equipment, appliances, and demographic characteristics of the occupants. Energy

consumption and expenditure data are obtained from the household’s energy suppliers.

The RECS data are linked to weather data for each building. The RECS is the most

comprehensive source of national level energy data for the residential sector.

The key baseline measures for the residential sector are summarized in Table ES-2. It is

important to note that the data recorded in Table ES-2 are either for 1993 (RECS) or 1995

(AHS) rather than for the reference year 1994. All values recorded in Table ES-2 are

annual expenditures per household. Reference to the table shows that energy

expenditures are the most significant component of residential OM&E costs. Operations

expenditures for water consumption and trash removal are $300 and $180 per annum,

respectively. Expenditures for maintenance and repairs are $300 per annum.

Chapter 6 describes the commercial/institutional sector and traces the development of the

baseline measures for the commercial/institutional sector. The baseline measures for the

commercial/institutional sector are based on data published by the EIA, the International

Facilities Management Association, the Building Owners and Managers Association, the

Association of Higher Education Facilities Officers, and the Institute of Real Estate

Management.
xxxiv

Table ES-2. Selected Baseline Measures for the Residential Sector: Annual

Expenditures per Household

Baseline Measure Value Year

Water Consumption $300 1995

Trash Removal $180 1995

Maintenance and Repair $300 1995

Space Heating $419 1993

Air Conditioning $177 1993

Water Heating $177 1993

Refrigerators $124 1993

Appliances $455 1993

The EIA data are used to define the sector and to generate general baselines. Data from

the 1992 and 1995 Commercial Buildings Characteristics Reports were used to focus

attention on a select subset of the types of commercial/institutional buildings/facilities

surveyed by EIA. These data revealed that educational, mercantile and service, and office

buildings accounted for over 60 percent of total commercial/institutional sector

floorspace in the US in 1992 and 1995. In addition, data from the 1992 Commercial

Buildings Energy Consumption Survey have been used to generate general baselines for

energy consumption and expenditures in the commercial/institutional sector. These data

are also used to develop information about energy conservation in the commercial/

institutional sector (e.g., participation in energy management programs).

The other sources were used to develop detailed OM&E baseline measures for either the

entire sector or one of the three principal components of the commercial/institutional

sector (i.e., educational, mercantile and service, and office buildings). Baselines for the

entire commercial/institutional sector are based primarily on published data from the

International Facility Management Association. Baselines for educational facilities are

based on published data from the Association of Higher Education Facilities Officers.

Baselines for shopping centers, a key subset of the mercantile and service component, are

based on published data from the Institute of Real Estate Management. Baselines for

commercial office buildings are based on published data from the Building Owners and

Managers Association.

The key baseline measures for the commercial office buildings component of the sector

are summarized in Table ES-3. Note that the data recorded in Table ES-3 are for 1995.

The table records information on three types of operations costs: administrative, cleaning,

and roads/grounds/security. These costs range from $5.49 per rentable square meter for

roads/grounds/security to $11.73 per rentable square meter for cleaning. Note that the

costs of water consumption/treatment are included under utilities. This differs from the

residential sector where the costs of water consumption/treatment were included under

operations costs. Maintenance and repair costs averaged $14.20 per rentable square
xxxv

meter. Utilities averaged $19.58 per rentable square meter. As expected, electricity is the

primary cost component, representing $17.01 per rentable square meter ($1.58 per

rentable square foot).

Table ES-3. Selected Baseline Measures for Commercial Office Buildings: Annual

Expenditures for 1995

Baseline Measure Dollars per Rentable Square

Foot Meter

Administrative 1.03 11.08

Cleaning 1.09 11.73

Roads/Grounds/Security 0.51 5.49

Maintenance and Repair 1.32 14.20

Utilities (including water) 1.82 19.58

Chapter 7 describes the industrial sector and traces the development of the baseline

measures for the industrial sector. The industrial sector comprises all manufacturing

industries with SIC Codes between 20 and 39 inclusive. The baseline measures for the

industrial sector are based on data published by the US Bureau of the Census and EIA.

Data published by the International Facilities Management Association for a select set of

SIC Codes are also described. The chapter also includes information about energy

conservation in the industrial sector (e.g., fuel switching capability within the industrial

sector and the level of participation in energy management programs).

The Census carries out a number of surveys of the industrial sector, most notably the

Census of Manufactures. The 1992 Census of Manufactures provides a large amount of

data relevant to value of shipments, value added by manufacturer, payroll costs, and

materials costs. Most of these items are predominantly process-oriented, and are

therefore considered to be beyond the scope of this document. The focus of this

document is on non-process costs associated with industrial facilities (i.e., facility

management components, such as building maintenance and repair, facility HVAC, and

lighting costs). Due to the heavy emphasis on process-related activities, the baseline

measures for operations costs and maintenance and repair costs for this sector are highly

aggregated. Baseline measures are given on the cost for refuse removal, a key component

of operations costs, and for the repair of buildings and structures, a key component of

maintenance and repair costs. These baselines are presented for the industrial sector in its

entirety and for each major two-digit SIC Code within the industrial sector. The

aggregate cost of refuse removal was $4.4 billion in 1992. The aggregate cost for repair

of buildings and structures was $5.4 billion in 1992.

Energy baselines for the industrial sector are based on the Manufacturing Energy

Consumption Survey (MECS). The MECS includes a wealth of information on both

process and non-process related energy consumption. The total primary consumption of

energy for all purposes in the US industrial sector in 1991 was 21.4 quadrillion kilojoules
xxxvi

(20.3 quadrillion Btu), the vast majority of which was process related. When all energy

sources are considered, direct non-process uses accounted for only 12 percent of total

energy consumption. The largest non-process end-uses of net electricity and natural gas

were facility HVAC, facility lighting, and facility support. Facility HVAC inputs

accounted for about 3 percent of all energy inputs, facility lighting accounted for about 1

percent, and facility support accounted for less than one half of 1 percent. Thus nonprocess facility costs are generally very small compared with process costs.

Chapter 8 describes the public works sector and traces the development of the baseline

measures for the public works sector. The public works sector is the most diverse of the

four industry sectors. For this reason, it has been divided into a number of sub-sectors.

These are Transportation (which includes five transportation modes: road, rail, transit,

water, and air), Power Utilities (which includes the generation and distribution of

electricity, gas, and steam), Water (which includes the storage, supply, and treatment of

water, plus flood and storm water control), and Pipelines (which includes pipelines for

the transport of petroleum and other commodities except natural gas). The baseline

measures for the public works sector are summarized in Table 8-32 in Section 8.3. Brief

descriptions of each sub-sector are given in the text that follows.

Transportation plays a pivotal role in the US economy. The Bureau of Transportation

Statistics estimates that transportation service in 1993 accounted for about 11 percent of

Gross Domestic Product. Governments invest heavily in transportation infrastructure and

equipment.

The most widely used form of transportation in the US is the highway. In 1993, all levels

of government--federal, state, and local--invested heavily in highways. State government

put 92 percent of their transportation funds into highways, local governments 47 percent,

and the federal government 32 percent. Almost 90 percent of public investment in

highways for 1993 was for construction. The highway network comprises 6.28 million

kilometers (3.9 million miles) of public roads, which are operated primarily by state and

local governments. The total size of the US highway system has been relatively stable for

many years. The public road network is classified according to the traffic functions the

roads are intended to serve. The functional types identified in this document are

Interstates, freeways and expressways, arterials, collectors, and local roads.

Table ES-4 shows how state maintenance outlays in 1994 vary by functional system in

urban and rural areas. The table also includes, for a select subset of these data, baseline

measures normalized on a per-lane kilometer (mile) basis. These baseline measures

facilitate comparison of maintenance costs by type of road and geographic location.

Table ES-4 shows that the baseline values of annual maintenance costs per-lane kilometer

for all state-administered highways are about $1900 ($1894 per-lane kilometer). The

baseline values of annual maintenance costs for rural highways are under half those of

urban maintenance costs. However, urban and rural Interstate costs are significantly

higher than the average for all highways, with annual urban costs of about $5,200 perlane kilometer and annual rural Interstate costs of about $3,850 per-lane kilometer.
xxxvii

Table ES-4. Baseline Measures for State Highway Maintenance Expenditures: 1994

Functional

System

Total

Maintenance

Cost

(Thousands of

Dollars)

Estimated

Maintenance

Cost per Mile

(Dollars)

Estimated

Maintenance

Cost per Lane

Mile (Dollars)

Estimated

Maintenance

Cost per

Kilometer

(Dollars)

Estimated

Maintenance

Cost per Lane

Kilometer

(Dollars)

Urban

Interstates/

Freeways and

Expressways

926,293 42,769 8,344 26,581 5,186

Urban

Arterial

931,289 15,287 - 9,501 -

Urban

Collector

80,743 7,768 - 4,828 -

All Urban

Highways

1,938,325 17,619 5,595 10,950 3,477

Rural

Interstate

816,351 25,152 6,218 15,632 3,865

Rural Arterial 1,593,794 6,995 - 4,347 -

Rural

Collector

1,122,314 4,200 - 2,610 -

All Rural

Highways

3,532,459 5,116 2,439 3,180 1,516

All Highways 5,470,784 6,835 3,048 4,248 1,894

The power utilities sub-sector provides baseline measures for power generation, including

the distribution of natural gas. General information about the size of the sub-sector, in

terms of number of operating establishments and kilometers (miles) of pipeline operated,

provides the context within which the baselines are developed. The baselines cover water

use by the sub-sector, capital expenditures for construction, and expenditures for

maintenance and repair by SIC Code.

The water sub-sector provides baseline measures for water supply, treatment, and flood

control. The baselines cover capital expenditures for new construction and expenditures

for maintenance and repair by SIC Code.

The pipelines sub-sector provides baseline measures for petroleum and other pipelines in

the US, excluding natural gas pipelines. General information about the size of the subsector, in terms of number of operating establishments and kilometers (miles) of pipeline

operated, provides the context within which the baselines are developed. The baselines
xxxviii

cover capital expenditures for new construction and expenditures for maintenance and

repair by SIC Code.

Chapter 9 discusses additional areas of research that might be of value to government

agencies and private bodies who are concerned about reducing OM&E costs. These areas

of research are concerned with: (1) accounting for the discrepancies between data which

quantify annual construction outputs for new construction, additions and alterations, and

maintenance and repair; (2) additional data collection; and (3) evaluations of progress

toward achievement of National Construction Goal 2.
1

1. Introduction

1.1 Background

Data describing current practices of the US construction industry are needed to establish

baselines against which industry can measure its progress towards achieving the seven

National Construction Goals. The seven National Construction Goals are concerned

with: (1) reductions in the delivery time of constructed facilities; (2) reductions in

operations, maintenance, and energy costs; (3) increases in occupant productivity and

comfort; (4) reductions in occupant-related illnesses and injuries; (5) reductions in waste

and pollution; (6) increases in the durability and flexibility of constructed facilities; and

(7) reductions in construction worker illnesses and injuries.

Although information having relevance to the seven goals is available, for the most part,

this information has such a narrow focus that a consistent set of baseline measures and

associated measures of progress can not be produced without first conducting a

significant research effort. Specifically, information from a wide variety of data sets

needs to be collected, reviewed, analyzed, and critiqued to ensure that the baseline

measures and measures of progress which result are:

(1) adequate (i.e., they not only capture the complexities of the US construction

industry but also represent a consensus among experts in the field); and

(2) suitable for dissemination to the public.

It is essential to have baseline data and associated measures of progress to determine the

success of actions taken to improve the competitiveness of the US construction industry.

In addition, baselines and measures of progress will make it possible to demonstrate the

benefits of advanced technologies and practices, and to guide decision makers in

prioritizing potential programs.

The goal of this project is to develop a suite of products which support the measurement

and attainment of the National Construction Goals by the four key construction industry

sectors. The four industry sectors are: (1) residential; (2) commercial/institutional; (3)

industrial; and (4) public works. Three basic sets of products are envisioned:

(1) Baseline Measures: Develop baseline measures which characterize current

industry performance with respect to each of the seven goals. The averages of

current practice (defined in this document as industry performance in 1994) will

become the baselines for measuring progress towards achieving each of the goals.

(2) Measures of Progress: Develop methods for measuring progress. These

“results” measures are envisioned as a composite of performance measures

offering a means not only for monitoring actual performance but also for

marshaling support for improving results.
2

(3) Periodic Reports: Provide information on each of the seven goals. This

information will be made available to interested parties both through publications

and, ultimately, electronically via the World Wide Web. Potential outlets for the

baselines and measures of progress include the Construction and Building

Subcommittee member organizations and the four sector council member

organizations. 1

1.2 Purpose

The purpose of this document is twofold. First and foremost, this document provides a

detailed set of baseline measures for National Construction Goal 2 (reductions in

operations, maintenance, and energy costs). As such, it describes data sources, data

classifications and hierarchies, and the metrics used to develop the baseline measures.

Extensive use of charts and tables is made throughout this document to illustrate the

process by which the baseline measures were developed. This document is the first in a

series of studies prepared by NIST's Building and Fire Research Laboratory (BFRL). A

subsequent companion document2 focuses on National Construction Goal 1, reductions in

delivery time.

The second purpose of this document is to outline BFRL’s strategy for collecting

information on each National Construction Goal, for gaining consensus on what

information should be included in the baseline measures and measures of progress, and

for disseminating information to interested parties. Specifically, a two-phase, four-step

process for developing and disseminating the baseline measures and measures of progress

is described.

1.3 Scope and Approach

This document has eight chapters and seven appendices in addition to the Introduction.

Chapter 2 introduces the National Construction Goals, describes how a well-defined set

of metrics is used to develop the baseline measures and measures of progress, and

outlines the project approach. Chapter 3 provides an overview of the construction

industry. The overview provides the context within which the baseline measures are

developed. Chapter 4 presents two data classification schemes; one which is idealized

and one which is data driven. These data classification schemes are used to construct

data hierarchies from which key metrics are derived and used to develop the baseline

measures. Chapters 5 through 8 present the baseline measures for each of the four key

construction industry sectors. Chapter 9 concludes the document with a summary and

suggestions for further research.

 

1

 The four sector council member organizations are: (1) National Association of Home Builders Research

Center (Residential); (2) National Institute of Building Sciences (Commercial/Institutional); (3)

Construction Industry Institute (Industrial); and (4) American Public Works Association (Public Works).

2

 Chapman, Robert E., and Roderick Rennison. 1998. An Approach for Measuring Reductions in Delivery

Time: Baaseline Measures of Construction Industry Practices for the National Construction Goals. NISTIR

6189, Gaithersburg, MD: National Institute of Standards and Technology.
3

The individual data hierarchies for each construction industry sector are presented in

Appendices A through D. Each sector occupies an appendix: Appendix A covers the

residential sector; Appendix B covers the commercial/institutional sector; Appendix C

covers the industrial sector; and Appendix D covers the public works sector. Three

additional appendices are also included as an aid to cross referencing terms, statistical

information, and other material contained in this document. Appendix E lists the

assignments of each state to one of the four census regions: (1) Northeast; (2) Midwest;

(3) South; or (4) West. Appendix F lists the two-digit Standard Industrial Classification

(SIC) Codes. SIC Codes are used extensively throughout Chapter 8 which covers the

industrial sector. Appendix G provides a list of acronyms and their definitions.

5

2. The National Construction Goals: A Tool for Promoting

Competitiveness Within the Construction Industry

2.1 Description of the National Construction Goals

The Construction and Building (C&B) Subcommittee has studied research priorities

expressed by the construction industry. These priorities translate into the following seven

National Construction Goals:

1. 50% Reduction in Delivery Time

2. 50% Reduction in Operation, Maintenance, and Energy Costs

3. 30% Increase in Productivity and Comfort

4. 50% Fewer Occupant-Related Illnesses and Injuries

5. 50% Less Waste and Pollution

6. 50% More Durability and Flexibility

7. 50% Reduction in Construction Worker Illnesses and Injuries

To make the National Construction Goals operational, they are based on the values of a

well-defined set of baseline measures. As noted in the Introduction, the values of the

baseline measures for each goal are averages of industry performance in 1994. The year

1994 was established as the basis for computing the values of the baseline measures

because it was the year when the National Construction Goals were first formulated.3

Two priority thrusts, better constructed facilities, and improved health and safety of the

construction work force, were defined as the focus of C&B-related research,

development, and deployment (RD&D) activities. The objective of the C&B-related

RD&D activities is to make technologies and practices capable of achieving the goals

under the two priority thrusts available for general use in the construction industry by

2003.

Achievement of the National Construction Goals will: (1) reduce the first costs and lifecycle costs of constructed facilities in the four key construction industry sectors (i.e.,

residential, commercial/institutional, industrial, and public works); (2) result in better

constructed facilities; and (3) result in improved health and safety for both construction

workers and occupants of constructed facilities. Achievement of the goals will convey

benefits to each of the four construction industry sectors (e.g., housing will become more

affordable through reductions in first costs and life-cycle costs). However, depending on

the goal and the construction industry sector, the beneficial impacts are expected to vary.

To gain a better appreciation of the importance of the National Construction Goals, both

individually, and taken together, and of their relationship to the four key construction

 

3

 Wright, Richard N., Arthur H. Rosenfeld, and Andrew J. Fowell. 1994. Rationale and Preliminary Plan

for Federal Research for Construction and Building. NISTIR 5536. Washington, DC: National Science

and Technology Council.
6

industry sectors, a brief description of each goal follows. The descriptions are patterned

after those given in the report by Wright, Rosenfeld, and Fowell.4

Goal 1: 50% Reduction in Delivery Time

Delivery time is defined as the elapsed time from the decision to construct a new facility

until its readiness for service. Delivery time issues affect both industrial competitiveness

and project costs. During the initial planning, design, procurement, construction, and

start-up process, the needs of the client are not being met. Furthermore, the client’s needs

evolve over time, so a facility long in delivery may be uncompetitive or unsuitable when

it is finished. Delays almost always translate into increased project costs due to

inflationary effects, higher financial holding costs, and reduced productivity.

Furthermore, the investments in producing the facility cannot be recouped until the

facility is operational. Owners, users, designers, and constructors are among the groups

calling for technologies and practices to reduce delivery time.

Goal 2: 50% Reduction in Operations, Maintenance, and Energy Costs

Operations, maintenance, and energy (OM&E) costs are a major factor in the life-cycle

costs of a constructed facility. In some cases, OM&E costs over the life of a facility

exceed its first cost. However, because reductions in OM&E costs are often associated

with increased first costs, facility owners and managers may under-invest in cost saving

technologies. Furthermore, undue attention on minimizing first costs may result in a

facility which is expensive to operate and maintain, wastes energy resources, is inflexible,

and rapidly becomes obsolete. Finally, because OM&E costs tend to increase more

rapidly than the general rate of inflation, facility owners and operators are often forced to

reallocate funds to cover OM&E costs. Reductions in OM&E costs will produce two

types of benefits. First, constructed facilities will become more affordable because

facility owners and operators are making more cost-effective choices among investments

(e.g., design configurations) which affect life-cycle costs. Second, these same facilities

will better conserve scarce energy resources.

Goal 3: 30% Increase in Productivity and Comfort

Industry and government studies have shown that the annual salary costs of the occupants

of a commercial or institutional building are of the same order of magnitude as the capital

cost of the building.5 Occupant comfort depends largely on the nature of buildings,

building furnishings, and indoor environments. The quality of indoor environments also

has a large impact on occupant health and productivity. Improvement of the productivity

of the occupants (or for an industrial facility, improvement of the productivity of the

 

4

 Wright, Richard N., Arthur H. Rosenfeld, and Andrew J. Fowell. 1995. Construction and Building:

Federal Research and Development in Support of the US Construction Industry. Washington, DC:

National Science and Technology Council.

5

 Building Owners and Managers Association. 1994. Experience Exchange Report, National CrossTabulations, 1994. Washington, DC: Building Owners and Managers Association.
7

process housed by the facility) is an important performance characteristic for most

constructed facilities.

Goal 4: 50% Fewer Occupant-Related Illnesses and Injuries

Buildings are intended to shelter and support human activities, yet the environment and

performance of buildings can contribute to illnesses and injuries for building users.

Examples are avoidable injuries caused by fire or natural hazards, slips and falls, disease

from airborne microbes, often associated with a workplace environment, and building

damage or collapse from fire, earthquakes, or extreme winds. Reductions in illnesses and

injuries will increase building users’ productivity as well as reduce the costs of medical

care and litigation.

Goal 5: 50% Less Waste and Pollution

Improvement of the performance of constructed facilities provides major opportunities to

reduce waste and pollution at every step of the delivery process, from raw material

extraction to final demolition and recycling of the facility and its contents. Additional

reductions come from reduced energy use, reduced water consumption, and reductions in

waste water production, which are considered in part by Goal 2.

Goal 6: 50% More Durability and Flexibility

Durability denotes the capability of the constructed facility to continue (given appropriate

maintenance) its initial performance over the intended service life. Flexibility denotes the

capability to adapt the constructed facility to changes in use or users’ needs. Increased

durability and flexibility of constructed facilities reduces life-cycle costs and prolongs the

economic life of the facility (i.e., the period of time over which an investment in the

original facility is considered to be the least-cost alternative for meeting a particular

objective).

Goal 7: 50% Reduction in Construction Worker Illnesses and Injuries

Health and safety issues exert a major effect on the competitiveness of the US

construction industry. Construction workers die as a result of work-related trauma at a

rate which is higher than all other industries except mining and agriculture. Construction

workers also experience a higher incidence of nonfatal injuries than workers in other

industries. Although the construction workforce represents less than 5 percent of the

nation’s work force, it is estimated that the construction industry pays about 15 percent of

the nation’s workers’ compensation.6

 

6

 The Center to Protect Workers’ Rights. 1997. The Construction Chart Book: The US Construction

Industry and Its Workers. Report D1-97. Washington, DC: The Center to Protect Workers’ Rights.
8

2.2 Baseline Measures

As noted earlier, the baseline measures for each goal are averages of industry

performance in 1994. Thus, with regard to the baseline measures, 1994 is the “base

year.” Consequently, data from 1994 drive the data collection effort culminating with the

development of the baseline measures for each National Construction Goal.

The process for developing baseline measures used in this project involves: (1) specifying

a data-oriented hierarchy; (2) collecting and compiling the key data and supporting

information for the base year, 1994;7 (3) defining metrics for each goal/sector

combination; and (4) producing the metrics in a tabular summary form and, where

appropriate, producing charts and graphs to depict the metrics. If the goal/sector

combination has components and subcomponents, then metrics are defined for each. This

process is employed because the metrics represent not only a statement of current

construction industry performance but tools for measuring an individual organization’s

performance as well. By providing a small set of well-defined metrics, individual

organizations can construct their own performance baselines. For example, individual

organizations can see how a collection of their projects performs vis-à-vis the “national”

data. To summarize, the basic philosophy behind the baseline measures is that they are

not a static tool whose sole purpose is quantifying the value of the goal but a means for

driving performance improvement within individual organizations.

2.3 Measures of Progress

The methods for measuring progress use the baselines as their reference point. The

measures of progress employ a method which makes use of both key outputs (i.e.,

summary measures) and interlinking metrics (i.e., a composite of performance measures

including constituent parts and functional relationships). Because the National

Construction Goals may be specified as targets measured against baseline values, “gap

analysis” is an appropriate method for defining the measures of progress.

To gain a better understanding of how gap analysis may be applied, consider the

following case illustration. One component of Goal 7, Construction Worker Illnesses and

Injuries, is recordable injuries. If Goal 7 targets a 50% reduction in construction worker

illness and injuries, we may adopt an across-the-board reduction of 50% for all

components of that goal. Therefore, for this component, the goal is to reduce recordable

injuries by 50%. Denote the industry average in 1994 by BR94 (i.e., the Baseline value for

Recordable injuries). Denote the goal for recordable injuries for 2002 by GR02; it is equal

to 0.5*BR94. Denote the difference between the baseline and the goal (i.e., BR94 - GR02)

by dR94. This difference may be thought of as a gap (i.e., the difference between the

actual level and the desired level). Similarly, for some future year, say 1997, whose

actual value is R97, the gap becomes dR97 (i.e., R97 - GR02).

 

7

 If data are available for years in addition to 1994 (e.g., 1992 through 1996), then these data are collected

at the same time as the base year data and used to illustrate trends; these data are also used to compute the

associated measures of progress.
9

This method also enables us to measure how much of the initial gap has been closed.

One measure of performance is the percent of the initial gap which has been closed by

some future date, say 1997. Denote this amount as P(dR97), where:

P(dR97) = ( 1 - (dR97 / dR94 ) ) * 100

The advantage of this measure of performance is that it employs the same values for each

measure used in computing the baselines. Although the gap analysis method is simple

and straightforward, it offers considerable flexibility. Consequently, it is the

recommended method for generating measures of progress.8

2.4 Interactions Between the National Construction Goals, the Baseline Measures,

and the Measures of Progress

As noted earlier, the objective of the C&B-related RD&D activities is to have

technologies and practices capable of meeting the goals available in 2003. This objective

raises an important issue, namely, the relationships between the baseline measures, the

measures of progress, and the goals. Several relationships which warrant consideration

are the following. First, it is important to recognize that the goal can always be

represented as a function of the baseline measure. Thus, given a baseline “value,” a target

or goal “value” can be specified. Second, for baseline measures to be most beneficial,

they need to be tied to specific “metrics” which are well-defined and able to be used by

interested parties (e.g., a specific government agency could substitute its own data into

the metric and use it to establish its own “baseline” values). Finally, the measures of

progress need to make explicit the relationship between the baseline, the goal, and the

current level of improvement.

The previous discussion implies that the form of the baseline measure is important as a

“facilitator” of performance (i.e., a linkage to performance-improving technologies and

practices). Two forms of baseline measures which may serve as facilitators are point

estimates (i.e., an average value) and a distribution of values. Although an average value

 

8The gap analysis method has another advantage in that priorities can be easily incorporated. For example,

during the consensus building step, the focus group might feel strongly that one component of an National

Construction Goal (NCG) is of greater importance than another. Consequently, progress towards closing

the gap on this component would be viewed as more important than progress on another component for that

NCG. Multiattribute decision analysis (MADA) provides a well-established tool for assigning priorities to

components. (See, American Society for Testing and Materials. 1995. Standard Practice for Applying

Analytical Hierarchy Process (AHP) to Multiattribute Decision Analysis of Investments Related to

Buildings and Building Systems. E 1765. Philadelphia, PA: American Society for Testing and Materials.)

MADA may also be used to develop a hierarchical relationship among components (i.e., a composite of

performance measures including constituent parts and functional relationships). Such an approach would

help to analyze how changes in individual metrics (i.e., components at a lower level within the hierarchical

relationship) affect the level and rate of change of key outputs (i.e., the highest level metric in the

hierarchical relationship).
10

is a good baseline measure, it collapses a great deal of information into a single reference

point. An alternative way to think about a baseline measure is as the distribution of

values of industry performance in 1994. This approach, while more data intensive, is a

great deal more flexible. Over the long term, the key stakeholders (e.g., researchers,

innovators, owners, and contractors) can focus on pushing the entire distribution towards

a more competitive position (e.g., faster delivery time) rather than just focusing on

improving the average value of some “unknown” distribution. It is important to

recognize that the distribution of values contains not only the mean or average value of

the metric which defines the baseline measure, but the highest and lowest values as well.

For example, if the percentiles of the distribution are available, an individual organization

(e.g., government agency, construction firm, etc.) could calculate a representative set of

values and, hence, determine their location within the distribution. This information

could then be used for goal setting and for developing measures of progress within a

particular organization.

2.5 Project Approach

Developing baseline measures and measures of progress--whether they are based on

average values or a distribution--for each National Construction Goal and each

construction industry sector is a complex process. Fortunately, some goals are relatively

more important to the construction industry, which suggests setting priorities for data

collection. The report by Wright, Rosenfeld, and Fowell9 provides information reflecting

the construction industry’s priorities. The construction industry’s four highest priority

goals are Goal 1, Goal 2, Goal 6, and Goal 7. The three lowest priority goals are Goal 3,

Goal 4, and Goal 5.

The availability of data and level of sector-specific information are other key

considerations. For some goals, there is a well-defined linkage to data (e.g.,

national/regional statistics or sector-specific information). For other goals, little

quantitative information is available. Consequently, a two-phase approach is being

employed. The order (i.e., phase) in which the baseline measures and measures of

progress are developed is based on three characteristics: (1) the priority of the goal; (2)

the availability of data; and (3) the level of sector-specific information. Phase I covers

the four highest priority goals. Phase II covers the three lowest priority goals.

This two-phase approach was designed to produce a set of baseline measures and

measures of progress in the most timely manner. This approach is summarized in Table

2-1; it combines information on priorities from the construction industry with constraints

on data availability and the level of sector-specific information. This approach provides

the basis for focusing project resources on those goals where baseline measures and

measures of progress: (1) are most needed by the construction industry; (2) can be defined

and agreed upon by key construction industry stakeholders; and (3) can be developed in a

timely manner. Consequently, these data sets, once developed and disseminated, offer the

greatest potential for acceptance and use by the construction industry.

 

9Wright, Rosenfeld, and Fowell. 1995. Op. Cit., p. 10.
11

Table 2-1. Phases in the Development of Baseline Measures

Phase

National Construction Goals Data Characteristics

Goals

Covered

Priority Data Availability Sector

Definition

I 7

1,2,6

High

High

Readily Available

Well Documented

Authoritative Sources

“Pockets” of Good Data

Good Sector

Definition

Some Sectors

Not Clearly

Defined

II 3,4,5 Low “Composite” Data Types:

Either Few Pockets of

Good Data Or

Total Lack of Data

Some Sectors

Not Clearly

Defined

For each of the phases shown in Table 2-1, a four-step process is envisioned. The four

steps are:

1. Establish Criteria for Data Selection;

2. Identify and Collect Data;

3. Develop Consensus on Key Measures and Supporting Data; and

4. Produce and Disseminate Baseline Measures and Measures of Progress.

In the sections which follow, each step is described briefly and, where appropriate, related

to each phase.

2.5.1 Criteria for Data Selection

Criteria are needed to ensure that the data selected for analysis are well-defined,

consistent, and replicable. Because data are so important to the baseline measures for

each goal, BFRL reviewed many potential sources (e.g., journals, technical publications,

electronic media) of baseline-related data/information. This review suggested three

criteria which must be met by any data in order to be accepted for analysis. These criteria

are:

(1) Published by a reliable, nationally-recognized organization and available to the

public;
12

(2) Updated on a regular basis; and

(3) Able to be normalized to account for changes in the building stock and the level

of construction activity.

These three criteria are appropriate for establishing the baseline measures for each goal

for each of the two phases shown in Table 2-1. These criteria are also appropriate for any

data associated with measures of progress for each goal.

2.5.2 Identify and Collect Data

Matching data to goals employs the two phases shown in Table 2-1, beginning with Phase

I. The objective of this step is to begin with those goals where data is both well-defined

and readily available. This strategy enables us to gain experience from the outset, learn

from these experiences, and modify the data collection effort accordingly.

The Phase I effort is divided into three stages. The first stage focused on Goal 7 (i.e.,

Construction Worker Illnesses and Injuries). In this stage, two hierarchies for classifying

data were established prior to initiating the data collection effort. The first hierarchy

produced an overlay of the construction industry Standard Industrial Classification (SIC)

Codes and the four construction industry sectors used in this study. The second hierarchy

was purely data oriented. Both hierarchies produced “workable” baseline measures. The

purpose of the first stage was to evaluate if, or how, the data collection effort was to be

refined. No refinements were identified.

The second stage focused on the two “highest priority” goals, (Goal 1 and Goal 2.

Wherever “pockets” of good data existed (e.g., selected information on delivery time for

the residential and industrial sectors), they were collected and analyzed. This stage, like

the first, began with the establishment of two data classification hierarchies. A key

difference between the first and second stages was the second stage’s use of a

comprehensive “idealized” sector-specific hierarchy as a starting point. The idealized

hierarchy was then modified to reflect data constraints. The resultant data-oriented

hierarchy was similar to the purely data-oriented hierarchy produced for Goal 7 but with

slightly better sector definition. Completion of the second stage revealed no refinements

to the data collection effort. However, several caveats associated with the interpretation

of the baseline measures were noted (see Section 2.5.5).

The third stage will focus on Goal 6 (i.e., Durability and Flexibility). It is anticipated that

upon completion of the third stage, refinements to the data collection effort will be

identified. In particular, whether to establish linkages between durability and flexibility,

or to treat the two major components of Goal 6 as separate entities.

The Phase II effort is not planned for initiation until the Phase I effort is nearly

completed. This strategy is based on the assumption that experience gained in the Phase I
13

data collection efforts, particularly during the second and third stages, will suggest

sources and ways in which data on Phase II’s goals can be collected and analyzed.

2.5.3 Consensus on Key Measures and Supporting Data

Gaining consensus is essential if the data are to be useful to the construction industry and

hence used to measure improvement towards goal attainment. This “consensus building”

step is composed of five parts. The five parts are:

(1) Conduct analytical studies of the “Phase” data and other data recommended by the

C&B Subcommittee;

(2) Produce a “Set” of proposed data and derived measures (e.g., baseline measures

and measures of progress);

(3) Form a “Focus Group” from the C&B Subcommittee member organizations,

industry representatives, and other interested parties to discuss the proposed data

and derived measures;

(4) Brief the C&B Subcommittee on progress and solicit feedback; and

(5) Revise the data and derived measures and present findings to the C&B

Subcommittee

Data collected on baselines and measures of progress for each phase will go through this

step. For the Phase I goals, a single iteration should be sufficient. For the Phase II goals,

multiple iterations may be required.

2.5.4 Production and Dissemination of Baseline Measures and Measures of Progress

Based on the focus group discussions and feedback from the C&B Subcommittee, the

data sets and derived measures are finalized for each goal. The data are delivered initially

in the form of tables and reports. No data are disseminated on individual companies.

Potential outlets for the baselines and measures of progress include the C&B

Subcommittee member organizations and the four sector council member organizations.

In order to reach an even larger audience, data will be incorporated into a computerized

delivery system and made available on the World Wide Web.

2.5.5 Limitations of the Project Approach

The project approach described in Sections 2.5.1 through 2.5.4 has two basic limitations.

It is important for readers to understand what these limitations are and how they affect the

values of the baseline measures presented in this document or other reports focused on

the National Construction Goals. The two basic limitations of the project approach are
14

concerned with the availability of data and the selection of data, information, and metrics

for inclusion with (or exclusion from) the baseline measures.

The first limitation to the project approach is concerned with the availability of data.

Data availability problems manifest themselves in three ways: (1) unspecified functional

relationships between metrics within a given goal (e.g., linkages among components at a

lower level in the goal’s hierarchy): (2) no data for a specific goal/sector combination;

and (3) incommensurate base-year data (e.g., no information is available prior to 1996).

The first two problems are being addressed through research. Extensive research has

been done and continues on sources of data. This research has uncovered several

research reports that address ways in which components associated with a goal can be

modeled. Several research reports providing “point” estimates for a goal/sector

component have also been uncovered. Unfortunately, while these reports provide

valuable insights, they lack specificity. In the first case, although the research reports

imply functional relationships (i.e., a linkage mechanism), the functional form is

unspecified. For example, both Goal 3--Productivity and Comfort--and Goal 6--

Durability and Flexibility--have two major components. Ideally, these components would

be linked via a functional relationship. The alternative is to treat each component as a

separate and distinct entity. In the second case, one of a kind “estimates” or

“information” are tantamount to no data. There is no opportunity to replicate the results

without repeating the research which produced the “estimates” or “information” in the

first place.

The third problem, incommensurate base-year data, is being addressed through a set of

carefully stated caveats. If data are being collected now which satisfy the criteria for data

selection but were not available in 1994 (i.e., the year specified for the baseline

measures), then they still represent meaningful metrics. The caveats come in regarding

how to interpret the values of these metrics. In cases where such caveats are made (e.g.,

delivery time metrics for the three non-residential sectors), they are stated clearly. In

addition, guidance is given on how to interpret the values of these metrics vis-à-vis the

goal.

The second limitation stems from decisions the project team made regarding what was to

be included in or excluded from the baseline measures. Although our objective is to

produce baseline measures for each goal/sector combination, it became necessary to

include some types of information only at a higher level of aggregation (e.g., at the

construction industry level rather than the individual sector level). Similarly, decisions

were made to exclude some types of information for which data were available but their

inclusion would provide no new insights. In both cases--whether data were included at a

higher level of aggregation or excluded from the document--the authors have clearly

stated their reasons and given guidance to help readers interpret the results.
15

2.6 How This Document Helps

This document is part of a series. As such, it provides perspective on the overall effort to

develop baseline measures and measures of progress for each of the seven National

Construction Goals. It also serves to highlight how these measures and their associated

metrics can be used to drive performance improvement.

On a deeper level, this document provides step-by-step descriptions of how to construct a

well-defined set of baseline measures, their components, and associated metrics for a

specific goal for each of the four construction industry sectors. Information on data

classification, data sources, and data collection and analysis provide the underpinnings for

the results presented in this document. It is anticipated that once users of this document

have understood the vital role of metrics as a process improvement tool, they will see

how the National Construction Goals will benefit both their organization and the US

construction industry.

17

3. Overview of the Construction Industry

The construction industry is a key component of the US economy and is vital to the

continued growth of the US economy. Investment in plant and facilities, in the form of

construction activity, provides the basis for the production of products and the delivery of

services. Investment in infrastructure promotes the smooth flow of goods and services

and the movement of individuals. Investment in housing accommodates new households

and allow existing households to expand or improve their homes. It is clear that

construction activities affect nearly every aspect of the US economy. However,

construction activities are also strongly affected by the health of the economy and the

associated business cycle.10

This chapter provides a snapshot of the US construction industry. As such, it provides

the context within which baseline measures are developed, a subject which occupies the

remainder of this document. The chapter contains four sections. Each section deals with

a particular topic. The topics progress from general in nature to very specific. This

progression is described below.

First, information on the value of construction put in place is provided to show the size of

the construction industry and each of its four sectors--residential, commercial/

institutional, industrial, and public works. Second, information on the nature of

construction activity for each sector of the industry is presented. The Standard Industrial

Classification (SIC) Codes for the construction industry are introduced and described as a

means for organizing construction activity. Information on the nature of construction

activity includes breakouts between new construction activities, maintenance and repair

activities, and additions and alterations activities. The challenge of developing annual

estimates for each sector by nature of construction activity is described. Examples are

given which demonstrate how different data sources result in major differences in a

particular year’s estimates. Third, information on employment in the construction

industry is summarized and a series of employment-related statistics are presented. The

SIC Codes for the construction industry are used as a means for organizing key

employment-related information. Comparisons between employment and output in the

construction industry and employment and output in the overall US economy are also

included. Fourth, information on cost trends (e.g., average cost per square foot for

residential and non-residential buildings) and on other, special considerations, is

presented.

3.1 Value of Construction Put in Place

This section provides information on a key indicator of construction activity, the value of

construction put in place. Data published by the US Bureau of the Census are used to

establish the composition of construction expenditures by type of construction/function

 

10 Readers interested in learning more about construction statistics, their sources and interpretation, are

referred to an excellent source document by Rogers (Rogers, R. Mark. 1994. Handbook of Key Economic

Indicators. Burr Ridge, IL: Irwin Professional Publishing).
18

(e.g., non-residential/office building). These expenditures are then assigned to the four

key construction industry sectors. The reference document used throughout this section is

the Current Construction Reports series C30 publication Value of Construction Put in

Place.

11 A brief description of the “C30 report” follows. Special attention is given to the

organization of the data in the C30 report and how these data map into the four key

construction industry sectors. The section concludes with tabular and graphical

summaries of the value of construction put in place.

Current Construction Reports Series C30

Construction expenditures data are published monthly in the Current Construction

Reports series C30 publication Value of Construction Put in Place. Construction

expenditures refer to actual construction rather than planned or just initiated activity. It is

noteworthy that the C30 report covers both private residential and non-residential

construction activities and public sector construction activities.

The value of construction put in place is a measure of the value of construction installed

or erected at a site during a given period. For an individual project, this includes: (1) cost

of materials installed or erected; (2) cost of labor (both by contractors and force account

(i.e., construction done for own use)) and a proportionate share of construction equipment

rental; (3) contractor’s profit; (4) cost of architectural and engineering work; (5)

miscellaneous overhead and office costs chargeable to the project on the owner’s books;

and (6) interest and taxes paid during construction. Expenses do not include the cost of

land nor do they include maintenance and repairs to existing structures or service

facilities.

The C30 data are compiled via survey and through indirect estimation. In the context of

the C30 survey, construction includes the following: (1) new buildings and structures; (2)

additions, alterations, conversions, expansions, reconstruction, renovations,

rehabilitations, and major replacements (e.g., the complete replacement of a roof or a

heating system); (3) mechanical and electrical installations (e.g., plumbing, heating,

electrical work, and other similar building services); (4) site preparation and outside

construction of fixed structures or facilities (e.g., sidewalks, highways and streets, water

supply lines, sewers, and similar facilities which are built into or fixed to the land); (5)

installation of boilers, overhead hoists and cranes, and blast furnaces; (6) fixed, largely

site-fabricated equipment not housed in a building (e.g., petroleum refineries and

chemical plants); and (7) cost and installation of construction materials placed inside a

building and used to support production machinery (e.g., concrete platforms, overhead

steel girders and pipes, etc.). It is important to note that the C30 survey produces

information not only on the value of new construction put in place but also contains an

unquantified component for additions and alterations for the non-residential sectors.

The data presented in the C30 report are divided into two parts: (1) private construction;

and (2) public construction. These data are summarized in Table 3-1. The table records

 

11 Throughout this chapter, reference is made to the Current Construction Reports series C30 publication.

These references include both how it is used as the basis for other sets of calculations presented in this

chapter and as a vehicle for comparing calculations based on other Census publications.
19

annual values (in millions of constant 1992 dollars) for the years 1992 through 1996.

Separate column headings showing the type of construction/function and the assigned

sector--R for residential, C for commercial/institutional, I for industrial, and P for public

works--are also included. The sector assignment was made by the authors.

Private construction contains two major components--residential buildings and nonresidential buildings--plus a number or subcomponents. Both the two major components

and the various subcomponents are shown as headings in the first column of Table 3-1.

The residential buildings component includes new private housing and improvements.

New private housing includes new houses, apartments, condominiums, and town houses.

New private housing units are classified as “1 unit” or “2 or more units.” The value of

improvements put in place are a direct measure of the value of residential additions and

alterations activities. Consequently, improvements are not included in the "new

construction" residential sector totals recorded at the bottom of Table 3-1.

The non-residential buildings component includes industrial, office buildings, hotels and

motels, and “other commercial” (e.g., shopping centers, banks, service stations,

warehouses, and other categories). Also falling under the non-residential buildings

component are religious, educational, hospital and institutional, and “miscellaneous” nonresidential buildings.

Rounding out the private construction component are farm non-residential, public

utilities, and “all other private.” These are generally of a non-residential nature but are

not part of non-residential buildings. Farm non-residential construction includes

structures such as barns, storage houses, and fences. Land improvements such as

leveling, terracing, ponds, and roads are also a part of this subcomponent. Privately

owned public utilities construction is categorized by industry rather than function of the

building or structure. This subcomponent includes expenditures made by utilities for

telecommunications, railroads, petroleum pipelines, electric light and power, and natural

gas. “All other private” includes privately owned streets and bridges, sewer and water

facilities, airfields, and similar construction.

For public construction, there are two major components--building and non-building.

Both the two major components and the various subcomponents are shown as headings in

the first column of Table 3-1. The building component contains subcomponents similar

to those for private construction, with educational buildings being the largest

subcomponent. Expenditures for the non-building component overwhelmingly consist of

outlays for highways and streets, with sewer systems being a distant second

subcomponent.

To get the "new construction" sector totals, which appear in the bottom portion of Table

3-1, each subcomponent was assigned to a sector and summed. The sector assignments

are recorded in the second column of Table 3-1. Reference to the bottom portion of the

table reveals that sector totals vary considerably, with residential being the largest and

industrial the smallest.
20

Table 3-1. Value of New Construction Put in Place: 1992 to 1996

VALUE OF CONSTRUCTION PUT IN PLACE (SERIES C30)

Type of Construction

Assigned 

Sector Constant 1992 Dollars in Millions

1992 1993 1994 1995 1996

Total construction 451,998 461,078 480,965 474,426 493,587

Private construction 336,126 347,851 367,265 359,411 378,150

Residential buildings 187,687 200,502 218,005 201,682 212,069

New housing units 129,522 137,243 153,250 142,413 153,965

1 unit R 116,419 126,960 140,416 126,773 136,516

2 or more units R 13,103 10,283 12,833 15,640 17,449

Improvements 58,165 63,259 64,755 59,268 58,104

Nonresidential buildings 105,615 106,729 111,416 120,627 130,394

Industrial I 29,027 25,554 26,803 29,043 28,003

Office C 20,271 20,197 20,553 22,891 24,099

Hotels, motels C 3,690 4,405 4,308 6,351 10,263

Other commercial C 29,172 31,292 34,756 38,098 41,301

Religious C 3,483 3,748 3,584 3,864 3,961

Educational C 4,475 4,484 4,471 4,908 5,790

Hospital and institutional C 11,485 12,050 11,377 10,051 10,460

Miscellaneous C 4,011 5,000 5,565 5,421 6,516

Farm nonresidential C 2,396 3,271 3,008 2,693 2,736

Public utilities P 36,859 34,120 32,074 31,767 30,842

Telecommunications P 9,005 9,468 9,785 10,071 10,420

Other public utilities P 27,854 24,652 22,289 21,696 20,422

Railroads P 2,926 3,056 3,186 3,202 4,030

Electric light and power P 17,184 15,096 13,877 12,656 11,191

Gas P 6,895 5,536 4,308 5,004 4,291

Petroleum pipelines P 849 965 918 834 910

All other private P 3,569 3,229 2,763 2,644 2,109

Public construction 115,872 113,227 113,700 115,014 115,437

Buildings 49,988 46,813 45,177 47,832 49,415

Housing and development R 4,136 3,833 3,326 3,754 3,881

Industrial I 1,875 1,658 1,358 1,348 1,216

Educational C 20,645 18,465 17,593 19,237 20,131

Hospital C 3,383 3,579 3,787 3,854 3,981

Other C 19,949 19,279 19,114 19,638 20,207

Highways and streets P 33,132 34,164 36,151 33,500 33,297

Military facilities P 2,502 2,405 2,196 2,729 2,225

Conservation and development P 5,946 5,771 6,091 5,773 5,244

Sewer systems P 9,658 8,622 8,592 8,975 9,060

Water supply facilities P 5,170 4,868 4,443 4,923 5,121

Miscellaneous public P 9,475 10,583 11,050 11,282 11,075

New Construction

SECTOR TOTALS and SUMMARY

Residential (R) 133,658 141,076 156,576 146,167 157,846

Commercial/Institutional (C) 122,960 125,770 128,116 137,006 149,445

Industrial (I) 30,902 27,212 28,161 30,391 29,219

Public Works (P) 106,311 103,762 103,360 101,593 98,973

Table 3-1 highlights an important distinction between the residential sector and the three

non-residential sectors. Reference to the “Residential Buildings” component of the table

(i.e., the entry immediately below the heading Private Construction) for the year 1992

produces a value of $187,687 million. This value differs from the value for the
21

residential sector, $133,658 million, given immediately below the heading of SECTOR

TOTALS and SUMMARY in the bottom portion of the table. The reason for the

difference is due to the exclusion of the value of private residential improvements (i.e.,

additions and alterations) and the inclusion of the value of public housing and

development. Because the values given in the bottom portion of Table 3-1 are estimates

of the values of new construction put in place, it is necessary to net out the value of

residential improvements. While this is a straightforward process for the private

residential sector, no specific information on additions and alterations is published in the

C30 report for either the three non-residential sectors or for public housing and

development. Consequently, we have assumed that the values for additions and

alterations for the three non-residential sectors and for public housing and development

are zero. This implies that the sector totals for commercial/institutional, industrial, and

public works are the values of new construction put in place for each of the years 1992

through 1996. A rationale for this assumption is given in the next section, which covers

the nature of construction activities.

Figure 3-1. Value of New Construction Put in Place: 1992 to 1996

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

1992 1993 1994 1995

Year

Value of Construction Put in Place (Constant 

1992 Dollars in Millions)

Total (All Sectors)

Residential

Commercial/Institutional

Public Works

Industrial

The Table 3-1 sector totals and the overall construction industry totals for the value of

new construction put in place are shown graphically in Figure 3-1. The horizontal axis of

the figure records the year, from 1992 through 1996. The vertical axis records the value

of new construction put in place, in millions of constant 1992 dollars. Each trace is keyed

to designate either the sector or the overall total.
22

3.2 Nature of Construction Activity

The nature of construction activity may be conveniently classified as either new

construction, additions and alterations, or maintenance and repair. Definitions of each are

as follows.

New construction activities include the complete original building of structures

and essential service facilities and the initial installation of integral equipment

such as elevators and plumbing, heating, and air-conditioning supplies and

equipment.

Additions and alterations include construction work which adds to the value or

useful life of an existing building or structure, or which adapts a building or

structure to a new or different use. Included are major replacements of building

systems such as the installation of a new roof or heating system and the

resurfacing of streets or highways. This contrasts to the repair of a hole in a roof

or the routine patching of highways and streets, which would be classified as

maintenance and repair.

Maintenance and repair activities include incidental construction work which

keeps a property in ordinary working condition. Excluded are trash and snow

removal, lawn maintenance and landscaping, cleaning and janitorial services.

This section presents information from three different data sources: (1) the 1992 Census

of the Construction Industry; (2) Current Construction Reports series C30, Value of

Construction Put in Place; and (3) Current Construction Reports series C50,

Expenditures for Residential Improvements and Repairs. Although each data source

provides insights into the nature of construction activity, they differ in degree of detail,

frequency of publication, and sector coverage. Brief descriptions of the 1992 Census of

the Construction Industry and the “C50 report” are given in the text that follows.

Readers seeking information on the C30 report are referred to Section 3.1 of this

document. Statistics from each source are also presented and, where appropriate,

comparisons are made.

1992 Census of the Construction Industry

The Census of the Construction Industry is conducted every five years. The construction

industry is one of seven industries tabulated as part of the Economic Census. The

Economic Census is highly detailed. However, because the Economic Census is

performed only in years ending with 2 or 7, 1992 is the latest year for which such highly

detailed construction industry data are available.

The census of the construction industry enumerates establishments with paid employees

engaged primarily in one of the following three areas: (1) constructing new homes and

other buildings; (2) heavy construction, such as highways; and (3) special trades, such

as plumbing and electrical work. Most construction establishments are described as
23

contractors (e.g., general contractors and special trades contractors), but the census also

includes operative builders who construct buildings or other structures on their own

account to be sold when completed.

A “construction establishment” is defined as a relatively permanent office or other place

of business where the usual business activities related to construction are conducted.

With some exceptions, a relatively permanent office is one that has been established for

the management of more than one project or job and which is expected to be maintained

on a continuing basis. Such “establishment” activities include, but are not limited to,

estimating, bidding, purchasing, supervising, and operation of the actual construction

work being conducted at one or more construction sites. The census did not require

separate construction reports for each project or construction site. However, companies

with more than one construction establishment were required to submit a separate report

for each such establishment operated during all or any part of 1992.

For purposes of the census, construction establishments are classified by kind of business

according to the principal work performed. There are three major Standard Industrial

Classification (SIC) Groups--two-digit SIC Codes--in the construction industry:

15 Building construction--general contractors and operative builders

16 Heavy construction other than building construction--contractors

17 Special trade contractors

These major SIC Groups are sub-divided into 13 three-digit SIC Codes which in turn are

sub-divided into 26 four-digit SIC Codes. Table 3-2 provides a description of each of the

26 four-digit SIC Codes. Part A of the table covers the two-digit SIC Codes 15 (building

construction--general contractors and operative builders) and 16 (heavy construction

other than building construction--contractors); Part B of the table covers the two-digit

SIC Code 17 (special trade contractors).

Data tabulated in the 1992 Census of the Construction Industry provide information

grouped by the types of buildings, structures, or other facilities being constructed or

worked on by construction establishments in 1992. Respondents were instructed to

classify each building, structure, or other facility in terms of its function. For example, a

restaurant building was to be classified in the restaurant category whether it was designed

as a commercial restaurant building or an auxiliary unit of an educational institution. If

respondents worked on more than one type of building or structure in a multi-building

complex, they were instructed to report separately for each building or type of structure.

If they worked on a building that had more than one purpose (e.g., office and residential),

they were asked to classify the building by major purpose. In addition, all respondents

were requested to report the percentage of the value of construction work done for new

construction, additions and alterations, and maintenance and repair activities for each type

of building, structure, or facility.
24

The detailed breakout for new construction, additions and alterations, and maintenance

and repair activities provided by the 1992 census is noteworthy because prior to 1987,

construction receipts only were collected. In 1987 and 1992, the value of construction

work was collected to better measure actual construction activity done during the year.

This conceptual change was made because receipts during a calendar year may include

advance payments or payments for work done in a prior year, and thus not accurately

reflect construction work done during the census year. For certain key industries, such as

operative builders and developers, receipts and work done may also differ because

receipts do not include work contractors perform for their own account and use, which

can be substantial.

At the time of the 1992 census, there were about 1.4 million construction establishments,

and about one third of them had paid employees. Establishments without payroll,

typically one-person operations or partnerships, were not surveyed by the US Bureau of

the Census. The Bureau of the Census did, however, obtain a limited amount of data on

self-employed construction workers from the administrative records of other Federal

agencies.

Current Construction Reports Series C50,

Expenditures for Residential Improvements and Repairs

The C50 report is published quarterly; it presents improvement and repair expenditures

by property owners for residential properties. Data presented in the C50 report are based

on personal interviews obtained from household members as part of the Consumer

Expenditure Surveys conducted by the Bureau of the Census for the Bureau of Labor

Statistics. These data cover single and multi-unit structures, publicly- and privatelyowned structures, non-farm and farm properties, and residential properties which are

occupied by owners or renters or are vacant.12

The expenditures covered in the C50 report are those connected with construction activity

intended to maintain or improve the property. These expenditures involve expenses for

maintenance and repair, additions, alterations, and major replacements which are made to

the property by the owners. Included are all costs, for both the inside and outside of the

house, whether on the main dwelling, on other structures on the property incidental to the

residential use of the main dwellings, or for the grounds on which the structures are

erected.

 

12 Expenditures made by renters are not included in the C50 report. A study of renters’ expenditures

conducted in 1989 showed that they accounted for less than one percent of all expenditures for

improvements and repairs.
25

Table 3-2. Four-Digit SIC Codes for the Construction Industry

Part A: Two-Digit SIC Codes 15 (Building Construction - General Contractors

and Operative Builders) and 16 (Heavy Construction Other than Building

Construction - Contractors)

SIC Code Label Description

1521 General contractor - single-family

houses

Includes townhouses, repair of

mobile homes on site, and assembly

of premanufactured and modular

units

1522 General contractors - residential

buildings other than single-family

Includes hotels, motels, and

dormitories

1531 Operative builders Condominiums, cooperative

apartments, and singe-family houses

built by developers to sell, instead

of as contractors working for other

companies

1541 General contractors - industrial

buildings and warehouses

Includes grain elevators and

automobile assembly,

pharmaceutical manufacturing, and

aluminum plants

1542 General contractors - nonresidential

buildings, other than industrial

buildings and warehouses

Commercial, institutional, religious,

and amusement and recreational

buildings

1611 Highway and street construction,

except elevated highways

Roads, streets, alleys, public

sidewalks, guardrails, parkways, and

airports (general and special-trade

contractors)

1622 Bridge, tunnel, and elevated

highway construction

Bridges, viaducts, elevated

highways, and highway, pedestrian,

and railway tunnels (general

construction)

1623 Water, sewer, pipeline, and

communications and power-line

construction

Includes transmission towers

(general and special-trade

contractors)

1629 Heavy construction, not elsewhere

classified

For instance, athletic fields, blasting

(except building demolition), canals,

dams, hydroelectric plants, land

clearing, nuclear reactor

containment, petroleum refineries,

piers (general and special-trade

contractors)
26

Part B: Two-Digit SIC Code 17 (Special Trade Contractors)

SIC Code Label Description

1711 Plumbing, heating, and air conditioning Includes drainage system installation,

cesspool, and septic tank; lawn sprinkler

system; sewer hookups for buildings; solar

heating; and related sheet metal work

1721 Painting and paper hanging Excludes roof painting

1731 Electrical work Covers work on site, including installation

of telephones and alarms

1741 Masonry, stone setting, and other stone

work

Excludes foundation digging and concrete

work

1742 Plastering, drywall, acoustical, and

insulation work

Includes installation of lathing and other

accessories to receive plaster

1743 Terrazzo, tile, marble, and mosaic work Excludes manufacture of precast terrazzo

steps, benches, and other terrazzo articles

1751 Carpentry work Includes on-site installation of cabinets,

folding doors, framing, ship joinery, store

fixtures, trim and finish, and prefab

windows and doors

1752 Floor laying, and other floor work, not

elsewhere classified

Includes laying and removal of carpet,

finishing of parquet flooring, installation of

asphalt tile. Excludes ceramic floor tile,

concrete floors

1761 Roofing, siding, and sheet metal work Includes metal ceilings skylight, gutter, and

downspout installation; roof painting and

spraying

1771 Concrete work Includes private driveways and walks of all

materials. Excludes concrete foundations,

excavations, public sidewalks, and

highways

1781 Water well drilling Excludes oil- or gas-field water intake

wells

1791 Structural steel erection (ironwork) Includes similar products of prestressed or

precast concrete and placing of concrete

reinforcement

1793 Glass and glazing work Excludes automotive

1794 Excavation work Includes grading (except for highways,

streets and airport runways) and incidental

concrete work

1795 Wrecking and demolition Includes concrete breaking for streets and

dismantling of steel oil tanks. Excludes

marine wrecking and demolition

1796 Installation or erection of building

equipment, not elsewhere classified

Includes elevators, pneumatic tube systems,

small incinerators, dust-collecting

equipment, and revolving doors. Also

includes dismantling and maintenance

1799 Special trade contractors, not elsewhere

classified

Includes construction of swimming pools

and fences, house moving, shoring work,

fireproofing, and sandblasting and

steamcleaning of building exteriors
27

As a general principle, expenses connected with items not permanently attached or

affixed to some part of the house or property are outside the scope of the C50 report.

Thus, expenses connected with the repair or replacement of household appliances (e.g.,

stoves, refrigerators, etc.) are excluded, as are costs connected with house furnishings.

While the costs of appliances are excluded, the construction costs of building-in such

appliances (e.g., the cost of building-in a wall oven) are included in the scope of the C50

report. Expenditures for grading, draining, fencing, and paving are included, but the costs

of landscaping are not included in the C50 report.

The kinds of expenditures included cover work done under contract or with hired labor,

and the costs of purchasing or renting tools and equipment for purposes of carrying out

jobs which fall within the scope of the C50 report. However, no attempt is made to

estimate or include the value of labor in ‘do-it-yourself’ jobs.

The types of expenditures are classified broadly as either maintenance and repair or

construction improvements. Maintenance and repair expenditures represent current costs

for incidental maintenance and repair activities which keep a property in ordinary

working condition, rather than additional investment in the property. Expenditures for

construction improvements are capital expenditures which add to the value or useful life

of a property. Improvements are further classified as additions to residential structures

(e.g., enlargement of the structure by adding a room), alterations within residential

structures (e.g., changes or improvements made within or on the structure), additions and

alterations on property outside residential structures (e.g., laying or improving walks or

driveways), and major replacements (e.g., a roof replacement).

Summary of Key Data Sets and Selected Comparisons

At this point, it is useful to compare the three data sets and examine the differing values

for new construction, maintenance and repair, and additions and alterations which result

for a single year (1992) or across years for a single sector (residential). The first set of

comparisons and data summaries are for the 1992 Census of the Construction Industry

(CCI) and the estimates for new construction, maintenance and repair, and additions and

alterations “derived” from the C30--Value of Construction Put In Place--report (VIP).

The second set of comparisons and data summaries trace annual expenditure estimates for

residential maintenance and repair and additions and alterations “derived” from the C30

report data alongside data published in the C50 report.

The Bureau of the Census recognizes that only about two-thirds of the construction as

defined in VIP is actually done by the construction industry as defined by the CCI.13

Examples of construction work included within the VIP estimates but excluded from the

CCI are architectural and engineering design and force-account construction. Also

outside the scope of the CCI is work done by non-employers (i.e., self-employed

 

13 US Department of Commerce. 1997. Overview of Construction Statistics Programs. Draft Mimeo.

Washington, DC: US Bureau of the Census.
28

construction workers). Thus, in developing comparisons between VIP and CCI data,

estimates and assumptions have to be made for these differences.14

The VIP, C30 report data, were used as the basis for deriving estimates for new

construction, maintenance and repair, and additions and alterations expenditures for each

sector for each year between 1992 and 1996. Information from the CCI was used to

construct a series of multipliers; one set for each sector. One component of each sector’s

set of multipliers recorded the ratio of maintenance and repair expenditures to new

construction expenditures. The other component of each sector’s set of multipliers

recorded the ratio of expenditures for additions and alterations to new construction

expenditures. To develop a framework for deriving these estimates, it was necessary to

make eight assumptions. These assumptions are as follows; they are enumerated from

A.1 to A.8.

 A.1 Expenditures for new residential construction for each year, derived from

the C30 report data, equal expenditures for private residential buildings

plus expenditures for public housing and development less expenditures

for residential improvements (see Table 3-1).

 A.2 Expenditures for new non-residential construction for each year, derived

from the C30 report data, equal the unadjusted sector expenditure totals

(see Table 3-1).15

 A.3 Multipliers for maintenance and repair activities for each sector for each

year are a fixed proportion equal to the ratio of that sector’s CCI

expenditures for maintenance and repair activities to that sector’s CCI

expenditures for new construction.

 A.4 Multipliers for additions and alterations for each sector for each year are a

fixed proportion equal to the ratio of that sector’s CCI expenditures for

additions and alterations to that sector’s CCI expenditures for new

construction.

 A.5 Expenditures for residential maintenance and repair activities in a given

year equal that year’s new construction value as defined in A.1 times the

fixed proportion multiplier for the residential sector defined in A.3.

 A.6 Expenditures for non-residential maintenance and repair activities for a

given sector in a given year equal that year’s new construction value as

defined in A.2 times the fixed proportion multiplier for the appropriate

non-residential sector as defined in A.3.

 

14 Ibid., p.26.

15 Note that the C30 report data contain an unquantified component for additions and alterations.
29

 A.7 Expenditures for residential additions and alterations in a given year equal

that year’s new construction value as defined in A.1 times the fixed

proportion multiplier for the residential sector defined in A.4.

 A.8 Expenditures for non-residential additions and alterations for a given

sector in a given year equal that year’s new construction value as defined

in A.2 times the fixed proportion multiplier for the appropriate nonresidential sector as defined in A.4.

Figure 3-2 shows the results of applying these assumptions to the C30 report (VIP) data

for 1992 and plotting them side-by-side with the CCI data. Notice that each component--

new construction, maintenance and repair, and additions and alterations--is higher for the

“derived” VIP data than for the CCI data. The underlying assumptions, however, are

plausible because the CCI contains only about two-thirds of the construction activity

covered in the VIP (e.g., CCI only includes establishments with payroll and excludes

items such as architectural and engineering services which in 1992 amounted to

approximately $50 billion).

The “derived” total for all construction expenditures shown in Figure 3-2 may be broken

down into its constituent parts. This break down is shown in Figure 3-3 for the year

1992. Reference to Figure 3-3 reveals that 61 percent, or $393.8 billion, of all

construction expenditures are associated with the value of new construction put in place.

Expenditures for additions and alterations amounted to $156.5 billion, or 24 percent of

the total. Expenditures for maintenance and repair activities amounted to $93.3 billion,

or 15 percent of the total.

When assumptions A.5 and A.6 are applied, annual estimates for the value of

maintenance and repair expenditures for each sector result. These sector estimates are

plotted, as multi-year traces keyed to each sector, in Figure 3-4. These “derived”

estimates exhibit a slight upward trend. Maintenance and repair expenditures in the

commercial/institutional sector are the highest in each year while maintenance and repair

expenditures in the industrial sector are the lowest in each year.

When assumptions A.7 and A.8 are applied, annual estimates for the value of

expenditures for additions and alterations for each sector result. These sector estimates

are plotted, as multi-year traces keyed to each sector, in Figure 3-5. As was the case for

maintenance and repair expenditures, expenditures for additions and alterations exhibit a

slight upward trend. Reference to Figure 3-5 reveals that the dollar value of expenditures

for additions and alterations in the commercial/institutional sector are about two to three

times the amount for the other sectors.
30

Figure 3-2. Total Value of Construction Work: Comparison of Value Put in Place

and 1992 Census of the Construction Industry

0

100000

200000

300000

400000

500000

600000

700000

Maintenance

and Repair

Additions and

Alterations

New

Construction

Total

Nature of Construction Activities

Millions of Dollars (1992) 

Based on C30

Value Put in Place

Data 1992

1992 Census of

the Construction

Industry 

Figure 3-3. Distribution of Total Construction Expenditures in 1992 by Nature of

Construction Activity

Maintenance and Repair

Additions and Alterations

New Construction

New Construction

$393,831 million = 61%

Maintenance and Repair

$93,335 million = 15%

Additions and Alterations

$156,455 million = 24%
31

Figure 3-4. Annual Expenditures for Maintenance and Repair Activities by Sector

0

5000

10000

15000

20000

25000

30000

1992 1993 1994 1995 1996

Year

Commercial/Institutional

Residential

Public Works

Industrial

Figure 3-5. Annual Expenditures for Additions and Alterations by Sector

0

10000

20000

30000

40000

50000

60000

70000

80000

1992 1993 1994 1995 1996

Year

Commercial/Institutional

Residential

Public Works

Industrial
32

Although information on expenditures for maintenance and repairs and additions and

alterations is not available for all four construction industry sectors, such information is

available for the residential sector via the C50 report. Figure 3-6 shows these data sideby-side with the derived C30 data. Figure 3-6 consists of a series of bar charts; four bars

for each year. For each year, maintenance and repair expenditures are the two leftmost

bars and expenditures for additions and alterations are the two rightmost bars. For each

two-bar set (i.e., maintenance and repair or additions and alterations), the left-hand bar

records the annual combined total for estimates derived from the C30 report data and the

CCI multipliers (i.e., based on assumptions A.1, A.3, A.4, A.5, and A.7). Similarly, for

each two-bar set, the right-hand bar records the annual combined total for data published

in the C50 report. The values underlying each year’s set of bars are given in Table 3-3.

Reference to Figure 3-6 and Table 3-3 shows that the estimated values for the C30/CCI

derived data are about two-thirds of the expenditures resulting from the C50 report data.

There are two plausible explanations for these differences. First, the CCI does not

capture information on construction establishments without employees. Although such

establishments are not expected to be major players in the non-residential sector, they are

often very active in the residential maintenance and repair and additions and alterations

markets. These activities are captured through the C50 survey process. Second, the CCI

does not capture information on materials and equipment purchases by residential

property owners for use in maintenance and repair and additions and alterations activities.

Because the C50 survey is aimed at residential property owners, it captures information

on purchases of materials and equipment.

Table 3-3. Comparison of Derived Data and Household Survey Data for Total

Expenditures on Improvements and Maintenance and Repairs in the

Residential Sector

Residential Sector Value (Millions of Current 1992 Dollars) By Year

1992 1993 1994 1995 1996

Maintenance and Repair (Derived Data) 23,709 23,949 25,057 24,993 26,217

Improvements (Derived Data) 37,204 37,581 39,319 39,219 41,139

Total (Derived Data) 60,913 61,530 64,376 64,212 67,356

Maintenance and Repair (C50 Data) 45,121 40,198 39,731 37,338 32,113

Improvements (C50 Data) 58,580 64,208 66,671 61,837 67,636

Total (C50 Data) 103,734 104,405 106,402 99,733 99,749

For the non-residential sectors, it is unclear whether the estimates derived from the

C30/CCI data can be expected to exhibit a similar trend (i.e., are about two-thirds of the

value resulting from a survey of the respective sector) or not. Consequently, we have

adopted a conservative approach and opted to use the estimates derived from the C30/CCI

data for each of the four construction industry sectors. These data are plotted as multiyear traces in Figure 3-7. Detailed estimates by year, by sector, and by nature of

construction activity are recorded in Table 3-4.
33

Figure 3-6. Comparison of Derived Data and Household Survey Data for Total

Expenditures on Improvements and Maintenance and Repairs in the

Residential Sector

0

10000

20000

30000

40000

50000

60000

70000

80000

1992 1993 1994 1995 1996

Year

Maintenance and Repair

(Derived Data)

Maintenance and Repair

(C50 Data)

Improvements (Derived

Data)

Improvements (C50 Data)

Figure 3-7. Total Value of Construction Work

0

100000

200000

300000

400000

500000

600000

700000

800000

1992 1993 1994 1995 1996

Year

Total Construction

New Construction

Additions and alterations

Maintenance and Repair
34

Table 3-4. Value of Construction Work in Millions of Constant 1992 Dollars: 1992

to 1996

Part A: Total Value of Construction Work: 1992 to 1996

DERIVED DATA - 

ALL SECTORS Total Construction New Construction Additions and alterations

Maintenance and 

Repair

1992 645,769 393,831 156,455 93,335

1993 652,310 397,820 158,040 94,280

1994 682,469 416,213 165,347 98,639

1995 680,738 415,157 164,928 98,389

1996 714,067 435,483 173,002 103,206

Part B: Value of Construction Work by Sector and by Nature of Construction

Activity: 1992 to 1996

NEW 

CONSTRUCTION All Sectors Residential Commercial/ 

Institutional Industrial Public Works

1992 393,831 133,658 122,960 30,902 106,311

1993 397,820 141,076 125,770 27,212 103,762

1994 416,213 156,576 128,116 28,161 103,360

1995 415,157 146,167 137,006 30,391 101,593

1996 435,483 157,846 149,445 29,219 98,973

DERIVED DATA - 

MAINTENANCE/

REPAIR

1992 93,335 23,709 24,931 21,310 23,385

1993 94,280 23,949 25,183 21,526 23,622

1994 98,639 25,057 26,348 22,521 24,714

1995 98,389 24,993 26,281 22,464 24,651

1996 103,206 26,217 27,568 23,564 25,858

DERIVED DATA - 

ADDITIONS/ 

ALTERATIONS

1992 156,455 37,204 67,904 21,632 29,715

1993 158,040 37,581 68,592 21,851 30,016

1994 165,347 39,319 71,764 22,861 31,404

1995 164,928 39,219 71,581 22,803 31,324

1996 173,002 41,139 75,086 23,919 32,858
35

Importance of the Construction Industry to the US Economy

The relative importance of the construction industry to the overall US economy is shown

in Figure 3-8. Figure 3-8 uses the estimated annual values of all construction activities--

new construction, maintenance and repair, and additions and alterations--based on the

C30/CCI data and the published figures for the US gross domestic product (GDP) to

create a measure of the construction industry’s relative importance. The metric which is

plotted in Figure 3-8 is the percent of GDP accounted for by all expenditures for

construction activities. It is worth noting that while expenditures for all construction

activities have been increasing in each year (in constant 1992 dollar terms), the

construction industry’s relative importance peaked in 1994 and has been declining since

then. Reference to Figure 3-1 shows that 1994 was a year in which the value of new

residential construction put in place was particularly strong. To gain a better

understanding of how the construction industry interacts with the rest of the US economy,

it is useful to turn to the labor market.

Figure 3-8. Relative Importance of the Construction Industry to the US Economy

10.8

10.9

11

11.1

11.2

11.3

11.4

11.5

11.6

11.7

1992 1993 1994 1995 1996

Year

Percentage of Gross Domestic Product

% of GDP
36

3.3 Employment in Construction

Construction tends to be a cyclical activity that can have a significant impact on the

national economy, and an even greater impact on various local economies. Construction

activity has a significant impact on local employment due to secondary effects on

construction supply and service industries.

Figure 3-9 illustrates the cyclical nature of construction activity. Figure 3-9 records

employment in construction as a percent of overall employment in the US civilian work

force for the years 1980 through 1996. Because the construction work force consists of a

large number of self-employed workers, Figure 3-9 also includes multi-year traces which

divide the construction work force into its two constituent parts. The first part records the

percentage of the US civilian work force associated with construction establishments with

employees. The second part records the percentage of the US civilian work force

associated with self-employed construction workers.

Figure 3-9. Construction Employment as a Proportion of the Total US Civilian

Workforce

0.0

1.0

2.0

3.0

4.0

5.0

6.0

19801981198219831984198519861987198819891990199119921993199419951996

Year

Percentage 

All Construction Employment

as Percentage of Total US

Workforce

Payroll Construction Workers

as Percentage of Total US

Workforce

Self Employed Construction as

Percentage of Total US

Workforce

Source: Bureau of Labor Statistics, National Employment Data, and US Industrial

Outlook

Figure 3-9 shows the impact of recessions very clearly, as these are years when sharp

declines in the construction work force relative to the rest of the US civilian work force

occur. Notice that most of the declines and increases shown in Figure 3-9 are due to

construction establishments with employees. The percentage of self-employed workers

hovers around one percent throughout the 15 year period. The relative increase in
37

employment in the construction industry between 1992 and 1996 shown in Figure 3-9 and

its interaction with the rest of the economy can better be understood through reference to

and comparison with Figures 3-8 and 3-1. In Figure 3-8, the relative importance of the

construction industry vis-à-vis the rest of the economy reached a peak in 1994. Thus, one

would expect a positive influence of the overall economy on the construction industry

labor market leading up to that peak. Reference to Figure 3-1 shows strong increases in

the value of new commercial/institutional construction put in place from 1994 through

1996. This upward trend was reinforced by a strong performance in 1996 for the

residential sector.

Table 3-5 provides detailed employment information for a single year, 1992. The data

presented in Table 3-5 are from the 1992 Census of the Construction Industry. Table

3-5 is organized around the three two-digit SIC Codes and 26 four-digit SIC Codes

described earlier (see Table 3-2). The table lists a specific segment or subsegment of the

construction industry in the leftmost column. Immediately to the right is the

corresponding two-digit or four-digit SIC Code for the segment or subsegment of the

construction industry. The four remaining columns record information on the number of

establishments with payroll, the total number of employees in thousands, the value of

construction work in millions of 1992 dollars, and value added in millions of 1992

dollars. It is important to recognize that only construction establishments with employees

are included in these figures. Consequently, the values shown in Table 3-5 differ from

those given in Section 3.2 where data from the C30 report were used to compute the total

value of construction work (see Figure 3-2 for a comparison of the two sets of totals).

Data from the 1992 Census of the Construction Industry are used here because they

provide the necessary level of detail to link employment and output information. For

example, a key measure of productivity within the construction industry is value added

per employee. The information in Table 3-5 is very useful in characterizing employment

and output in the construction industry. One such characterization is illustrated through a

series of four pie charts and one bar chart.

Figure 3-10 summarizes information on the number of establishments and the percentage

of all construction establishments within each of the three two-digit SIC Codes. Note that

SIC Code 17, special trade contractors, account for nearly two-thirds of all construction

establishments. By contrast, heavy construction contractors, SIC Code 16, are only six

percent of the total number of construction establishments.

Figure 3-11 summarizes information on the number of employees and the percentage of

all construction employment within each of the three two-digit SIC Codes. Note that the

percentage of employment in SIC Code 16, heavy construction contractors, amounts to

17 percent of the total, implying that establishments in this segment of the construction

industry tend to be larger than for SIC Codes 15 and 17.

Figure 3-12 summarizes information on the value of construction work and the

percentage of the total value (i.e., $528.1 billion) within each of the three two-digit SIC

Codes. Note that general building contractors, SIC Code 15, and special trade

contractors, SIC Code 17, each account for 41 percent of the total.
38

 Table 3-5. Employment and Output Figures for the Construction Industry: 1992

Industry SIC 

Code

Establishments 

with Payroll 

(1000's)

Total 

Employees 

(1000's)

Value of 

Construction 

Work (Million 

Dollars)

Value Added 

(Million Dollars)

All industries, total (X) 572.9 4,668 528,106 234,618

General building contractors 15 168.4 1,097 215,629 63,117

Single-family houses 1521 107.5 404 48,633 17,183

Other residential buildings 1522 6.5 49 7,835 2,454

Operative builders 1531 17.0 114 44,588 15,289

Industrial buildings and warehouses 1541 7.7 123 20,586 6,438

Nonresidential buildings, n.e.c. 1542 29.7 407 93,987 21,754

Heavy construction contractors 16 37.2 799 95,571 49,165

Highway and street construction 1611 10.1 257 35,332 15,711

Bridge, tunnel, and elevated highway 1622 1.0 44 7,198 3,078

Water, sewer, and utility lines 1623 10.2 194 20,205 11,734

Heavy construction, n.e.c. 1629 15.8 304 32,837 18,642

Special trade contractors 17 367.3 2,772 216,905 122,336

Plumbing, heating, air-conditioning 1711 75.4 613 56,902 29,432

Painting and paperhanging 1721 32.0 163 8,690 5,855

Electrical work 1731 54.0 487 40,259 23,548

Masonry and other stonework 1741 22.6 148 8,458 5,146

Plastering, drywall, insulation 1742 18.6 207 14,056 8,143

Terrazzo, tile, marble, and mosaic work 1743 6.5 34 2,439 1,358

Carpentry 1751 38.2 178 12,852 6,760

Floorlaying and other floor work 1752 10.2 49 4,428 2,166

Roofing, siding, and sheet metal work 1761 27.6 216 16,788 8,906

Concrete work 1771 26.1 193 14,423 7,703

Water well drilling 1781 3.6 19 1,727 995

Structural steel erection 1791 3.8 58 4,952 3,021

Glass and glazing work 1793 4.6 32 2,724 1,424

Excavation work 1794 13.9 77 6,870 4,340

Wrecking and demolition work 1795 1.0 13 1,059 775

Installing building equipment, n.e.c. 1796 3.9 83 6,611 4,494

Special trade contractors, n.e.c. 1799 25.3 204 13,667 8,270
39

Figure 3-10. Number of Establishments with Payroll by Two-Digit SIC Code: 1992

SIC 17: 

367,300 

establishments

(65%) SIC 16:

37,200 establishments

(6%)

SIC 15:

168,400 

establishments

(29%)

SIC 15: General Building

Contractors

SIC 16: Heavy Construction

Contractors

SIC 17: Special Trade Contractors

Figure 3-11. Number of Employees for Establishments with Payroll by Two-Digit

SIC Code: 1992

SIC 17: 

2,772,000 employees

(59%) SIC 16:

799,000 employees

(17%)

SIC 15: 

1,097,000 employees

(24%)

SIC 15: General Building

Contractors

SIC 16: Heavy Construction

Contractors

SIC 17: Special Trade Contractors
40

Figure 3-12. Value of Construction Work for Establishments with Payroll by TwoDigit SIC Code: 1992

SIC 16: 

$95,571 million

(18%)

SIC 15: 

$215,629 milllion

(41%)

SIC 17: 

$216,905 million

(41%)

SIC 15: General Building

Contractors

SIC 16: Heavy Construction

Contractors

SIC 17: Special Trade Contractors

Figure 3-13 summarizes information on value added and the percentage of the total value

added (i.e., $234.6 billion) within each of the three two-digit SIC Codes. Figure 3-14

factors employment into the calculation; it records value added per employee in

thousands of 1992 dollars.

Reference to Figure 3-14 reveals that SIC Code 16, heavy construction contractors, has

the highest average value added per employee, $61.5 thousand, and SIC Code 17, special

trade contractors, has the lowest value added per employee, $44.1 thousand. That SIC

Code 16 is the highest should come as no surprise. Establishments within SIC Code 16

tend to be larger on the average than for SIC Codes 15 and 17 and accounted for a

“relatively” larger percentage share of overall value added. For example, for SIC Code

16, the percentage share of overall value added exceeded the percentage share of overall

employment. While for SIC Codes 15 and 17, their percentage shares of value added

were either approximately equal or less than the percentage shares of overall employment.
41

Figure 3-13. Value Added for Establishments with Payroll by Two Digit SIC Code:

1992

SIC 17:

$122,336 million

(52%)

SIC 16: 

$49,165 million

(21%)

SIC 15: 

$63,117 million

(27%)

SIC 15: General Building

Contractors

SIC 16: Heavy Construction

Contractors

SIC 17: Special Trade Contractors

Figure 3-14. Value Added per Employee for Establishments with Payroll: 1992

61.53

44.13

57.53

50.26

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

ALL 15 16 17

SIC Code
42

3.4 Special Considerations

The purpose of this section is twofold. First, it provides information on cost trends. This

information builds on the material presented in the earlier sections. As such, it promotes

a better understanding of interactions between the construction industry and the rest of the

US economy. Second, this section introduces information that has relevance to the

National Construction Goal of reducing operations, maintenance, and energy costs but is

general in nature.

Trends in Residential and Non-Residential Construction Costs

In Sections 3.2 and 3.3, information is presented and discussed on the relative importance

of the construction industry and on interactions between employment and output in the

construction industry and the overall US economy. Both sets of information included

trends which showed the cyclical nature of construction activity. Figure 3-15 provides a

different perspective on the same issue; namely, trends in per unit construction costs (i.e.,

costs per square meter and costs per square foot). Figure 3-15 consists of three multi-year

traces: (1) all buildings; (2) residential buildings; and (3) non-residential buildings. The

cost trend data cover the 15 year period 1980 through 1995. Reference to Figure 3-15

shows an upward trend for residential buildings modulated by the business cycle. For

non-residential buildings, the upward trend is more heavily modulated by the business

cycle (see Figures 3-8 and 3-9 for purposes of comparison).

Figure 3-15. Average Cost per Square Foot and per Square Meter of New

Construction and Major Additions to Buildings

0

10

20

30

40

50

60

70

80

90

100

1980198119821983198419851986198719881989199019911992199319941995

Year

Cost per Square Foot in Constant 1992 

Dollars

0

200

400

600

800

1000

Cost per Square Meter in Constant 1992 

Dollars

All Buildings

Combined

Non-Residential

Buildings

Residential

Buildings
43

Table 3-6 records the data used to produce each multi-year trace. The table is divided

into three parts: Part A covers all buildings; Part B covers residential buildings; and Part

C covers non-residential buildings. The leftmost column in each part of Table 3-6

records the year. The remainder of the table records the construction contract value in

billions of constant 1992 dollars, the floor space in millions of square feet, the

construction cost in dollars per square foot, the floor space in millions of square meters,

and the cost in dollars per square meter.

Table 3-6. Information Used to Compute Average Cost per Square Foot and

Average Cost per Square Meter Figures

Part A: All Buildings

ALL BUILDINGS

YEAR

Construction 

Contract Value 

(Billion Constant 

1992 Dollars)

Floorspace (Million 

Square Feet)

Floorspace (Million 

Square Meters)

Construction Cost 

(Dollars/Square Foot)

Construction Cost 

(Dollars/Square 

Meter)

1980 218.0 3,102 288.2 70.27 756.13

1981 208.6 2,805 260.6 74.36 800.11

1982 200.5 2,455 228.1 81.65 878.59

1983 244.8 3,387 314.7 72.26 777.57

1984 263.4 3,661 340.1 71.94 774.08

1985 282.5 3,853 357.9 73.32 788.87

1986 289.2 3,935 365.6 73.49 790.77

1987 290.3 3,756 348.9 77.30 831.75

1988 283.4 3,594 333.9 78.86 848.58

1989 282.7 3,516 326.6 80.40 865.13

1990 249.4 3,020 280.6 82.60 888.75

1991 232.4 2,634 244.7 88.24 949.43

1992 252.2 2,799 260.0 90.10 969.51

1993 261.7 3,062 284.5 85.48 919.72

1994 274.0 3,410 316.8 80.35 864.54

1995 271.3 3,448 320.3 78.68 846.61

Part B: Residential Buildings

RESIDENTIAL BUILDINGS

YEAR

Construction 

Contract Value 

(Billion Constant 

1992 Dollars)

Floorspace (Million 

Square Feet)

Floorspace (Million 

Square Meters)

Construction Cost 

(Dollars/Square Foot)

Construction Cost 

(Dollars/Square 

Meters)

1980 86.7 1,839 170.8 47.16 507.48

1981 74.7 1,562 145.1 47.79 514.26

1982 70.2 1,440 133.8 48.74 524.40

1983 111.5 2,276 211.4 48.98 527.00

1984 117.1 2,311 214.7 50.68 545.33

1985 122.4 2,324 215.9 52.68 566.79

1986 134.1 2,481 230.5 54.05 581.57

1987 127.9 2,288 212.6 55.90 601.52

1988 125.6 2,181 202.6 57.59 619.71

1989 121.1 2,115 196.5 57.25 615.99

1990 102.3 1,817 168.8 56.31 605.88

1991 95.1 1,653 153.6 57.51 618.79

1992 110.6 1,864 173.2 59.33 638.44

1993 119.4 2,091 194.3 57.12 614.62

1994 123.6 2,266 210.5 54.54 586.81

1995 114.2 2,172 201.8 52.59 565.81
44

Part C: Non-Residential Buildings

NON-RESIDENTIAL BUILDINGS

YEAR

Construction 

Contract Value 

(Billion Constant 

1992 Dollars)

Floorspace (Million 

Square Feet)

Floorspace (Million 

Square Meters)

Construction Cost 

(Dollars/Square Foot)

Construction Cost 

(Dollars/Square 

Meter)

1980 81.7 1,263 117.3 64.69 696.11

1981 86.9 1,243 115.5 69.87 751.84

1982 82.4 1,015 94.3 81.21 873.83

1983 85.6 1,111 103.2 77.07 829.25

1984 100.9 1,350 125.4 74.74 804.22

1985 110.4 1,529 142.0 72.22 777.11

1986 106.3 1,454 135.1 73.08 786.32

1987 110.8 1,469 136.5 75.39 811.25

1988 105.8 1,413 131.3 74.90 805.90

1989 110.6 1,400 130.1 78.97 849.70

1990 96.7 1,203 111.8 80.41 865.23

1991 86.8 981 91.1 88.48 952.09

1992 87.0 936 87.0 92.95 1000.13

1993 85.6 971 90.2 88.16 948.60

1994 93.4 1,144 106.3 81.67 878.72

1995 100.4 1,276 118.5 78.66 846.41

Definitions of Key Types of Operations, Maintenance, and Energy Cost Issues

Previous sections of this document have focused primarily upon new construction,

improvements, or maintenance and repair costs when considering reductions in

operations maintenance, and energy costs. The purpose of this section is to address

general operations and energy issues which are relevant to all four sectors of the

construction industry.

At this point, it is important to define what is meant by ‘operations and energy’ in this

context. ‘Operations’ is defined as including all non-process or end-product related

activities required to operate a building or structure, with the exception of maintenance

and repair activities, which are considered separately. Thus, process-related operations

components (e.g., raw materials inputs, plant/machinery operations, or production labor

payroll costs) are generally excluded from this document, except where these provide

some valuable insight, or cannot be separated from non-process activities. Typically,

operations components might include the following:

• water consumption

• trash removal/environmental costs

• cleaning services/janitorial

• pest control

• security services/life safety costs

• roads and grounds maintenance/snow removal

• administrative expenses (i.e., in-house services and external contract services,

legal, professional, and accounting services, etc.)
45

In some cases, fixed operations components may also be included, such as:

• real estate and other taxes

• insurance

• leasing expenses

‘Energy’ is defined as including all non-process or end-product related energy

consumption required to operate a building or structure. Thus energy consumption for

manufacturing processes is generally excluded. Typically, energy consumption can be

categorized by energy source (i.e., electricity, coal, gas, oil, etc.) and by assigned end-use,

such as space heating, cooling, and lighting.

Wherever possible, operations and energy data are normalized on a ‘per building’, ‘per

employee’ or ‘per unit area’ basis to allow meaningful comparisons to be made.

This section will now consider information relevant to the construction industry as a

whole for three specific components. These are (1) water consumption, (2) other

operations data, and (3) energy consumption. Detailed data relevant to each industry

sector is provided in Chapters 5 through 8 of this document.

Water Consumption

Water consumption data for the US is collected by the United States Geological Survey

(USGS). Data for total water withdrawals and consumptive use for 1980, 1985, and 1990

(1995 data not presently available) are shown in Figure 3-16. Reference to Figure 3-16

indicates that both total withdrawals and consumption have remained relatively stable

over this period at approximately 1,514 billion liters (400 billion gallons) per day, and

379 billion liters (100 billion gallons) per day respectively.

Table 3-7 Part A and Part B records the data used to produce the figure for total water

withdrawals for 1990. The data are sorted by region, source, and type of withdrawal.

The table indicates that in 1990, ground water withdrawals accounted for approximately

twenty percent of water withdrawals, with the remainder from surface water sources. The

latter can be attributed largely to steam and electric utility consumption, and to irrigation.

Figure 3-17 shows the relative rates of withdrawal and consumption for the domestic,

commercial, industrial, and power generation sectors in 1990. Reference to the figure

indicates that whilst power generation requires a very high rate of withdrawal, its rate of

consumption is comparatively low. In fact, the highest consumer of water within the four

sectors shown is the domestic sector. The difference between the amount for total

consumption in 1990 shown on Figure 3-16, and the sum of the sectors for Figure 3-17 is

attributable principally to water withdrawals for irrigation purposes, which are not

considered in this document.
46

Table 3-7. Total Offstream Water Use by Water Resources Region: 1990

Part A: Millions of Gallons per Day

WITHDRAWALS (in Million Gallons/Day)

REGION Ground Water Surface Water Total

Population (in 

thousands)

Per Capita Use 

Freshwater (in 

Gallons/Day)

Fresh Saline Total Fresh Saline Total Fresh Saline Total

New England 12,797 370 694 0 694 4,040 9,160 13,200 4,730 9,160 13,900

Mid Atlantic 41,541 508 2,640 1.2 2,640 18,500 26,500 44,900 21,100 26,500 47,600

South Atlantic-Gulf 34,732 962 7,110 9.1 7,120 26,300 10,800 37,100 33,400 10,800 44,200

Great Lakes 21,405 1,510 1,210 4.9 1,220 31,200 6.5 31,200 32,400 11 32,400

Tennessee 3,911 2,350 305 0 305 8,900 0 8,900 9,200 0 9,200

Upper Mississippi 21,270 977 2,620 4.2 2,630 18,200 0 18,200 20,800 4.2 20,800

Lower Mississippi 7,167 2,510 8,340 0 8,340 9,630 1,120 10,800 18,000 1,120 19,100

Souris-Red-Rainy 672 439 130 0 130 166 0 166 295 0 295

Missouri Basin 10,048 3,730 8,490 37 8,530 29,000 0 29,000 37,500 37 37,500

Arkansas-White-Red 8,250 1,870 7,420 291 7,710 7,990 0 7,990 15,400 291 15,700

Texas-Gulf 15,239 886 5,480 400 5,880 8,020 4,610 12,600 13,500 5,010 18,500

Rio Grande 2,229 2,690 2,140 39 2,180 3,850 0 3,850 6,000 39 6,030

Upper Colorado 625 11,300 127 28 155 6,950 0 6,950 7,080 28 7,110

Lower Colorado 4,747 1,630 3,080 0.6 3,080 4,670 0.6 4,670 7,750 1.2 7,750

Great Basin 2,182 3,300 1,970 19 1,990 5,230 93 5,320 7,200 112 7,310

Pacific Northwest 8,912 4,070 9,780 0 9,780 26,500 36 26,500 36,300 36 36,300

California 29,442 1,200 14,400 310 14,700 21,000 11,400 32,400 35,400 11,700 47,200

Alaska 550 517 64 48 112 221 308 529 284 357 641

Hawaii 1,108 1,070 589 0.6 590 600 1,550 2,150 1,190 1,550 2,740

Caribbean 3,624 161 159 1.2 160 426 2,620 3,040 585 2,620 3,200

Total 252,336 1,340 79,400 1,220 80,600 259,000 68,200 327,000 339,000 69,400 408,000

Part B: Millions of Liters per Day

WITHDRAWALS (in Million Liters/Day)

REGION Ground Water Surface Water Total

Population (in 

thousands)

Per Capita Use 

Freshwater (in 

Liters/Day)

Fresh Saline Total Fresh Saline Total Fresh Saline Total

New England 12,797 1,401 2,627 0 2,627 15,293 34,674 49,967 17,905 34,674 52,617

Mid Atlantic 41,541 1,923 9,993 5 9,993 70,030 100,313 169,964 79,872 100,313 180,185

South Atlantic-Gulf 34,732 3,642 26,914 34 26,952 99,556 40,882 140,438 126,432 40,882 167,315

Great Lakes 21,405 5,716 4,580 19 4,618 118,104 25 118,104 122,647 42 122,647

Tennessee 3,911 8,896 1,155 0 1,155 33,690 0 33,690 34,826 0 34,826

Upper Mississippi 21,270 3,698 9,918 16 9,956 68,894 0 68,894 78,736 16 78,736

Lower Mississippi 7,167 9,501 31,570 0 31,570 36,453 4,240 40,882 68,137 4,240 72,301

Souris-Red-Rainy 672 1,662 492 0 492 628 0 628 1,117 0 1,117

Missouri Basin 10,048 14,120 32,138 140 32,289 109,777 0 109,777 141,953 140 141,953

Arkansas-White-Red 8,250 7,079 28,088 1,102 29,185 30,245 0 30,245 58,295 1,102 59,431

Texas-Gulf 15,239 3,354 20,744 1,514 22,258 30,359 17,451 47,696 51,103 18,965 70,030

Rio Grande 2,229 10,183 8,101 148 8,252 14,574 0 14,574 22,712 148 22,826

Upper Colorado 625 42,775 481 106 587 26,309 0 26,309 26,801 106 26,914

Lower Colorado 4,747 6,170 11,659 2 11,659 17,678 2 17,678 29,337 5 29,337

Great Basin 2,182 12,492 7,457 72 7,533 19,798 352 20,138 27,255 424 27,671

Pacific Northwest 8,912 15,407 37,021 0 37,021 100,313 136 100,313 137,410 136 137,410

California 29,442 4,542 54,510 1,173 55,645 79,493 43,154 122,647 134,003 44,289 178,671

Alaska 550 1,957 242 182 424 837 1,166 2,002 1,075 1,351 2,426

Hawaii 1,108 4,050 2,230 2 2,233 2,271 5,867 8,139 4,505 5,867 10,372

Caribbean 3,624 609 602 5 606 1,613 9,918 11,508 2,214 9,918 12,113

Total 252,336 5,072 300,561 4,618 305,103 980,419 258,164 1,237,826 1,283,251 262,707 1,544,443
47

For the residential sector, data produced by the Bureau of Economic Analysis tracks the

change in personal consumption expenditures for water and sanitary services for US

households. Figure 3-18 shows the change in total expenditures for water and sanitary

services since 1980. An upward trend in costs is clearly visible.

For the remaining industry sectors, no general, industry-wide data have been located

comparing total costs for water consumption. However, by assuming a cost of $0.79 per

thousand liters ($3.00 per thousand gallons) for public supply water deliveries and

sanitary services, it is possible to derive an approximation of total water expenditures

within the commercial sector.

In the commercial sector, over seventy percent of total water deliveries are from the

public supply. Therefore, assuming a cost of $0.79 per thousand liters ($3.00 per

thousand gallons), and based upon the USGS total withdrawal rate of 31,381 million

liters (8,290 million gallons) per day for 1990, water expenditures for 1990 are estimated

to be $9.08 billion. This compares with a total of approximately $27.9 billion for the

residential sector in the same year.

In the industrial and power generation sectors, it is not considered to be appropriate to

apply this assumption. This is because, in the industrial sector, public supply water

deliveries account for only approximately eighteen percent of total withdrawals; in the

power generation sector, the figure is less than one percent. It is highly likely that the unit

water costs vary significantly compared with the residential and commercial sectors,

particularly in the power generation sector. No other sources of data have been found

which provide aggregated water consumption cost information for these two sectors.

Other Operations Data

A second data source which merits examination is the 1992 Census of Service

Industries (CSI), conducted by the US Bureau of the Census. SIC Code 73 of the CSI

(Business Services), includes various businesses which are associated with building

operations.

In particular, SIC Code 734 (Services to Dwellings and Other Buildings) includes data for

establishments primarily engaged in providing disinfecting and termite, insect, rodent,

and other pest control services (SIC Code 7342). Data are also available for

establishments providing building cleaning and maintenance services, not elsewhere

classified (SIC Code 7349), which includes window cleaning, janitorial services, floor

waxing, and office cleaning (it does not include building repair work or construction

related maintenance work). Finally, security systems services (SIC Code 7382) considers

establishments primarily engaged in selling, monitoring, and maintaining security systems

devices, such as burglar and fire alarms in any type of building.
48

Figure 3-16. Total US Water Withdrawals and Consumptive Use: 1980 to 1990

0

100

200

300

400

500

1980 1985 1990

Year

Total (billion gallons per day) 

0

500

1000

1500

Total (billion liters per day) 

Withdrawals

Consumptive

Use

Figure 3-17. Comparison of Water Supply and Consumption in the Domestic,

Commercial, Industrial and Power Generation Sectors: 1990

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

Domestic Commercial Industrial Power

Generation

Sector

Millions of Gallons per Day 

0

50000

100000

150000

200000

250000

300000

Millions of Liters Per Day 

Total Supply

Total

Consumption
49

Figure 3-18. Personal Consumption Expenditures for Water and Sanitary Services

for US Households: 1980 to 1992

0

5

10

15

20

25

30

1980198119821983198419851986198719881989199019911992

Year

Billions of Constant 1992 Dollars (based upon 

Consumer Price Index)

The data which are collected typically provide information on number of establishments,

number of employees, receipts and payroll expenditures, rather than data specific to

construction sectors or on a per-square meter (per-square foot) basis. However, the

information is useful for ball-parking some building operations costs across all industry

sectors. Table 3-8 shows selected data extracted from the 1992 CSI.

Table 3-8. Costs of Operation Data from the Census of Service Industries: 1992

SIC 

Code Type of Industry Number of Establishments

Receipts 

($1,000)

Number of 

Employees

Payroll 

($1,000)

7342 Disinfecting and Pest Control Services 10,300 3,736,447 70,545 1,454,168

7349 Building Cleaning and Maintenance Services 47,349 15,266,279 747,399 7,710,022

7382 Security Systems Services 2,968 3,414,640 51,755 1,183,008
50

Energy Consumption

The final issue which merits special consideration is that of energy consumption in the

US across all industry sectors. Data published by the Energy Information Administration

are used to compare energy consumption between different sectors. The reference

document used in this section is the Annual Energy Review 1996 (AER)16.

Data presented in the AER are categorized by industry sector in a way that varies slightly

from that used in this document. The AER defines three sectors, the residential,

commercial, and industrial sectors, which are very similar to those used in this document.

However, a fourth sector, the transportation sector, is defined in the AER, which is a subsector of the public works sector in this document (refer to Chapter 4 for further details of

sector definitions). At a general level, the AER combines data for the residential and

commercial sectors.

Figure 3-19 shows the total energy consumption in quadrillion joules (quadrillion British

thermal units (Btu) for the different industry sectors between 1992 and 1996 as a series of

line traces. As previously mentioned, combined data for the residential and commercial

sectors are presented. Table 3-9 Part A and Part B records the source data for Figure 3-

19. It also shows the proportional consumption of the different principal fuel sources

(i.e., coal, petroleum, and natural gas) within each of the industry sectors, as well as the

electrical system energy losses. These losses are calculated as the difference between the

total energy input at electric utilities, and the total energy content of electricity sold to

end-use consumers. Since a large proportion of these losses are attributable to the

electrical generation process, these losses are apportioned amongst the different sectors

according to total end use consumption of energy by each sector. Figure 3-19 indicates

that the total energy consumption within the residential, commercial, industrial, and

transportation sectors is rising steadily, and that this rise is reflected across all sectors.

In order to be able to differentiate between commercial and residential energy use, data in

the AER from a different survey, the Residential Energy Consumption Survey (RECS),

have been used to generate Figure 3-20, which shows the total consumption of energy by

the residential sector between 1980 and 1993. Examination of data for 1992 and 1993,

and comparison of Figures 3-19 and 3-20 indicates that residential energy consumption

accounts for approximately one-third of combined residential and commercial energy

consumption.

 

16 US Department of Energy. 1997. Annual Energy Review 1996. DOE/EIA - 0384(96). Washington,

DC: Energy Information Administration.
51

Figure 3-19. Energy Consumption by Sector

0

10

20

30

40

50

60

70

80

90

100

1992 1993 1994 1995 1996

Year

Quadrillion Btu 

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

Quadrillion Joules 

All Sectors

Industrial

Residential and

Commercial

Transportation

Figure 3-20. Energy Consumption in the Residential Sector

0

2

4

6

8

10

12

1980 1981 1982 1984 1987 1990 1993

Year

Quadrillion Btu 

0

2000

4000

6000

8000

10000

12000

Quadrillion Joules 

Total Consumption 

Natural Gas 

Electricity 

Distillate Fuel/Kerosene 

Liquified Petroleum Gas
52

Table 3-9. Energy Consumption by Sector

Part A: Quadrillion Btu

RESIDENTIAL AND COMMERCIAL

Year Coal Natural Gas Petroleum Electricity Losses Total

1992 0.14 7.73 2.13 6.10 13.21 30.00

1993 0.14 8.04 2.14 6.42 13.74 31.13

1994 0.14 7.97 2.09 6.56 13.88 31.29

1995 0.13 8.09 2.12 6.81 14.39 32.26

1996 0.14 8.73 2.22 7.04 15.04 33.88

INDUSTRIAL

Year Coal Natural Gas Petroleum Electricity Losses Total

1992 2.51 8.97 8.64 3.32 7.19 33.01

1993 2.50 9.41 8.45 3.33 7.14 33.30

1994 2.51 9.56 8.85 3.44 7.28 34.19

1995 2.48 10.06 8.69 3.46 7.30 34.60

1996 2.40 10.31 9.11 3.47 7.41 35.43

TRANSPORTATION

Year Coal Natural Gas Petroleum Electricity Losses Total

1992 N/A N/A 21.81 N/A N/A 22.46

1993 N/A N/A 22.20 N/A N/A 22.88

1994 N/A N/A 22.82 N/A N/A 23.57

1995 N/A N/A 23.20 N/A N/A 23.96

1996 N/A N/A 23.66 N/A N/A 24.43

ALL SECTORS

Year Coal Natural Gas Petroleum Electricity Losses Total

1992 2.65 16.70 23.94 9.42 20.40 85.52

1993 2.64 17.45 24.34 9.75 20.88 87.34

1994 2.65 17.53 24.91 10.00 21.16 89.21

1995 2.61 18.15 25.32 10.27 21.69 90.94

1996 2.54 19.04 25.88 10.51 22.45 93.81
53

Part B: Quadrillion Joules

RESIDENTIAL AND COMMERCIAL

Year Coal Natural Gas Petroleum Electricity Losses Total

1992 147.7 8155.6 2247.3 6435.8 13937.3 31651.7

1993 147.7 8482.6 2257.8 6773.5 14496.5 32843.9

1994 147.7 8408.8 2205.1 6921.2 14644.2 33012.7

1995 137.2 8535.4 2236.7 7184.9 15182.3 34036.1

1996 147.7 9210.6 2342.2 7427.6 15868.0 35745.3

INDUSTRIAL

Year Coal Natural Gas Petroleum Electricity Losses Total

1992 2648.2 9463.9 9115.7 3502.8 7585.9 34827.4

1993 2637.6 9928.1 8915.2 3513.3 7533.1 35133.4

1994 2648.2 10086.3 9337.2 3629.4 7680.8 36072.4

1995 2616.5 10613.9 9168.4 3650.5 7701.9 36504.9

1996 2532.1 10877.6 9611.6 3661.0 7818.0 37380.6

TRANSPORTATION

Year Coal Natural Gas Petroleum Electricity Losses Total

1992 N/A N/A 23010.8 N/A N/A 23696.6

1993 N/A N/A 23422.2 N/A N/A 24139.7

1994 N/A N/A 24076.4 N/A N/A 24867.7

1995 N/A N/A 24477.3 N/A N/A 25279.1

1996 N/A N/A 24962.6 N/A N/A 25775.0

ALL SECTORS

Year Coal Natural Gas Petroleum Electricity Losses Total

1992 2795.9 17619.4 25258.0 9938.6 21523.1 90228.4

1993 2785.3 18410.7 25680.1 10286.8 22029.6 92148.6

1994 2795.9 18495.1 26281.4 10550.6 22325.0 94121.5

1995 2753.7 19149.3 26714.0 10835.4 22884.2 95946.8

1996 2679.8 20088.3 27304.8 11088.6 23686.0 98974.8

55

4. Developing Baseline Measures for Reductions in Operations,

Maintenance, and Energy (OM&E) Costs

4.1 Data Classification Schemes

The first stage in developing baseline measures for Goal 2 (i.e., reductions in OM&E

costs) involved establishing data classification hierarchies for each of the four industry

sectors. These hierarchies were essential in order to be able to sort data into relevant

sectors, to prioritize the data, and to establish data linkages. Initially, an “idealized”

hierarchy was developed for each sector, on the premise that there would be no

limitations upon data availability. However, as the data collection effort progressed,

these “idealized” hierarchies were modified to reflect data availability and format

constraints.

4.1.1 Industry Oriented

The industry oriented, or “idealized” hierarchies were developed with a view to defining

for the four industry sectors the extent and key components considered relevant to Goal 2.

The hierarchies for each sector divided operations, maintenance, and energy into three

distinct areas, and then listed the key components within each of these areas. A brief

description of each hierarchy, outlining the extent and key components of each sector, as

defined in this document, is given below.

Residential Sector

The residential sector, was taken to comprise all permanent single and multi-unit

structures, as well as mobile homes or trailers in the United States. These can be grouped

according to whether the buildings are site (or ‘stick’) built, or modular/manufactured

units. Housing can be further categorized by geographic location, type, size, and age.

Residential “operations” is defined in this hierarchy as encompassing three core areas:

(1) water consumption/wastewater removal

(2) domestic waste

(3) other (e.g., taxes and insurance)

These operations costs are influenced by factors such as environmental, legislative, and

taxation requirements.

Residential “maintenance” is defined as encompassing both the building shell and

building equipment. The four principal maintenance categories are defined as:

(1) heating ventilation and air conditioning (HVAC)

(2) electrical and security

(3) plumbing

(4) building structure/roof
56

Maintenance costs are influenced by factors such as the design life of the system or shell

and its current age and condition, serviceability criteria, budget constraints, and

legislative and safety requirements.

Residential “energy” is defined as covering the consumption of basic fuel types such as

electricity, natural gas, and renewable sources. Energy consumption can be apportioned

by end-use, which, for residential structures, can be conveniently grouped under the

headings space heating, air conditioning, water heating, and appliances. Factors affecting

end use consumption include equipment/system type, degree of automation/feedback

control, maintenance, and climatic zone (i.e., heating degree days (HDD) and cooling

degree days (CDD)), as well as building shell characteristics and occupant comfort levels.

Many of these factors are impacted by design, cost, aesthetic, and legislative

requirements.

Commercial/Institutional Sector

The commercial/institutional sector was taken to comprise the following generic types of

building/facility, as defined by the Energy Information Administration (EIA):

• Farm Buildings

• Food Sales

• Food Service

• Health Care

• Laboratories

• Lodging

• Mercantile and Service

• Office

• Public Assembly

• Public Order and Safety

• Religious Worship

• Skilled Nursing

• Warehouse

• Other

Certain facilities, such as utilities, communications and transportation, are included under

‘services’ by organizations such as the International Facilities Management Association

(IFMA). However, for the purposes of this document, these are considered as being part

of the public works sector. Similarly, buildings within the manufacturing sector (e.g.,

computing, electronics, consumer products) are considered as being part of the industrial

sector in this document. Commercial/institutional facilities can be categorized primarily

by geographic location, type and size of facility, age, number of employees, and hours of

operation.
57

Commercial/institutional “operations” is defined in this hierarchy as encompassing six

core areas17:

(1) water consumption/wastewater removal

(2) waste collection/disposal, and building cleaning

(3) roads, grounds, and security

(4) administration (management fees, payroll, professional fees, etc.)

(5) fixed expenses (real estate and other taxes, insurance, etc.)

(6) leasing costs

These operations costs are all influenced to some extent by environmental, legislative,

and taxation requirements.

Commercial/institutional “maintenance” is defined as encompassing both the building

shell, and building equipment. The eight principal maintenance categories are defined as:

(1) payroll (in-house maintenance staff)

(2) elevator

(3) heating ventilation and air conditioning (HVAC)

(4) electrical

(5) plumbing

(6) building structure/roof

(7) fire/life safety

(8) other

Maintenance costs are influenced by factors such as the design life of the system or shell

and its current age and condition, serviceability criteria, budget constraints, and

legislative and safety requirements.

Commercial/institutional “energy” is defined as covering the consumption of basic fuel

types such as electricity, fuel oil, natural gas, purchased steam, and chilled water. Energy

consumption can be apportioned by end-use, which can be conveniently grouped under

the headings space heating, cooling/air conditioning, water heating, and process end use.

Factors affecting end use consumption are dependent upon building function (number of

employees, hours of operation, percentage of floor space heated and lit, type of end

product or service), equipment/system type, climatic zone, use of demand-side

management systems, degree of automation/feedback control, and frequency of

maintenance. In addition, building shell characteristics, such as roof and wall

construction, percentage of wall area which is glazed, and conservation features will also

have an impact upon end-use consumption. Many of these factors are impacted by

design, cost, aesthetic, and legislative requirements.

 

17 For detailed definition for each of these categories, refer to Building Owners and Managers Association

1996. Experience Exchange Report, Terms and Definitions pp. xi-xii.
58

Industrial Sector

The industrial sector was taken to comprise all manufacturing industries with Standard

Industrial Classification (SIC) Codes between 20 and 39 inclusive. These SIC Codes are

as follows:

• SIC 20 - Food and Kindred Products

• SIC 21 - Tobacco Products

• SIC 22 - Textile Mill Products

• SIC 23 - Apparel and Other Textile Products

• SIC 24 - Lumber and Wood Products

• SIC 25 - Furniture and Fixtures

• SIC 26 - Paper and Allied Products

• SIC 27 - Printing and Publishing

• SIC 28 - Chemicals and Allied Products

• SIC 29 - Petroleum and Coal Products

• SIC 30 - Rubber and Miscellaneous Plastic Products

• SIC 31 - Leather and Leather Products

• SIC 32 - Stone Clay and Glass Products

• SIC 33 - Primary Metal Products

• SIC 34 - Fabricated Metal Products

• SIC 35 - Industrial Machinery and Equipment

• SIC 36 - Electronic and Other Equipment

• SIC 37 - Transportation Equipment

• SIC 38 - Instruments and Related Products

• SIC 39 - Miscellaneous Manufacturing Industries

Note that all mining industries (which includes off-shore exploration and extraction

activities) are excluded from this document. All transportation, communications, electric

power generation/distribution, and sanitary services are included in the public works

sector for this document. Industrial facilities can be characterized primarily by geographic

location, size of facility (e.g., by capacity as a function of installed cost), and

type/function.

Industrial “operations” is defined in this hierarchy as encompassing both process and nonprocess operations. Process operations include plant, labor, and materials components

which are directly related to the production process or end-product. Non-process

operations include those operations which are not directly related to the production

process or end product. The latter would typically include non-production workers and

associated infrastructure components.

Plant process operations components include capital expenditures for new plant and

machinery as well as fixed costs such as taxation, insurance and depreciation. Similarly,

labor costs can be divided between production workers (process operations) and all other
59

employees (non-process operations). Materials costs are dependent upon the industrial

process which is being performed. These operational costs are all influenced to some

extent by environmental, legislative, and taxation requirements.

Industrial “maintenance” is defined as encompassing both buildings and related

structures, and the machinery and equipment associated with them. It is not always

possible to differentiate between process related and non-process related maintenance

components. For the building component, the maintenance components and factors

influencing those components are very similar to those for commercial buildings. For

machinery and equipment, maintenance requirements are likely to be affected by factors

such as the design life of the system and its current age and condition, serviceability

criteria, budget constraints, and legislative and safety requirements. These will vary

greatly depending upon the particular industry which is being considered.

Industrial “energy” is defined as covering the consumption of basic fuel types such as

electricity, natural gas, and coal, as well as byproduct energy such as waste gas and

pulping liquor. Energy consumption can be apportioned by end-use, which can be

conveniently grouped as follows:

(1) indirect use (e.g., boiler fuel)

(2) direct process use (heating, cooling, machine drive, and electro-chemical)

(3) direct non-process use (HVAC, lighting, non-process electrical generation, etc.)

(4) non-assigned end-use

Factors affecting end use consumption are dependent upon manufacturing

process/building function, equipment/system type, climatic zone, use of demand side

management systems, degree of automation/feedback control, and frequency of

maintenance. In addition, building shell characteristics, and the ability to switch between

different fuel types will also have an impact upon end-use consumption. Many of these

factors are impacted by design, cost, safety, and legislative requirements.

Public Works Sector

For this document, the public works sector has been divided into a number of sub-sectors,

which are broadly aligned with the SIClassification Codes, as follows:

• Transportation (SIC 40, 41, 42, 44, 45). This sub-sector includes transportation by

road, rail, transit, water, and air.

• Communications (SIC 48). This sub-sector includes communication masts and other

structures, and associated cabling and related services.

• Power Utilities (SIC 49). This sub-sector includes the generation and distribution of

electricity, gas and steam (electric, gas, coal, nuclear, and other types of power

station). It includes the distribution of natural gas.

• Water (SIC 44, 49). This sub-sector includes the storage, supply, and treatment of

water, plus flood and storm water control.
60

• Solid Waste (SIC 42, 44). This sub-sector includes the collection and disposal of

solid waste materials (domestic and industrial).

• Pipelines (SIC 46). This sub-sector includes pipelines for the transport of petroleum

and other commodities except natural gas.

The extent of the industry oriented hierarchy for each of these sub-sectors is considered in

more detail below.

Transportation Sub-Sector

This sub-sector was taken to comprise the US highway and bridge network, rail network,

transit systems, airports and associated infrastructure, and navigable rivers, canals, related

structures and ports. Highways and bridges can be relatively easily categorized by type of

operating authority, functional type, and geographic location. Railroads can be

categorized by geographic location and by class of railroad. Categorization of transit

systems, airports, waterways, and ports is more difficult, given that many do not share

common characteristics and cannot be easily compared.

Transportation “operations” is defined in this hierarchy as encompassing building

operations components, and network management/administration components. While

building operations components can be relatively easily defined, using a similar approach

to that used for the commercial sector, it is more difficult to define network management

components. Both sets of components are influenced to some extent by environmental,

legislative, and taxation issues.

Transportation “maintenance” for roads can be subdivided into constituent components

(pavement, earthworks, drainage, structures, signs and lighting, etc.) depending upon

whether the work is highway widening, reconstruction, or new construction. Rail and

transit “maintenance” can be subdivided into maintenance of stations/buildings, tracks,

structures, and rolling stock. Airport “maintenance” can be similarly divided into

buildings (shells and systems) and pavements (runways). Waterway “maintenance”

components principally comprise dredging, earthworks, and structures. For all building

related issues within the transportation sub-sector, the maintenance components and

factors influencing those components are very similar to those for commercial buildings.

Similarly, many of the maintenance factors are impacted by design, cost, safety, and

legislative requirements.

Transportation “energy” is defined as covering the consumption of basic fuel types such

as gasoline, diesel, and aviation fuel, as well as consumption of electricity and other

sources associated with building energy consumption, and highway lighting, for example.

In this document, the consumption of energy within the transportation sub-sector will be

ignored given that the majority of the end-use consumption is attributable to vehicle,

vessel, or aircraft usage, rather than energy consumption required by the supporting

infrastructure.
61

Communications Sub-Sector

This sub-sector was taken to comprise telephone, TV and broadcast, and cable and pay

TV services. While there is a certain amount of construction effort involved in this

sector, it has been decided to omit this sub-sector from the document, given that much of

the work in this sector is either not directly construction related, or is considered

elsewhere in this document (e.g., manufacture of components and pre-fabricated

structures, cabling and other specialized electrical installation work).

Power Utilities Sub-Sector

This sub-sector is defined as encompassing electricity, gas, or steam generation and

distribution for the primary fuel sources (electric, gas, coal, nuclear, and other). Power

generation plants can be categorized by generating capacity, size (as a function of

installed cost), and geographic location. It is more difficult to categorize power

distribution systems, other than by type of system used (buried or catenary) and

geographic location.

Power utilities “operations” is defined in this hierarchy in a similar way to the industrial

sector. “Operations” thus encompasses both process and non-process operations.

Process operations encompass the electrical generation process, which includes plant,

labor, and materials components. Plant operations components include capital

expenditures for new plant and machinery as well as fixed costs such as taxation,

insurance, and depreciation. Labor costs can be divided into production workers (process

operations) and all other employees (non-process operations). Process materials costs are

dependent upon the type of power station which is being considered. Non-process

operational components include all non-process related infrastructure operations costs.

Both process and non-process operational costs are all influenced to some extent by

environmental, legislative, and taxation requirements.

Power utilities “maintenance” is defined as encompassing both buildings and related

structures, and the machinery and equipment associated with them. For buildings, the

maintenance components and factors influencing those components are very similar to

those for commercial buildings. For machinery and equipment, maintenance

requirements are likely to be affected by factors such as the design life of the system and

its current age and condition, serviceability criteria, budget constraints, and legislative

and safety requirements.

Power utilities “energy” is defined as covering both process related and non-process

related energy consumption. Process related energy considers the energy consumption in

the electricity generation process, and the delivery of electricity through the distribution

system. Non-process related energy consumption includes components such as building

HVAC and lighting. This has been ignored as it is likely to be a very small component of

total energy consumption associated with the direct process use. Factors affecting end use

consumption are primarily dependent upon type of process, equipment/system type,
62

consumer demand and the management thereof. Many of these factors are impacted by

cost, safety, and legislative requirements.

Water Sub-Sector

This sub-sector was taken to comprise water storage (dams, reservoirs, and associated

hydro-electric power (HEP) projects), supply (domestic, commercial, industrial, and

power generation), treatment (sewage etc.), and flood control/storm water management.

Water storage systems are considered only where there is an associated end-use in the

form of HEP generation. Categorization is then in terms of installed generation capacity.

Water supply and treatment systems can be categorized by end-user and geographic

location. Flood control/storm water management can be categorized to some extent by

nature of work and geographic area.

Water “operations” is defined in this hierarchy as encompassing network

management/administration and water consumption/treatment components. While water

consumption can be relatively easily defined for each of the four sectors, it is much more

difficult to define network management components. The latter operational components

in particular are influenced by environmental, legislative, and taxation requirements.

Water “maintenance” components include dam and reservoir maintenance, pumping

station and water treatment works maintenance, pipe repair, and flood control

maintenance/river engineering. The latter component is assumed to include waterway

dredging works. Many of the maintenance factors are impacted by design, cost, safety,

and legislative requirements.

“Energy” is defined as covering the non-process related consumption of electricity for

water treatment and distribution systems. Because non-process related consumption of

energy is relatively small, it will not be considered in this document.

Solid Waste Sub-Sector

This sub-sector was taken to comprise the collection and disposal of solid domestic,

commercial, and industrial waste at processing facilities and landfill sites. Although there

is some construction related activity within this sub-sector (particularly in terms of

earthworks for landfill sites/repositories), this will be covered in a future report relating to

National Construction Goal 5 (Reduction in Waste and Pollution).

Pipelines Sub-Sector

This sub-sector is defined as comprising all pipelines for the transportation of petroleum

and other commodities except natural gas (considered as part of the power utilities subsector). Pipelines can be characterized by type, size, and geographic location.

There are no “operations” defined in the hierarchy.
63

Pipeline “maintenance” comprises damage repair and preventive maintenance.

There are no defined “energy” components within the hierarchy (pumping and heating

costs are ignored in this document).

4.1.2 Data Oriented

The data oriented hierarchies represent the modification of the idealized hierarchies to

reflect data availability and constraints. Furthermore, the hierarchies reflect the relative

importance attributed to data, in that certain elements of the idealized hierarchy may not

be covered by the data oriented hierarchy even though data may be available. This is an

important step in ensuring the baseline measures remain succinct. The hierarchies are

provided in Appendices A through D18. The data oriented hierarchies are presented as

overlays on the idealized hierarchies. This highlights the extent of the data coverage

within each sector. A brief description of the differences between the data oriented and

idealized hierarchies for each sector is given below.

Residential Sector

The residential sector for the data oriented hierarchy is identical to that shown on the

idealized hierarchy. The sector components described in the industry oriented hierarchy

are also applicable. However, it is not considered to be necessary to differentiate between

site built and manufactured housing for this Goal.

Within the “operations” section of the data oriented hierarchy, it is not considered to be

practical to address water conservation, taxation, legislative, or environmental issues.

However, the two hierarchies are identical at a higher, less detailed level.

The “maintenance” section of the two hierarchies match very closely, although, as with

the “operation”’ section, it is not considered to be practical to address legislative, safety,

and serviceability factors for this Goal.

Within the “energy” section of the hierarchies, there is close relationship between the data

and industry oriented hierarchies at the higher levels, whilst at the lower level it is not

considered to be practical to address building shell design, aesthetic or legislative

requirements. However, there will be some consideration of recommended energy

efficiency ratings for generic types of residential heating and cooling equipment and

appliances. In addition, it is not considered to be desirable to address energy issues in the

data oriented hierarchy in the same level of detail shown in the industry oriented

hierarchy, even though very detailed data exists.

 

18 The four appendices are organized as follows: Appendix A covers the residential sector; Appendix B

covers the commercial/institutional sector; Appendix C covers the industrial sector; Appendix D covers the

public works sector.
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Commercial/Institutional Sector

The commercial/institutional sector for the data oriented hierarchy is very similar to that

shown on the idealized hierarchy. However, in practice, it has been found that different

organizations tend to group facilities very differently, thus it is often difficult to compare

data from different sources. Where comparisons are made between data from different

sources in this document, the assumptions which have been made are clearly stated. The

sector components described in the industry oriented hierarchy are also applicable.

However, given the diversity of building types within this sector, it is not always practical

to consider all components in great detail.

Within the “operations” section of the data oriented hierarchy, data exist for certain types

of buildings (such as commercial office buildings) which have similar scope to the

idealized hierarchy. However, for some other types of buildings, such as religious

buildings, no detailed data have been found. Generally speaking, it is not considered to

be practical to address water conservation, taxation, legislative, or environmental

requirements.

The “maintenance” section of the two hierarchies match very closely for certain types of

buildings, although, as with the “operations”’ section, the availability of data is highly

variable, and it is generally not considered to be practical to address legislative, safety,

and serviceability factors for this Goal.

Within the “energy” section of the hierarchies, there is close relationship between the data

and industry oriented hierarchies, even at a relatively detailed component level. However,

at the lower level of the hierarchy, it is not considered to be practical to address building

shell design, aesthetic, or legislative requirements. In addition, it is not considered to be

desirable to address energy requirements in the data oriented hierarchy in the same level

of detail shown in the industry oriented hierarchy, even though very detailed data exists.

Industrial Sector

The industrial sector for the data oriented hierarchy is very similar to that shown on the

idealized hierarchy. There is some scope for categorizing industrial facilities by size,

number of employees, and dollar value of business carried out, but it is generally not

possible to categorize facilities by installed cost, except where data for new facilities have

been collected.

Within the “operations” section of the data oriented hierarchy, it is generally not

considered to be necessary to address process related operations factors, such as materials

usage, although it is considered useful to characterize operational costs on a ‘dollar value

added’ basis for each SIC Code. However, non-process related operations factors, such

as expenditures for refuse and hazardous waste disposal are considered, but expenditures

for other services such as legal and accounting services are excluded. At an aggregated

SIC Code level, water consumption for both the process and non-process components is

considered. As with the commercial sector, it is not considered to be practical to address

water conservation, taxation, legislative, or environmental requirements.
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The “maintenance” section of the two hierarchies match very closely. As with the

idealized hierarchy, it is generally not considered to be practical to differentiate between

process and non-process related maintenance components. At a high level in the data

oriented hierarchy, maintenance for buildings and equipment are considered separately.

At an aggregated SIC Code level, maintenance expenditures for HVAC, plumbing,

elevators, and carpentry are considered. As with the “operations” section, it is not

considered to be practical to address legislative, safety, and serviceability factors for this

Goal.

Within the “energy” section of the hierarchies, there is close relationship between the data

and industry oriented hierarchies even at a relatively detailed component level. However,

when considering end-use consumption, this document will focus only upon that element

which is non-process related. In particular, the document will examine energy

consumption for facility HVAC, lighting, and other support services. It is not considered

to be practical to address design, safety, or legislative requirements.

Public Works Sector

Transportation Sub-Sector

The transportation sub-sector for the data oriented hierarchy is very similar to that shown

on the idealized hierarchy. The components described in the industry oriented hierarchy

are also applicable. However, in the case of airports and ports, it is not considered to be

meaningful to provide aggregated data relating to operations, maintenance, and energy

costs, as there are likely to be large variations between different facilities.

Within the “operations” section of the data oriented hierarchy, it is not considered to be

practical to address the issue of network administration costs, nor is it necessary to

consider building operations costs, as the latter are described in the commercial sector for

similar types of building.

The “maintenance” section of the two roads hierarchies match very closely, but for

“maintenance” within the rail, transit, air, and water sectors, information is either

available at a very detailed level, or aggregates cost components at a more general level in

a way that does not match the idealized hierarchy. Maintenance issues such as fleet

maintenance and control systems maintenance may be included in these aggregated costs,

but for the purposes of this document it is considered desirable to exclude them, as they

are not directly construction related.

Within the “energy” section of the hierarchies, there is close relationship between the data

and industry oriented hierarchies even at a relatively detailed component level. However,

this document will not address energy issues for this sub-sector, for the reasons described

previously.
66

Communications Sub-Sector

For the reasons previously described, this sub-sector will not be considered in this

document.

Power Utilities Sub-Sector

The power utilities sub-sector for the data oriented hierarchy is identical to that shown on

the idealized hierarchy. However, this document will focus primarily upon aggregated

data for all utilities.

Within the “operations” section of the data oriented hierarchy, it is generally not

considered to be desirable to address the issue of process related operations, with the

exception of water consumption, where it is not possible to differentiate between process

and non-process consumption. Selected non-process operations components, such as

hazardous waste removal are considered in this hierarchy.

The “maintenance” section of the two hierarchies match very closely, although, as with

the “operations” section, it is not considered to be practical to address legislative, safety,

and serviceability factors for this Goal.

Within the “energy” section of the hierarchies, there will be some general consideration

of the efficiency of the electrical generation and distribution process. However, it is not

considered to be practical to address other process or non-process related energy factors

described in the idealized hierarchy.

Water Sub-Sector

The water sub-sector for the data oriented hierarchy is very similar to that shown on the

idealized hierarchy.

Within the “operations” section of the data oriented hierarchy, water consumption within

the domestic, commercial, industrial, and power generation sectors will be considered.

The consumption includes both process and non-process related components. This can be

further divided into freshwater and saline usage.

The “maintenance” issues in the data oriented hierarchy are identical to those described in

the idealized hierarchy.

For the reasons already given, no consideration will be made of energy issues in this subsector.

Solid Waste Sub-Sector

For the reasons already described, this sub-sector will not be considered in this document.
67

Pipelines Sub-Sector

The pipelines sub-sector for the data oriented hierarchy is identical to that shown on the

idealized hierarchy. However, pipelines are not categorized by size.

For the “maintenance” section of the two hierarchies, aggregated data describing overall

maintenance and repair expenditures will be considered.

As has already been noted, no operations or energy hierarchies are defined for this subsector.

4.2 Data Collection and Analysis

The two primary types of data collected were electronic data and published data.

Electronic data were collected from the World Wide Web and from various CD-ROM’s.

Published data were collected from NIST libraries and from publicly accessible libraries

and data warehouses on the World Wide Web. Information gleaned from telephone

conversations, meetings, and workshops/seminars was often the catalyst in successfully

locating relevant published or electronic information. As data were collected, the data

oriented hierarchies for each industry sector were refined to reflect data availability

constraints.

The authors carried out extensive data searches of publicly accessible federal agency

databases for information relevant to Goal 2. These searches frequently involved

browsing lists of current and historic research activities/reports which have been, or are

presently being carried out, and included the following Executive Agencies:

• Department of Agriculture (Water Management Research Laboratory)

• Department of Commerce (Economics and Statistics Administration, Economic

Development Administration, National Oceanic and Atmospheric Administration,

National Telecommunications and Information Administration, Technology

Administration)

• Department of Defense (Advanced Research Projects Agency, Defense Logistics

Agency, Defense Technical Information Center, US Air Force, US Army Corps of

Engineers, Office of Naval Research)

• Department of Energy (Energy Efficiency and Renewable Energy Network, Energy

Information Administration, Fissile Materials Disposition, Fossil Energy, Human

Resource and Administration, Oak Ridge National Laboratory)

• Department of Housing and Urban Development

• Department of the Interior (US Geological Survey)

• Department of Labor (Bureau of Labor Statistics)

• Department of Transportation (Bureau of Transportation Statistics, Federal Aviation

Administration, Federal Highway Administration, Federal Railroad Administration,

Federal Transit Administration, Federal Maritime Administration)
68

Searches of Independent Agency databases such as the Environmental Protection Agency,

Federal Emergency Management Agency, General Services Administration, National

Performance Review, and the Nuclear Regulatory Commission were also performed.

A second set of data searches focused upon research, trade, and professional

organizations, some of which are listed below:

• American Association of Cost Engineers

• American Public Works Association

• American Society for Heating, Refrigeration and Air-Conditioning Engineers

• American Society of Civil Engineers

• Associated Builders and Contractors

• Associated General Contractors of America

• Association of Energy Engineers

• Building Research Establishment (UK)

• Civil Engineering Research Foundation

• Construction Industry Institute

• Construction Industry Research and Information Association (UK)

• Council for Continuous Improvement

• Design Build Institute of America

• European Construction Institute (UK)

• Institute of Real Estate Management

• Industrial Technology Institute

• Infrastructure Technology Institute

• Institution of Civil Engineers (UK)

• Inter Agency Benchmarking and Best Practices Council

• International Facilities Management Association

• Manufactured Housing Institute

• National Association of Manufacturers

• National Association of Homebuilders

• National Center for Manufacturing Sciences

• National Housing Institute

• National Institute of Building Sciences

• Strategic Planning Institute

A third set of data searches examined private sector organizations, some of which are

listed below:

• The Benchmarking Exchange

• Logistics Management Institute

• Independent Project Analysis

• RS Means

• DuPont

• McGraw Hill
69

• Journal of Management in Engineering

• American Productivity and Quality Center

• The Strategic Planning Institute

The final search focused upon academic institutions such as:

• Massachusetts Institute of Technology

• University of Texas at Austin

• University of Illinois at Urbana

• Center for Integrated Facility Engineering at Stanford University

• Loughborough University of Technology (UK)

The results of this extensive information search suggest that there is a great deal of

information available relating to Goal 2. Unfortunately, much of this information is not

useful for establishing baseline measures or measures of progress. This is because the

methods used for data collection, the size of the survey sample, or the frequency of

reporting are highly variable. The exception comes where data collection is being done

by a federal agency as part of its mission. For example, both the US Bureau of the

Census and the Energy Information Administration have a responsibility to collect and

disseminate information relating to the construction industry and the built environment.

However, a number of useful data sources have been identified where organizations are

systematically collecting and publishing data from a relatively large population that is

broadly representative of the whole of the US. It is also possible that a number of federal

agencies have detailed operations maintenance and energy cost databases which could

prove useful for Goal 2, but if these exist, they have not been located by the authors. A

similar comment applies to private organizations, some of which are thought to have

extensive databases relating to the construction sector, though it is not known how much

of this information relates to OM&E costs, nor whether it is representative of national

averages for establishing baselines. This information is likely to be available only on a

commercial fee for service basis.

A detailed description of the data sources used in establishing baselines and measures of

progress for each sector is given in Chapters 5 through 8 of this document.

Prior to any data analysis being performed, all relevant electronic and published

information was imported into spreadsheet files so that it could be easily manipulated.

This approach also enabled charts and tables to be generated relatively rapidly. Initially, a

large number of charts were produced from the raw data, which assisted in identifying

trends in the data. These charts also helped in prioritizing the data prior to developing the

baseline measures.

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5. OM&E Measures for the Residential Sector

5.1 Key Considerations for the Residential Sector

This section of the document addresses the issue of data sources, availability, and

constraints in the residential sector, and summarizes the key data sources which are used

for developing the baseline measures. The section also provides an overview of the

residential sector.

5.1.1 Data Considerations: Sources, Availability, and Constraints

Preliminary data searches for the residential sector focused upon organizations such as the

Department of Housing and Urban Development (HUD), the National Association of

Home Builders (NAHB), and the Manufactured Housing Institute (MHI). These searches

indicated that while these organizations are carrying out their own research about the US

housing industry, they are making use of information collected by the US Bureau of the

Census or the Energy Information Administration when considering housing at a national

level. It therefore seemed appropriate to examine the source data provided by the US

Bureau of the Census and Energy Information Administration in detail for the

development of the baseline measures.

Data from the US Bureau of the Census

The US Bureau of the Census (USBC) carries out a number of surveys of the US housing

sector, and reports periodically upon a wide variety of related issues. Surveys/reports of

particular interest are the American Housing Survey, the Census of Housing, the

Current Construction Reports, and the Property Owners and Managers Survey.

These are considered in more detail below.

The American Housing Survey collects data on the nation’s housing, including

apartments, single-family homes, mobile homes, and vacant housing units. It provides

data on housing characteristics, such as income, housing and neighborhood quality,

housing costs, equipment and fuels, and size of the housing unit. National data are

collected every other year, and data for selected Metropolitan Areas (MA’s) is collected

about every four years. The sample covers approximately 55,000 homes. Data are

available for years up to and including 1995.

The Census of Housing provides detailed information on housing characteristics. The

survey is carried out every ten years; data from the 1990 survey are available at present.

Housing characteristics such as number of units, plumbing facilities, tenure, value, rent,

fuels, heating equipment, and so forth are examined. Every home in the US is asked the

basic questions in the survey, whilst approximately one sixth of all houses in the US are

asked more detailed survey questions relating to issues such as income and housing

expenses.
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The Current Construction Reports comprise a series of periodic surveys, which include

the following monthly surveys:

• Series C20 - Housing Starts - provides data on the number of new privately owned

housing units started in the US, by number of units in the structure, and census region,

and data on the number of mobile homes shipped.

• Series C22 - Housing Completions - provides data on the number of new privately

owned housing units completed in the US, by number of units in the structure, and

census region.

• Series C25 - New Home Sales - provides data on the sales of new single-family homes

in the US

• Series C30 - Value of Construction Put in Place - provides data on new private and

public housing construction, as well as residential improvements in the US (refer to

Chapter 3 for further details)

• Series C40 - Building Permits - provides data on the number of privately owned

housing units started in the US, as well as the number of houses where building

permit authorization was given, by number of units in structure, and census region.

There is some commonality with the C20 data.

In addition, the Current Construction Reports include a quarterly series:

• Series C50 - Expenditures for Residential Improvements and Repairs - provides data

on expenditures by property owners for improvements and repairs (refer to Chapter 3

for further details).

The Property Owners and Managers Survey was carried out between 1995-1996 and

provides data on the maintenance and repair of rental housing in the US. The survey

covers both single-family and multi-family homes. It examines issues such as annual

maintenance and repair expenditures, and types of maintenance program used.

Selected data from USBC are available through its Internet site (URL:

http://www.census.gov), or via electronic or paper publications. Inquiries by the authors

indicate that customized data searches conducted by USBC can be carried out on a fee for

service basis, provided that confidentiality criteria for the source data are not breached.

In this document, data from the USBC have been used to characterize the size and nature

of the residential sector, and to provide some information on operations and maintenance

costs. Where specific data constraints have been found, these have been identified in the

text.

One publication which makes extensive use of data from the USBC, but which, on

occasion provides data in a slightly different form to that used by USBC in its own

publications, is the Statistical Abstract of the United States, which is published annually.

Where appropriate, this document makes use of data provided in the 1996 and 1997

versions of the Statistical Abstract (the 1997 version has very recently become available,
73

and can be viewed at the USBC Internet site). The Statistical Abstract also uses a variety

of other sources when compiling its statistics. Details of the sources used are presented in

Appendix I of the Statistical Abstract. Data from the Statistical Abstract have been used

to characterize the size of the residential sector, and to provide information on personal

consumption expenditures for a variety of operations and maintenance components within

the sector. The Statistical Abstract has also been used where price deflators/indices were

needed to adjust statistics for this document.

Data from the Energy Information Administration

The Energy Information Administration (EIA) - a part of the US Department of Energy -

carries out the Residential Energy Consumption Survey (RECS), which is a national

survey that collects data on energy use in the residential sector. The RECS has been

carried out triennially since 1984. In the 1993 RECS (the most recent survey data

currently available), data were collected from a sample of seven thousand households,

representative of the approximately 100 million households in the US. The survey

collects data on the type of housing unit, year of construction, space heating, water

heating, air conditioning, fuels, equipment, appliances, and demographic characteristics

of the occupants. Energy consumption and expenditure data are obtained from the

household’s energy suppliers. RECS data are linked to weather data for each building.

The RECS is the most comprehensive source of national level energy data for the

residential sector.

The EIA produces a number reports from the RECS survey data. These include Housing

Characteristics 1993, Household Energy Consumption and Expenditures 1993, and

Residential Lighting: Use and Potential Savings 1993. EIA also produces the 1996

Renewable Energy Annual, which includes information relating to solid waste generation

in the residential sector.

Data from EIA are available through its Internet site (URL: http://www.eia.doe.gov), or

through paper or electronic publications, including the EIA Energy InfoDisc Volume 2,

No.1, 1997, which provides energy data for all four industry sectors. Energy data

provided by EIA are very detailed.

In this document, data from the EIA reports Housing Characteristics 1993 and

Household Energy Consumption and Expenditures 1993 have been used both to

characterize the residential sector, and to develop energy cost and consumption baselines

for the residential sector. The highly detailed nature of the data means that there are no

data constraints.

Data from Other Sources

A wide variety of other data sources were examined. A brief description of some of these

sources is given below:
74

• The Manufactured Housing Institute (MHI) provides comparative data for site-built

and manufactured housing. This information is based upon data from USBC, as well

as other sources. These data can be found on the MHI Internet site (URL:

http://www.mfghome.org). No other sources of national data for the manufactured

housing sector were identified by the authors. The MHI also provides some useful

definitions of the different types of manufactured housing (see

http://www/mfghome.org/media/definemh.html), which have been used in this

document. Selected data from MHI have been used in this document to compare the

size of the manufactured and site built markets, and to compare installed costs.

• The Federal Energy Management Program (FEMP - a part of the Department of

Energy) provides a series of energy efficiency recommendations for selected

residential appliances, some of which are included in this document. These

recommendations can be found on the FEMP Internet site (URL:

http://www.eren.doe.gov/femp/procurement/begin.html). Similar information on the

US government ‘Energy Star’ energy efficiency rating system for household

appliances is provided at http://www.energystar.gov. The FEMP Internet site also

provides information about Federal Energy Saver showcase facilities. FEMP is a part

of the Department of Energy’s Energy Efficiency and Renewable Energy Network

(EREN), which provides a range of energy-related information, covering such issues

as sustainability in building, building efficiency, intelligent building systems and so

forth. A source list of associated organizations is provided on the EREN network at

http://www.eren.doe.gov/buildings/energy_savers/sourcelist.html.

• The US Army Corps of Engineers (USACE) publishes its Annual Summary of

Operations, more commonly referred to as the ‘Red Book’, which provides data on

maintenance and repair costs for army facilities, including family housing. In 1996,

the Army had 54,823 family houses (21,926 square meters/236,012 square feet), with

an average age of 34 years. The 1996 Red Book provides data on new construction,

operations, and maintenance cost trends for this housing. This information is

provided on the USACE internet site (URL:

http//www.usacpw.belvoir.army.mil/pubs/RedBook). While this information is

interesting, it has not been included in this document for two reasons. Firstly, the

army housing stock is probably not representative of the US civilian housing sector.

Secondly, trends in operation, maintenance, and energy costs are likely to be very

heavily influenced by annual funding appropriations, and are therefore unlikely to

compare with civilian spending trends.

• The United States Geological Survey (USGS) provides data on water consumption by

the residential sector in the US. These data are available on the USGS Internet site

(URL: http://www.usgs.gov). Data relevant to the residential sector are included in

this document.

• The Institute of Real Estate Management (IREM) publishes a variety of

reports/analyses of certain parts of the US housing sector. These include the Income
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Expenses Analysis: Conventional Apartments, the Income and Expense Analysis:

Federally Assisted Apartments, and the Expense Analysis: Condominiums,

Cooperatives and PUD’s. Information from these reports has not been included in

this document, principally because apartments and condominiums represent a

relatively small proportion of the total US housing stock.

5.1.2 Overview of the Residential Sector

The overview of the residential sector presented in this section of the document expands

upon that which is presented in Chapter 3 of this document. This section examines the

total size of the US residential sector, and how the housing stock is divided between the

different types of structure, such as single-family housing, apartments, and mobile homes.

It also examines a number of key characteristics of the housing sector, such as the age,

size, and geographic distribution of housing. A number of figures are then presented

which indicate how the residential sector is changing over time. Finally, some

comparisons between site-built and manufactured housing are made.

Data from the 1995 American Housing Survey Current Housing Reports H150/95RV

have been used to generate Figure 5-1. Figure 5-1 shows that the total number of housing

units in the US in 1995 numbered approximately 110 million, of which approximately 66

percent were single-family (one unit) houses. Of the 72.4 million single-family homes,

approximately 90 percent were detached units. Mobile homes and trailers represented

approximately seven percent of the total housing stock. A more detailed breakdown of

homes in the US, by number of units in the structure, is shown in Figure 5-2. Reference

to the figure indicates that there were significantly more multi-unit structures containing

only two to four units compared with structures containing either five to nine units, 10 to

19 units, 20 to 49 units, or 50 or more units.

Figure 5-3 indicates the geographic distribution of occupied housing by type/number of

units and census region in 1995. Reference to the figure shows that while there is a

significantly larger number of single-family homes in the south and mid-west census

regions, compared with in the north and west, multi-unit housing is more evenly

distributed across all four census regions. Approximately half of all mobile homes or

trailers are located in the south census region. A description of the census regions, as

defined by the US Bureau of the Census, is provided in Appendix E of this document.

Data from the American Housing Survey also indicate that approximately half of all

homes in the US are in city locations, with the remaining half relatively evenly distributed

between town, suburban and rural/open country locations.

Figure 5-4 and Figure 5-5 are based upon data from the 1995 American Housing Survey,

and show some of the key characteristics of homes in the US. Reference to Figure 5-4,

which shows the age structure of the housing stock, indicates that approximately seven

percent of houses are less than five years old, and approximately nine percent are greater

than 75 years old. The highest number of houses were built between the years 1960-

1969, with the median age between these years. Figure 5-5 shows the size characteristics
76

of occupied detached single-family homes and mobile homes in 1995. The figure

indicates that the median size was (161 square meters) 1,732 square feet. Comparison

with 1993 data indicates that the median size has remained relatively stable (160 square

meters/1,725 square feet in 1993). A comparison of median unit size across the four

census regions indicates that in 1995, the median unit area was higher in the northeast and

mid-west compared with the south and west.

Figure 5-6 is based upon data from the EIA report Housing Characteristics 1993 and

shows the number of households with various types of external wall construction.

Reference to the figure shows that brick, wood and siding predominate, except in the west

census region, where wood and stucco dominate. There is comparatively little use of

other wall materials such as concrete or block-work across all census regions. Similar

data for type of foundation construction (not presented graphically in this document),

indicates that approximately 33 percent of all occupied detached single-family homes

have full basements, 12 percent have partial basements, 26 percent have crawl spaces, 27

percent have concrete slabs/rafts, and the remainder have other types of foundation.

Figure 5-7, Figure 5-8 and Figure 5-9 are based upon data from the Statistical Abstract of

the United States 1997, and show how the residential sector has been changing since

1980. All three figures indicate that the rate of change in the size of the housing sector,

measured as a function of privately-owned housing units started, is modulated by the

business cycle, which has been discussed in Chapter 3 of this document.

Reference to Figure 5-7, which shows the number of new privately-owned housing units

started, indicates that a peak rate of approximately 1.8 million new units per year was

reached in the mid 1980’s, but that this output level declined in the early 1990’s to

approximately 1.0 million units per year, before starting to recover more recently. This

trend is reflected both in the single-family and multi-unit housing markets. However, the

recovery in the multi-unit market since the early 1990’s has been significantly slower than

that in the single-family-housing market.

This trend is also reflected in Figure 5-8, which shows the number of new privately

financed, non-furnished rental apartments with greater than five units completed as a

percentage of total privately owned units started in the US, for the US as a whole, and

how this percentage is broken down by census region. However, it appears that

apartment construction in the south and east is more heavily influenced by the business

cycle than that in the northeast and mid-west, despite the similarity in total number of

apartments in each census region (refer to Figure 5-3). In all regions, there has been a

significant decline in the percentage of new apartments placed as a function of total new

private housing in the US. Therefore, it would appear that the relative importance of

apartment building in the residential sector has declined since the mid-1980’s. For

single-family housing, data showing how the total number of new units placed varies

between the different census regions have not been located. However, this information

may be available from USBC for a fee.
77

Figure 5-9 shows the number of mobile homes placed for residential use as a percentage

of total new privately owned units started in the US, and how this percentage is

distributed within the four census regions. Reference to the figure indicates that the

mobile home market has recovered its share of the private housing market which was lost

during the mid 1980's, but that mobile homes placed still only represent approximately 20

percent of all private housing constructed. In addition, any changes in the market appear

to be occurring principally in the south census region, where approximately half of all

mobile homes are located, as opposed to the other three census regions, where the market

appears to be relatively stable.

Finally, Figure 5-10, which is based upon data from the Manufactured Housing Institute,

shows the number of manufactured housing units shipped and number of new mobile

homes placed in the US as a percentage of new privately owned housing units started.

Reference to the figure indicates that manufactured housing has increased its market share

since 1986, and in 1996 represented approximately 24 percent of all new units placed.

The figure also shows that the majority of manufactured homes are mobile homes.

Manufactured housing is clearly a significant element of the US housing market.

The figures presented in this section show that single-family housing represents

approximately two-thirds of total US homes, and accounts for approximately threequarters of all new privately owned housing starts in the US. In Chapter 3, Figure 3-15

showed that there is an upward trend in constant dollar construction costs for residential

buildings. We would also expect this trend to be reflected in the median sales price of

single-family homes in the US.

Figure 5-11, which is based upon data from the Statistical Abstract of the United States

1997, shows the median sales price of new single-family homes in the US. Sales prices

have been adjusted to a 1992 base year, using a price index for personal consumption

expenditures from the Statistical Abstract. Reference to the figure indicates that sales

prices, like construction costs, tend to be rising in the residential sector. The most

significant fluctuations in single-family sales prices have occurred in the northeast and

west census regions, while in the south and mid-west, prices have been more stable.

Part A and Part B Table 5-1 of are based on data from the Manufactured Housing

Institute. They show the comparative costs of site built versus manufactured housing

(based upon the price of the structure) between 1990 and 1996. Although these data have

not been adjusted to a common base year, they indicate that there are a similarities in cost

growth between the site built and manufactured housing industries. These data suggest

that the cost per square meter (foot) of manufactured homes is significantly lower than

that of site built homes. However, these figures should be viewed with caution, as it is

difficult to assess whether a like-for-like comparison is necessarily being made.
78

Figure 5-1. Size of US Housing Sector by Type of Structure: 1995

Total Housing Units = 109,456,000 Mobile home or 

trailer

7,647,000 = 7%

Two or more units

29,427,000 = 27%

Single family 

72,382,000 = 66%

Figure 5-2. Total US Housing - Detailed Description of Types of Structure: 1995

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Single

family

detached

Single

family

attached

2 - 4

units

5 - 9

units

10 - 19

units

20 - 49

units

50 or

more

units

Mobile

home or

trailer

Units in Structure
79

Figure 5-3. Occupied Housing Units by Census Region: 1995

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

All units Single family Two or More Units Mobile home or

trailer

Type of Structure

Northeast

Midw est

South

West

Figure 5-4. Total Housing Units by Age of Structure: 1995

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1990 or later

1985-19891980-19841975-19791970-19741960-19691950-19591940-19491930-19391920-1929

1919 or earlier

Year Structure Built

Total Housing Units (Thousands) 
80

Figure 5-5. Size of Occupied Detached Single Family Homes and Mobile Homes:

1995

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Less than

500 (46)

500-999

(47-93)

1000-1499

(48-139)

1500-1999

(140-186)

2000-2499

(187-232)

 Over 2500

(233)

Floor Area in Square Feet (Square Meters)

Median Size All Units 1995 = 1732 Sq Ft (161 Sq Meters)

Median Size Northeast 1995 = 2139 Sq Ft (199 Sq Meters) 

Median Size Midw est 1995 = 1875 Sq Ft (175 Sq Meters)

Median Size South 1995 = 1552 Sq Ft (144 Sq Meters)

Median Size West 1995 = 1652 Sq Ft (154 Sq Meters)

Figure 5-6. External Wall Construction (All Households): 1993

0

5

10

15

20

25

30

Brick

Wood

Siding

Stucco

Compostion

Concrete/Block

Other

External Wall Construction

Total

Northeast

Midw est

South

West
81

Figure 5-7. New Privately-Owned Housing Units Started

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

19801981198219831984198519861987198819891990199119921993199419951996

Year

All Units

Structures w ith one

unit

Structures w ith tw o

or more units

Figure 5-8. New Apartments Completed as a Percentage of Total New PrivatelyOwned Housing Units Started

0%

5%

10%

15%

20%

25%

19801981198219831984198519861987198819891990199119921993199419951996

Year

U.S.

South

West

Mid-West

Northeast
82

Figure 5-9. New Mobile Homes Placed as a Percentage of Total New PrivatelyOwned Housing Units Started

0

5

10

15

20

25

19801981198219831984198519861987198819891990199119921993199419951996

Year

Total 

South

West

Midw est

Northeast

Figure 5-10. Manufactured Housing Shipped and New Mobile Homes Placed as a

Percentage of New Privately-Owned Housing Started

0

5

10

15

20

25

30

19801981198219831984198519861987198819891990199119921993199419951996

Year

Manufactured

Housing Shipped

New Mobile Homes

Placed
83

Figure 5-11. Median Sales Price of New Privately-Owned Single Family Housing

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

19801981198219831984198519861987198819891990199119921993199419951996

Year

Northeast

West

U.S

Midw est

South

Table 5-1. Comparative Costs of Site-Built and Manufactured Housing

Part A: Dollars per Square Foot

TYPE OF HOUSING COST (Dollars/Square Foot)

Year 1990 1991 1992 1993 1994 1995 1996

Manufactured Housing 23.07 22.61 22.63 23.55 25.19 26.79 27.83

Site Built Housing 54.80 53.20 51.59 52.88 54.65 56.28 58.66

Part B: Dollars per Square Meter

TYPE OF HOUSING COST (Dollars/Square Meter)

Year 1990 1991 1992 1993 1994 1995 1996

Manufactured Housing 248 243 243 253 271 288 299

Site Built Housing 590 572 555 569 588 606 631
84

5.2 Baseline Measures for the Residential Sector

This section of the document describes in detail the baseline measures for operations,

maintenance, and energy costs in the residential sector. In addition, it also considers

energy conservation measures within the residential sector.

5.2.1 Baseline Measures for Operations Costs

In Section 3.4 of this document, a general definition of operations is provided, while in

Section 4.1.1 and 4.1.2, the components within this general definition are described in

detail. To recap, baseline measures for operations costs will consider water consumption,

domestic waste, and other operations costs.

Data from the American Housing Survey 1993 and 1995 have been used to generate

Figure 5-12, which gives an overview of the comparative monthly costs for operations,

maintenance and energy on a per household basis for 1993 and 1995. Reference to Figure

5-12 shows that while median monthly water and trash costs are lower than other

operations components, such as insurance and taxes, as well as routine maintenance and

energy costs, they are still significant. The figure shows that the median monthly cost for

water was $25 in 1995 (a $2 increase since 1993). Other data from the American

Housing Survey shows that the median cost for those houses which were built within the

last four years was $27 in 1995. Within the four census regions, the highest cost was in

the west ($30 median), and the lowest cost was in the mid-west ($23 median). Water

costs in urban areas were slightly higher than those in rural areas ($26 compared with

$23). These 1995 water figures are based upon 48,826,000 occupied units of the total

97,693,000 in the US, where water is paid for separately. In Section 3.4 of this

document, Figure 3-18 showed how the total personal consumption expenditures for

water and sanitary services have increased since 1980, to a value of approximately $30

billion in 1992. This figure, which is based upon different source data, appears to be

consistent with the American Housing Survey data ($23/month x 12 months x

97,693,000 = $27 billion, based upon median monthly water cost).

Similar figures for median trash costs (where these are paid for separately) are $15 in

1995 (a $1 increase since 1993). In 1995, the median trash costs for housing units

constructed within the last four years was $16. Within the four census regions, the

highest cost was in the mid-west ($17), and the lowest cost was in the mid-west and south

($14). Similar comparisons between urban and rural locations indicate that median urban

trash costs are $16 compared with $14 for rural locations.

Table 5-2, which is based upon 1990 data from the US Geological Survey, examines

freshwater consumption by the residential sector in more detail. It shows total water

withdrawals by the domestic/residential sector, both from the public water supply, and

from self-supplied sources. The table indicates that self-supplied withdrawals are modest

compared to those provided by the public supply system.
85

Figure 5-12. Monthly Household Costs

42

25

12

79

30

14

23

12

47

61 63

39

25

12

85

35

15

25

13

49

61

69

0

10

20

30

40

50

60

70

80

90

Electricity

Piped Gas

Fuel Oil

Bottled Gas

Other Fuel

Water

Trash

Property Insurance

Real Estate Taxes

Annual Taxes per

$1000 Value

Routine

Maintenance (in last

year)

Type of Expense

Median Monthly Cost (Dollars)

1993

1995

Table 5-2. Domestic Freshwater Use: 1990

Part A: Million Gallons per Day

Self Supplied Public Supply

Source

Region

Population 

in 

Thousands

Ground 

Water 

(Mgal/Day)

Surface 

Water 

(Mgal/Day)

Total 

(Mgal/Day)

Per Capita 

Use 

(Gal/Day)

Population 

Served in 

Thousands

Water 

Deliveries 

(Mgal/Day)

Per Capita 

Use 

(Gal/Day)

Water 

Deliveries 

(Mgal/Day)

Consumptive 

Use (Mgal/Day)

New England 2,220 169 0 169 76 10,600 713 67 882 124

Mid Atlantic 6,470 396 0 396 61 35,100 3,270 93 3,660 415

South Atlantic-Gulf 6,990 659 0 659 94 27,700 2,790 100 3,450 815

Great Lakes 3,820 282 1 283 74 17,600 1,400 80 1,690 235

Ohio 5,390 352 8 360 67 16,500 1,050 64 1,410 191

Tennessee 883 56 0 56 63 3,030 252 83 308 43

Upper Mississippi 4,340 371 0 371 85 16,900 1,530 90 1,900 401

Lower Mississippi 1,230 90 0 90 74 5,940 698 117 788 151

Souris-Red-Rainy 211 22 0 22 105 461 45 99 68 25

Missouri Basin 1,700 138 1 139 82 8,350 925 111 1,060 400

Arkansas-White-Red 1,380 118 0 118 85 6,870 705 103 823 267

Texas-Gulf 700 79 0 79 113 14,500 2,060 142 2,140 760

Rio Grande 311 23 0 23 75 1,920 282 147 305 142

Upper Colorado 137 10 0 10 74 488 83 169 93 34

Lower Colorado 363 37 2 39 108 4,380 722 165 761 363

Great Basin 145 13 3 15 106 2,040 432 212 448 165

Pacific Northwest 1,830 212 8 220 120 7,080 960 136 1,180 186

California 4,200 210 103 313 74 25,200 3,690 146 4,000 1,020

Alaska 174 6 1 7 40 376 30 79 36 4

Hawaii 53 9 1 10 189 1,060 126 119 136 68

Caribbean 208 4 5 8 40 3,420 163 48 171 74

Total 42,800 3,260 132 3,390 79 210,000 21,900 105 25,300 5,880
86

Part B: Million Liters per Day

Self Supplied Public Supply

Source

Region

Population 

in 

Thousands

Ground 

Water 

(Mliter/Day)

Surface 

Water 

(Mliter/Day)

Total 

(Mliter/Day)

Per Capita 

Use 

(Liter/Day)

Population 

Served in 

Thousands

Water 

Deliveries 

(Mliter/Day)

Per Capita 

Use 

(Liter/Day)

Water 

Deliveries 

(Mliter/Day)

Consumptive 

Use 

(Mliter/Day)

New England 2,220 640 0 640 288 10,600 2,699 254 3,339 469

Mid Atlantic 6,470 1,499 0 1,499 231 35,100 12,378 352 13,855 1,571

South Atlantic-Gulf 6,990 2,495 0 2,495 356 27,700 10,561 379 13,060 3,085

Great Lakes 3,820 1,067 4 1,071 280 17,600 5,300 303 6,397 890

Ohio 5,390 1,332 31 1,363 254 16,500 3,975 242 5,337 723

Tennessee 883 212 0 212 238 3,030 954 314 1,166 163

Upper Mississippi 4,340 1,404 0 1,404 322 16,900 5,792 341 7,192 1,518

Lower Mississippi 1,230 341 0 341 280 5,940 2,642 443 2,983 572

Souris-Red-Rainy 211 83 0 83 397 461 170 375 257 95

Missouri Basin 1,700 522 4 526 310 8,350 3,501 420 4,013 1,514

Arkansas-White-Red 1,380 447 0 447 322 6,870 2,669 390 3,115 1,011

Texas-Gulf 700 299 0 299 428 14,500 7,798 538 8,101 2,877

Rio Grande 311 87 0 87 284 1,920 1,067 556 1,155 538

Upper Colorado 137 37 1 38 280 488 314 640 352 129

Lower Colorado 363 140 8 148 409 4,380 2,733 625 2,881 1,374

Great Basin 145 49 10 57 401 2,040 1,635 803 1,696 625

Pacific Northwest 1,830 803 29 833 454 7,080 3,634 515 4,467 704

California 4,200 795 390 1,185 280 25,200 13,968 553 15,142 3,861

Alaska 174 23 3 26 151 376 114 299 136 14

Hawaii 53 32 5 37 715 1,060 477 450 515 257

Caribbean 208 14 17 31 151 3,420 617 182 647 280

Total 42,800 12,340 500 12,833 299 210,000 82,900 397 95,771 22,258

Figure 5-13 shows that the domestic sector accounts for 56.8 percent of all deliveries

from the public water supply. Public use and losses account for a further 14 percent of all

water deliveries.

The USGS data show that total water deliveries in the residential sector total 108,592

million liters (28,690 million gallons) per day with consumptive use totaling 22,256

million liters (5,880 million gallons) per day. Thus over 75 percent of all water delivered

to the residential sector is returned to the public supply to be treated and re-used. USGS

estimates per capita use from the public supply to be 397 liters per (day 105 gallons per

day) This is consistent with data previously presented. Based upon a cost of $0.79 per

thousand liters ($3 per thousand gallons), one would expect a typical monthly household

water cost to be approximately equal to $2519. Assuming that residential water

consumption has accounted for a similar proportion of total public supply deliveries since

1980, when total annual deliveries were 129 billion liters (34 billion gallons), it is

reasonable to assume that residential consumption is steadily increasing, given that total

public supply deliveries had risen to 155 billion liters (41 billion gallons) in 1990.

 

19 The calculation is based upon $3.00 per thousand gallons and the average per capita usage for the

population of the US divided by the total number of households in the US as follows:

[(3/1000)x105x30x(254,159,000/97,6993,000)] = $25 per month.
87

Figure 5-13. Deliveries from Public Water Supply: 1990

Domestic

56.8%

Commercial

15.3%

Industrial

13.5%

Power Generated

0.2%

Public Use and 

Losses

14.2%

A range of data relating to residential waste, which is one constituent of municipal solid

waste, are available from the Environmental Protection Agency (EPA) (URL:

http://www.epa.gov). A good source of information is the Municipal Solid Waste

Factbook, which is available in electronic form from the EPA Internet site. Data from

this Factbook show an upward trend both in the total volume of waste generated, and the

per capita generation rate since 1980. Total municipal solid waste generation has risen

from 138.2 million metric tons (152.4 million tons) in 1980 to 189.7 million metric tons

(209.1 million tons) in 1994, with a corresponding increase in per capita generation from

1.68 kilograms (3.7 pounds) per person per day in 1980 to 2.00 kilograms (4.4 pounds)

per person per day in 1994. This upward trend is predicted to continue in the future.

Clearly, the residential sector has a large part to play in reducing household waste. This

issue will be addressed in more detail in a future report on National Construction Goal 5

(50% Less Waste and Pollution).

5.2.2 Baseline Measures for Maintenance Costs

In Section 3.4 of this document, a general definition of ‘maintenance’ is provided, while

in Sections 4.1.1 and 4.1.2, the components included within this general definition are

described. In addition, Section 3.2 of this document explains in detail what is included in

the Current Construction Reports Series C50 (Expenditures for Residential

Improvements and Repairs), which is the primary source of information for this particular

section of the document.
88

Data from the C50 Series have been used to generate Figure 5-14, Figure 5-15, Table 5-3,

Table 5-4, and Table 5-5, which are described below.

Figure 5-14 shows expenditures for all residential properties (i.e., single and multi-unit

structures) in constant 1992 dollars between 1980 and 1996 for additions and alterations,

major replacements (together these are referred to as ‘improvements’), and maintenance

and repairs, as a series of line traces. Reference to Figure 5-14 indicates that total

expenditures (i.e., improvements plus maintenance and repairs) increased significantly

between 1980 and 1985, but since that time have remained relatively constant at about

$110 billion per annum in constant 1992 dollars. However, when the individual

components of this total are examined, it is apparent that expenditures on improvements

are rising steadily, while maintenance and repair expenditures appear to be falling.

Maintenance and repair expenditures have fallen from approximately $55 billion in 1990

to approximately $35 billion in 1996.

If we examine Figure 5-15, which shows the total dollar expenditure per household on

maintenance and repairs and improvements between 1990 and 1996 (based upon data

from the Housing Vacancy Survey, which produces data that are slightly different from

the American Housing Survey data regarding total number of housing units), we see that

the line trace is very similar to that for all households combined. This is because the rate

of change of the size of the housing sector is relatively slow, hence it does not modify the

trend in the line trace appreciably. Given that this is also the case for the different types

of housing unit within the US housing sector (i.e., single or multi-unit), it is reasonable to

assume that the trends shown in Figures 5-14 and Figure 5-16 are also representative of

changes in expenditures on a per household basis between 1990 and 1996. It is also

worth noting that the figures for median maintenance and repair expenditures per

household provided by the 1993 and 1995 American Housing Survey are consistent

with the C50 Series data, even though the definitions used in the survey are slightly

different.

Figure 5-16 compares total expenditures for maintenance and repair and improvements

for owner occupied single unit structures with those for all other properties. Reference to

the figure indicates that while total expenditures for single unit structures appear to have

risen, those for all other properties appear to have fallen since 1990. In addition, given

that the approximate ratios of single unit properties to all other properties is

approximately 1:2 for total expenditures, which is the same ratio as that for total number

of households in the US, it is evident that the total per household cost for maintenance

and repair is of the same order of magnitude for both single unit and other properties.

Table 5-3 shows the source data used to derive Figure 5-15 and Figure 5-16.
89

Figure 5-14. Expenditures by All Residential Properties for Improvements and

Maintenance and Repairs

0

20,000

40,000

60,000

80,000

100,000

120,000

198019821984198619881990199219941996

Year

Millions of Constant 1992 Dollars

Total Expenditures

Total Additions and Alterations

Total Major Replacements

Total Maintenance and Repairs

Figure 5-15. Total Expenditures per Household for Improvements and

Maintenance and Repairs

840

860

880

900

920

940

960

980

1,000

1,020

1,040

1,060

1990 1991 1992 1993 1994 1995 1996

Year

Constant 1992 Dollars per Household
90

Figure 5-16. Total Expenditures for Improvements and Maintenance and Repairs

by Type of Unit

0

20,000

40,000

60,000

80,000

100,000

120,000

19801981198219831984198519861987198819891990199119921993199419951996

Year

Total Expenditures

Ow ner Occupied

Single Unit

All Other Properties

Table 5-3. Summary of Expenditures for Additions and Alterations, Major

Replacements, and Maintenance and Repairs: 1980 to 1996

Total Expenditures Additions and Alterations All Units

Expenditures in Millions of 

Constant 1992 Dollars All Units

One Unit 

with 

Owner

Other 

Properties To Structures Outside Structures

Major 

Replacements All 

Units

Maintenance 

and Repairs All 

Units

Total Additions Alterations Total

1980 72,334 49,142 23,192 33,305 6,530 17,472 9,304 15,323 23,707

1981 68,368 44,546 23,821 30,111 4,667 17,622 7,822 14,625 23,632

1982 63,317 41,631 21,686 26,246 3,692 14,974 7,581 13,570 23,500

1983 65,414 43,159 22,255 26,900 6,289 15,490 5,121 14,458 24,056

1984 88,277 55,383 32,894 35,195 7,599 18,325 9,271 16,530 36,551

1985 96,963 57,672 39,290 34,760 4,791 21,260 8,711 19,490 42,712

1986 107,521 63,963 43,558 45,480 8,690 24,964 11,827 19,667 42,374

1987 108,194 63,010 45,185 45,975 10,991 24,887 10,096 18,256 43,963

1988 113,150 68,060 45,090 48,496 12,682 25,405 10,410 18,903 45,750

1989 109,971 65,245 44,726 43,367 7,443 25,211 10,713 20,072 46,531

1990 112,325 62,787 49,539 39,190 9,006 23,060 7,123 19,162 53,973

1991 99,284 59,128 40,155 31,501 8,056 16,365 7,079 17,045 50,737

1992 103,734 67,316 36,418 40,186 6,783 22,700 10,704 18,393 45,154

1993 106,680 69,685 36,996 45,110 12,566 24,409 8,135 20,497 41,074

1994 113,074 75,956 37,118 47,998 9,483 28,185 10,330 22,853 42,223

1995 106,434 71,820 34,614 42,624 7,563 25,629 9,432 23,739 40,071

1996 106,300 70,387 35,911 49,447 11,132 27,809 10,505 22,630 34,222
91

Table 5-4 compares the distribution of maintenance and repair and improvement

expenditures across the four census regions. Table 5-4 shows that the highest total

expenditures between 1994 and 1996 were in the south and mid-west, with significantly

lower total expenditures in the northeast and west. In the south, this is due both to higher

expenditures on maintenance and repairs, and expenditures on improvements compared

with other census regions.

Table 5-4. Expenditures by Census Region - All Owner Occupied Single Units

Type of Expenditure (Millions of 

Constant 1992 Dollars) Year Northeast Midwest South West

Total Expenditures 1994 16,670 20,450 21,913 16,923

1995 14,599 19,793 23,001 14,427

1996 12,671 18,013 23,409 16,295

Maintenance and Repairs 1994 5,752 5,214 7,677 5,187

1995 4,785 5,276 9,268 4,998

1996 3,744 4,506 6,631 3,796

Improvements 1994 10,918 15,237 14,237 11,736

1995 9,814 14,517 14,162 9,430

1996 8,926 13,508 16,778 12,499

Table 5-5 examines the changes in expenditures for maintenance and repairs and major

replacements, grouped by major job description, between 1993 and 1996. While it is

difficult to detect trends over such a relatively short period, the major replacements data

suggest that there has been an escalation in expenditures for roofing and siding for owner

occupied units in the US. At the same time, maintenance and repair expenditures for

roofing and siding appear to be stable or falling. This suggests that there is some linkage

between the two data sets, which would be expected.

Figure 5-17, which is based upon data from the 1993 American Housing Survey, shows

the number of households carrying out repairs over two years by cost category, for

selected types of repair. The figure indicates that approximately ten percent of all

households carried out some form of roof repair over two years. For more than two-thirds

of these houses, the costs of these repairs exceeded $500.

Finally, Figure 5-18, which is based upon data from the Property Owners and

Managers Survey, compares the use of different types of maintenance program for

single-family detached homes. The figure indicates that while 71 percent of all properties

handle all maintenance immediately, 10 percent postpone most maintenance. Future

survey data will allow us to see how homeowners are changing their approach to

maintenance and repair, and whether there is any correlation between type of program in

use and maintenance and repair expenditure fluctuations.
92

Table 5-5. Expenditures by Type of Job - All Owner Occupied Units: 1993 to 1996

Type of Job Millions of Constant 1992 Dollars

1993 1994 1995 1996

Major Replacements - Total 13,987 15,599 17,486 16,699

Plumbing 1,630 1,780 1,903 1,214

HVAC 3,281 2,767 4,778 3,440

Siding 1,151 961 1,006 1,710

Roofing 2,961 3,961 3,980 4,821

Driveways and Walkways 749 860 417 423

Windows 1,810 2,445 2,321 2,803

Doors 944 1,137 972 912

Other 1,462 1,687 2,109 1,377

Maintenance and Repairs - Total 21,801 24,747 25,028 20,060

Painting and Papering 6,731 6,556 6,347 6,703

Plumbing 1,972 2,895 2,174 2,114

HVAC 1,655 1,658 1,612 1,891

Electrical 476 542 586 387

Siding 575 489 559 223

Roofing 2,666 2,398 2,766 1,545

Flooring 762 1,465 1,350 1,011

Windows and Doors 346 840 692 476

Materials to have on hand 1,936 2,231 1,896 2,451

Other 4,681 5,673 7,045 3,259

Figure 5-17. Number of Owner Occupied Households Carrying Out Repairs Over

Two Years: 1993

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Roof Replaced

(all or part)

Siding Replaced

or Added

Major Equipment

Replaced or

Added

Insulation Added

Type of Repair

Number of Owner Occupied Housing Units 

Total (all repairs)

Costing $500 or

more

Costing less than

$500

Cost not reported
93

Figure 5-18. Comparison of Maintenance Programs for Single-Family Detached

Homes

All Maintenance 

Handled Immediately

71%

Most Maintenance 

Postponed

10%

Minor Problems 

Postponed

14%

Not Reported

5%

5.2.3 Baseline Measures for Energy Costs

In Section 3.4 of this document, a general definition of energy is provided, while in

Sections 4.1.1 and 4.1.2, the components included within the general definition for the

residential sector are described in detail. To recap, baseline measures for energy costs

consider energy consumption and expenditures by end-use classification.

Data from the 1993 Residential Energy Consumption Survey (RECS) have been used

to generate Figures 5-19 through 5-29 and Tables 5-6 through 5-8. Tables 5-6 through 5-

8 provide selected source data which have been used to generate the figures in this

section.

Figure 5-19 shows the total consumption of energy from all energy sources by end-use for

all housing, single-family housing, mobile homes, and multi-family housing. The figure
94

shows that space heating accounts for over 50 percent of all energy consumed by the

residential sector.

Figure 3-20, which is presented in Chapter 3 of this document, showed the consumption

of energy between 1980 and 1993 for the residential sector. It indicated that the total

consumption of energy has increased from around 9.8 quadrillion kilojoules (9.3

quadrillion Btu) to around 10.5 quadrillion kilojoules (10.0 quadrillion Btu) over this

time.
95

Table 5-6. Total Energy Consumption and Expenditures - All Energy Sources

Part A: Energy Consumption and Expenditures in Quadrillion Btu/Billion Dollars

CHARACTERISTICS Space Heating Air Conditioning Water Heating Refrigerator Appliances

Consumption 

(quadrillion 

Btu)

Expenditures 

(billion 

dollars)

Consumption 

(quadrillion 

Btu)

Expenditures 

(billion 

dollars)

Consumption 

(quadrillion 

Btu)

Expenditures 

(billion 

dollars)

Consumption 

(quadrillion 

Btu)

Expenditures 

(billion 

dollars)

Consumption 

(quadrillion 

Btu)

Expenditures 

(billion 

dollars)

Total U.S. Households 5.32 39.67 0.46 11.33 1.83 16.99 0.46 11.98 1.94 43.95

Census Region and Division

Northeast 1.49 11.39 0.04 1.39 0.43 4.17 0.08 2.66 0.35 10.10

New England 0.40 3.12 0.01 0.24 0.11 1.17 0.02 0.64 0.09 2.60

Middle Atlantic 1.09 8.27 0.03 1.15 0.32 3.00 0.06 2.02 0.26 7.51

Midwest 1.92 12.09 0.08 1.90 0.52 4.06 0.11 2.59 0.50 10.48

East North Central 1.41 8.69 0.05 1.26 0.39 2.84 0.07 1.88 0.35 7.55

West North Central 0.52 3.40 0.03 0.64 0.14 1.22 0.03 0.71 0.15 2.93

South 1.21 11.09 0.31 7.11 0.51 5.89 0.19 4.38 0.73 15.19

South Atlantic 0.56 5.83 0.14 3.46 0.22 3.20 0.09 2.18 0.34 7.71

East South Central 0.25 2.19 0.05 0.97 0.09 1.01 0.04 0.66 0.14 2.38

West South Central 0.40 3.08 0.11 2.69 0.20 1.68 0.06 1.54 0.25 5.10

West 0.70 5.09 0.03 0.92 0.36 2.87 0.09 2.35 0.37 8.18

Mountain 0.28 1.73 0.01 0.37 0.10 0.81 0.02 0.55 0.10 2.04

Pacific 0.42 3.36 0.02 0.56 0.26 2.06 0.06 1.80 0.26 6.13

Largest Populated States

California 0.27 2.07 0.02 0.53 0.21 1.51 0.04 1.47 0.18 4.92

Florida 0.05 0.88 0.06 1.44 0.04 0.89 0.03 0.78 0.11 2.59

NewYork 0.51 3.95 0.01 0.50 0.16 1.51 0.02 1.01 0.12 3.76

Texas 0.23 1.85 0.07 1.65 0.12 1.03 0.04 0.97 0.15 3.19

Urban Status

Urban 4.11 30.17 0.36 9.18 1.50 13.02 0.36 9.70 1.50 34.53

Central City 1.56 11.18 0.13 3.19 0.62 5.05 0.13 3.73 0.54 12.19

Suburban 2.54 19.00 0.24 5.99 0.88 7.97 0.22 5.97 0.96 22.34

Rural 1.21 9.49 0.10 2.15 0.33 3.97 0.10 2.27 0.45 9.41

Climate Zone

Under 2,000 CDD and Over 

7,000 HDD 0.69 4.39 0.01 0.26 0.17 1.66 0.03 0.79 0.18 3.80

5,500 to 7,000 HDD 2.11 14.28 0.07 1.67 0.59 4.89 0.11 3.05 0.54 12.05

4,000 to 5,499 HDD 1.35 10.77 0.10 2.57 0.44 4.20 0.10 2.75 0.44 10.22

Under 4,000 HDD 0.60 5.03 0.08 1.85 0.31 2.84 0.08 2.27 0.32 7.72

2,000 CDD or More and 

Under 4,000 HDD 0.57 5.20 0.21 4.98 0.31 3.41 0.12 3.12 0.46 10.16

Type of Housing Unit

Single-Family 4.31 31.36 0.37 8.87 1.33 12.09 0.35 8.97 1.56 34.99

Detached 3.96 28.47 0.33 7.92 1.19 10.82 0.32 8.02 1.42 31.79

Attached 0.36 2.89 0.04 0.95 0.14 1.27 0.03 0.94 0.14 3.19

Mobile Home 0.22 1.93 0.03 0.82 0.07 1.11 0.02 0.55 0.11 2.30

Multifamily 0.79 6.37 0.06 1.63 0.43 3.79 0.08 2.46 0.27 6.67

2 to 4 Units 0.48 3.59 0.02 0.43 0.17 1.43 0.03 0.86 0.11 2.61

5 or More Units 0.31 2.79 0.04 1.20 0.26 2.36 0.06 1.61 0.16 4.05

Heated Floorspace

Fewer than1,000 0.94 7.72 0.08 2.04 0.45 4.48 0.11 3.00 0.38 8.41

1,000 to 1,999 2.05 15.72 0.21 5.03 0.76 7.10 0.19 5.02 0.83 18.80

2,000 to 2,999 1.39 9.93 0.11 2.61 0.39 3.48 0.10 2.53 0.45 10.38

3,000 or More 0.94 6.30 0.07 1.64 0.22 1.93 0.06 1.42 0.28 6.36

Year of Construction

1939 or Before 1.69 11.17 0.04 1.11 0.42 3.57 0.09 2.36 0.39 8.76

1940 to 1949 0.45 3.04 0.02 0.50 0.13 1.14 0.03 0.86 0.14 3.01

1950 to 1959 0.81 5.76 0.06 1.53 0.27 2.26 0.07 1.85 0.29 6.73

1960 to 1969 0.82 6.03 0.08 1.85 0.29 2.45 0.07 1.94 0.29 6.62

1970 to 1979 0.73 6.21 0.10 2.32 0.31 3.21 0.09 2.26 0.37 8.18

1980 to 1984 0.26 2.54 0.06 1.45 0.14 1.56 0.04 1.11 0.17 3.89

1985 to 1987 0.19 1.75 0.04 1.05 0.10 1.04 0.03 0.65 0.11 2.56

1988 to 1990 0.18 1.65 0.03 0.77 0.08 0.96 0.02 0.52 0.11 2.33

1991 to 1993 0.18 1.51 0.03 0.75 0.08 0.81 0.02 0.43 0.09 1.87
96

Part B: Energy Consumption and Expenditures in Quadrillion Joules/Billion

Dollars

CHARACTERISTICS Space Heating Air Conditioning Water Heating Refrigerator Appliances

Consumption 

(quadrillion 

Joules)

Expenditures 

(billion 

dollars)

Consumption 

(quadrillion 

Joules)

Expenditures 

(billion 

dollars)

Consumption 

(quadrillion 

Joules)

Expenditures 

(billion 

dollars)

Consumption 

(quadrillion 

Joules)

Expenditures 

(billion 

dollars)

Consumption 

(quadrillion 

Joules)

Expenditures 

(billion 

dollars)

Total U.S. Households 5612.90 39.67 485.33 11.33 1930.75 16.99 485.33 11.98 2046.81 43.95

Census Region and Division

Northeast 1572.03 11.39 42.20 1.39 453.67 4.17 84.40 2.66 369.27 10.10

New England 422.02 3.12 10.55 0.24 116.06 1.17 21.10 0.64 94.96 2.60

Middle Atlantic 1150.01 8.27 31.65 1.15 337.62 3.00 63.30 2.02 274.31 7.51

Midwest 2025.71 12.09 84.40 1.90 548.63 4.06 116.06 2.59 527.53 10.48

East North Central 1487.63 8.69 52.75 1.26 411.47 2.84 73.85 1.88 369.27 7.55

West North Central 548.63 3.40 31.65 0.64 147.71 1.22 31.65 0.71 158.26 2.93

South 1276.62 11.09 327.07 7.11 538.08 5.89 200.46 4.38 770.19 15.19

South Atlantic 590.83 5.83 147.71 3.46 232.11 3.20 94.96 2.18 358.72 7.71

East South Central 263.76 2.19 52.75 0.97 94.96 1.01 42.20 0.66 147.71 2.38

West South Central 422.02 3.08 116.06 2.69 211.01 1.68 63.30 1.54 263.76 5.10

West 738.54 5.09 31.65 0.92 379.82 2.87 94.96 2.35 390.37 8.18

Mountain 295.42 1.73 10.55 0.37 105.51 0.81 21.10 0.55 105.51 2.04

Pacific 443.12 3.36 21.10 0.56 274.31 2.06 63.30 1.80 274.31 6.13

Largest Populated States

California 284.87 2.07 21.10 0.53 221.56 1.51 42.20 1.47 189.91 4.92

Florida 52.75 0.88 63.30 1.44 42.20 0.89 31.65 0.78 116.06 2.59

NewYork 538.08 3.95 10.55 0.50 168.81 1.51 21.10 1.01 126.61 3.76

Texas 242.66 1.85 73.85 1.65 126.61 1.03 42.20 0.97 158.26 3.19

Urban Status

Urban 4336.28 30.17 379.82 9.18 1582.58 13.02 379.82 9.70 1582.58 34.53

Central City 1645.89 11.18 137.16 3.19 654.13 5.05 137.16 3.73 569.73 12.19

Suburban 2679.84 19.00 253.21 5.99 928.45 7.97 232.11 5.97 1012.85 22.34

Rural 1276.62 9.49 105.51 2.15 348.17 3.97 105.51 2.27 474.78 9.41

Climate Zone

Under 2,000 CDD and Over 

7,000 HDD 727.99 4.39 10.55 0.26 179.36 1.66 31.65 0.79 189.91 3.80

5,500 to 7,000 HDD 2226.17 14.28 73.85 1.67 622.48 4.89 116.06 3.05 569.73 12.05

4,000 to 5,499 HDD 1424.33 10.77 105.51 2.57 464.22 4.20 105.51 2.75 464.22 10.22

Under 4,000 HDD 633.03 5.03 84.40 1.85 327.07 2.84 84.40 2.27 337.62 7.72

2,000 CDD or More and 

Under 4,000 HDD 601.38 5.20 221.56 4.98 327.07 3.41 126.61 3.12 485.33 10.16

Type of Housing Unit 0.00

Single-Family 4547.29 31.36 390.37 8.87 1403.22 12.09 369.27 8.97 1645.89 34.99

Detached 4178.02 28.47 348.17 7.92 1255.52 10.82 337.62 8.02 1498.18 31.79

Attached 379.82 2.89 42.20 0.95 147.71 1.27 31.65 0.94 147.71 3.19

Mobile Home 232.11 1.93 31.65 0.82 73.85 1.11 21.10 0.55 116.06 2.30

Multifamily 833.49 6.37 63.30 1.63 453.67 3.79 84.40 2.46 284.87 6.67

2 to 4 Units 506.43 3.59 21.10 0.43 179.36 1.43 31.65 0.86 116.06 2.61

5 or More Units 327.07 2.79 42.20 1.20 274.31 2.36 63.30 1.61 168.81 4.05

Heated Floorspace

Fewer than1,000 991.75 7.72 84.40 2.04 474.78 4.48 116.06 3.00 400.92 8.41

1,000 to 1,999 2162.86 15.72 221.56 5.03 801.84 7.10 200.46 5.02 875.70 18.80

2,000 to 2,999 1466.53 9.93 116.06 2.61 411.47 3.48 105.51 2.53 474.78 10.38

3,000 or More 991.75 6.30 73.85 1.64 232.11 1.93 63.30 1.42 295.42 6.36

Year of Construction

1939 or Before 1783.04 11.17 42.20 1.11 443.12 3.57 94.96 2.36 411.47 8.76

1940 to 1949 474.78 3.04 21.10 0.50 137.16 1.14 31.65 0.86 147.71 3.01

1950 to 1959 854.60 5.76 63.30 1.53 284.87 2.26 73.85 1.85 305.97 6.73

1960 to 1969 865.15 6.03 84.40 1.85 305.97 2.45 73.85 1.94 305.97 6.62

1970 to 1979 770.19 6.21 105.51 2.32 327.07 3.21 94.96 2.26 390.37 8.18

1980 to 1984 274.31 2.54 63.30 1.45 147.71 1.56 42.20 1.11 179.36 3.89

1985 to 1987 200.46 1.75 42.20 1.05 105.51 1.04 31.65 0.65 116.06 2.56

1988 to 1990 189.91 1.65 31.65 0.77 84.40 0.96 21.10 0.52 116.06 2.33

1991 to 1993 189.91 1.51 31.65 0.75 84.40 0.81 21.10 0.43 94.96 1.87
97

Table 5-7. Energy Expenditures per US Household, by End Use - All Energy

Sources

CHARACTERISTICS All Uses Space Heating Air Conditioning Water Heating Refrigerators Appliances

Households 

(millions)

Expenditures 

(dollars)

Households 

(millions)

Expenditures 

(dollars)

Households 

(millions)

Expenditures 

(dollars)

Households 

(millions)

Expenditures 

(dollars)

Households 

(millions)

Expenditures 

(dollars)

Households 

(millions)

Expenditures 

(dollars)

Total U.S. Households 96.6 1283 94.6 419 64.0 177 95.9 177 96.4 124 96.6 455

Census Region and Division

Northeast 19.5 1526 19.1 595 10.9 127 19.3 216 19.4 137 19.5 519

New England 5.1 1532 4.9 634 2.1 111 5.0 234 5.1 126 5.1 512

Middle Atlantic 14.4 1523 14.2 582 8.8 131 14.3 210 14.3 141 14.4 521

Midwest 23.3 1336 23.2 521 16.4 116 23.3 174 23.3 111 23.3 450

East North Central 16.4 1358 16.3 533 10.8 117 16.4 174 16.4 115 16.4 461

West North Central 6.9 1282 6.9 492 5.6 114 6.9 176 6.9 103 6.9 422

South 33.5 1305 32.8 338 29.4 242 33.2 178 33.4 131 33.5 454

South Atlantic 17.3 1292 16.8 346 15.0 231 17.1 187 17.3 126 17.3 445

East South Central 6.0 1200 5.9 373 5.3 185 5.9 170 6.0 110 6.0 396

West South Central 10.1 1391 10.1 304 9.2 291 10.1 167 10.1 152 10.1 504

West 20.4 953 19.4 263 7.2 128 20.2 142 20.3 116 20.4 402

Mountain 5.4 1025 5.3 327 2.1 175 5.3 151 5.4 102 5.4 382

Pacific 15.0 928 14.1 238 5.1 109 14.9 139 15.0 120 15.0 409

Largest Populated States

California 11.1 944 10.6 195 4.4 120 11.1 136 11.1 132 11.1 442

Florida 5.6 1182 5.3 165 5.1 281 5.5 162 5.6 141 5.6 466

NewYork 6.8 1577 6.7 590 3.9 128 6.7 224 6.8 149 6.8 552

Texas 6.4 1349 6.4 288 5.8 287 6.4 161 6.4 151 6.4 494

Urban Status

Urban 75.8 1275 74.4 405 50.3 183 75.3 173 75.7 128 75.8 456

Central City 30.6 1156 29.9 374 18.9 168 30.4 166 30.5 122 30.6 399

Suburban 45.2 1356 44.6 426 31.3 191 44.9 177 45.1 132 45.2 494

Rural 20.8 1312 20.2 471 13.7 157 20.6 193 20.8 110 20.8 452

Climate Zone

Under 2,000 CDD and Over 

7,000 HDD 8.7 1254 8.5 517 4.0 64 8.6 193 8.7 91 8.7 437

5,500 to 7,000 HDD 26.5 1356 26.3 543 15.5 108 26.4 185 26.5 115 26.5 455

4,000 to 5,499 HDD 22.4 1361 22.1 488 16.0 160 22.2 189 22.3 123 22.4 456

Under 4,000 HDD 17.8 1107 17.2 292 10.3 179 17.7 160 17.8 128 17.8 434

2,000 CDD or More and 

Under 4,000 HDD 21.2 1268 20.5 253 18.1 275 21.0 162 21.1 147 21.2 479

Type of Housing Unit

Single-Family 66.8 1442 65.5 479 45.1 197 66.3 182 66.7 134 66.8 524

Detached 59.5 1464 58.3 488 39.9 198 59.0 183 59.4 135 59.5 535

Attached 7.3 1266 7.2 403 5.2 183 7.3 174 7.3 129 7.3 437

Mobile Home 5.6 1203 5.4 357 3.7 221 5.5 200 5.6 99 5.6 412

Multifamily 24.2 863 23.6 269 15.1 108 24.1 158 24.2 102 24.2 275

2 to 4 Units 8.0 1112 7.9 454 3.9 110 8.0 179 8.0 107 8.0 326

5 or More Units 16.2 740 15.8 177 11.2 107 16.1 147 16.2 99 16.2 250

Heated Floorspace

Fewer than 1,000 29.3 876 28.1 275 17.2 119 28.9 155 29.2 103 29.3 287

1,000 to 1,999 40.2 1286 39.6 397 27.4 183 40.0 178 40.1 125 40.2 468

2,000 to 2,999 17.8 1622 17.7 561 12.8 205 17.8 196 17.8 142 17.8 582

3,000 or More 9.3 1901 9.2 685 6.6 249 9.2 208 9.3 153 9.3 685

Year of Construction

1939 or Before 20.3 1327 19.7 566 9.9 112 20.1 178 20.3 116 20.3 431

1940 to 1949 6.9 1242 6.8 450 3.8 132 6.9 166 6.9 126 6.9 437

1950 to 1959 13.1 1387 12.8 450 8.4 182 13.0 173 13.1 142 13.1 515

1960 to 1969 15.0 1257 14.7 410 10.6 175 14.9 164 15.0 129 15.0 441

1970 to 1979 18.1 1222 17.7 352 12.4 188 18.0 179 18.1 125 18.1 451

1980 to 1984 8.5 1247 8.3 306 6.7 217 8.5 184 8.5 131 8.5 460

1985 to 1987 5.5 1284 5.5 320 4.7 223 5.5 190 5.5 118 5.5 466

1988 to 1990 4.7 1322 4.6 356 3.8 201 4.7 204 4.7 111 4.7 494

1991 to 1993 4.5 1200 4.5 338 3.8 197 4.5 180 4.5 96 4.5 419
98

Table 5-8. Average Consumption and Expenditures for All Major Energy Sources

Characteristics Consumption Expenditures 

1000 Btu per square foot 1000 Joules per square meter Dollars per square foot Dollars per square meter

Total U.S. Households 55 624629 0.68 7.32

Census Region and Division

Northeast 60 681414 0.74 7.96

New England 59 670057 0.73 7.85

Middle Atlantic 60 681414 0.75 8.07

Midwest 62 704128 0.62 6.67

East North Central 64 726841 0.63 6.78

West North Central 56 635986 0.58 6.24

South 52 590559 0.76 8.18

South Atlantic 45 511060 0.75 8.07

East South Central 53 601916 0.67 7.21

West South Central 62 704128 0.86 9.25

West 46 522417 0.58 6.24

Mountain 57 647343 0.59 6.35

Pacific 42 476990 0.58 6.24

Largest Populated States

California 41 465633 0.59 6.35

Florida 31 352064 0.71 7.64

New York 64 726841 0.84 9.04

Texas 57 647343 0.81 8.72

Urban Status

Urban 56 635986 0.69 7.42

Central City 63 715485 0.75 8.07

Suburban 52 590559 0.66 7.10

Rural 54 613273 0.67 7.21

Climate Zone

Over 7,000 HDD 56 635986 0.57 6.13

5,500 to 7,000 HDD 62 704128 0.65 6.99

4,000 to 5,499 HDD 55 624629 0.69 7.42

Under 4,000 HDD 49 556488 0.69 7.42

2,000 CDD or More and Under 

4,000 HDD 49 556488 0.79 8.50

Type of Housing Unit

Single-Family 52 590559 0.63 6.78

Detached 52 590559 0.63 6.78

Attached 53 601916 0.7 7.53

Mobile Home 84 953979 1.23 13.23

Multifamily 69 783626 0.89 9.58

2 to 4 Units 83 942623 0.93 10.01

5 or More Units 60 681414 0.86 9.25

Heated Floorspace

square feet (square meters)

Fewer than 1,000 (Fewer than 93) 81 919909 1.06 11.41

1,000 to 1,999 (93 to 186) 59 670057 0.76 8.18

2,000 to 2,999 (187 to 279) 50 567845 0.6 6.46

3,000 or More (280 or More) 39 442919 0.44 4.73

Year of Construction

1939 or Before 65 738198 0.66 7.10

1940 to 1949 67 760912 0.74 7.96

1950 to 1959 60 681414 0.73 7.85

1960 to 1969 57 647343 0.69 7.42

1970 to 1979 50 567845 0.7 7.53

1980 to 1984 46 522417 0.72 7.75

1985 to 1987 44 499704 0.66 7.10

1988 to 1990 43 488347 0.62 6.67

1991 to 1993 40 454276 0.53 5.70
99

Figure 5-19. Total Energy Consumption by End Use and Type of Housing

0

1

2

3

4

5

6

Total Single-Family MobileHome Multifamily

Type of Unit

Quadrillion Btu

0

1

2

3

4

5

6

Quadrillion kJ (kilojoules)

Space Heating

Air Conditioning

Water Heating

Refrigerator

Appliances

Figure 5-20 shows the total energy consumption by end-use in each of the four census

regions. Reference to the figure indicates that space heating is the dominant end-use

consumer, irrespective of census region. Figure 5-21 shows the total expenditures per US

household for energy consumption, by end use, for the same types of structure shown in

Figure 5-19. Comparison of the two figures indicates that while space heating is the

largest consumer of energy, expenditures for household appliances are of a similar

magnitude to those for space heating for single-family homes. This is due primarily to

the high cost of electricity compared with other fuel sources, and the fact that natural gas

is the dominant fuel source for space heating (refer to Section 5.2.4 for further details

about household appliances and equipment). Data from the RECS shows that

expenditures for electricity in the residential sector, are generally around four times

greater than those for natural gas and fuel oil (for single family housing approximately

$22.8 per million kilojoules ($24 per million Btu) for electricity, compared with

approximately $5.7 per million kilojoules ($6 per million Btu) for natural gas and fuel oil

respectively). Furthermore, these cost differentials are reflected across all four census

regions and housing types. Figure 5-21 also indicates that per household expenditures

decrease as the number of units in the structure increases. However, this observation

must be viewed with caution, as it does not account for the floor space of the unit - a

factor considered later in this section.
100

Figure 5-20. Total Energy Consumption by End Use and Census Region

0

1

2

3

4

5

6

Total

U.S.Households

Northeast Midwest South West

Census Region

Quadrillion Btu

0

1

2

3

4

5

6

Quadrillion KJ (Kilojoules)

Space Heating

Air Conditioning

Water Heating

Refrigerator

Appliances

Figure 5-21. Energy Expenditures per Household by End Use and Type of Unit

0

100

200

300

400

500

600

Total U.S.

Households

Single-Family Mobile Home Multifamily

Type of Unit

Expenditures (Dollars)

Space Heating

Air Conditioning

Water Heating

Refrigerators

Appliances
101

Figure 5-22. Energy Expenditures per Household by End Use and Census Region

0

100

200

300

400

500

600

Northeast Midw est South West

Census Region

Expenditures (Dollars)

Space Heating

Air Conditioning

Water Heating

Refrigerators

Appliances

Figure 5-22 presents similar information to that shown in Figure 5-20, except that

expenditures per household are shown. As expected, space heating costs are higher in the

northeast and mid-west compared with the south and west, while air conditioning costs in

the south are nearly double those in the three other census regions.

Figure 5-23 shows the total consumption of energy for all houses by year of construction

and energy end use. Figure 5-25 indicates that properties built before 1980 consume

significantly more total energy than those built after 1980. In particular, total energy

consumption for space heating in buildings constructed before 1980 is higher. However,

cross reference to Figure 5-4 shows that the consumption profile shown in Figure 5-23 is

due in part to the age distribution of the US housing stock. Figure 5-24 explores this

issue in greater detail. It shows the total energy expenditures per household by end use

and year of construction. Reference to Figure 5-24 indicates that annual expenditures for

space heating in older buildings are generally higher than in newer buildings, as

suggested in Figure 5-23. However, the annual expenditures for air conditioning, water

heating, refrigerators and appliances shown in Figure 5-24 are generally either similar

across the age spectrum, or higher in newer buildings. In particular, air conditioning

expenditures are significantly higher in newer buildings, probably due to a higher

percentage of newer buildings having air conditioning equipment. The data suggest that

newer buildings are not significantly cheaper to operate than older buildings, as might

have been expected. However, this observation does not necessarily tell us whether

building efficiency is higher in newer homes, as the data do not account for the trend
102

towards larger single family homes, which would result in higher operating costs.

Therefore, this section will examine unit area costs in more detail, to account for

differences in building size across the housing stock.

Figure 5-23. Total Energy Consumption by End Use and Year of Construction

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

1939 or

Before

1940 to

1949

1950 to

1959

1960 to

1969

1970 to

1979

1980 to

1984

1985 to

1987

1988 to

1990

1991 to

1993

Year of Construction

Quadrillion Btu

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

Quadrillion kJ (kilojoules)

Space Heating

Air Conditioning

Water Heating

Refrigerator

Appliances

Figure 5-24. Energy Expenditures per Household by End Use and Year of

Construction

0

100

200

300

400

500

600

1939 or

Before

1940 to

1949

1950 to

1959

1960 to

1969

1970 to

1979

1980 to

1984

1985 to

1987

1988 to

1990

1991 to

1993

Year of Construction

Expenditures (Dollars)

Space Heating

Air Conditioning

Water Heating

Refrigerators

Appliances
103

Figure 5-25 shows the expenditures per household by end use in each of the five climate

zones defined in the RECS. Reference to Figure 5-25 shows that appliance and water

heating expenditures are relatively constant, irrespective of climate zone. However, space

heating costs are highly dependent upon climatic zone. Space heating expenditures fall as

the number of heating degree days (HDD) decreases (heating degree days are a measure

of how cold an area is). Conversely, air conditioning and refrigeration expenditures rise

as the number of cooling degree days (CDD) increases (cooling degree days are a

measure of how hot an area is).

Figure 5-25. Energy Expenditures per Household by End Use and Climate Zone

0

100

200

300

400

500

600

Under 2,000

CDD and Over

7,000 HDD

5,500 to 7,000

HDD

4,000 to 5,499

HDD

Under 4,000

HDD

2,000 CDD or

More and Under

4,000 HDD

Climate Zone

Expenditures (Dollars)

Space Heating

Air Conditioning

Water Heating

Refrigerators

Appliances

Figures 5-26 through 5-29 consider average expenditures for all major energy sources in

the residential sector on a dollars per square meter (square foot) basis, rather than on a

‘per household’ basis, as used previously. This allows a more accurate comparison of

different parts of the residential sector which accounts for differences in building size,

and is useful in comparing building efficiencies.

Figure 5-26 shows how average expenditures vary depending upon the type of structure

which is considered. The figure indicates that single family housing expenditures are

lower on a per unit area basis than those for multi-family structures, and that both types

are less costly than those for mobile homes. This contrasts with the per household data

shown in Figure 5-21, which indicates that total household expenditures are actually

significantly higher in single family units compared with multi-family units. This is most

likely due to the higher median floor area in single family houses. Attached properties

also have higher per unit area energy costs than detached structures. This is probably also
104

because detached structures generally have higher floor areas than attached properties.

Thus, whilst single family homes are more costly to operate than multi-family homes,

they would appear to be more efficient.

Figure 5-26. Average Energy Expenditures for all Major Energy Sources by Type

of Unit

0

0.2

0.4

0.6

0.8

1

1.2

1.4

Single-Family Detached Attached Mobile Home Multi-family 2 to 4 Units 5 or More

Units

Type of Structure

Dollars per Square Foot

0

2

4

6

8

10

12

14

Dollars per Square Meter

Figure 5-27 shows how average energy expenditures vary across the four census regions,

as well as in selected US states. Reference to the figure shows that the west census

region has the lowest energy expenditures per square meter (square foot), and the south

has the highest. Average expenditures in the south are probably skewed to some extent

by the high proportion of mobile homes in this region compared with the other census

regions. Data from the RECS also indicates that urban areas have higher expenditures

than rural areas in all census regions.

In Figure 5-28, the variation in average energy expenditures is shown by year of

construction of the structure. The figure suggests that properties constructed more

recently have lower average energy expenditures than older units. Figure 5-28 should be

compared with Figure 5-24, which indicated that total per household costs are similar

irrespective of the age of construction of the property. There are a number of possible

reasons for this paradox. Firstly, given that space heating accounts for a relatively large

proportion of total energy expenditures, and that we would expect newer homes to be

better designed and insulated than older homes, newer buildings should be more efficient.

This is discussed in more detail in Section 5.2.4. Secondly, the increasing importance of

single-family housing compared with multi-family housing described in Section 5.1,

coupled with the trend towards larger single family homes, appears to reduce unit costs,
105

as shown in Figure 5-28. This is probably also the result of newer properties

incorporating more energy conservation features than older homes.

Figure 5-27. Average Energy Expenditures for all Major Energy Sources by

Location

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

Total U.S.

Households

Midwest West Florida Texas

Census Region/ State

Dollars per Square Foot

0

2

4

6

8

Dollars per Square Meter

Figure 5-28. Average Energy Expenditures for all Major Energy Sources by Year

of Construction

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

1939 or

Before

1940 to

1949

1950 to

1959

1960 to

1969

1970 to

1979

1980 to

1984

1985 to

1987

1988 to

1990

1991 to

1993

Year of Construction

Dollars per Square Foot

0

1

2

3

4

5

6

7

8

Dollars per Square Meter
106

Figure 5-29 shows how average expenditures vary depending upon the climate

zone/location of the structure.

Figure 5-29. Average Energy Expenditures for All Major Energy Sources by

Climate Zone

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

Under 2,000

CDD and Over

7000 HDD

5,500 to7,000

HDD

4,000 to5,499

HDD

Under 4,000

HDD

2,000 CDD or

More and

Under 4000

HDD

Climate Zone

Dollars per Square Foot

0

1

2

3

4

5

6

7

8

Dollars per Square Meter

5.2.4 Energy Conservation in the Residential Sector

This section addresses some general issues concerning energy conservation in the

residential sector. This section examines how prevalent certain conservation features,

equipment, and appliances are in the residential sector. In addition, it outlines selected

energy efficiency recommendations provided by the Federal Energy Management

Program (FEMP). The EIA Report Housing Characteristics 1993 has been used to

generate all of the figures presented in this section.

Figure 5-30 shows the percentage of households which participated in demand side

management (DSM) programs in 1993 (demand side management programs are defined

by EIA as those programs sponsored by utilities companies to encourage customers to

modify their energy usage patterns), and the percentage having set-back clocks or

thermostats, by year of construction. The figure indicates that a higher percentage of

newer homes participate in DSM programs or have thermostatic devices or set-back

clocks compared with older homes.
107

Figure 5-30. Residential Housing Energy Features: Households Participating in

Demand-Side Management Programs/With Set-Back Clocks

0.0

5.0

10.0

15.0

20.0

25.0

1969 or

before

1970 -

1979

1980 -

1984

1985 -

1987

1988 -

1990

1991 -

1993

Year of Construction

Percentage of Households 

DSM Programs

Set-Back

Clock/Thermostat

Figure 5-31 shows the percentage of households with single pane and double pane glass

by year of construction. As expected, there has been a move toward double pane glass in

recent years. However, the figures indicate that over 35 percent of all houses constructed

since 1988 still contain single pane glass.

Figure 5-32 shows the different types of insulation present in US homes by year of

construction. It is important to recognize that a single home may use more than one type

of insulation. Consequently, the sum total across all types of insulation may exceed 100

percent of all homes. Reference to the figure indicates that a relatively high proportion of

all homes have roof/ceiling insulation. In addition, wall and hot-water pipe insulation

also appears to be present in a similar percentage of homes, irrespective of age category.

However, the number of homes reporting having water heater insulation is relatively low

at around 25 percent, irrespective of year of construction. The figure suggests that there

are still a significant number of households in the US where some form of additional

insulation may be cost-effective. More detailed information regarding household

conservation features is provided in Table 5-9.
108

Figure 5-31. Households with Different Types of Glazing

0

10

20

30

40

50

60

70

1969 or

before

1970 -

1979

1980 -

1984

1985 -

1987

1988 -

1990

1991 -

1993

Year of Construction

Single Pane

Double Pane

Figure 5-32. Households with Different Types of Insulation

0

10

20

30

40

50

60

70

80

90

100

1969 or

before

1970 -

1979

1980 -

1984

1985 -

1987

1988 -

1990

1991 -

1993

Year of Construction

Roof/Ceiling

Walls

Floor

Water Heater

Hot Water Pipes
109

Table 5-9. Residential Housing Conservation Features: 1993

NUMBER OF HOUSING UNITS BY YEAR OF CONSTRUCTION (MILLIONS)

CONSERVATION ITEMS Total 

Units

1991 - 

1993

1988 - 

1990

1985 - 

1987

1980 - 

1984

1970 - 

1979

1960 - 

1969

1950 - 

1959

1940 - 

1949

1939 or 

Before

Total Housing Units 96.6 4.5 4.7 5.5 8.5 18.1 15.0 13.1 6.9 20.4

Demand-Side Management Programs

Were Any Offered by a Utility

Yes 34.8 1.8 1.9 2.4 3.0 6.1 5.1 5.1 2.4 7.1

No 40.0 1.5 2.0 2.0 3.4 8.2 6.1 5.2 2.9 8.7

Don’tKnow 21.8 1.2 0.8 1.1 2.1 3.9 3.8 2.8 1.6 4.6

Program Participation in Past 12 Months

No Program Offered 40.0 1.5 2.0 2.0 3.4 8.2 6.1 5.2 2.9 8.7

Don’t Know 2.7 0.2 0.1 Q 0.2 0.6 0.3 0.4 0.2 0.7

No 46.4 2.4 2.0 2.8 4.0 8.0 7.8 6.5 3.4 9.5

Yes 7.6 0.4 0.6 0.6 0.8 1.4 0.8 1.0 0.5 1.5

Does the Home Have any of the following:

Set-Back Clock/Thermostat

Yes 10.8 1.0 0.9 0.7 0.9 1.9 1.5 1.7 0.4 1.7

No 85.8 3.4 3.8 4.8 7.6 16.2 13.5 11.4 6.5 18.6

Regular Heating System/Furnace Maintenance

Yes 49.4 2.2 2.5 3.0 4.5 8.6 8.1 6.5 3.3 10.8

No 47.2 2.2 2.2 2.5 4.0 9.6 6.9 6.6 3.7 9.6

Doors and Windows

Glass in Sliding Doors to the Outside

Single Pane 12.2 0.6 0.6 1.1 1.7 3.7 2.5 1.3 0.4 0.4

Double Pane 18.3 1.3 1.4 1.5 2.6 4.7 3.7 1.7 0.4 0.9

Untreated 17.5 1.1 1.3 1.5 2.6 4.5 3.6 1.5 0.4 0.9

Low-E Coating 0.8 0.1 0.1 0.1 Q 0.1 Q Q Q Q

Triple Pane 0.4 Q Q Q Q 0.2 Q Q Q Q

No Doors 65.8 2.5 2.7 2.9 4.2 9.5 8.8 10.0 6.1 19.0

Glass in Most Windows

Single Pane 61.5 1.6 1.8 2.4 4.9 11.5 9.6 9.5 5.3 15.0

Double Pane 34.2 2.9 2.9 3.1 3.6 6.4 5.2 3.5 1.6 5.1

Untreated 32.5 2.6 2.7 2.9 3.5 6.2 5.0 3.2 1.4 4.9

Low-E Coating 1.7 0.2 0.2 0.1 Q 0.2 0.3 0.3 0.1 0.2

Triple Pane 0.9 Q Q Q Q 0.2 Q Q Q 0.2

Frames in Most Windows

Metal 53.3 3.0 3.2 4.0 6.7 12.8 9.9 6.3 2.5 4.7

Nonmetal 43.3 1.5 1.5 1.4 1.7 5.2 5.1 6.8 4.4 15.6

Conservation Measures

(Single-Family Units and Mobile Homes Only 72.4 3.6 3.9 4.1 6.1 12.4 10.8 11.3 5.6 14.6

Types of Insulation in/around Home

Roof/Ceiling

Yes 58.6 3.3 3.4 3.6 5.4 10.3 9.3 8.9 4.4 10.1

No 6.4 Q Q 0.1 0.2 0.8 0.6 1.3 0.7 2.6

Don’tKnow 7.4 0.2 0.4 0.5 0.6 1.3 1.0 1.2 0.5 1.9

Outside Walls

Yes 50.7 3.2 3.5 3.5 4.9 9.4 7.8 6.7 3.3 8.4

No 11.4 Q 0.2 0.1 0.3 1.1 1.5 2.7 1.5 4.0

Don’tKnow 10.3 0.3 0.2 0.5 0.9 1.9 1.5 2.0 0.7 2.3

Floor Insulation

No Basement/Crawlspace 17.8 1.4 1.4 1.6 2.9 3.7 2.9 2.4 0.7 1.0

Basement/Crawlspace 49.0 1.8 1.9 1.9 2.3 6.7 7.3 8.8 4.8 13.6

Heated 20.8 0.9 1.0 0.8 1.2 3.4 3.5 3.2 1.5 5.4

None or PartHeated 28.2 0.8 0.9 1.0 1.1 3.3 3.9 5.6 3.3 8.2

Floor Not Insulated 15.7 0.3 0.3 0.3 0.4 1.3 2.1 3.2 2.1 5.7

Floor Insulated 12.5 0.6 0.5 0.7 0.7 2.1 1.8 2.4 1.2 2.5

Don’t Know 5.0 0.2 0.1 0.2 0.3 0.6 0.9 1.1 0.4 1.1
110

Figure 5-33, Figure 5-34, and Figure 5-35 show the percentage of households with

selected appliances and equipment which use either electricity, natural gas, or fuel oil as

the energy source. The significant points which arise from these figures are that natural

gas is the dominant space heating fuel, followed by electricity, that virtually all air

conditioning equipment is electrically operated, and that, with the exception of ovens and

ranges, most appliances are electrically operated.

Table 5-10 and Table 5-11 show a series of energy efficiency recommendations for

selected residential appliances and equipment. The tables show both the recommended

efficiency rating, and the best attainable rating. For further information on this subject,

refer to Section 5.1, which lists some additional data sources.

Figure 5-33. Residential Appliances and Equipment: Electric

10.1

91.5

84.2

34.6

45.2

99.9

61.4

61.5

77.1

56.6

8.6

9.6

9.8

38.4

43.4

98.8

0.0 20.0 40.0 60.0 80.0 100.0 120.0

Portable Space Heater

Television Set

Fans

Microwave Oven

Freezer

Dishwasher

Refrigerator

Range

Oven

Clothes Washer

Clothes Dryer

Built-in Electric Units

Heat Pump

Central Warm Air Furnace

Water Heater

Central Air Conditioning

Percentage of Households
111

Figure 5-34. Residential Appliances and Equipment: Natural Gas

4.1

5.9

33.3

31.8

13.9

53.0

0.1

9.0

36.1

0.0 10.0 20.0 30.0 40.0 50.0 60.0

Room Heater

Floor, Wall, or Pipeless Furnace

Steam/Hot Water System

Central Warm Air Furnace

Range

Oven

Clothes Dryer

Water Heater

Central Air Conditioning

Percentage of Households

Figure 5-35. Residential Appliances and Equipment: Fuel Oil

5.5

4.7

4.1

0 1 2 3 4 5 6

Steam/Hot Water

System

Central Warm Air

Furnace

Water Heater 

Percentage of Households
112

Table 5-10. Energy Efficiency Recommendations for Selected Residential

Appliances and Equipment

Product Recommended Efficiency Rating Best Available Efficiency Rating

Central Air Conditioner SEER (Seasonal Energy Efficiency Rating) is 

greater than or equal to 12.0 SEER = 17.1

Residential Furnace AFUE (Annual Fuel Utilization Efficiency) is 

greater than or equal to 90% AFUE = 97%

Gas Water Heater First Hour Rating (up 

to 87 gallons/329 liters)

Energy Factor greater than 0.61. Annual 

Energy use less than 246 therms/259,000 MJ

Energy Factor = 0.72 Annual Energy Use 

= 208 Therms/219,000 MJ

Electric Water Heater First Hour Rating 

(up to 87 gallons/329 liters)

Energy Factor greater than or equal to 0.92. 

Annual Energy use less than or equal to 4773 

kwh

Energy Factor = 0.95 Annual Energy Use 

= 4622 kwh

Room Air Conditioner with Louvres - less 

than 20,000 Btu/hour(21.1MJ/hour)

EER (Energy Efficiency Ratio) greater than or 

equal to 10.0 EER = 12.0

Room Air Conditioner with Louvres - 

greater than or equal to 20,000 Btu/hour EER greater than or equal to 9.0 EER = 10.0

Room Air Conditioner without Louvres - 

all cooling capacities EER greater than or equal to 9.0 EER = 9.6

 Dishwasher (built in) Energy Factor greater than or equal to 0.52 

(less than 619 kwh/year) Energy factor = 0.68 ( 474 kwh/year)

Table 5-11. Energy Efficiency Recommendations for Refrigerators

Product Type Total Volume Recommended Best Available

Cubic Feet (Cubic Meters) kWh/year (Mega Joules/year) kWh/year (Mega Joules/year)

Single-Door Compact 7.75 or less (0.219 or less) 329 or less (1184.4 or less) 270 (972)

Top-Mount Freezer 12.5-14.4 (0.354-0.408) 526 or less (1893.6 or less) 496 (1785.6)

Top-Mount Freezer 14.5-16.4 (0.410-0.464) 616 or less (2217.6 or less) 514 (1850.4)

Top-Mount Freezer 16.5-18.4 (0.467-0.521) 655 or less (2358.0 or less) 518 (1864.8)

Top-Mount Freezer 18.5-20.4 (0.524-0.577) 655 or less (2358.0 or less) 533 (1918.8)

Top-Mount Freezer 20.5-22.4 (0.580-0.634) 727 or less (2617.2 or less) 555 (1998.0)

Side-by-side Freezer 18.5-20.4 (0.523-0.577) 760 or less (2736.0 or less) 702 (2527.2)

Side-by-side Freezer 20.5-22.4 (0.580-0.634) 760 or less (2736.0 or less) 561 (2019.6)

Side-by-side Freezer 22.5-24.4 (0.637-0.691) 843 or less (3034.8 or less) 750 (2700.0)

Side-by-side Freezer 24.5-26.4 (0.694-0.747) 843 or less (3034.8 or less) 641 (2307.6)

5.3 Summary of Baseline Measures for the Residential Sector

This section summarizes the baseline measures for the residential sector which are

presented in Sections 5.2.1, 5.2.2 and 5.2.3. The summary data concentrate upon cost

rather than consumption. They are presented in Table 5-12 below.

Table 5-12 shows general information relating to the residential sector, as well as key

operations, maintenance, and energy baseline data. The ‘General Information’ section

describes the total expenditures for new construction, maintenance and repair, and

improvements in the residential sector in 1994, as well as the average cost of new housing

in the US. The section also provides overall information about the size of the residential

sector, and selected key characteristics for single-family homes, which are the largest

component of the sector.
113

The ‘Operations’ section provides baseline measures for water and trash costs for

households on an aggregated and ‘per household’ basis. The ‘Maintenance’ section

provides information on maintenance and repairs, and improvements (defined as

activities which add value to the property), on a ‘per household’ basis. This information

can be compared with the aggregated data presented in the ‘General Information’ section

of the table. Finally, the ‘Energy’ section provides information on energy expenditures,

at an aggregated level for all households, and on a ‘per household’ basis. The baselines

focus first upon the principal energy end-use categorizations used by the Energy

Information Administration (EIA), and second upon expenditures grouped by primary

fuel source.

It should be noted that the information presented in Table 5-12 represents only the most

general of the data presented in Chapters 3 and 5 of this document.

Summary of Abbreviations Used in Table 5-12

VIP Value of New Construction Put in Place

C50 Current Construction Reports Series C-50 Expenditures for Residential

Improvements and Repairs

AHS American Housing Survey

USGS United States Geological Survey

EIA Energy Information Administration
114

Table 5-12. Summary of Baseline Measures: Residential Sector

DESCRIPTION YEAR BASELINE SOURCE20

GENERAL

INFORMATION

Value of New Construction

Put in Place

1994 $156,575 million (constant

1992 dollars)

Census VIP

Data

Total Maintenance and

Repair Expenditures

1994 $39,371 million (constant 1992

dollars)

Census C50

Data

Total Expenditures for

Improvements

1994 $66,671 million (constant 1992

dollars)

Census C50

Data

Average Construction Cost -

All Housing

1994 $54.54 per square foot/$586.81

per square meter

Statistical

Abstract

Total Number of Housing

Units

1995 110 million Census Data

Number of Single-Family

(SF) Housing Units

1995 72 million Census Data

Median Size of SF Unit 1995 1732 square feet/161 square

meters

Census Data

Number of New SF Homes

Started

1995 1.1 million Census Data

OPERATIONS

Total Expenditures for Water

and Sanitary Services - All

Households

1992 $30 billion USGS

Median Monthly Cost per

Household for Water

1995 $25 AHS

Median Monthly Cost per

Household for Trash

1995 $15 AHS

MAINTENANCE

Median Monthly Cost per

Household for Maintenance

and Repairs

1995 $25 AHS

Annual Median Expenditures

per Household for M&R and

Improvements

1995 $940 Census Data

 

20 See accompanying text for description of abbreviations used in this table.
115

Table 5-12. Summary of Baseline Measures: Residential Sector (continued)

DESCRIPTION YEAR BASELINE SOURCE

ENERGY

Total Energy Expenditures

for Space Heating - All

Households

 1993 $39.67 billion EIA

Total Energy Expenditures

for Air Conditioning - All

Households

 1993 $11.33 billion EIA

Total Energy Expenditures

for Water Heating - All

Households

 1993 $16.99 billion EIA

Total Energy Expenditures

for Refrigeration - All

Households

 1993 $11.98 billion EIA

Total Energy Expenditures

for Appliances - All

Households

 1993 $43.95 billion EIA

Annual Expenditures per

Household for Space Heating

 1993 $419 EIA

Annual Expenditures per

Household for Air

Conditioning

 1993 $177 EIA

Annual Expenditures per

Household for Water Heating

 1993 $177 EIA

Annual Expenditures per

Household for Refrigerators

 1993 $124 EIA

Annual Expenditures per

Household for Appliances

 1993 $455 EIA

Median Monthly Cost per

Household for Electricity

1995 $69 AHS

Median Monthly Cost per

Household for Piped Gas

1995 $42 AHS

Median Monthly Cost per

Household for Fuel Oil

1995 $61 AHS

Median Monthly Cost per

Household for Bottled Gas

1995 $49 AHS

Median Monthly Cost per

Household for Other Fuels

1995 $13 AHS

117

6. OM&E Measures for the Commercial/Institutional Sector

6.1 Key Considerations for the Commercial/Institutional Sector

This section of the document addresses the issue of data sources, availability, and

constraints in the commercial/institutional sector, and summarizes the key data sources

which are used for developing the baseline measures. The section also provides an

overview of the commercial/institutional sector.

6.1.1 Data Considerations: Sources, Availability, and Constraints

Preliminary data searches for the commercial/institutional sector indicated there are a

variety of organizations carrying out systematic surveys of particular parts of the

commercial/institutional sector, but that there are few surveys which cover the entire

sector. The most detailed survey of the commercial/institutional sector located by the

authors is carried out by the Energy Information Administration (EIA), a part of the US

Department of Energy. Information from EIA, and other selected organizations, was

examined in detail to determine whether it was suitable for the development of national

construction baselines. The principal data sources which are used in this document are

described below.

Data from the Energy Information Administration

The EIA carries out the Commercial Buildings Energy Consumption Survey

(CBECS), which is a national sample survey that collects data on the consumption of and

expenditures for energy in US commercial buildings, along with data on energy-related

characteristics of the buildings. The CBECS was first conducted in 1979, and has been

carried out triennially since 1983. The 1992 CBECS has been used in this document,

principally because at the time of writing, although data for commercial buildings

characteristics were available for 1995, energy consumption and expenditures data were

not. In the 1992 CBECS, there were approximately 6,600 sampled buildings. In

addition, personal interviews with approximately 5,800 building owners, managers or

tenants were conducted. Energy-related characteristics of the buildings were obtained

from on-site interviews with the building managers, owners or tenants during the

Commercial Buildings Energy Characteristics Survey. Data from both the 1992 and

1995 surveys are included in this document. Commercial buildings are defined by EIA as

all enclosed, roofed, and walled structures used predominantly for commercial purposes,

with floorspace greater than 93 square meters (1,000 square feet). The CBECS also

covers the institutional sector (e.g., education, religious, and healthcare facilities), though

in the survey these are all collectively referred to as commercial buildings.

The EIA produces a number reports from the CBECS survey data. These include

Commercial Buildings Characteristics 1992 and 1995, and Commercial Buildings

Energy Consumption and Expenditures 1992. EIA also produces the 1996 Renewable

Energy Annual, which includes information relating to municipal solid waste generation.
118

Data from EIA are available through its Internet site (URL: http://www.eia.doe.gov), or

through paper or electronic publications, including the EIA Energy InfoDisc Volume 2,

No.1, 1997, which provides energy data for all four industry sectors. Energy data

provided by EIA are very detailed.

In this document, data from the EIA reports Commercial Buildings Characteristics 1992,

Commercial Buildings Characteristics 1995 and Commercial Buildings Energy

Consumption and Expenditures 1992 have been used both to characterize the

commercial/institutional sector, and to develop energy cost and consumption baselines for

the sector. The highly detailed nature of the data means that there are no data constraints.

Data from the US Bureau of the Census

The US Bureau of the Census (USBC) carries out a number of surveys of the US

wholesale, retail, and service industries, and reports periodically upon a variety of related

issues. Surveys/reports of particular interest are the Census of Wholesale Trade, the

Census of Retail Trade, and the Census of Service Industries. These are considered in

more detail below.

The Census of Wholesale Trade, which is carried out every five years, considers all

establishments with payroll in SIC Division F21 that sell merchandise to retailers or other

wholesalers. Data for 1992 are available at present. The survey includes SIC 50 (durable

goods stores, such as motor vehicles and automotive parts, and lumber and construction

materials) and SIC 51 (non-durable goods, such as paper, drugs, groceries, beer, and

wine). These SIC Codes can be grouped under the ‘Mercantile and Service’ category

which is defined by EIA in the CBECS.

The Census of Retail Trade is also carried out every five years (data are available for

1992 at present), and considers all establishments in SIC Division G that sell merchandise

and related services to the public for personal or household consumption. This excludes

non-employees engaged in direct selling (SIC 5936). The survey includes SIC 52

(building materials, hardware, garden supply, and mobile homes dealers), SIC 53 (general

merchandise stores), SIC 54 (food stores), SIC 55 (automotive dealers and gasoline

service stations), SIC 56 (apparel), SIC 57 (furniture and home furnishings, and

equipment stores), and SIC 58 (eating and drinking places). All of these SIC Codes, with

the exception of SIC 54 and SIC 58, can be grouped under the ‘Mercantile and Service’

Category defined by EIA. SIC 54 and SIC 58 correspond to the ‘Food Sales’ category

defined by EIA.

The Census of Service Industries is also carried out every five years (data are available

for 1992 at present), and considers establishments which provide services to customers,

businesses, governments, and other organizations. These include all taxable

establishments, and tax-exempt establishments with payroll, in SIC Division I, except for

 

21 For further details of the SIC Classifications used in the Economic Census, refer to the US Bureau of the

Census.
119

academic and professional schools (SIC 821-2), labor, political, and religious

organizations (SIC 863 and 865-6), and households (SIC 88). The survey includes SIC

70 (hotels, motels etc.), SIC 72 (personal services), SIC 73 (business services); SIC 75

(automobile repair services and garages), SIC 76 (miscellaneous repair services), SIC 78

(motion pictures), SIC 79 (amusement and recreational facilities), SIC 80 (health

services), SIC 81 (legal services), SIC 823 (libraries), SIC 83 (social services), SIC 84

(museums, art galleries etc.), SIC 86 (membership organizations), SIC 871 (engineering,

architectural and surveying services), SIC 872 (accounting, auditing and bookkeeping);

SIC 873 (research, development, and testing services), and SIC 874 (management and

public relations services). All of these SIC Codes, can be grouped under either the

‘Mercantile and Service’, ‘Public Assembly’, ‘Education’, ‘Health Care’, ‘Office’,

‘Lodging’, or ‘Laboratory’ categories defined by EIA.

Data which are collected for these three surveys include the type of business, geographic

location, sales, inventory, number of employees, operating expenses, and so forth.

Operating expenses data consider the cost of utilities, and the cost of purchased services

for the repair of buildings and machinery, as well as a variety of other purchased services,

such as legal and accounting services. Selected data from USBC are available through its

Internet site (URL: http://www.census.gov), or via electronic or paper publications.

In this document, data from the USBC have been used to provide some general

information on operations, maintenance, and energy costs in the commercial/institutional

sector. Where specific data constraints have been found, these have been identified in the

text.

Data from Whitestone Research

The Whitestone Building Maintenance and Repair Cost Reference 1997 is the third of a

series of annual reports produced by Whitestone Research which presents estimates of

50-year maintenance cost profiles for 24 different building models. Building types

include fast food restaurants, motels, auto service garages, offices, supermarkets, movie

theaters, and so forth. These cover a good portion of the commercial/institutional sector.

The profile for each model includes a building description, a list of major building

components, and forecasts of maintenance and repair costs at various levels of

aggregation over the service life of the building. These can be adjusted for selected

metropolitan areas, and modified to include different building components. The

Whitestone Reports are available in paper form from Whitestone Research.

In this document, data from the Whitestone Building Maintenance and Repair Cost

Reference 1997 have been used to provide an overview of maintenance and repair

expenditures for typical types of building in the commercial/institutional sector.
120

Data from the International Facility Management Association

The International Facility Management Association (IFMA) is an association serving the

facility management profession, which provides educational and technical services,

carries out research, certifies facility management competency, and promotes the

profession.

IFMA has carried out a number of benchmarking studies covering both the

commercial/institutional and industrial sectors. Research Report #13, Benchmarks II,

printed in 1994, is the result of a 1993 survey of IFMA members, principally in the

service sector, which presents benchmarking data derived from 283 survey

questionnaires. While the report has a relatively small sample size, it appears to be one of

the few reports available which considers operations, maintenance, and energy costs

across a significant part of the commercial/institutional sector in any level of detail. Data

from IFMA are available through its Internet site (URL: http://www.ifma.org), or through

paper or electronic publications.

In this document, data from the IFMA report Benchmarks II have been used to generate

some general baselines for the commercial/institutional sector.

Data from the Building Owners and Managers Association

The Building Owners and Mangers Association (BOMA) is a trade organization

providing technical support to its membership in the building management sector. The

1996 BOMA Experience Exchange Report: Operating a Cost Effective Office Building

(the latest in a series of annual reports) provides published tables of operating income and

expense data for over 4000 office buildings located throughout North America for fiscal

year 1995. The sample includes 3657 US private sector properties, 213 US government

buildings, 175 private properties in Canada, and 430 government buildings in Canada.

The BOMA Report provides detailed descriptions of operations, maintenance and energy

costs for commercial office buildings in both the US and Canada for both the government

and private sector, as well as national cross tabulations, and city specific analyses. Data

from BOMA are available through its Internet site (URL: http://www.boma.org), or

through paper publications.

In this document, data from the 1996 BOMA Experience Exchange Report: Operating a

Cost Effective Building have been used to develop detailed baselines for commercial

office buildings, which represent a significant proportion of all buildings in the

commercial/institutional sector.

Data from APPA: The Association of Higher Education Facilities Officers

APPA is an organization with more than 4500 members representing learning institutions

across the US and Canada, with universities and colleges representing the largest segment

of the membership. APPA promote the effective operation and maintenance of education
121

facilities through education and technical support of facility mangers and others in the

profession. The APPA 1993-94 Comparative Costs and Staffing Report for College and

University Facilities (the second biennial report), provides detailed information on

facilities management costs and staffing information. It is based on 516 surveys carried

out for the 1993-94 fiscal year. Data are presented which describe operations,

maintenance, and energy costs for facilities, sorted by facility funding source, type,

geographic location, and size of student population. Data from APPA are available

through its Internet site (URL: http://www.appa.org) or through paper publications.

In this document, data from the APPA 1993-94 Comparative Costs and Staffing Report

for College and University Facilities have been used to develop detailed baselines for

educational facilities, which represent an important part of the commercial/institutional

sector.

Data from the Institute of Real Estate Management

The Institute of Real Estate Management (IREM) is an organization which educates and

certifies real estate professionals, carries out a variety of surveys of apartment buildings,

commercial office buildings, and most recently, open and enclosed shopping centers in

the US. The 1996 Income/Expense Analysis: Shopping Centers provides detailed

information on the operations, maintenance, and energy costs for open shopping centers

and enclosed malls. In 1995, data were collected from over 800 centers, and the report

provides national analyses, metropolitan analyses, regional analyses and analyses by

center size and age. Data from IREM are available through its Internet site (URL:

http://www.irem.org), or through paper publications.

In this document, data from the 1996 Income/Expense Analysis: Shopping Centers have

been used to establish detailed baselines for open shopping centers in the US, which are

an important part of the commercial/institutional sector.

Data from Other Sources

A wide variety of other data sources were examined. A brief description of some of these

sources is given below:

• The Federal Energy Management Program (FEMP), a part of the US Department of

Energy, provides a series of energy efficiency recommendations for selected

commercial equipment, some of which are included in this document. These

recommendations can be found on the FEMP Internet site (URL:

http://www.eren.doe.gov/femp/procurement/begin.html). The FEMP Internet site also

provides information about Federal Energy Saver showcase facilities. FEMP is a part

of the Energy Efficiency and Renewable Energy Network (EREN), which provides a

range of energy-related information, covering such issues as sustainability in building,

building efficiency, intelligent building systems, and so forth. A source list of
122

associated organizations is provided on the EREN Internet site (URL:

http://www.eren.doe.gov/buildings/energy_savers/sourcelist.html).

• The United States Geological Survey (USGS) provides data on water consumption by

the commercial/institutional sector in the US. Data are available on the USGS

Internet site (URL: http://www.usgs.gov). Data relevant to the

commercial/institutional sector are included in this document.

6.1.2 Overview of the Commercial/Institutional Sector

The overview of the commercial/institutional sector presented in this section expands on

the overview presented in Chapter 3 of this document. This section examines the size of

the US commercial/institutional sector, grouped by principal building activity, both in

terms of number of buildings and total floorspace. It also examines a number of key

characteristics of the commercial/institutional sector, such as the age, size, and

geographic distribution of facilities. Data are then presented which give an overview of

operations, maintenance, and energy costs in the commercial/institutional sector, for all

buildings combined. Some of this information will be used later in this document to

develop general baseline measures for the commercial/institutional sector. Some of the

difficulties which arise from aggregating operations and maintenance costs, and in

tracking the rate of change of the size of the commercial/institutional sector are also

examined.

6.1.2.1 General Overview

In this section, a variety of figures are presented which show key characteristics of the

commercial/institutional sector. Figures 6-1 through 6-3 show the size of the

commercial/institutional sector by principal building activity. Figures 6-4 through 6-7

show how the commercial/institutional sector can be categorized by building

floorspace/size. Finally, Figures 6-8 through 6-10 examine building characteristics by

year of construction of the building.

Data from the 1992 and 1995 Commercial Buildings Characteristics Reports have been

used to generate Figure 6-1. The figure shows the total number of buildings in the US

grouped by principal building activity, as defined by EIA. Reference to Figure 6-1

indicates that of the 4,806,000 buildings in the US in 1992, approximately 26 percent

were in the mercantile and service category (which includes automotive sales and

services, retail sales, services, shopping centers, and wholesale goods), approximately 16

percent are office buildings, and approximately 16 percent were warehouse and storage

buildings (these are considered as part of the industrial sector, but are included in this

section, as they are part of the CBECS). Comparison between 1992 and 1995 data

indicates that the total number of buildings in the commercial/institutional sector fell

from 4,806,000 in 1992 to 4,579,000 in 1995. The most significant changes were in the

number of warehouses and storage facilities (reduced by 181,000), religious worship

buildings (reduced by 97,000), and vacant buildings (reduced by 58,000). The only area
123

where there was a significant increase in the number of buildings was public assembly

(increased by 48,000). The mean area of all buildings decreased from 1,310 square

meters (14,100 square feet) in 1992 to 1,190 square meters (12,800 square feet) in 1995.

Similar changes in mean area per worker were 89 square meters (953 square feet) in 1992

to 71 square meters (766 square feet) in 1995, with mean hours of operation increasing

from 58 hours in 1992 to 62 hours in 1995.

Figure 6-2 shows the total building floorspace in each principal building category for all

commercial/institutional buildings in the US in 1992 and 1995. Reference to the figure

shows that there were 6,308 million square meters (67,876 million square feet) of

floorspace in 1992, compared with 5,462 million square meters (58,772 million square

feet) in 1995 (a 13.5 percent reduction). Comparison of Figure 6-1 and Figure 6-2

indicates that while the number of educational buildings is not especially high compared

with other building categories, in terms of total floorspace, it is one of the largest

categories. This suggests that educational establishments are significantly larger than

religious, public assembly, or food service establishments. Similarly, office buildings,

although smaller in number to mercantile and service buildings, represent a similar

amount of total floorspace, most likely because a significant number of office buildings

are multi-story. The other important point is that educational, mercantile and service, and

office buildings accounted for over 60 percent of total commercial/institutional sector

floorspace in the US in 1992 and 1995 (if we exclude warehouse and storage facilities),

hence focusing upon these categories for the development of baseline measures captures a

large proportion of the sector.

In Figure 6-3, the distribution of building floorspace across the US census regions, by

principal building activity is shown for 1992. Reference to the figure shows that there

was significantly more commercial/institutional floorspace in the south census region

(approximately 35 percent of the total) compared with the other three census regions,

with the least amount in the northeast (approximately 20 percent of the total). This was

particularly noticeable in the mercantile and service, office, public assembly, and

warehouse and storage categories. These trends are also reflected in 1995 data.

Figure 6-4 and Figure 6-5 shows the size distribution of all commercial/institutional

buildings (in terms of building floorspace category), by number of buildings and total

sector floorspace respectively. Comparison of the two figures indicates that while a large

proportion of all buildings have floor areas between 92.9 to 464.5 square meters (1,000 to

5,000 square feet), and a relatively small proportion have areas over 46,451 square meters

(500,000 square feet), when total floorspace in each size category is compared, there is a

much more even distribution across all building sizes. Thus, while smaller buildings

dominate the sector, their relative importance in terms of total floorspace is similar to that

of much larger buildings. Similar information is presented in Figure 6-6, which shows

how total floorspace in the commercial/institutional sector varied by building size in

1992. Comparison of Figure 6-3 and Figure 6-6 suggests that there are no significantly

different trends in building size depending upon census region.
124

Figure 6-1. Total Number of Buildings by Principal Building Activity: 1992 and

1995

-

200

400

600

800

1,000

1,200

1,400

Education

Food Sales

Food Service

Health Care

Lodging

Mercantile and

Service

Office

Public Assembly

Public Order

and Saftey

Religious

Worship

Warehouse and

Storage

Other

Vacant

Principal Building Activity

1992

1995

Total Buildings = 4,806,000 (1992)

 = 4,579,000 (1995)

Figure 6-2. Total Floorspace by Principal Building Activity: 1992 and 1995

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Education

Food Sales

Food Service

Health Care

Lodging

Mercantile and

Service

Office

Public Assembly

Public Order and

Saftey

Religious Worship

Warehouse and

Storage

Other

Vacant

Principal Building Activity

0

200

400

600

800

1,000

1,200

1992

1995

Total Floorspace (1992) = 67,876,000 Square Feet (6,305,680 Square Meters)

 (1995) = 58,772,000 Square Feet (5,459,919 Square Meters)
125

Figure 6-3. Total Floorspace by Principal Building Activity and Census Region:

1992

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Education

Food Sales

Food Service

Health Care

Lodging

Mercantile and

Service

Office

Public Assembly

Public Order and

Saftey

Religious Worship

Warehouse and

Storage

Other

Vacant

Principal Building Activity

0

50

100

150

200

250

300

350

400

450

Northeast

Midw est

South

West

In Figure 6-7, the number of floors for each size of building is mapped against total

floorspace. As expected, there are a greater number of high-rise buildings in the larger

floorspace categories. There are no buildings with ten or more floors having total floor

areas below 9,290 square meters (100,000 square feet), and no buildings having more

than three floors with total floor areas below 464.5 square meters (5,000 square feet).

Figure 6-8 and Figure 6-9 show how the number of buildings and total floorspace vary

depending upon the year of construction of the building.

Figure 6-10 shows how total floorspace varies by year of construction and census region.

The figure indicates that the relatively high proportion of total floorspace in the south

census region has remained consistent over time, thus the geographic distribution of the

commercial/institutional sector appears to be relatively stable.
126

Figure 6-4. Total Number of Buildings by Building Size Category: 1992 and 1995

Total Number of Buildings (1992) = 4,806,000

 (1995) = 4,579,000

2,681

975

647

280

116 71 48 26 19 9 6

115 213

745

1,035

2,399

0

500

1,000

1,500

2,000

2,500

3,000

1,000 - 5,000

(93 - 465)

5,001 - 10,000

(466 - 929)

10,001 - 25,000

(930 - 2,323)

25,001 - 50,000

(2,324 - 4,647)

50,001 - 100,000

(4,648 - 9,294)

100,001 -

200,000

(9,295 - 18,587)

200,001 -

500,000

(18,588 - 46,468)

Over 500,000

(Over 46,468)

Building Floorspace in Square Feet (Square Meters)

Number of Buildings (Thousands) 

1992

1995

Figure 6-5. Total Floorspace by Building Size Category: 1992 and 1995

Total Floorspace (1992) = 67,877,000 Square Feet (6,305,773 Square Meters)

 (1995) = 58,771,000 Square Feet (5,459,826 Square Meters)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1,000 - 5,000 

(93-465)

5,001 - 10,000

(466-929)

10,001 - 25,000

(930-2,323)

25,001 - 50,000

(2,324-4,647)

50,001 - 100,000

(4,648-9,294)

100,001 -

200,000

(9,295-18,584)

200,001 -

500,000

(18,588-46,468)

Over 500,000

(Over 46,468)

Building Floorspace in Square Feet (Square Meters)

Total Floorspace (Million Square 

Feet) 

0

200

400

600

800

1,000

Total Floorspace (Million Square 

Meters) 

1992

1995
127

Figure 6-6. Total Floorspace by Building Size Category and Census Region: 1992

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1,000 - 5,000 

(93-465)

5,001 - 10,000

(466-929)

10,001 - 25,000

(930-2,323)

25,001 - 50,000

(2,324-4,647)

50,001 - 100,000

(4,648-9,294)

100,001 -

200,000

(9,295-18,584)

200,001 -

500,000

(18,588-46,468)

Over 500,000

(Over 46,468)

Building Floorspace in Square Feet (Square Meters)

Total Floorspace (Million Square Feet) 

0

50

100

150

200

250

300

350

Total Floorspace (Million Square Meters) 

Northeast

Midwest

South

West

Figure 6-7. Total Floorspace by Building Size Category and Number of Floors:

1992

0

1,000

2,000

3,000

4,000

5,000

6,000

1,000- 5,000 

(93-465)

5,001- 10,000

(466-929)

10,001- 25,000

(930-2,323)

25,001- 50,000

(2,324-4,647)

50,001- 100,000

(4,648-9,294)

100,001- 200,000

(9,295-18,584)

200,001- 500,000

(18,588-46,468)

Over 500,000

(Over 46,468)

Building Size/Floorspace in Square Feet (Square Meters)

Total Floorspace (Million Square Feet)

0

100

200

300

400

500 Total Floorspace (Million Square Meters)

One Floor

Two Floors

Three Floors

Four to Nine Floors

Ten or More Floors
128

Figure 6-8. Total Number of Buildings by Year of Construction: 1992 and 1995

424

783

982

884

0

128

880

724

218 202

846 813

718

867

562

353

0

200

400

600

800

1000

1200

1919 or

Before

1920- 1945 1946- 1959 1960- 1969 1970- 1979 1980- 1989 1990- 1992 1993- 1995

Year of Construction

Number of Buildings (Thousands) 

1992

1995

Figure 6-9. Total Floorspace by Year of Construction: 1992 and 1995

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1919 or

Before

1920-

1945

1946-

1959

1960-

1969

1970-

1979

1980-

1989

1990-

1992

1993-

1995

Year of Construction

Total Floorspace (Million Square Feet)

0

200

400

600

800

1000

1200

1400

Total Floorspace (Million Square Meters)

1992

1995
129

Figure 6-10. Total Floorspace by Year of Construction and Census Region: 1992

0

1000

2000

3000

4000

5000

6000

7000

1899 or

Before

1900-

1919

1920-

1945

1946-

1959

1960-

1969

1970-

1979

1980-

1989

1990-

1992

Year of Construction

Total Floorspace (Million Square Feet) 

0

100

200

300

400

500

600

Total Floorspace (Million Square 

Meters) 

Northeast

Midwest

South

West

6.1.2.2 Operations, and Maintenance and Repair Overview

Data from the 1992 Census of Wholesale Trade, Census of Retail Trade, and Census

of Service Industries have been used to produce Table 6-1, which shows selected

operating expenses by type and kind of business. These census surveys provide some

useful data, but there are some significant limitations to its usage. The major problem is

that the combined data from these three surveys do not represent all of the

commercial/institutional sector. In particular, it excludes academic and professional

schools, labor, political and religious organizations. It also excludes finance, insurance

and real estate establishments (SIC Codes 60, 61, 62, 63, 64, 65, and 67), since operating

expense data are not provided in the Census of Finance Insurance and Real Estate, as

well as public administration establishments (SIC Codes 91, 92, 93, 94, 95, 96, and 97),

for which no census data exist. The total operating expenses shown in Table 6-1 do not

therefore represent true totals for the commercial/institutional sector.

For example, if we look at the total cost for purchased electricity ($33.1 billion), and

compare this with the total expenditures from the CBECS for electricity ($57.6 billion),

we see that there is a factor of 1.74 difference. Similarly, if we compare ‘total purchased

utilities less water and sewer charges’ in Table 6-1 ($41.0 billion) with total expenditures

data from CBECS presented in Figure 6-14 ($72.6 billion), we see that there is a similar

discrepancy. If we assume that we can scale the figures in Table 6-1 by a factor of 1.75

(i.e., we assume that the electricity figures presented in CBECS are a good indicator of

the ‘size’ of the commercial/institutional sector), we obtain the estimated totals shown in

the bottom line of Table 6-1. Although this is a very crude approximation, it helps us to
130

ballpark some of the figures previously presented in this document. For example, the

estimated total for repair services for buildings and structures becomes $20.3 billion.

This compares with the calculated total of $24.9 billion calculated from the Value Put in

Place and the Census of Construction data presented in Chapter 3. Similarly, if we

compare the estimated total for water sewer and other utilities ($12.2 billion), with the

previous estimate of $9.1 billion presented in Section 3.4, we can see that the Table 6-1

estimates appear to be of the right order of magnitude.

Table 6-2 Part A and Part B, which are based upon data from USGS, shows commercial

freshwater use in 1990 by water resources region. Reference to the table shows that total

withdrawals and deliveries in the commercial sector were 31,378 million liters per day

(8,290 million gallons per day), while consumption was approximately 11 percent of this

total. Approximately 71 percent of all deliveries were from the public supply, with the

remainder from self-supplied ground water sources (11 percent), and surface water

sources (18 percent).

Table 6-3, which is based upon data from the Whitestone Building Maintenance and

Repair Cost Reference 1997, shows average annual maintenance and repair costs per

square meter/square foot based upon 50 year maintenance cost profiles for 24 building

models in the Washington DC area22. The building types are ranked in order of total cost.

The total cost comprises two elements. The first element is the cost for major repair and

replacement of building components, which varies depending upon the type of building;

the second is the cost of in-house maintenance, which is assumed to be constant for all

buildings in Washington DC at $16.04 per square meter ($1.49 per square foot). This is

based upon an in-house staff of 25 workers per 0.117 million gross square meters (GSM)

(1.25 million gross square feet (GSF)) of floorspace. Table 6-3 indicates that the highest

maintenance and repair costs are associated with fast food restaurants, and the lowest

with warehouses.

 

22 See Whitestone Report for details of conversion factors for other metropolitan areas.
131

Table 6-1. Operating Expenses by Type and Business: 1992 (Millions of Dollars)

SIC 

Code SIC Code Description

Part of 

Commercial 

Sector

Total 

Operating 

Expenses

Annual 

Payroll

Telephone and 

Purchased 

Communications

Total 

Purchased 

Utilities

Electricity

Fuels 

(nonhighway)

Water 

Sewer 

and 

Other 

Utilities

Total 

Purchased 

Repair 

Services

Repair 

Services - 

Buildings, 

Structure 

and 

Related 

Facilities

Repair 

Services - 

Machinery, 

Equipment 

and Other

50 Durable goods Mercantile 

and Service 190,043 88,120 4,551 2,948 1,969 586 392 2,638 773 1,865

51 Nondurable goods Mercantile 

and Service 127,769 56,671 1,883 2,925 1,902 724 298 2,868 751 2,118

52

Building materials, 

hardware, garden supply, 

and mobile home dealers

Mercantile 

and Service 27,328 13,188 367 799 560 126 113 568 198 369

53 General Merchandise stores Mercantile 

and Service (S) 29,009 451 2,198 1,909 126 163 831 537 294

54 Food stores Food Sales 88,777 42,532 507 5,459 4,547 375 537 2,038 620 1,417

55 Automotive dealers and 

gasoline service stations

Mercantile 

and Service 80,372 39,213 1,108 2,448 1,814 305 328 1,561 721 840

56 Apparel Mercantile 

and Service 38,743 15,115 446 1,159 935 87 136 415 258 157

57

Furniture and home 

furnishings and equipment 

stores

Mercantile 

and Service 33,491 13,616 556 949 719 119 112 418 227 191

58 Eating and drinking places Food Sales 119,675 53,586 785 7,126 4,878 1,096 1,152 2,835 1,175 1,660

70

Hotels, motels, tourist 

courts, rooming and 

boarding houses, camps, 

trailer parks, and 

organization and lodging 

houses

Lodging 57,852 19,674 768 3,495 2,252 497 746 1,630 1,031 598

72 Personal services Mercantile 

and Service 43,482 18,843 797 2,022 1,114 518 391 873 366 507

73 Business services Office 243,594 130,382 4,663 1,739 1,225 314 200 3,275 522 2,753

75 Automotive repair, services, 

and garages

Mercantile 

and Service 50,577 18,561 710 1,227 753 225 219 1,245 298 947

76 Miscellaneous repair 

services

Mercantile 

and Service 21,742 10,757 373 349 215 78 56 329 91 237

78 Motion pictures Public 

Assembly 26,210 8,888 211 396 324 30 42 294 133 161

79 Amusement and recreation 

services

Public 

Assembly 52,605 20,631 548 1,821 1,314 216 291 1,220 538 682

80 Health services Health Care 527,901 264,923 4,643 7,410 4,662 1,517 1,231 5,777 2,118 3,659

81 Legal services Office 72,366 40,564 1,360 325 263 38 24 550 124 426

823 Libraries Public 

Assembly 508 245 4 17 13 3 2 13 8 4

824 Correspondence schools and 

vocational schools Education 3,613 1,745 58 51 43 4 4 48 23 26

83 Social services Health Care 55,289 26,173 601 1,161 678 262 221 722 467 255

84

Museums, art galleries, and 

botanical and zoological 

gardens

Public 

Assembly 2,900 1,253 24 98 71 18 9 53 30 22

86 Membership organizations Public 

Assembly 29,355 11,244 (S) 961 547 175 239 581 334 247

871 Engineering, architectural, 

and surveying services Office 61,683 33,139 549 (S) (S) (S) (S) 342 101 241

872 Accounting, auditing, and 

bookkeeping services Office 29,019 16,210 502 202 144 (S) 20 207 50 157

873 Research, development, and 

testing services Laboratory 27,573 12,480 353 307 235 36 36 303 87 217

874 Management and public 

relations services Office 57,121 29,176 892 331 (S) (S) (S) 436 (S) 296

TOTAL - WHOLESALE, RETAIL + SERVICE 

INDUSTRY 2,069,588 1,015,938 27,710 47,923 33,086 7,100 6,962 32,070 11,581 20,346

ESTIMATED TOTALS C/I SECTOR (see text) 3,621,779 1,777,892 48,493 83,866 57,600 12,425 12,183 56,123 20,267 35,606
132

Table 6-2. Commercial Freshwater Use: 1990

Part A: Million Gallons Per Day

Self-Supplied W ithdrawals Total Use

Source

G round 

W a ter 

Surface 

W a ter

Total Public-Supply 

D eliveries

W ithdrawals 

and 

deliveries

Consum p tive 

Use

N ew Eng land 82 51 133 172 305 36

M id-A tlantic 94 39 133 937 1,070 101

South Atlantic-Gulf 120 14 134 746 880 121

G rea Lakes 27 81 108 637 746 69

O h io 58 31 89 411 500 52

Tennessee 56 0.2 56 111 167 16

Upper M ississippi 134 126 260 607 867 83

Lower M ississippi 20 72 92 150 242 29

Souris-Red-Rainy 0.1 0.2 0.3 11 11 1

M issouriBasin 33 6.4 40 270 309 63

A rkansas-W h ite-Red 27 138 165 241 406 53

Texas-Gulf 47 11 57 113 170 14

Rio G rande 19 1.2 20 64 84 44

Upper Colorado 5.6 0.7 6.3 19 25 5.3

Lower Colorado 23 6.3 29 191 220 76

G reat Basin 7 9.3 16 89 105 14

Pacific Northwest 49 669 718 202 920 52

California 58 213 271 780 1,050 7.8

A laska 8.7 9 18 33 51 5

Hawa ii 39 0.6 40 62 102 26

Caribbean 0.4 0.3 0.8 57 58 18

Total 908 1,480 2,390 5,900 8,290 885

Part B: Million Liters Per Day

Self-Supplied W ithdrawals Total Use

Source

G round 

W a ter 

Surface 

W a ter

Total Public-Supply 

D eliveries

W ithdrawals 

and 

deliveries

Consum p tive 

Use

N ew Eng land 310 193 503 651 1,154 136

M id-A tlantic 356 148 503 3,547 4,050 382

South Atlantic-Gulf 454 53 507 2,824 3,331 458

G rea Lakes 102 307 409 2,411 2,824 261

O h io 220 117 337 1,556 1,893 197

Tennessee 212 1 212 420 632 61

Upper M ississippi 507 477 984 2,297 3,282 314

Lower M ississippi 76 273 348 568 916 110

Souris-Red-Rainy 0 1 1 42 42 4

M issouriBasin 125 24 151 1,022 1,170 238

A rkansas-W h ite-Red 102 522 625 912 1,537 201

Texas-Gulf 178 42 216 428 643 53

Rio G rande 72 5 76 242 318 167

Upper Colorado 21 3 24 72 95 20

Lower Colorado 87 24 110 723 833 288

G reat Basin 26 35 61 337 397 53

Pacific Northwest 185 2,532 2,718 765 3,482 197

California 220 806 1,026 2,952 3,974 30

A laska 33 34 68 125 193 19

Hawa ii 148 2 151 235 386 98

Caribbean 2 1 3 216 220 68

Total 3,437 5,602 9,046 22,332 31,378 3,350
133

Table 6-3. Summary of Maintenance and Repair Cost Profiles: 1996

Building Type Gross Square 

Feet

Major Repair/ 

Replacement 

(Dollars per 

Square Foot)

Total (Dollars per 

Square Foot)

Total (Dollars per 

Square Meter)

Fast Food Resturant 4,000 3.15 4.64 49.93

Motel, 40 Unit 18,000 2.52 4.01 43.15

Apartments, 24 story* 220,000 2.49 3.98 42.82

Public Library 60,000 2.28 3.77 40.57

Restaurant 10,000 2.15 3.64 39.17

Medical Clinic 13,000 2.11 3.60 38.74

General Hospital 125,000 2.00 3.49 37.55

Dormitory, 50 Room 25,000 1.78 3.27 35.19

Movie Theatre 10,000 1.75 3.24 34.86

Auto Service Garage 1,600 1.60 3.08 33.14

County Jail 318,455 1.46 2.95 31.74

Elementary School 47,000 1.41 2.90 31.20

Gymnasium 40,000 1.38 2.87 30.88

Children Center 12,000 1.35 2.84 30.56

Self-Storage warehouse* 24,000 1.24 2.73 29.37

Bowling Center 20,000 1.21 2.70 29.05

Office, 15 story 250,000 1.18 2.67 28.73

Office Park 65,000 1.12 2.61 28.08

Light Manufacturing Plant 45,000 1.09 2.58 27.76

Office, 2 story 83,000 1.07 2.56 27.55

Aircraft Hanger 32,000 0.96 2.45 26.36

Department Store 94,000 0.92 2.41 25.93

Supermarket 96,000 0.89 2.38 25.61

Warehouse* 80,000 0.64 2.13 22.92

*indicates not included as part of Commercial/Industrial sector

6.1.2.3 Energy Overview

Data from the 1992 Commercial Buildings Energy Consumption Survey have been used

to generate Figures 6-11 through 6-19, which summarize energy consumption and

expenditures in the commercial/institutional sector.

Figure 6-11 shows how total energy consumption in the commercial/institutional sector

has changed since 1979. Site energy consumption is the amount of energy consumed at

the site, while primary energy consumption is equal to the site energy plus energy

conversion and transmission losses that occur in the electricity generation process.

Reference to Figure 6-11 indicates that the total site energy consumption in the US

remained relatively stable between 1989 and 1992, following an annual increase of about

one percent between 1979 and 1989, but that primary energy consumption reduced

slightly between 1989 and 1992 from 12,000 quadrillion joules (11.4 quadrillion Btu) to

11,700 quadrillion joules (11.1 quadrillion Btu).
134

Figure 6-11. Total Energy Consumption by Commercial Sector: 1979 to 1992

0

2

4

6

8

10

12

1979 1983 1986 1989 1992

Survey Year

Quadrillion Btu 

0

2000

4000

6000

8000

10000

12000

Quadrillion Joules 

Conversion and

Transmission Losses

Site Consumption

In Figure 6-12 and Figure 6-13, the consumption of primary energy and site energy are

shown by fuel source. Figure 6-12 shows that electricity accounted for 71.1 percent of all

primary energy consumption, approximately three times that of natural gas, with fuel oil

and district heat making up the remaining 6.4 percent. In contrast, Figure 6-13 shows that

electricity and gas accounted for similar amounts of site energy (about 45 percent each).

The total energy expenditures in the commercial/institutional sector shown in Figure 6-14

reflect the cost of energy at the site/building. Between 1989 and 1992, there was no

significant difference in total energy expenditures in the sector. The figure shows that

electricity costs represent nearly 80 percent of total energy costs to the consumer. This is

because, to the consumer, electricity is the most expensive energy source, as a major

portion of the cost is associated with energy losses during the generation and transmission

of electricity. This is reflected in Figure 6-15, which shows the relative costs of different

energy sources in 1992. The cost of electricity generation is comparable to other

expenditures for other energy sources, but the site cost is approximately three times

greater.

Figure 6-16 shows total energy expenditures in the commercial/institutional sector in

1992 by principal building activity. Reference to the figure shows that office, mercantile

and service, and education buildings had the highest expenditures and consumed the

greatest amount of energy compared with other types of building. This is to be expected

given that these building categories represent the largest amounts of total floorspace in

the commercial/institutional sector.
135

Figure 6-12. Total Primary Energy Consumption by Energy Source: 1992

Total Primary Energy 11,070 trillion Btu (11,679,469 trillion Joules)

Electricity

71.1%

Natural Gas

22.5%

District Heat

Fuel Oil 3.9%

2.5%

Figure 6-13. Total Site Energy Consumption by Energy Source: 1992

Total Site Energy 5,803 trillion Btu (6,122,489 trillion Joules)

Natural Gas

42.9%

Fuel Oil

4.7%

District Heat

7.5%

Electricity

45.0%
136

Figure 6-14. Total Energy Expenditures: 1992

72.6

10.7

1.4

2.9

57.6

0

10

20

30

40

50

60

70

80

Total Electricity Natural Gas Fuel Oil District Heat

Energy Sources

Billion Dollars 

Figure 6-15. Relative Costs of Different Energy Sources: 1992

0

5

10

15

20

25

Total Electricity Natural Gas Fuel Oil District Heat

Energy Sources

Dollars per Million Btu 

0

0.005

0.01

0.015

0.02

Dollars per Million Joules 

Site

Primary
137

Figure 6-16. Total Energy Expenditures by Principal Building Activity: 1992

5,459

998 1,299

4,811

2,389

811 2,178 1,585

6,750

3,733 4,163

12,907

7,389

18,125

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Education

Food Sales

Food Service

Health Care

Lodging

Mercantile and

Service

Office

Parking

Garage

Public

Assembly

Public Order

and Saftey

Religious

Worship

Warehouse

and Storage

Other

Vacant

Principal Building Activity

Total Energy Expenditures (Millions of Dollars) 

It is useful to normalize energy consumption to account for building size, given that size

is the most important determinant of total energy consumption. Figure 6-17 shows

energy expenditures per unit area by principal building activity and census region. Figure

6-17 indicates that food sales, food service, healthcare, and lodging facilities used energy

more intensively, and had higher costs per unit area than other buildings in the

commercial/institutional sector. Energy expenditures ranged from between $20.34 per

square meter ($1.89 per square foot) for lodging buildings to $34.75 per square meter

($3.23 per square foot) for food service buildings (for all census regions combined). The

figure indicates that energy expenditures in the west census region were significantly

higher than the other three census regions for food service and lodging facilities. Similar

data from CBECS indicates that buildings in the mid-west consumed more energy (1,110

MJ per square meter/97,700 Btu per square foot) than was consumed in other census

regions (923 MJ per square meter/81,300 Btu per square foot).

Figure 6-18 shows how fuel expenditures per unit area vary by building size. In general,

it would appear that larger buildings may be slightly less costly to operate than smaller

buildings, on a normalized basis. However, CBECS data do not appear to show a clear

pattern of energy intensity usage for different building sizes (energy intensity is defined as

the energy used per unit area of floorspace). Data from CBECS indicate that energy

intensity is much more heavily dependent upon weekly hours of operation of the building

than building size, as might be expected. Data presented in Figure 6-19 shows a clear

correlation between hours of operation and energy expenditures.
138

Figure 6-17. Sum of Major Fuel Expenditures by Principal Building Activity and

Census Region: 1992

0

1

2

3

4

5

6

7

8

Education

Food Sales

Food Service

Health Care

Lodging

Mercantile and

Service

Office

Public Assembly

Public Order

and Saftey

Religious

Worship

Warehouse and

Storage

Other

Vacant

Principal Building Activity

Fuel Expenditures per Square Foot 

0

10

20

30

40

50

60

70

80

Fuel Expenditures per Square Meter 

Northeast

Midwest

South

West

Figure 6-18. Sum of Major Fuel Expenditures by Building Size Category: 1992

0

1

2

3

4

5

6

7

1,000- 5,000

(93- 465)

5,001- 10,000

(466- 929)

10,001- 25,000

(930- 2,323)

25,001- 50,000

(2,324- 4,647)

50,001- 100,000

(4,648- 9,294)

100,001- 200,000

(9,295- 18,587)

200,001- 500,000

(18,588- 46,468)

Over 500,000

(Over 46,468)

Building Floorspace in Square Feet (Square Meters)

Fuel Expenditures per Square Foot 

0

10

20

30

40

50

60

70

Fuel Expenditures per Square Meter 
139

Figure 6-19. Sum of Major Fuel Expenditures by Weekly Hours of Operation: 1992

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

39 or Fewer 40 - 48 49 - 60 61 - 84 85 - 167 Always Open

Weekly Operating Hours

Energy Expenditures per Square Foot 

0

2

4

6

8

10

12

14

16

18

Energy Expenditures per Square Meter 

Finally, Figure 6-20 shows how fuel expenditures per unit area vary with the year of

construction of the building. Contrary to what one might expect, expenditures do not

appear to be lower in newer buildings compared with older buildings. This corresponds

with observations made in CBECS that, although site energy consumption for buildings

constructed after 1986 was less than that of older buildings, the primary energy

consumption of the two groups was about the same when allowing for electricity

generation and transmission losses, due in part to increased use of electricity for a variety

of energy sources in newer buildings. Buildings constructed after 1986 consumed about

795 MJ per square meter of site energy (70,000 Btu per square foot), while buildings

constructed in or before 1986 consumed about 988 MJ per square meter (87,000 Btu per

square foot). In addition to newer buildings using more electricity for refrigeration, air

conditioning, and office equipment, the number of buildings using electricity for main

space heating was six percent higher in newer buildings. Thus the primary energy

consumption of newer buildings was virtually identical to that of buildings constructed in

or before 1986.

Energy conservation issues are addressed in Section 6.2.5 of this document.
140

Figure 6-20. Sum of Major Fuel Expenditures by Year of Construction: 1992

0

1

2

3

4

5

6

1900- 1919 1920- 1945 1946- 1959 1960- 1969 1970- 1979 1980- 1989 1990- 1992

Year of Construction

Fuel Expenditure per Square Foot

0

5

10

15

20

25

30

35

40

45

50

Fuel Expenditure per Square Meter

6.2 Baseline Measures for the Commercial/Institutional Sector

This section of the document will describe in detail the baseline measures for operations,

maintenance, and energy costs in the commercial/institutional sector. In addition, it will

also consider energy and water conservation measures for the sector as a whole. The

baseline measures are presented as follows:

• Baselines for the entire commercial/institutional sector, based upon data presented in

section 6.1, and data from the International Facility Management Association

• Baselines for commercial office buildings, based upon data from the Building

Managers and Owners Association

• Baselines for education facilities, based upon data from APPA - the Association of

Higher Education Facilities Officers

• Baselines for shopping centers, based upon data from the Institute of Real Estate

Management

For general definitions of ‘operations’, ‘maintenance’, and ‘energy’, refer to Section 3.4

of this document. For detailed information regarding the components within each of

these general definitions, refer to Sections 4.1.1 and 4.1.2.
141

6.2.1 Baseline Measures for the Entire Commercial/Institutional Sector

Data which are presented in section 6.1 of this document are sufficiently detailed to

establish energy baselines for the commercial/institutional sector. However, data that

have been presented so far for operations and maintenance costs in the sector are of a

highly aggregated nature, and are of limited usefulness for establishing baselines. For this

reason, data from the International Facility Management Association (IFMA) are used to

establish more detailed baselines for the commercial/institutional sector. When

interpreting this data, it must be remembered that the IFMA study is based upon a

comparatively small survey sample, and that all of the survey data are from IFMA

members, and may not therefore represent ‘norms’ of industry-wide performance.

However, in the absence of more comprehensive research data, it is considered to be

reasonable to make use of the IFMA data, at least to establish some general baseline

measures.

The IFMA Research Report ‘Benchmarks II’ presents benchmark data for both the

commercial/institutional and industrial sectors. In this section of the document, only data

relevant to the commercial/institutional sector have been used. IFMA uses the following

facility categories in its report:

• financial (includes financial, insurance, real estate, financial services)

• health/hotel (healthcare, hotel, hospitality related)

• utilities (utilities, communications, transportation)*

• wholesale/retail (business services, wholesale, retail)

• other services

• educational

• governmental

• research

• other institutional

*this is considered as part of the public works sector in this document.

These classifications are different to the types of buildings defined by EIA, as shown

below:

IFMA Classification EIA Classification

financial office

health/hotel healthcare/lodging

utilities no comparable classification

wholesale/retail mercantile and service/ food sales and service

other no comparable classification

educational education

governmental no comparable classification

research laboratory

other institutional no comparable classification
142

Because the classifications used by IFMA and EIA are different, it is not considered to be

practical to attempt to adjust IFMA data to match EIA building types. Thus IFMA data

are presented in the same format as shown in the Benchmarks II report. IFMA also

categorizes facilities by the predominant use of that facility (e.g., customer service,

computer center, research, factory plant etc.). However, no data using this form of

categorization is used in this document, primarily because the data cannot be mapped

back into the building type with the size of the survey sample given.

Table 6-4 Part A and Part B shows the mean gross, rentable, and usable area of the

sample facilities according to industry type, in square feet and square meters respectively.

Gross area is defined by IFMA as the total of all floor areas of the building. Rentable

area is computed by measuring the inside finished surface of the dominant portion of the

permanent outer building wall and subtracting all major vertical penetrations. Usable

area measures the actual occupiable area of the building, and excludes circulation areas,

common areas, meeting areas and so forth from the rentable area calculation. Reference

to Table 6-4 shows that the largest proportion of the surveyed buildings were in the

financial, utilities, and governmental categories. For those building types where the

sample size is below 20, care should be taken in interpreting the data. The data are

presented graphically in Figure 6-21.

Table 6-4. IFMA Survey Sample: Gross, Rentable and Usable Floorspace by

Industry Type

Part A: Total Mean Square Feet

Industry Type N Means

Gross Square 

Feet

Rentable Square 

Feet

Usable Square 

Feet

Financial 58 639,864 378,023 300,894

Health/Hotel 8 252,928 221,138 204,166

Utilities 33 419,668 320,518 236,028

Wholesale/Retail 8 372,997 315,732 306,854

Other Services 13 373,554 318,466 279,207

Educational 11 267,085 246,926 171,430

Governmental 25 655,308 562,158 498,355

Research 8 344,668 322,049 255,420
143

Part B: Total Mean Square Meters

Industry Type N Means

Gross Square 

Meters

Rentable Square 

Meters

Usable Square 

Meters

Financial 58 59,443 35,118 27,953

Health/Hotel 8 23,497 20,544 18,967

Utilities 33 38,987 29,776 21,927

Wholesale/Retail 8 34,651 29,332 28,507

Other Services 13 34,703 29,585 25,938

Educational 11 24,812 22,939 15,926

Governmental 25 60,878 52,224 46,297

Research 8 32,020 29,918 23,729

Figure 6-21. IFMA Survey Sample: Gross, Rentable, and Usable Floorspace by

Industry Type: 1993

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Financial

Health/ Hotel

Utilities

Wholesale/

Retail

Other Services

Educational

Governmental

Research

Industry Type

Square Feet

0

10000

20000

30000

40000

50000

60000

Square Meters

Gross Area

Rentable Area

Usable Area
144

Table 6-5 Part A and Part B shows the mean gross, rentable, and usable area per

employee for the sample facilities, according to type of building. The data are also

presented graphically in Figure 6-22. The mean gross square feet per employee for the

sample was 62 square meters (667 square feet), which compares with 71 square meters

(766 square feet) in the EIA CBECS. Reference to Figure 6-22 shows that there is a wide

variation in building area per employee, with the largest allowance in educational

facilities, and the lowest in health/hotel facilities.

Table 6-5. IFMA Survey Sample: Area per Employee

Part A: Square Feet per Employee

Industry Type N Means

Gross Square 

Feet

Rentable Square 

Feet

Usable Square 

Feet

Financial 53 723 527 366

Health/Hotel 7 300 278 206

Utilities 31 505 330 263

Wholesale/Retail 7 668 628 565

Other Services 11 858 645 561

Educational 10 1,465 1,385 1,119

Governmental 21 553 438 372

Research 8 559 533 454

Part B: Square Meters per Employee

Industry Type N Means

Gross Square 

Meters

Rentable Square 

Meters

Usable Square 

Meters

Financial 53 67 49 34

Health/Hotel 7 28 26 19

Utilities 31 47 31 24

Wholesale/Retail 7 62 58 52

Other Services 11 80 60 52

Educational 10 136 129 104

Governmental 21 51 41 35

Research 8 52 50 42
145

Figure 6-22. IFMA Survey Sample: Building Floorspace per Employee

0

200

400

600

800

1000

1200

1400

1600

Financial

Health/Hotel

Utilities

Wholesale/

Retail

Other Services

Educational

Governmental

Research

Industry Type

Square Feet

0

20

40

60

80

100

120

140

Square Meters

Gross Area

Rentable Area

Usable Area

New

In Figures 6-23 through 6-31, a variety of operations, maintenance, and energy costs are

compared for each building type on a dollars per year per rentable square foot/square

meter basis. These include the following:

Operations

• Janitorial Costs - these are the costs associated with the cleaning of offices and other

work areas, rest-rooms, cafeteria, and support space

• Environmental Costs - these include building concerns, such as ‘sick building

syndrome’ and asbestos abatement, which incur consulting fees and monitoring costs,

as well as waste removal for standard and hazardous trash, and recycling costs

• Life Safety Costs - these include fire and safety equipment

• Indirect Costs - these include exterior maintenance costs, such as landscaping and

grounds, roadways, and parking facilities

• Security Costs - these include building and site security costs

Maintenance

• Maintenance Costs - these include items for the upkeep of the building and its

components such as HVAC, electrical and plumbing systems, elevators, and painting
146

Energy

• Utility Costs - these include electricity, gas, steam, and water (note that ‘water’ has

previously been categorized under ‘operations’ in this document)

Figure 6-23 presents janitorial cost data in dollars per rentable square meter ($/RSM) and

dollars per rentable square foot ($/RSF). Costs range from $8.72/RSM to $13.67/RSM

($0.81/RSF to $1.27/RSF). Figure 6-24 and Figure 6-25 show environmental cost data.

The total costs for research and for other services facilities are high due to high hazardous

trash removal costs. With the exception of these two types of facility, the major

component of environmental costs is attributable to trash removal. It is interesting to note

that IFMA results indicated that at least 10% of surveyed facilities generated income from

recycling. Figure 6-26 shows life safety costs by industry type. These are significantly

higher in healthcare/lodging, governmental, and research facilities compared with other

facilities. In Figure 6-27, indirect costs are shown by industry type. Reference to the

figure shows that indirect costs are highest in wholesale/retail facilities. Figure 6-28

shows security costs by industry type. These are generally high compared with other

operations cost components.

Maintenance costs are shown in Figure 6-29. These costs vary from between

$18.84/RSM ($1.75/RSF) for governmental facilities, to $41.87/RSM ($3.89/RSF) for

research facilities. The mean maintenance cost for the commercial/institutional sector is

$24.86/RSM ($2.31/RSF). The IFMA report also provides information about the amount

spent on maintenance and repair compared with preventive maintenance. The data

indicate that more time is spent on preventive maintenance for security and life safety

systems compared with electrical, building, structural repair and painting activities.

However, overall, almost twice as much is spent on maintenance repair compared with

preventive maintenance.

Finally, Figure 6-30 and Figure 6-31 show utility costs by building type. Reference to the

figures indicate that the highest utility costs occur in research facilities. Figure 6-31

shows that utility costs are dominated by electricity costs (generally over 50 percent of

total utility costs). The average electricity cost was $24.43/RSM ($2.27/RSF). The

average cost for oil gas and steam was $3.12/RSM ($0.29/RSF). Water costs range from

between $0.97/RSM ($0.09/RSF) for other services facilities to $3.01/RSM ($0.28/RSF)

for research facilities. The average water cost was $1.29/RSM ($0.12/RSF). The IFMA

report also includes data on utility consumption and cooling consumption. The average

monthly utility consumption for a commercial office building was 30.35 kilowatt hours

(kWh) per square meter (2.82 kWh per square foot).
147

Figure 6-23. Janitorial Costs by Industry Type

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

Financial

Health/Hotel

Utilities

Wholesale/

Retail

Other Services

Educational

Governmental

Research

Industry Type

Dollars per Rentable Square Foot

0

2

4

6

8

10

12

14

Dollars per Rentable Square Meter

Figure 6-24. Environmental Costs by Industry Type

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

Financial

Health/Hotel

Utilities

Wholesale/

Retail

Other Services

Educational

Governmental

Research

Industry Type

Dollars per Rentable Square Foot

0

1

2

3

4

5

6

7

Dollars per Rentable Square Meter
148

Figure 6-25. Detailed Environmental Costs by Industry Type

0.00

0.10

0.20

0.30

0.40

0.50

0.60

Financial

Health/Hotel

Utilities

Wholesale/

Retail

Other Services

Educational

Governmental

Research

Industry Type

Mean Dollars per Rentable Square Foot

0

1

2

3

4

5

6

Mean Dollars per Rentable Square Foot

Monitoring

Consulting

Trash Removal

Hazardous Trash Removal

Recycling

Figure 6-26. Life Safety Costs by Industry Type

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0.50

Financial

Health/Hotel

Utilities

Wholesale/

Retail

Other Services

Educational

Governmental

Research

Industry Type

Dollars per Rentable Square Foot 

0.00

1.00

2.00

3.00

4.00

5.00

Dollars per Rentable Square Meter 
149

Figure 6-27. Indirect Costs by Industry Type

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

Financial

Health/Hotel

Utilities

Wholesale/

Retail

Other Services

Educational

Governmental

Research

Industry Type

Dollars per Rentable Square Foot

0

1

2

3

4

5

6

7

Dollars per Rentable Square Foot

Figure 6-28. Security Costs by Industry Type

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Financial

Health/Hotel

Utilities

Wholesale/

Retail

Other Services

Educational

Governmental

Research

Industry Type

Dollars per Rentable Square Foot

0

2

4

6

8

10

12

14

Dollars per Rentable Square Meter
150

Figure 6-29. Maintenance Costs by Industry Type

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

Financial

Health/ Hotel

Utilities

Wholesale/

Retail

Other Services

Educational

Governmental

Research

Industry Type

Dollars per Rentable Square Foot

0

5

10

15

20

25

30

35

40

Dollars per Rentable Square Meter

Figure 6-30. Total Utility Costs by Industry Type

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

Financial

Health/Hotel

Utilities

Wholesale/

Retail

Other Services

Educational

Governmental

Research

Industry Type

Dollars per Rentable Square Foot

0

5

10

15

20

25

30

35

40

Dollars per Rentable Square Meter
151

Figure 6-31. Utility Costs by Fuel Type and by Industry Type

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Financial

Health/Hotel

Utilities

Wholesale/

Retail

Other Services

Educational

Governmental

Research

Industry Type

Dollars per Rentable Square Foot

0

5

10

15

20

25

30

35

Dollars per Rentable Square Meter

Electricity

Oil/Gas/ Steam

Water

The mean values for operations, maintenance and energy costs from the IFMA data can

be compared with general commercial/institutional sector census data presented in section

6.1 of this document. However, in order to do this, one needs to convert the aggregated

census data into a dollar per rentable square foot/meter basis. In order to do this, one has

to make an assessment of what percentage of total gross sector floorspace is rentable

floorspace. If we assume that that total gross commercial/institutional sector floorspace

in 1993 is 6 billion square meters (65 billion square feet), extrapolating between 1992 and

1995 EIA data, of which 4.8 billion square meters (52 billion square feet) is rentable area

(based upon IFMA survey sample data), we can calculate the following mean costs for the

commercial/institutional sector:

Description Estimated Mean Cost Mean Cost

(from Census data) (from IFMA data)

Total Purchased Utilities $17.33/RSM $24.43/RSM

($1.61/RSF) ($2.27/RSF)

Electricity $11.95/RSM $19.91/RSM

($1.11/RSF) ($1.85/RSF)

Water Sewer and Other $2.48/RSM $1.29/RSM

($0.23/RSF) ($0.12/RSF)

Total Repair Services $11.63/RSM $24.86/RSM

($1.08/RSF) ($2.31/RSF)
152

This comparison suggests that it is not advisable to extrapolate the IFMA figures to the

entire commercial/institutional sector using the mean values for operations, maintenance,

and energy costs, and assuming that all floorspace in the sector has similar cost profiles.

For this reason, IFMA data has only been used at the building type level to generate

baseline measures.

6.2.2 Baseline Measures for Commercial Office Buildings

In this section, data from the Building Owners and Managers Association (BOMA) are

used to establish detailed baseline measures for commercial office buildings in 1995.

These data are also compared to the IFMA data. This section focuses upon private sector

buildings in the US, and omits government buildings. It should be noted that the

information presented here is only the most general data which is available in the 1996

BOMA Experience Exchange Report: Operating a Cost Effective Office Building, which

is highly detailed.

Table 6-6 summarizes expenses for all commercial office buildings sampled in the US

private sector, by type of expense category. BOMA groups these expenses into three

categories:

• Operating Expenses, which include cleaning, repair/maintenance, utilities, roads

grounds and security, and administrative costs,

• Fixed Expenses, which include taxes, insurance, and

• Leasing Expenses

BOMA also extracts data from these categories on total payroll costs (for personnel

employed directly for building operations), and total contract costs (for firms or

individuals from external sources who are contracted to perform certain tasks). The table

shows mean, median, upper, and lower quartile values for selected operations costs in

dollars per rentable square foot/meter, and the number of buildings in the survey sample.
153

Table 6-6. Summary of Office Building Expenses - All Buildings in Private Sector:

1995

Number of 

Buildings Average Median Low High Average

Expense Dollars per Square Foot Dollars per Square Meter

Cleaning 3,023 1.09 0.87 0.72 1.08 11.73

Repair/Maintenance 3,150 1.32 1.01 0.77 1.35 14.20

Utilities 3,023 1.82 1.73 1.39 2.11 19.58

Roads/Grounds/Security 3,143 0.51 0.42 0.28 0.59 5.49

Administrative 3,185 1.03 0.91 0.65 1.18 11.08

Total Operating Exp 2,953 5.76 5.08 4.36 5.94 61.98

Fixed Expenses 3,162 2.73 1.62 1.14 2.34 29.37

Total Operating+Fixed 2,918 8.51 6.79 5.73 8.31 91.57

Leasing Expenses 2,817 1.77 0.82 0.22 2.15 19.05

Total Payroll 2,508 1.02 0.73 0.48 1.05 10.98

Total Contract 1,498 2.29 1.97 1.60 2.45 24.64

A more detailed breakdown of these expenses is shown in Table 6-7, which presents

mean data only. Note that the totals in the two tables may not correlate due to differences

in sample sizes - for further information refer to the BOMA report. Table 6-6 indicates

that the average annual cost for operating a private sector office building is $110.65/RSM

($10.28/RSF) (median is $81.91/RSM ($7.61/RSF)). A comparable cost presented in the

IFMA report, referred to as the occupancy cost (which includes the cost of operations plus

the cost of providing the fixed asset) for financial buildings is $145.31/RSM

($13.50/RSF). This is higher than the BOMA value, but does include some cost

elements, such as depreciation charges, which are not included by BOMA. If we examine

total operating expenses (as defined by BOMA), BOMA shows an average value of

$62.00/RSM ($5.76/RSF), compared with the IFMA value for cost of operations (which

is broadly comparable in scope) of $62.22/RSM ($5.78/RSF).

Figure 6-32, which is based upon data from Table 6-7, shows the comparative magnitude

of all operating costs, which, on average, account for approximately 56 percent of total

building expenses (fixed expenses account for about 27 percent, and leasing expenses

account for about 17 percent of the total building expenses respectively). Utilities costs

(which are dominated by electricity costs) are the largest component of these operating

costs. Selected operating costs are examined in more detail in Figures 6-33 through 6-35.

Figure 6-33 shows cleaning costs for all buildings in the private sector. The expense

categories shown are payroll for in-house janitorial support, contract services for routine

and special cleaning (window washing, carpet cleaning etc.), supervision, materials and

miscellaneous cleaning expenses, and trash removal. Total annual average cleaning costs

(excluding trash removal) amount to $11.73/RSM ($1.09/RSF). This is slightly higher

than the janitorial cost of $11.30/RSM ($1.05/RSF) provided by IFMA (see Figure 6-23).

The costs for trash removal are also similar, with a value of $0.65/RSM ($0.06/RSF)

from the BOMA report, compared with $0.86/RSM ($0.08/RSF) from the IFMA report
154

(see Figure 6-25). Reference to the figure indicates that over 50 percent of all cleaning

work is contracted out to external services.

Figure 6-34 shows maintenance and repair costs by type of expense. The annual average

cost for all categories was $14.21/RSM ($1.32/RSF). This is significantly lower than the

comparable total of $27.66/RSM ($2.57/RSF) presented in the IFMA report (see Figure

6-29). This appears to be the case for all of the BOMA maintenance and repair data,

including data from the more detailed tabulations of buildings by age, size, and

geographic location. However, BOMA also provides information on ‘other repair

contracts’ which amounts to $6.14/RSM ($0.57/RSF), giving a total of $1.89, which is

similar to the IFMA figure.

Comparison between BOMA data and IFMA data for government buildings also shows

that the BOMA sample has lower unit maintenance and repair costs than the IFMA

sample ($15.71/RSM ($1.46/RSF) compared with $18.84/RSM ($1.75/RSF)), but that

this difference is not as large as for office buildings.

In Figure 6-35, a variety of utilities costs for private office buildings are shown. As

expected, electricity is the primary cost component, representing $17.01/RSM

($1.58/RSF), with oil, gas, and steam collectively accounting for a further $5.81/RSM

($0.54/RSF), and water/sewer charges of $1.08/RSM ($0.10/RSF). These are broadly

comparable with IFMA values of $23.90/RSM ($2.22/RSF), $2.69/RSM ($0.25/RSF),

and $1.08/RSM ($0.10/RSF) respectively (see Figure 6-31). Once again, the BOMA

figures appear to be consistently lower than the IFMA figures.

Similar comparison of data for roads and grounds maintenance costs show BOMA annual

average total of $1.61/RSM ($0.15/RSF) compared with IFMA totals of $3.23/RSM

($0.30/RSF) (see Figure 6-27).

Finally, Figure 6-36 compares operating cost components for identical private buildings

between 1991 and 1995. Costs have been converted to constant 1995 dollars using the

Monetary Conversion Factor tables in the BOMA report. Reference to the figure

indicates that operating costs have only reduced slightly in all categories since 1991.
155

Table 6-7. Mean Expenses for All Private Sector Office Buildings: 1995

Expense Number of Buildings 

Average Dollars per Square 

Foot

Average Dollars per Square 

Meter

Cleaning

Payroll 472 0.52 5.60

Contract 2,890 0.85 9.15

Supervision/Materials/Misc. 2,514 0.09 0.97

Trash Removal 2,796 0.06 0.65

Repair/maintenance

Payroll 2,457 0.48 5.16

Elevator 2,768 0.23 2.47

HVAC 2,934 0.19 2.04

Electrical 2,704 0.09 0.97

Structure/ Roof 1,937 0.10 1.08

Plumbing 2,585 0.04 0.43

Fire/Life Safety 2,201 0.05 0.54

Other Maintenance/Support 2,939 0.28 3.01

Utilities

Electricity 2,866 1.58 17.00

Gas 1,433 0.11 1.18

Fuel Oil 214 0.03 0.32

Purchased Steam 211 0.40 4.30

Purchased Chilled Water 157 0.48 5.16

Coal 7 0.11 1.18

Water/ Sewer 2,765 0.10 1.08

Roads/Grounds/Security

Total 2,806 0.15 1.61

Payroll 249 0.10 1.08

Contract 2,549 0.12 1.29

Other 1,629 0.06 0.65

Security Total 2,751 0.40 4.30

Payroll 428 0.31 3.34

Contract 2,491 0.31 3.34

Other 1,110 0.06 0.65

Administrative

Payroll 2,187 0.37 3.98

Management Fees 2,939 0.48 5.16

Professional Fees 2,063 0.08 0.86

General Office Expenses 2,514 0.13 1.40

Other Administrative Expenses 2,119 0.12 1.29

Leasing Expenses

Advertising/Promotion 1,960 0.08 0.86

Commissions 2,325 0.48 5.16

Professional Fees 1,068 0.09 0.97

Tenant Alterations 2,080 1.55 16.68

Buy-outs 101 0.63 6.78

Other Leasing 931 0.10 1.08

Other Contracts

Repair/maintenance 1,587 0.57 6.13

Administrative 3,067 0.52 5.60
156

Figure 6-32. Comparison of Operating Expenses for All Private Sector Office

Buildings, Excluding Leasing and Fixed Expenses

Utilities

31%

Repair/Maintenance

23%

Cleaning

19%

Administrative

18%

Roads/Grnds/Security

9%

Figure 6-33. Cleaning Expenses for All Private Sector Office Buildings

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

Payroll Contract Supervision/ Materials/

Misc.

Trash Removal

Type of Expense

Average Dollars per Rentable Square Foot

0

1

2

3

4

5

6

7

8

9

Average Dollars per Rentable Square Meter
157

Figure 6-34. Repair/Maintenance Costs for All Private Sector Office Buildings

0.0

0.1

0.2

0.3

0.4

0.5

0.6

Payroll

Elevator

HVAC

Electrical

Structure/ Roof

Plumbing

Fire/ Life Safety

Other

Maintenance/

Support

Type of Expense

Average Dollars per Rentable Square Foot 

0

1

2

3

4

5

Average Dollars per Rentable Square Meter 

Figure 6-35. Utilities Costs for All Private Sector Office Buildings

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

Electricity Gas Fuel Oil Purchased

Steam

Purchased

Chilled

Water

Coal Water/

Sewer

Type of Expense

Average Dollars per Rentable Square Foot 

0

2

4

6

8

10

12

14

16

18

Average Dollars per Rentable Square Meter 
158

Figure 6-36. Comparison of Operations Costs for Identical Private Sector Office

Buildings between 1991 and 1995

0

1

2

3

4

5

6

7

1991 1992 1993 1994 1995

Year

Average Dollars per Rentable Square Foot 

0

15

30

45

60

75

Average Dollars per Rentable Square Meter 

Total Operating Expenses

Utilities

Repair/Maintenance

Cleaning

Administrative

Roads/Grounds/Security

6.2.3 Baseline Measures for Educational Facilities

In this section, data from the Association of Higher Education Facilities Officers (APPA),

are used to establish baseline measures for educational facilities in fiscal year 1993-94.

This data is also compared to the IFMA data presented earlier in this document. It

should be noted that data presented here represent only the most general of the data

available in the APPA Comparative Costs and Staffing Report for Colleges and

University Facilities.

Table 6-8 Part A and Part B presents selected aggregated mean operations, maintenance,

and energy cost data for college and university facilities grouped by funding source,

region (as defined by APPA - refer to page xvii of APPA report for details), and by

number of Full-Time Equivalent (FTE) enrollment students at the facility. The following

cost components are identified:

• administration - includes all administrative costs for the facility including payroll

costs, equipment, supplies, communications, computer rental, accounting costs,

training costs, etc.

• work control - includes all costs necessary for the proper planning, scheduling, and

dispatching of maintenance work, including payroll, database maintenance,

supervision, cost estimation, etc.

• engineering/architecture - includes all design and engineering costs
159

• project management - includes all costs associated with actual estimating,

contracting, inspecting, and final approval of new or renovated construction

• building maintenance - includes in-house and contracted services for routine repairs,

minor corrective maintenance, preventive maintenance and service calls for HVAC,

plumbing, electrical, painting, glazing, elevators, etc.

• custodial maintenance - includes interior and exterior functions such as window and

building cleaning, snow removal, and operating costs such as towels, etc.

• grounds maintenance - includes landscaping and grounds maintenance costs for

parking areas, irrigation systems, fencing, etc.

• utilities operations - includes all costs for heating, cooling, lighting and other

utilities for physical plant operations, EXCLUDING cost of fuel and purchased

utilities

• solid waste disposal - includes all costs associated with refuse removal

• hazardous waste disposal - includes all costs associated with hazardous waste

removal

• security - includes all security expenses such as traffic, parking, and building security

For full details of these definitions refer to pages 361-366 of the APPA report.

Figures 6-37 through 6-42 show selected mean operations costs in dollars per gross

square foot/meter. Figure 6-37 compares selected operations costs for all college and

university facilities combined. The figure shows that building maintenance, custodial

maintenance (cleaning), and utility operations (which exclude the cost of fuels, which for

electricity alone is approximately $10.76/GSM ($1.00/GSF) - see Figure 6-39 for details)

are the largest cost components, in addition to fuel costs. Some of these costs

components can be compared to IFMA data. For example, the APPA mean cost for

custodial maintenance of $9.80/GSM ($0.91/GSF) compares with the IFMA janitorial

cost for educational facilities of $14.10/RSM ($1.31/RSF) (note different units of floor

measurement used in the two reports). Grounds maintenance costs given in APPA are

$3.01/GSM ($0.28/GSF), which compares with $3.34/RSM ($0.31/RSF) in the IFMA

report. Similarly, waste disposal costs and security costs from APPA data are $0.97/GSM

($0.09/GSF) and $3.77/GSM ($0.35/GSF) compared with $1.29/RSM ($0.12/RSF) and

$5.06/RSM ($0.47/RSF) respectively from IFMA data. However, some cost categories

cannot be directly compared. For example, the IFMA maintenance and repair category,

$21.10/RSM ($1.96/RSF), is probably comparable with the APPA combination of

building maintenance plus utilities operations (=$9.69/RSM ($0.90/RSF) plus

$6.35/RSM ($0.59/RSF)). In general, it appears that IFMA costs are about 30 percent

higher than comparable APPA costs.

Figure 6-38 compares building and custodial maintenance costs for colleges and facilities

by the size of the establishment (as measured by the number of FTE students). Reference

to the figure indicates that there is no apparent downward trend in unit costs for larger

facilities as might be expected. Figure 6-39, which is based upon data presented in Table

6-9 Part A and Part B, shows electricity costs for educational facilities by funding source.

The figure indicates that private institutions have approximately 10 percent lower
160

electricity costs per unit area compared with publicly funded facilities. This is probably

due to a higher level of co-generation in private facilities. Reference to Table 6-9 also

indicates that there are significant regional differences in total electricity costs in the US.

The mean electricity cost for all facilities combined is $0.99/GSF, which is approximately

30 percent lower than a comparable figure from IFMA.

Table 6-8. Selected Operations Costs for College and University Facilities by

Funding Source, Region, and Number of Students

Part A: Dollars per Square Foot

Carnegie 

Classification

Administrative 

Costs 

Work 

Control

Engineering & 

Architecture

Project 

Management

Building 

Maintenance

Custodial 

Maintenance

Grounds 

Maintenance

Utilities 

Operations

Solid 

Waste 

Disposal

Hazardous 

Waste 

Disposal

Security

Funding 

Source

Private 

Institutions 0.258 0.087 0.106 0.104 0.989 0.846 0.280 0.698 0.066 0.048 0.355

Public 

Institutions 0.264 0.076 0.114 0.114 0.851 0.942 0.273 0.554 0.046 0.032 0.353

All Institutions 0.262 0.079 0.112 0.112 0.895 0.912 0.275 0.594 0.052 0.037 0.354

Region

Eastern 0.314 0.089 0.158 0.170 0.988 1.022 0.260 0.635 0.079 0.031 0.487

Southeastern 0.240 0.071 0.087 0.106 0.953 0.846 0.303 0.548 0.054 0.030 0.406

Midwest 0.238 0.079 0.092 0.058 0.825 1.003 0.244 0.678 0.037 0.029 0.291

Central 0.202 0.062 0.080 0.053 0.695 0.716 0.207 0.536 0.027 0.032 0.246

Rocky 

Mountain 0.208 0.082 0.090 0.101 0.810 0.807 0.264 0.597 0.032 0.021 0.209

Pacific Coast 0.367 0.084 0.138 0.130 1.117 1.013 0.440 0.509 0.060 0.075 0.351

Number of 

Students

0-1,999 0.278 0.100 0.095 0.128 0.946 0.817 0.268 0.753 0.060 0.048 0.271

2,000-4,999 0.289 0.090 0.120 0.155 0.912 0.966 0.300 0.666 0.058 0.025 0.374

5,000-11,999 0.234 0.075 0.151 0.139 0.846 0.991 0.284 0.425 0.051 0.038 0.430

12,000-19,999 0.300 0.055 0.081 0.065 0.897 0.907 0.253 0.897 0.907 0.253 0.564

20,000+ 0.162 0.063 0.081 0.055 0.831 0.915 0.218 0.606 0.041 0.031 0.343

Part B: Dollars per Square Meter

Carnegie 

Classification

Administrative 

Costs 

Work 

Control

Engineering & 

Architecture

Project 

Management

Building 

Maintenance

Custodial 

Maintenance

Grounds 

Maintenance

Utilities 

Operations

Solid 

Waste 

Disposal

Hazardous 

Waste 

Disposal

Security

Funding 

Source

Private 

Institutions 2.776 0.936 1.141 1.119 10.642 9.103 3.013 7.510 0.710 0.516 3.820

Public 

Institutions 2.841 0.818 1.227 1.227 9.157 10.136 2.937 5.961 0.495 0.344 3.798

All Institutions 2.819 0.850 1.205 1.205 9.630 9.813 2.959 6.391 0.560 0.398 3.809

Region

Eastern 3.379 0.958 1.700 1.829 10.631 10.997 2.798 6.833 0.850 0.334 5.240

Southeastern 2.582 0.764 0.936 1.141 10.254 9.103 3.260 5.896 0.581 0.323 4.369

Midwest 2.561 0.850 0.990 0.624 8.877 10.792 2.625 7.295 0.398 0.312 3.131

Central 2.174 0.667 0.861 0.570 7.478 7.704 2.227 5.767 0.291 0.344 2.647

Rocky 

Mountain 2.238 0.882 0.968 1.087 8.716 8.683 2.841 6.424 0.344 0.226 2.249

Pacific Coast 3.949 0.904 1.485 1.399 12.019 10.900 4.734 5.477 0.646 0.807 3.777

Number of 

Students

0-1,999 2.991 1.076 1.022 1.377 10.179 8.791 2.884 8.102 0.646 0.516 2.916

2,000-4,999 3.110 0.968 1.291 1.668 9.813 10.394 3.228 7.166 0.624 0.269 4.024

5,000-11,999 2.518 0.807 1.625 1.496 9.103 10.663 3.056 4.573 0.549 0.409 4.627

12,000-19,999 3.228 0.592 0.872 0.699 9.652 9.759 2.722 9.652 9.759 2.722 6.069

20,000+ 1.743 0.678 0.872 0.592 8.942 9.845 2.346 6.521 0.441 0.334 3.691
161

Figure 6-37. Selected Operations Costs for All College and University Facilities

0.000

0.100

0.200

0.300

0.400

0.500

0.600

0.700

0.800

0.900

1.000

Administrative

Costs

Work Control

Engineering &

Architecture

Project

Management

Building

Maintenance

Custodial

Maintenance

Grounds

Maintenance

Utilities

Operations

Solid Waste

Disposal

Hazardous

Waste Disposal

Security

Type of Expense

Average Cost in Dollars per Square Foot

0

1

2

3

4

5

6

7

8

9

10

Average Cost in Dollars per Square Meter

Figure 6-38. Building and Custodial Maintenance Costs for Colleges and

Universities by Number of Students: 1993 and 1994

0.000

0.100

0.200

0.300

0.400

0.500

0.600

0.700

0.800

0.900

1.000

1.100

0-1,999

Students

2,000-4,999

Students

5,000-11,999

Students

12,000-

19,999

Students

20,000+

Students

Number of Students

Average Dollars per Square Foot

0

1

2

3

4

5

6

7

8

9

10

Average Dollars per Square Meter

Building Maintenance

Custodial Maintenance
162

Figure 6-39. Electricity Cost by Funding Source for Colleges and Universities

0

0.2

0.4

0.6

0.8

1

1.2

Private Institutions Public Institutions All Institutions

Funding Source

Average Dollars per Square Foot

0

2

4

6

8

10

12

Average Dollars per Square Meter

Table 6-9. Mean Electricity Usage by Funding Source, Region, and Number of

Students

Part A: English Units

Carnegie 

Classification

Electricity 

Purchased 

(kwh)

Electricity 

Cost ($)

Cost per 

kwh

Kwh per 

Gross 

Building 

Square 

Foot

Cost per 

Gross 

Building 

Square 

Foot

Kwh per 

FTE 

Student

Cogenerated 

Electricity 

(kwh)

Cogeneration 

Cost ($)

Cost 

per 

kwh

Funding Source

Private Institutions 18,652,497 1,039,192 0.069 13.1 0.904 6,725 10,753,227 265,041 0.040

Public Institutions 41,331,277 1,935,262 0.059 17.2 1.015 4,186 36,684,694 1,109,719 0.042

All Institutions 34,227,081 1,649,722 0.062 15.9 0.986 4,983 30,201,827 894,057 0.041

Region

Eastern 28,457,542 1,733,988 0.077 14.3 1.101 4,718 5,311,438 171,627 0.050

Southeastern 45,832,694 1,927,002 0.056 19.5 1.092 6,372 20,141,742 879,811 0.037

Midwest 40,990,041 1,965,652 0.059 16.6 0.979 5,292 53,108,888 1,304,341 0.037

Central 26,664,401 1,170,056 0.053 16.1 0.853 5,115 37,720,560 901,261 0.043

Rocky Mountain 30,275,123 1,171,497 0.053 13.0 0.689 2,839 58,456,746 3,125,091 0.040

Pacific Coast 29,440,012 1,463,428 0.067 14.0 0.938 3,842 8,432,912 407,471 0.040

Number of 

Students

0-1,999 12,833,844 655,258 0.067 14.1 0.945 7,430 7,869,843 228,371 0.061

2,000-4,999 13,576,276 706,228 0.062 15.2 0.942 4,612 6,907,722 186,519 0.045

5,000-11,999 29,752,199 1,641,727 0.061 16.9 1.031 3,711 16,399,549 581,360 0.044

12,000-19,999 53,543,074 2,737,475 0.063 16.3 1.027 3,310 27,318,080 739,973 0.039

20,000+ 127,229,064 6,145,515 0.053 19.5 1.034 4,547 66,044,432 2,306,494 0.032
163

Part B: SI Units

Carnegie 

Classification

Electricity 

Purchased 

(MJ)

Electricity 

Cost ($)

Cost per 

MJ

MJ per 

Gross 

Building 

Square 

Meter

Cost per 

Gross 

Building 

Square 

Meter

MJ per 

FTE 

Student

Cogenerated 

Electricity 

(MJ)

Cogeneration 

Cost ($)

Cost 

per MJ

Funding Source

Private Institutions 67,148,989 1,039,192 0.019 507.6 9.730 24,210 38,711,617 265,041 0.111

Public Institutions 148,792,597 1,935,262 0.016 666.5 10.924 15,070 132,064,898 1,109,719 0.012

All Institutions 123,217,492 1,649,722 0.017 616.1 10.612 17,939 108,726,577 894,057 0.011

Region

Eastern 102,447,151 1,733,988 0.021 554.1 11.853 16,985 19,121,177 171,627 0.014

Southeastern 164,997,698 1,927,002 0.016 755.6 11.755 22,939 72,510,271 879,811 0.010

Midwest 147,564,148 1,965,652 0.016 643.3 10.543 19,051 191,191,997 1,304,341 0.010

Central 95,991,844 1,170,056 0.015 623.9 9.186 18,414 135,794,016 901,261 0.012

Rocky Mountain 108,990,443 1,171,497 0.015 503.8 7.417 10,220 210,444,286 3,125,091 0.011

Pacific Coast 105,984,043 1,463,428 0.019 542.5 10.097 13,831 30,358,483 407,471 0.011

Number of 

Students

0-1,999 46,201,838 655,258 0.019 546.4 10.169 26,748 28,331,435 228,371 0.017

2,000-4,999 48,874,594 706,228 0.017 589.0 10.145 16,603 24,867,799 186,519 0.013

5,000-11,999 107,107,916 1,641,727 0.017 654.9 11.097 13,360 59,038,376 581,360 0.012

12,000-19,999 192,755,066 2,737,475 0.018 631.6 11.054 11,916 98,345,088 739,973 0.011

20,000+ 458,024,630 6,145,515 0.015 755.6 11.125 16,369 237,759,955 2,306,494 0.009

Figure 6-40, which is based upon data presented in Table 6-10 Part A and Part B, shows

gas consumption by funding source for all educational facilities. Reference to the figure

indicates that privately funded facilities have higher consumption costs than publicly

funded sources. Comparison of Figure 6-39 and Figure 6-40 shows that private and

publicly funded facilities have comparable total electricity and gas costs per unit area.

Figure 6-41 and Figure 6-42 show how water and sewer costs per acre/square meter vary

by funding source and facility size. The data indicate that for all facilities, the average

cost is $0.40/square meter ($1,631/acre - approximately $0.04/square foot), which is

lower than the IFMA mean cost of $1.72/RSM ($0.16/RSF). However, these two figures

may not be directly comparable. The total water cost is split approximately equally

between water costs and sewer costs. Publicly funded facilities’ costs appear to be higher

than those for privately funded facilities, but there does not appear to be any clear

relationship between facility size and water/sewer unit costs.
164

Figure 6-40. Mean Gas Cost by Funding Source for Colleges and Universities

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

Private Institutions Public Institutions All Institutions

Funding Source

Average Dollars per Square Foot 

0

0.5

1

1.5

2

2.5

3

3.5

4

Average Dollars per Square Meter 

Table 6-10. Mean Gas Consumption by Funding Source, Region and Number of

Students

Part A: English Units

Carnegie 

Classification

Natural Gas 

(100 cubic feet) Cost ($)

Cost per 

100 cubic 

feet

Quantity per 

Gross Building 

Square Foot

Cost per Gross 

Building Square 

Foot

Quantity per 

FTE student

Funding Source

Private Institutions 935,743 295,943 0.48 0.80 0.38 357.20

Public Institutions 2,009,531 583,658 0.42 0.73 0.31 201.10

All Institutions 1,682,475 493,579 0.44 0.75 0.33 248.30

Region

Eastern 1,312,189 451,779 0.53 0.72 0.38 223.50

Southeastern 985,863 335,903 0.51 0.62 0.31 178.00

Midwest 2,544,061 728,268 0.38 0.92 0.34 334.80

Central 1,474,649 381,712 0.35 0.73 0.26 295.80

Rocky Mountain 2,630,722 564,118 0.42 0.89 0.37 206.70

Pacific Coast 1,548,504 498,379 0.43 0.64 0.27 182.00

Number of Students

0-1,999 531,992 181,362 0.47 0.86 0.40 430.10

2,000-4,999 670,661 224,997 0.46 0.61 0.28 219.20

5,000-11,999 1,147,106 388,974 0.44 0.72 0.32 146.20

12,000-19,999 2,633,960 865,199 0.42 0.67 0.28 159.50

20,000+ 6,702,667 1,944,194 0.35 0.98 0.34 228.40
165

Part B: SI Units

Carnegie 

Classification

Natural Gas 

(100 cubic 

meters)

Cost ($)

Cost per 

100 cubic 

meters

Quantity per 

Gross Building 

Square Meter

Cost per Gross Building 

Square Meter

Quantity per 

FTE student

Funding Source

Private Institutions 26,482 295,943 16.92 8.63 145.97 357.20

Public Institutions 56,870 583,658 14.83 7.85 116.50 201.10

All Institutions 47,614 493,579 15.47 8.09 125.16 248.30

Region

Eastern 37,135 451,779 18.58 7.75 143.91 223.50

Southeastern 27,900 335,903 17.90 6.67 119.44 178.00

Midwest 71,997 728,268 13.24 9.89 130.95 334.80

Central 41,733 381,712 12.36 7.88 97.35 295.80

Rocky Mountain 74,449 564,118 14.76 9.57 141.20 206.70

Pacific Coast 43,823 498,379 15.15 6.89 104.33 182.00

Number of Students

0-1,999 15,055 181,362 16.56 9.29 153.80 430.10

2,000-4,999 18,980 224,997 16.21 6.55 106.22 219.20

5,000-11,999 32,463 388,974 15.43 7.79 120.22 146.20

12,000-19,999 74,541 865,199 14.66 7.23 105.97 159.50

20,000+ 189,685 1,944,194 12.32 10.49 129.30 228.40

Figure 6-41. Water and Sewer Costs by Funding Source for Colleges and

Universities

0

200

400

600

800

1000

1200

1400

1600

1800

Private Institutions Public Institutions All Institutions

Funding Source

Dollars per Acre

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

Dollars per Square Meter

Sewer cost

Water cost
166

Figure 6-42. Water and Sewer Costs by Number of Students for Colleges and

Universities

0

500

1000

1500

2000

2500

3000

3500

0-1,999 2,000-4,999 5,000-11,999 12,000-19,999 20,000+

Number of Students

Dollars per Acre

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Dollars per Square Meter

Sewer cost

Water cost

Table 6-11. Water and Sewer Consumption by Funding Source, Geographic

Location and Number of Students

Part A: English Units

Carnegie 

Classification

Water 

Quantity 

(kgal)

Water 

Cost ($)

$ per 

kgal

Water 

Cost per 

Student

Amount 

per Acre

Sewer 

Quantity 

(kgal)

Sewer 

Cost ($)

$ per 

kgal

Sewer 

Cost per 

Student

Amount 

per Acre

Combined 

(kgal)

Combined 

Cost ($)

$ per 

kgal

Combined 

Cost per 

student

Amount 

per Acre

Funding 

Source

Private 

Institutions 95,691 140,283 2.97 49 734 68,669 110,517 2.91 21 518 84,414 223,593 4.91 32 549

Public 

Institutions 215,707 193,721 1.96 32 632 233,664 247,088 2.22 27 1,049 153,068 279,317 4.45 14

All Institutions 187,388 180,362 2.21 36 654 195,988 213,460 2.38 26 942 127,168 258,165 4.63 21 652

Region

Eastern 180,254 164,621 2.79 42 645 191,176 201,039 2.84 39 801 188,539 317,255 4.47 19 917

Southeastern 215,596 230,585 1.68 38 534 147,880 251,275 2.04 18 279 111,253 228,498 4.69 38 550

Midwest 293,234 273,817 2.19 77 1,142 217,553 382,824 1.98 18 1,213 118,421 285,097 5.16 15 677

Central 106,465 146,987 2.38 13 489 95,674 102,652 3.24 9 350 74,889 187,279 3.47 15 330

Rocky 

Mountain 244,864 136,610 1.24 16 606 222,560 152,820 1.11 15 548 120,120 157,101 2.86 14 829

Pacific Coast 116,326 122,249 2.26 15 533 390,895 173,654 2.34 60 3 133,859 323,909 6.43 17 698

Number of 

Students

0-1,999 88,632 88,478 3.44 93 1,016 25,144 57,621 2.84 38 275 37,181 84,532 4.93 34 352

2,000-4,999 53,795 48,089 2.27 17 256 53,263 52,480 1.97 18 244 47,873 147,649 5.64 16 390

5,000-11,999 133,068 129,338 1.83 16 745 257,401 197,563 3.36 39 2,450 111,196 312,480 3.43 15 724

12,000-19,999 252,514 319,119 1.38 15 611 230,932 325,790 1.78 14 587 393,268 486,380 5.93 23 1576

20,000+ 672,393 663,029 1.23 24 844 514,183 838,028 1.64 18 645 315,846 889,423 3.74 12 706
167

Part B: SI Units

Carnegie 

Classification

Water 

Quantity 

(1000 

liters)

Water 

Cost ($)

$ per 

1000 

liters

Water 

Cost per 

Student

Amount 

per 

Square 

Meter

Sewer 

Quantity 

(1000 

liters)

Sewer 

Cost ($)

$ per 

1000 

liters

Sewer 

Cost per 

Student

Amount 

per 

Square 

Meter

Combined 

(1000 

liters)

Combined 

Cost ($)

$ per 

1000 

liters

Combined 

Cost per 

student

Amount 

per 

Square 

Meter

Funding 

Source

Private 

Institutions 362,190 140,283 0.785 49 0.181 259,912 110,517 0.769 21 0.128 319,507 223,593 1.297 32 0.136

Public 

Institutions 816,451 193,721 0.518 32 0.156 884,418 247,088 0.587 27 0.259 579,362 279,317 1.176 14

All Institutions 709,264 180,362 0.584 36 0.162 741,815 213,460 0.629 26 0.233 481,331 258,165 1.223 21 0.161

Region

Eastern 682,261 164,621 0.737 42 0.159 723,601 201,039 0.750 39 0.198 713,620 317,255 1.181 19 0.227

Southeastern 816,031 230,585 0.444 38 0.132 559,726 251,275 0.539 18 0.069 421,093 228,498 1.239 38 0.136

Midwest 1,109,891 273,817 0.579 77 0.282 823,438 382,824 0.523 18 0.300 448,223 285,097 1.363 15 0.167

Central 402,970 146,987 0.629 13 0.121 362,126 102,652 0.856 9 0.086 283,455 187,279 0.917 15 0.082

Rocky 

Mountain 926,810 136,610 0.328 16 0.150 842,390 152,820 0.293 15 0.135 454,654 157,101 0.756 14 0.205

Pacific Coast 440,294 122,249 0.597 15 0.132 1,479,538 173,654 0.618 60 0.001 506,656 323,909 1.699 17 0.172

Number of 

Students

0-1,999 335,472 88,478 0.909 93 0.251 95,170 57,621 0.750 38 0.068 140,730 84,532 1.303 34 0.087

2,000-4,999 203,614 48,089 0.600 17 0.063 201,600 52,480 0.520 18 0.060 181,199 147,649 1.49 16 0.096

5,000-11,999 503,662 129,338 0.483 16 0.184 974,263 197,563 0.888 39 0.605 420,877 312,480 0.906 15 0.179

12,000-19,999 955,765 319,119 0.365 15 0.151 874,078 325,790 0.470 14 0.145 1,488,519 486,380 1.567 23 0.389

20,000+ 2,545,008 663,029 0.325 24 0.209 1,946,183 838,028 0.433 18 0.159 1,195,477 889,423 0.988 12 0.174

6.2.4 Baseline Measures for Shopping Centers

In this section, data from the Institute of Real Estate Management (IREM) are used to

establish baseline measures for shopping centers for 1995. These data will also be

compared to the IFMA data presented earlier in this document. It should be noted that the

data presented in this section represent only the most general of the data available in the

highly detailed IREM report Income/Expense Analysis: Shopping Centers.

Table 6-12 shows the size of the survey sample used in the IREM report. It indicates that

open shopping centers represent a large proportion of the survey sample, and represent

nearly twice the total floor area compared with enclosed shopping centers. For this

reason, and for the purposes of brevity, only open shopping centers will be considered in

detail in this document. However, Figures 6-43 through 6-45 compare selected

operations costs for open shopping centers and enclosed shopping centers (which are

further subdivided depending upon whether they have open or enclosed common areas)

for the following three major cost categories:

• Maintenance and Repair - this includes all costs associated with elevator, escalator,

HVAC, electrical, plumbing, painting, building structure, and other cost components.

• Services - this includes all costs associated with grounds maintenance, security, trash

removal, cleaning, and other cost components.

• Utilities - this includes all costs associated with electricity, HVAC fuel, water and

sewer services, combined electricity (i.e., where it is not possible to separate HVAC

costs into a separate category), and other cost components.
168

These categories do not include capital expenditures or depreciation charges, income

taxes, rent payments, and so forth. The figures are based upon median costs from the

survey sample, expressed in dollars per annum per total Average Actual Occupancy

(AAO) in square meters and feet, which is a measure of the amount of floorspace

occupied in the building.

Table 6-12. IREM Sample Distribution for Shopping Centers: 1995

Item Open Enclosed

Number of Centers 819 68

Average Size of Center GLA (square feet) 105,409 594,853

Average Size of Center GLA (square m e ters) 9,792 55,262

Average Actual Occupancy (square feet) 95,142 566,716

Average Actual Occupancy (square meters) 8,839 52,648

Figure 6-43 shows that that the total median costs for the three categories shown above

was $8.29/(AAO) square meter ($0.77/square foot) for all open shopping centers. This

represents approximately 29 percent of total median operating costs. The remainder of

the operating costs comprise items such as insurance and taxes $11.73/(AAO) square

meter ($1.09/square foot), and other expenses, such as administrative payroll,

management fees, and food court charges, which amount to $8.40/(AAO) square meter

($0.78/square foot).

Figure 6-43. Comparison of Selected Operations Costs for All Open Shopping

Centers

Total cost for three categories = $0.77/AAO (square feet)

Total cost for three categories = $8.29/AAO (square meter)

Maintenance and 

Repair

34%

Service

40%

Utilities

26%
169

Figure 6-44. Comparison of Selected Operations Costs for All Enclosed Shopping

Centers with Enclosed Common Areas

Total cost for three categories = $1.26/AAO (square foot)

Total cost for three categories = $13.56/AAO (square meter)

Utilities

36%

Service

41%

Maintenance and 

Repair

23%

Figure 6-45. Comparison of Selected Operations Costs for Enclosed Shopping

Centers with Non-Enclosed Common Areas

Total cost for three categories = $0.63/AAO (square foot)

Total cost for three categories = $6.78/AAO (square meter)

Maintenance and 

Repair

22%

Utilities

24%

Service

54%
170

In comparison, Figure 6-44 and Figures 6-45 show that the median operating costs for

enclosed shopping malls for the three categories shown above vary depending upon

whether the shopping center has either open or enclosed common areas. The total median

operating expenses for all enclosed shopping combined is $55.43/(AAO) square meter

($5.15/square foot), which is approximately twice that of open shopping centers

$28.42/(AAO) square meter ($2.64/square foot).

Table 6-13 shows the range of costs for maintenance and repair, services, and utilities

components in more detail. Median and upper and lower quartile figures are presented.

Selected operating expenses are also shown graphically in Figures 6-46 through 6-49.

Reference to Figure 6-46 shows that taxes, insurance, and other expenses excluding

maintenance and repair, services, and utilities account for about 70 percent of total

operating costs in open shopping centers. Figure 6-47 examines median services costs in

greater detail. Reference to this figure indicates that grounds maintenance costs are the

largest component in this category, followed by trash removal and security costs. These

are all in the $0.75 - $1.18/(AAO) square meter ($0.07-$0.11/square foot) range, which

are generally lower than comparable IFMA data. Figure 6-48 shows median maintenance

and repair costs for all open shopping centers. The figure shows that the largest

maintenance and repair component is associated with parking lot/sidewalk repairs,

striping, sweeping, and surfacing. HVAC maintenance is not shown in this figure, as it is

included in a separate category by BOMA. However, HVAC maintenance and repair

costs are relatively small at $0.22/(AAO) square meter ($0.02/square foot). Finally,

Figure 6-49 shows median utilities costs by type. As expected, electricity costs dominate

this category. The range of utilities costs is generally lower than comparable IFMA data,

and electricity costs are much lower ($1.29/(AAO) square meter ($0.12/square foot) from

BOMA data compared with $2.11 from IFMA data for the wholesale/retail sector). This

suggests that IFMA costs may include a component of process-related energy use.
171

Table 6-13. Operations Expenses: All Open Shopping Centers

Dollars per total average actual occupancy 

Expense Number of 

Centers

Square feet 

(10,000) In square feet In square meters

Maintenance and Repair Median Low High Median

Parking Lot/Sidewalk 632 6,434 0.05 0.02 0.13 0.54

Sweeping 673 6,616 0.08 0.05 0.13 0.86

Roof Repair 577 5,648 0.03 0.01 0.06 0.32

Plumbing 478 4,724 0.01 0.00 0.02 0.11

Electrical 647 6,382 0.02 0.01 0.04 0.22

Painting/Decorating 473 4,779 0.02 0.01 0.05 0.22

Other 543 5,477 0.04 0.01 0.09 0.43

Subtotal Maintenance & 

Repair 804 7,670 0.26 0.16 0.40 2.80

Services

Outdoor Landscape 775 7,501 0.11 0.06 0.19 1.18

Snow Removal 309 3,361 0.05 0.02 0.12 0.54

Security 378 4,263 0.07 0.02 0.19 0.75

Trash Removal 613 5,938 0.08 0.02 0.16 0.86

Cleaning 434 4,282 0.05 0.02 0.10 0.54

Other 410 4,132 0.02 0.01 0.05 0.22

Subtotal Services 794 7,639 0.31 0.16 0.54 3.34

Utilities

Electricity 590 5,604 0.11 0.07 0.18 1.18

HVAC Fuel-Electricity 63 599 0.10 0.02 0.19 1.08

Oil 17 169 0.10 0.05 0.19 1.08

Gas 85 972 0.01 0.00 0.03 0.11

Steam 3 72 0.05 0.01 0.05 0.54

Other 10 91 0.03 0.01 0.06 0.32

Water & Sewer 673 6,399 0.08 0.03 0.18 0.86

Combined Electricity 127 1,366 0.12 0.06 0.21 1.29

Other 123 1,382 0.02 0.01 0.04 0.22

Subtotal Utilities 792 7,587 0.20 0.11 0.35 2.15

Total Expenses* 809 7,697 2.64 1.84 3.81 28.41

*Note: Some Expenses such as taxes and insurance excluded from table
172

Figure 6-46. Summary of Range of Operations Costs for Open Shopping Centers

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

Subtotal

Maintenance &

Repair

Subtotal Services Subtotal Utilities Total Expenses

Type of Expense

Dollars per Total Average Actual Occupied 

Square Feet

0

5

10

15

20

25

30

35

40

Dollars per Total Average Actual Occupied 

Square Meters

Median

Low

High

Figure 6-47. Median Services Costs for Open Shopping Centers

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

Outdoor

Landscape

Snow

Removal

Security Trash

Removal

Cleaning Other Subtotal

Services

Type of Expense

Median Dollars per Average Actual Occupied 

Square Feet

0

1

2

3

Median Dollars per Average Actual Occupied 

Square Meters
173

Figure 6-48. Median Maintenance and Repair Costs for Open Shopping Centers

0.00

0.05

0.10

0.15

0.20

0.25

0.30

Parking

Lot/Sidewalk

Sweeping

Roof Repair

Plumbing

Electrical

Painting/

Decorating

Other

Subtotal

Maintenance &

Repair

Type of Expense

Median Dollars per Average Actual Occupied 

Square Foot

0

1

2

3

Median Dollars per Average Actual Occupied 

Square Meter

Figure 6-49. Median Utilities Costs for Open Shopping Centers

0.00

0.05

0.10

0.15

0.20

0.25

Electricity (NonHVAC)

HVAC FuelElectricity

Oil

Gas

Steam

Other

Water & Sewer

Combined

Electricity

Other

Subtotal Utilities

Type of Expense

Median Dollars per Average Actual Occupied 

Square Foot

0

0.5

1

1.5

2

Median Dollars per Average Actual Occupied 

Square Meter
174

6.2.5 Energy Conservation in the Commercial/Institutional Sector

This section addresses some general issues concerning energy conservation in the

commercial/institutional sector. The section examines how prevalent certain

conservation features and equipment are in the sector. It then outlines some water

conservation recommendations provided by FEMP. The EIA report Commercial

Buildings Characteristics 1992 has been used to generate all of the figures presented in

this section, which show aggregated information for all buildings in the sector. It is

important to recognize that portions of a building’s total floorspace may be served by

more than one type of conservation feature and/or equipment. Consequently, the sum

total across all conservation features or equipment (e.g. heating equipment) may exceed

100 percent of the total floorspace.

Figure 6-50 shows the percentage of total floorspace in the commercial/institutional

sector using a variety of different types of heating equipment, grouped by building size

category. Reference to the figure indicates that a larger proportion of floorspace in

smaller buildings was heated by furnaces compared with larger buildings. In addition,

there was a high level of usage of individual space heaters across all building sizes

(around 30-45 percent of total floorspace, depending upon building size). The figure also

indicates that district heat was only used extensively in buildings with floorspaces greater

than 18,581 square meters (200,000 square feet).

Figure 6-50. Building Heating Equipment by Building Size Category

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

1,000-

5,000

(93-465)

5,001 -

10,000

(466 -

929)

10,001-

25,000

(930-

2,323)

25,001-

50,000

(2,324-

4,647)

50,001-

100,000

(4,648-

9,294)

100,001-

200,000

(9,295-

18,587)

200,001-

500,000

(18,587-

46,468)

Over

500,000

(Over

46,468)

Building Size/Floorspace in Square Feet (Square Meters)

Percent of Total Floorspace

Heat Pumps

Furnaces

Individual

Space Heaters

District Heat

Boilers

Packaged

Heating Units
175

Figure 6-51 shows similar information to that in Figure 6-50, but for cooling equipment.

Reference to the figure indicates that use of central residential type air conditioning units

decreased as building size increased, but that the number of individual air conditioning

units was higher in larger buildings. There was also a high usage of central chiller units

in larger buildings, and a relatively high use of packaged air conditioning units

irrespective of building size.

Figure 6-51. Building Cooling Equipment by Building Size Category

0

10

20

30

40

50

60

1,000-5,000

(93-465)

5,001 -

10,000 (466

- 929)

10,001-

25,000

(930-2,323)

25,001-

50,000

(2,324-

4,647)

50,001-

100,000

(4,648-

9,294)

100,001-

200,000

(9,295-

18,587)

200,001-

500,000

(18,587-

46,468)

Over

500,000

(Over

46,468)

Building Size/Floorspace in Square Feet (Square Meters)

Percent of Total Floorspace

Residential

Type -

Central A/C

Heat Pumps

Individual A/C

District

Chilled Water

Central

Chillers

Packaged

A/C Units

Figure 6-52 also shows similar information to Figure 6-50, but for lighting equipment.

As expected, the dominant forms of lighting were standard incandescent (around 50

percent of total floorspace) and standard fluorescent (approximately 90 percent of total

floorspace). There was increased usage of compact fluorescent and high intensity

discharge (HID) lighting in larger buildings, but this was more noticeable for HID

lighting.

Figure 6-53 shows the percentage of total floorspace where some form of energy demandside management (DSM) system was used. The figure shows building shell, HVAC,

lighting, and other DSM categories. The figure indicates that there was a relatively

consistent increase in DSM program participation as building size increased, with the

highest participation levels in lighting DSM programs. However, it should be noted that

even where DSM programs were used most extensively, this still only accounted for

around one quarter of total floorspace in the sector.
176

Figure 6-52. Building Lighting Equipment by Building Size Category

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

1,000-

5,000

(93-465)

5,001-

10,000

(466-929)

10,001-

25,000

(930-

2,323)

25,001 -

50,000

(2,324 -

4,647)

50,001-

100,000

(4,648-

9,294)

100,001-

200,000

(9,295-

18,587)

200,001-

500,000

(18,587-

46,468)

Over

500,000

(Over

46,468)

Building Size/Floorspace in Square Feet (Square Meters)

Percent of Total Floorspace

Incandescent

Standard

Flourescent

Compact

Flourescent

High-Intensity

Discharge

Other 

Figure 6-53. Building Demand-Side Management Programs by Building Size

Category

0.00

5.00

10.00

15.00

20.00

25.00

30.00

1,000-

5,000

(93-465)

5,001 -

10,000

(466 -

929)

10,001-

25,000

(930-

2,323)

25,001-

50,000

(2,324-

4,647)

50,001-

100,000

(4,648-

9,294)

100,001-

200,000

(9,295-

18,587)

200,001-

500,000

(18,587-

46,468)

Over

500,000

(Over

46,468)

Building Size/Floorspace in Square Feet (Square Meters)

Percent of Total Floorspace

Building

Shell

Program

HVAC

Program

Lighting

Program

Other DSM

Programs
177

Figure 6-54 shows how the extent of a variety of building shell conservation features

varied depending upon building size category. Reference to the figure indicates that use

of insulation materials was relatively uniform irrespective of building size. In contrast,

multiple glazing and tinted/reflective glazing was more prevalent in larger buildings,

which tended to have a smaller percentage of opening windows for a given floor area than

smaller buildings.

Figure 6-54. Building Shell Conservation Features by Building Size Category

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

1,000-

5,000

(93-465)

5,001 -

10,000

(466 -

929)

10,001-

25,000

(930-

2,323)

25,001-

50,000

(2,324-

4,647)

50,001-

100,000

(4,648-

9,294)

100,001-

200,000

(9,295-

18,587)

200,001-

500,000

(18,587-

46,468)

Over

500,000

(Over

46,468)

Building Size/Floorspace in Square Feet (Square Meters)

Percent of Total Floorspace

Roof or Ceiling

Insulation

Wall Insulation

Storm or Multiple

Glazing

Tinted, Reflective

or Shading Glass

Exterior or Interior

Shading or

Awnings

Windows that

Open

The trends shown in Figures 6-50 through 6-53 are also reflected in Figure 6-55 and 6-56.

In larger buildings, HVAC and lighting conservation features were more prevalent. In

particular, there appeared to be an increased use of economizer cycles and time clocks in

larger buildings.

Table 6-14 Part A and Part B shows selected water conservation recommendations for a

variety of sanitary fixtures common in the commercial/institutional sector in gallons and

liters respectively. The table shows both recommended and ‘best available’ ratings for

these fixtures. For further information relating to water and energy conservation

information sources, refer to Section 6.1 of this document.
178

Figure 6-55. Building HVAC Conservation Features by Building Size Category

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

1,000-

5,000

(93-465)

5,001 -

10,000

(466 -

929)

10,001-

25,000

(930-

2,323)

25,001-

50,000

(2,324-

4,647)

50,001-

100,000

(4,648-

9,294)

100,001-

200,000

(9,295-

18,587)

200,001-

500,000

(18,587-

46,468)

Over

500,000

(Over

46,468)

Building Size/Floorspace in Square Feet (Square Meters)

Percent of Total Floorspace

Variable AirVolume

System

Economizer

Cycle

HVAC

Maintenance

Figure 6-56. Building Lighting Conservation Features by Building Size Category

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

1,000-

5,000

(93-465)

5,001 -

10,000

(466 -

929)

10,001-

25,000

(930-

2,323)

25,001-

50,000

(2,324-

4,647)

50,001-

100,000

(4,648-

9,294)

100,001-

200,000

(9,295-

18,587)

200,001-

500,000

(18,587-

46,468)

Over

500,000

(Over

46,468)

Building Size/Floorspace in Square Feet (Square Meters)

Percent of Total Floorspace

Specular

Reflectors

Natural Lighting

Control Sensors

Occupancy

Sensors

Time Clock

Manual Dimmer

Switches

Other
179

Table 6-14. Water Conservation Recommendations for Selected Fixtures

Part A: Gallon Ratings

Product Type Recommended Flow

Rate

Best Available Notes

Faucet 2.0 gallons per minute

or less

1.5 gallons per minute Self closing Faucet0.25 gallons/ minute

Shower- head 2.2 gallons per minute

or less

1.5 gallons per minute -

Toilet 1.6 gallons per flush or

less

1.5 gallons per flush -

Urinal 1.0 gallons per flush - Required by Energy

Policy Act October,

1992.

Part B: Liter Ratings

Product Type Recommended Flow

Rate

Best Available Notes

Faucet 7.6 liters per minute or

less

5.7 liters per minute Self closing Faucet0.95 liters/ minute

Shower- head 8.3 liters per minute or

less

5.7 liters per minute -

Toilet 6.1 liters per flush or

less

5.7 liters per flush -

Urinal 3.8 liters per flush - Required by Energy

Policy Act October,

1992.

6.3 Summary of Baseline Measures for the Commercial/Institutional Sector

This section summarizes the baseline measures for the commercial/institutional sector

which are presented in Sections 6.2.1, 6.2.2, 6.2.3, and 6.2.4 of this document. They are

presented in Table 6-15 below.

Table 6-15 shows general information relating to the commercial/institutional sector, as

well as key operations, maintenance, and energy (OM&E) baseline data for the whole

sector. It then shows selected OM&E baseline data for private commercial office

buildings, college and university facilities, and open shopping centers. The ‘General

Information’ section describes the total expenditures for new construction, maintenance

and repair, and improvements in the commercial/institutional sector in 1994. The section

also provides overall information about the size of the commercial/institutional sector,

and the relative proportions of buildings and floorspace in the mercantile and service,
180

office, and education categories, which are the largest components of the

commercial/institutional sector23.

The ‘Operations Overview’ section provides baseline measures for water, environmental,

life safety, janitorial, indirect, and security costs for all buildings in the

commercial/institutional sector, expressed as a range of mean costs per rentable square

foot/square meter. The ‘Maintenance Overview’ section provides information on

maintenance and repair costs, both on an aggregated basis for all

commercial/institutional facilities, and as a range of mean costs per unit area for all types

of building. The ‘Energy Overview’ section provides information on total energy

expenditures, at an aggregated level for all buildings, and then for office, service, and

education facilities. The baselines focus upon energy expenditures by primary fuel

source, and present both total dollar values, as well as ‘expenditures per unit area’ values.

Water costs per rentable floor area are also included here, as part of the utilities category.

These can be compared with the total sector expenditures for water presented in the

“Operations Overview” section of the table.

The “Private Office Buildings” section provides OM&E costs per rentable square

meter/square foot for cleaning, roads/grounds/security, maintenance and repair, and

utilities, as well as a metric for all operating expenses combined.

The “Education Facilities” section provides OM&E costs per gross square meter/square

foot for custodial maintenance (cleaning), grounds maintenance, solid waste disposal,

hazardous waste disposal, security, building maintenance and repair, and utilities.

The “Shopping Centers” section provides OM&E costs per Annual Average Occupied

(AAO) square meter(square foot) for open shopping centers. The baselines are grouped

under the sub-headings ‘Services/Operations’, ‘Maintenance and Repair’, and ‘Utilities’.

‘Services/Operations’ includes outdoor landscaping, snow removal, security, trash

removal, and cleaning costs. ‘Maintenance and Repair’ includes sweeping of parking

lots/sidewalks, parking lot/sidewalk repair, building roof repair, plumbing, electrical,

painting and decorating, and other maintenance and repair costs. ‘Utilities’ includes the

costs for the most prevalent fuel sources, as well as water and sewer costs.

It should be noted that the information presented in Table 6-15 represents only the most

general of the data presented in Chapters 3 and 6 of this document.

Summary of Abbreviations Used in Table 6-15

VIP Value of New Construction Put in Place

USGS United States Geological Survey

EIA Energy Information Administration

IFMA International Facility Management Association

BOMA Building Owners and Managers Association

APPA Association of Higher Education Facilities Officers

IREM Institute of Real Estate Management

 

23 This excludes warehousing and storage, which is considered as part of the industrial sector in this document.
181

Table 6-15. Summary of Baseline Measures: Commercial/Institutional Sector

DESCRIPTION YEAR BASELINE SOURCE24

GENERAL

INFORMATION

Value of New Construction

Put in Place

1994 $128,116 million (constant

1992 dollars)

Census VIP

Data

Total Maintenance and

Repair Expenditures

1994 $26,348 million (constant 1992

dollars)

Census Data

Total Expenditures for

Improvements

1994 $71,764 million (constant 1992

dollars)

Census Data

Total Number of Commercial

Buildings/Total Floorspace

1992 4,806,000 buildings

6,308 million square meters

(67,876 million square feet)

EIA

Mercantile and Service

Buildings as % of Total

Buildings/Total Floorspace

1992 26% of Total Buildings

18% of Total Floorspace

EIA

Office Buildings as Percent

of Total Buildings/Total

Floorspace

1992 16% of Total Buildings

18% of Total Floorspace

EIA

Education Buildings as

Percent of Total

Buildings/Total Floorspace

1992 6% of Total Buildings

12% Total Floorspace

EIA

OPERATIONS -

OVERVIEW

Total Expenditures for Water

- All Buildings

1990 $9.08 billion USGS

Range of Costs for

Environmental Services

(Trash etc.) - All Buildings

1993 $1.08-$6.78 per rentable square

meter ($0.10-$0.63 per rentable

square foot)

IFMA

Range of Costs for Life

Safety Services - All

Buildings

1993 $0.54-$5.27 per rentable square

meter ($0.05-$0.49 per rentable

square foot)

IFMA

Range of Costs for Janitorial

Services - All Buildings

1993 $8.72-$20.12 per rentable

square meter ($0.81-$1.87 per

rentable square foot)

IFMA

Range of Costs for Indirect

Services (Grounds etc.) - All

Buildings

1993 $2.26-$6.67 per rentable square

meter ($0.21-$0.62 per rentable

square foot)

IFMA

Range of Costs for Security

Services - All Buildings

1993 $4.73-$15.06 per rentable

square meter ($0.44-$1.40 per

rentable square foot)

IFMA

 

24 See accompanying text for description of abbreviations used in this table.
182

Table 6-15. Summary of Baseline Measures: Commercial/Institutional Sector

(continued)

DESCRIPTION YEAR BASELINE SOURCE

MAINTENANCE -

OVERVIEW

Purchased Repair Services

for All Buildings and

Structures

1992 $20,267 million Census Data

Purchased Repair Services

for All Machinery,

Equipment, and Other

1992 $35,606 million Census Data

Range of Costs for

Maintenance and Repair

Services - All Buildings

1993 $18.83-$41.86 per rentable

square meter ($1.75-$3.89 per

rentable square foot)

IFMA

ENERGY - OVERVIEW

Total Fuel Expenditures - All

Buildings

1992 $72,600 million EIA

Total Electricity Costs - All

Buildings

1992 $57,600 million EIA

Total Natural Gas Costs - All

Buildings

1992 $10,700 million EIA

Total Fuel Oil Costs - All

Buildings

1992 $1,400 million EIA

Total District Heat Costs -

All Buildings

1992 $2,900 million EIA

Range of Costs for All

Utilities (including water) -

All Buildings

1993 $18.83-$40.35 per rentable

square meter ($1.75-$3.75 per

rentable square foot)

IFMA

Average Electricity Cost - All

Buildings

1993 $24.45 per rentable square

meter ($2.27 per rentable square

foot)

IFMA

Average Water Cost - All

Buildings

1993 $1.29 per rentable square meter

($0.12 per rentable square foot)

IFMA

Total Energy ExpendituresOffice Buildings1992 $18,125 million (25% of sector

total)

EIA

Total Fuel Expenditures -

Mercantile and Service

Buildings

1992 $12,907 million (18% of sector

total)

EIA

Total Fuel Expenditures -

Education Buildings

1992 $7,389 million (10% of sector

total)

EIA
183

Table 6-15. Summary of Baseline Measures: Commercial/Institutional Sector

(continued)

DESCRIPTION YEAR BASELINE SOURCE

PRIVATE OFFICE

BUILDINGS

Average Cleaning Cost 1995 $11.73 per rentable square

meter ($1.09 per rentable square

foot)

BOMA

Average

Roads/Grounds/Security Cost

1995 $5.49 per rentable square meter

($0.51 per rentable square foot)

BOMA

Average Administrative Cost 1995 $11.08 per rentable square

meter ($1.03 per rentable square

foot)

BOMA

Average Maintenance and

Repair Cost

 1995 $14.20 per rentable square

meter ($1.32 per rentable square

foot)

BOMA

Average Utilities Cost 1995 $19.58 per rentable square

meter ($1.82 per rentable square

foot)

BOMA

Average Total Annual

Operating Cost

 1995 $110.61 per rentable square

meter ($10.28 per rentable

square foot)

BOMA

EDUCATION

FACILITIES

Average Custodial (Cleaning)

Cost

 1993 $9.81 per square meter ($0.91

per square foot)

APPA

Average Grounds Cost 1993 $2.96 per square meter ($0.28

per square foot)

APPA

Average Solid Waste

Disposal Cost

 1993 $0.56 per square meter ($0.05

per square foot)

APPA

Average Hazardous Waste

Disposal Cost

1993 $0.398 per square meter ($0.04

per square foot)

APPA

Average Security Cost 199 $3.81 per square meter ($0.354

per square foot)

APPA

Average Building

Maintenance Cost

1993 $9.63 per square meter ($0.90

per square foot)

APPA

Average Electricity Cost 1993 $10.61 per square meter ($0.99

per square foot)

APPA

Average Gas Cost 1993 $3.54 per square meter ($0.33

per square foot)

APPA

Average Water and Sewer

Cost

1993 $0.43 per square meter ($0.04

per square foot)

APPA
184

Table 6-15. Summary of Baseline Measures: Commercial/Institutional Sector

(continued)

DESCRIPTION YEAR BASELINE SOURCE

SHOPPING CENTERS

Open Shopping Centers

Services/Operations

Average Outdoor

Landscaping Cost

 1995 $1.18 per (AAO) square meter

($0.11/square foot)

IREM

Average Snow Removal Cost 1995 $0.54 per (AAO) square meter

($0.05/square foot)

IREM

Average Security Cost 1995 $0.75 per (AAO) square meter

($0.07/square foot)

IREM

Average Trash Removal Cost 1995 $0.86 per (AAO) square meter

($0.08/square foot)

IREM

Average Cleaning Cost 1995 $0.54 per (AAO) square meter

($0.05/square foot)

IREM

Average Other Cost 1995 $0.22 per (AAO) square meter

($0.02/square foot)

IREM

Maintenance and Repair

Average Sweeping Cost 1995 $0.86 per (AAO) square meter

($0.08/square foot)

IREM

Average Parking

Lot/Sidewalk Cost

1995 $0.54 per (AAO) square meter

($0.05/square foot)

IREM

Average Building Roof Cost 1995 $0.32 per (AAO) square meter

($0.03/square foot)

IREM

Average Plumbing Cost 1995 $0.11 per (AAO) square meter

($0.01/square foot)

IREM

Average Electrical Cost 1995 $0.22 per (AAO) square meter

($0.02/square foot)

IREM

Average Painting/Decorating

Cost

1995 $0.22 per (AAO) square meter

($0.02/square foot)

IREM

Utilities

Average Electricity Cost 1995 $1.18 per (AAO) square meter

($0.11/square foot)

IREM

Average Fuel Oil Cost 1995 $1.08 per (AAO) square meter

($0.10/square foot)

IREM

Average Gas Cost 1995 $0.11 per (AAO) square meter

($0.01/square foot)

IREM

Average Steam Cost 1995 $0.54 per (AAO) square meter

($0.05/square foot)

IREM

Average Water and Sewer

Cost

 1995 $0.86 per (AAO) square meter

($0.08/square foot)

IREM
185

7. OM&E Measures for the Industrial Sector

7.1 Key Considerations for the Industrial Sector

This section of the document addresses the issue of data sources, availability, and

constraints in the industrial sector, and summarizes the key data sources which are used

for developing the baseline measures. The section also provides an overview of the

industrial sector.

7.1.1 Data Considerations: Sources, Availability, and Constraints

Preliminary data searches for the industrial sector focused upon organizations such as the

Department of Commerce, Department of Energy, and the International Facility

Management Association. These searches indicated that the majority of national level

data is collected either by the US Bureau of the Census or the Energy Information

Administration (EIA), a part of the US Department of Energy. This document focuses

upon data from these sources for the development of baseline measures.

Data from the US Bureau of the Census

The US Bureau of the Census (USBC) carries out a number of surveys of the US

industrial/manufacturing sector. Surveys/reports of particular interest are the Census of

Manufactures and the Annual Survey of Manufactures.

The Census of Manufactures provides detailed information on selected characteristics

of the manufacturing sector. The survey is carried out every five years; data are currently

available from the 1992 Census. The 1992 Census of Manufactures includes all

establishments with one paid employee or more, primarily engaged in manufacturing.

This includes approximately 380,000 establishments. The SIC Manual defines

manufacturing as the mechanical or chemical transformation of substance or materials

into new products. The assembly of component parts of products is also considered to be

manufacturing. The Census of Manufactures covers 20 major industry groups with 2

digit SIC Codes 20-39 inclusive. The USBC provides two report series from the Census

which are of particular interest. The first is the General Summary Report, which

provides aggregated industry statistics in one report. These include information on

establishment size, number of employees, selected operating costs, and so forth, up to the

4-digit SIC Code level of detail. A second series of reports, the Industry Reports

comprises 83 separate, more detailed reports. The latter reports provide historical

statistics for the industry, selected operating ratios, capital expenditures statistics,

purchased services statistics, product statistics, and material statistics for six-digit SIC

Codes. This level of detail will not be considered in this document.

The Annual Survey of Manufactures presents manufacturing establishments statistical

data for years when the Census of Manufactures is not carried out. It is a less detailed

sample survey of establishments with payroll. Data from the 1995 Annual Survey of
186

Manufactures are available at present. Selected data from USBC are available through

its Internet site (URL: http://www.census.gov), or via electronic or paper publications.

In this document, data from the USBC have been used to characterize the size and nature

of the industrial sector, and to provide some information on operations and maintenance

costs. Where specific data constraints have been found, these have been identified in the

text.

Data from the Energy Information Administration

The EIA carries out the Manufacturing Energy Consumption Survey (MECS), which

is a national sample survey that collects data on energy use in the manufacturing sector.

The MECS sample size is typically around 20,000 establishments. The MECS is a

triennial survey; selected data from the latest survey, conducted in 1994 have recently

become available.

Data from EIA are available through its Internet site (URL: http://www.eia.doe.gov), or

through paper or electronic publications, including the EIA Energy InfoDisc Volume 2,

No.1, 1997, which provides energy data for all four industry sectors. Energy data

provided by EIA are very detailed.

In this document, data from the EIA Report Manufacturing Consumption of Energy

1991 have been used to develop energy cost and consumption baselines for the industrial

sector. The highly detailed nature of the data means that there are no data constraints

Data from the International Facility Management Association

The International Facility Management Association (IFMA) is an association serving the

facility management profession, which provides educational and technical services,

carries out research, certifies facility management competency, and promotes the

profession.

IFMA has carried out a number of benchmarking studies covering both the

commercial/institutional and industrial sectors. Research Report #13, Benchmarks II,

printed in 1994, is the result of a 1993 survey of IFMA members, principally in the

service sector, which presents benchmarking data derived from 283 survey

questionnaires. While the report has a relatively small sample size, it appears to be one of

the few reports available which considers operations, maintenance, and energy costs

across a significant part of the industrial sector in any level of detail. Data from IFMA

are available through its Internet site (URL: http://www.ifma.org), or through paper or

electronic publications.

In this document, data from the IFMA report Benchmarks II have been used to generate

some general baselines for the industrial sector.
187

Data from Other Sources

A wide variety of other data sources were examined. A brief description of some of these

sources is given below:

• The Office of Industrial Technologies (OIT), a part of the Department of Energy,

provides information on selected industries, such as aluminum, chemicals, petroleum

and steel, through its Industries of the Future strategy, which helps benchmark major

manufacturing processes with a view to reducing energy consumption and

environmental impacts. This information can be found on the OIT Internet site (URL:

http://www.oit.doe.gov).

• The United States Geological Survey (USGS) provides data on water consumption by

the commercial sector in the US. These data are available on the USGS Internet site

(URL: http://www.usgs.gov). Data relevant to the industrial sector are included in

this document.

• The National Association of Manufacturers 1995 report “Pulsemark: benchmarks for

US Productivity” provides operational and financial measurements and best practices

based upon a survey of plant-level operations. Information is available on its Internet

site (URL: http://www.nam.org).

• The Office of Naval Research’s Best Manufacturing Practices Program promotes

best manufacturing practices through its Best Manufacturing Practices Center of

Excellence. Information is available at its Internet site (URL:

http://www.bmpcoe.org)

7.1.2 Overview of the Industrial Sector

The overview of the industrial sector presented in this section expands on the overview

presented in Chapter 3 of this document. This section examines the total size of the US

industrial sector (i.e. SIC Codes 20-39), and a number of key industry characteristics. It

also explains some of the difficulties associated with differentiating between process and

non-process activities in the development of baseline measures.

Data from the US Bureau of Economic Analysis show that since 1987, all manufacturing

industries have accounted for approximately 18 percent of GDP in the US in real terms.

Data from the 1987 and 1992 Census of Manufactures show that the total number of

establishments with payroll has risen slightly from 369,000 in 1987 to 382,000 in 1992.

Of these 382,000 establishments, 81,000 were multi-unit companies and 301,000 were

single unit companies. Figure 7-1 shows the size distribution of all industrial

establishments combined in terms of employee size-classification. Reference to the

figure shows that approximately two-thirds of these establishments have less than twenty

employees, while only about three percent have greater than 250 employees. This size

structure did not change significantly between 1987 and 1992. Single unit companies had

a much lower average number of employees (18) compared with multi-unit companies

(162). For multi-unit companies, production workers comprised over 60 percent of total

employees.
188

Figure 7-1. Size of Establishments: 1992

Total Establishments = 382,000

252

2

11

22

85

0

50

100

150

200

250

300

Under 20 20 - 99 100 - 249 250 - 999 Over 1,000

Size (Number of Employees)

Number of Establishments (Thousands)

The Census of Manufactures provides a large amount of data relevant to value of

shipments, value added by manufacturer, payroll costs, materials costs and so forth.

These items are all considered to be predominantly process-oriented, and are therefore

considered to be beyond the scope of this document. This document focuses upon the

non-process costs associated with industrial facilities, which principally include facility

management components, such as building maintenance and repair, facility HVAC and

lighting costs, and so on. However, it is useful to compare process and non-process cost

components, in order to assess the relative importance of introducing process related

energy conservation features, compared with building HVAC conservation features, for

example.

Figure 7-2 compares “value of shipments less purchased services” costs ($2,945 billion)

with purchased services costs, and energy costs for all industrial facilities in 1992. The

figure is based upon sample estimates provided in the Census of Manufactures General

Summary, reference MS92-S-1. Purchased services comprise the cost of purchased

services for the following:

• Buildings and other structures

• Machinery

• Communications

• Legal services

• Accounting and book-keeping

• Advertising

• Software and other data processing

• Refuse removal, including hazardous waste
189

These components include both process and non-process elements. Energy costs

comprise total expenditures for purchased energy sources (i.e. both process and nonprocess). The figure shows that purchased services and energy costs are very small in

comparison with value of shipments costs (approximately 50 percent of value of shipments

costs are raw materials costs, approximately 20 percent are total payroll costs). Thus,

although reductions in process and non-process operations, maintenance, and energy costs

are important, the leverage upon total industry costs is comparatively small in comparison

with the impact of productivity improvements or process efficiencies upon industry

output.

Figure 7-2. Comparison of Value of Shipments, Purchased Services and Energy

Costs, All Industries: 1992

Purchased Services

2% Energy Costs

2%

Value of Shipments 

less Purchased 

Services

96%

The figure for total new capital expenditures in the 1992 Census of Manufactures ($104

billion) can be compared with Value Put in Place (VIP) data presented in Chapter 3 of this

document. VIP data suggest that new construction and additions, alterations, and

reconstruction, amounted to about $53 billion in 1992. Thus it would appear that about

50% of new capital expenditures in the industrial sector are directly attributable to the

construction industry.

In Figure 7-3, purchased services cost components are shown in more detail for all

manufacturers. The figure shows that refuse removal accounts for seven percent of

purchased services, while repair of building accounts for a further nine percent ($5.4

billion). These operations components will be examined in more detail in Section 7-2 of

this document.
190

Figure 7-3. Costs for Selected Purchased Services (All Manufactures): 1992

Total Expenditure = $59,398.8 million

Software 

6%

= $3,777.8 million

Refuse removal

7%

= $4,405.3 million

Repair of Buildings

5%

= $5,426.2 million

Repair of Machinery

20%

= $23,302.3 million

Communications 

4%

= $4,761.6 million

Legal 

3%

= $3,888.6 million

Advertising 

20%

= $11,920.2 million

Accounting and 

bookkeeping

3%

= $1,916.8 million

The totals for repair of buildings ($5.4 billion), and repair of machinery ($23.3 billion),

can be compared with the total value of construction-related maintenance and repair

calculated in Chapter 3 of this document ($21.3 billion). This comparison suggests that

over half of the machinery maintenance and repair reported in the 1992 Census of

Manufactures is attributable to the construction sector.

7.2 Baseline Measures for the Industrial Sector

This section of the document describes in detail the baseline measures for operations,

maintenance, and energy costs in the industrial sector. Section 7.2.1 and Section 7.2.2

make use of Census and EIA data to develop baselines for the whole sector, and for

individual SIC Codes, while Section 7.2.3 presents data from IFMA, which examine

selected unit operating costs for particular types of industrial buildings.

7.2.1 Baseline Measures for Operations and Maintenance Costs

As has already been mentioned in Chapter 4 of this document, operations and

maintenance baselines, exclude process-related cost elements wherever possible. Thus,

for example, the repair of machinery is excluded from maintenance and repair when

possible, as it is likely to include a large component of maintenance and repair which

relates directly to process use or end-product production.

Figure 7-3 showed the relative costs of a variety of purchased services for all SIC Codes

combined. In Figures 7-4 through 7-7, the total cost of purchased services, and the cost
191

per employee for the repair of buildings, and for refuse removal, are shown for each

major 2-digit SIC Code (for a description of the two-digit SIC Codes see Appendix F).

The SIC Codes for the industrial sector are as follows:

• SIC 20 - Food and Kindred Products

• SIC 21 - Tobacco Products

• SIC 22 - Textile Mill Products

• SIC 23 - Apparel and Other Textile Products

• SIC 24 - Lumber and Wood Products

• SIC 25 - Furniture and Fixtures

• SIC 26 - Paper and Allied Products

• SIC 27 - Printing and Publishing

• SIC 28 - Chemicals and Allied Products

• SIC 29 - Petroleum and Coal Products

• SIC 30 - Rubber and Miscellaneous Plastic Products

• SIC 31 - Leather and Leather Products

• SIC 32 - Stone Clay and Glass Products

• SIC 33 - Primary Metal Products

• SIC 34 - Fabricated Metal Products

• SIC 35 - Industrial Machinery and Equipment

• SIC 36 - Electronic and Other Equipment

• SIC 37 - Transportation Equipment

• SIC 38 - Instruments and Related Products

• SIC 39 - Miscellaneous Manufacturing Industries

Reference to Figure 7-4 shows that there is a wide variation in total building repair costs

depending upon SIC Code. In Figure 7-5 costs are normalized on a “per employee” basis

to account for the relative size of each SIC sector, and allow more meaningful

comparison. The very high repair costs in the petroleum refining/petroleum products

industry (SIC 29) are apparent. This is probably due to the high degree of complexity of

refinery structures and relatively small size of the workforce. This is also reflected in

Figure 7-7, which shows refuse removal and hazardous waste removal per employee. It is

worth noting that SIC 29 has one of the ‘highest value added per employee’ ratios in the

industrial sector (the only industry with a higher ratio is SIC 21- tobacco products).

Table 7-1 Part A and Part B, which is based upon data from USGS, shows industrial

water consumption in 1990, by water resources region. Reference to the table indicates

that public supply deliveries accounted for about 21 percent of total water deliveries to

the industrial sector in 1990. The remainder was provided primarily by self supplied

surface water withdrawals. Total consumptive use was 3330 million gallons per day

(12,604 million liters per day) which was approximately 14 percent of total water

deliveries. Since 1980, water consumption in the industrial sector has risen by

approximately 30 percent.
192

Figure 7-4. Total Cost of Purchased Services for the Repair of Buildings by SIC

Code: 1992

496

29

0

82

584

306

202

10

113

302

632

692

217

47

443 444

244 261

54 61

0

100

200

300

400

500

600

700

800

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

SIC Code

Figure 7-5. Cost of Purchased Services per Employee for the Repair of Buildings by

SIC Code: 1992

753

0

55 93 173

417

163

688

2684

223

95

241

456

255

439 420

239

130

330 325

-

500

1,000

1,500

2,000

2,500

3,000

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

SIC Code
193

Figure 7-6. Total Cost of Refuse Removal, Including Hazardous Waste, by SIC

Code: 1992

6

53 40 47

90

792

93 94

439

607

225

189

488

97

35 61

252

158

262

380

0

100

200

300

400

500

600

700

800

900

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

SIC Code

Figure 7-7. Cost of Refuse Removal per Employee, Including Hazardous Waste, by

SIC Code: 1992

253

147 86 41 93 99

419

60

933

2211

174

919

200

663

446

129 131

296

107 95

0

500

1000

1500

2000

2500

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

SIC Code
194

Table 7-1. Industrial Water Use: 1990

Part A: Million Gallons Per Day

Self Supplied Withdrawals Total Use

Region Ground Water Surface Water Total Reclaimed

Waste

Water

Public

Supply

Deliveries

Withdrawals

and Deliveries

Consumptive

Use

Fresh Saline Fresh Saline Fresh Saline Total Fresh Fresh Fresh Saline

New England 96 0 382 68 479 68 547 0 219 698 71 14

Mid-Atlantic 361 0.2 1,370 1,470 1,730 1,470 3,200 63 672 2,400 256 85

South Atlantic-Gulf 896 0 1,920 94 2,810 94 2,910 0.5 855 3,670 470 2.9

Great Lakes 235 3.7 3,950 0 4,190 3.7 4,190 0 852 5,040 458 0.4

Ohio 532 0 1,840 0 2,370 0 2,370 0 615 2,990 297 0

Tennessee 23 0 1,170 0 1,190 0 1,190 0 94 1,290 163 0

Upper Mississippi 349 0 618 0 967 0 967 0 467 1,430 214 0

Lower Mississippi 501 0.6 2,120 67 2,620 67 2,690 0 70 2,690 286 0.4

Souris-Red-Rainy 1.3 0 47 0 49 0 49 0 3.4 52 9.5 0

Missouri Basin 114 0 57 0 171 0 171 0 112 282 87 0

Arkansas-White-Red 67 0 301 0 368 0 368 1.9 257 625 113 0

Texas-Gulf 141 1.1 600 1,460 741 1,460 2,200 20 143 884 359 803

Rio Grande 11 0 1 0 12 0 12 0.5 19 31 16 0

Upper Colorado 2.9 0 2.5 0 5.4 0 5.4 0 4.4 9.7 4.7 0

Lower Colorado 49 0 124 0 174 0 174 2.3 80 254 227 0

Great Basin 77 2.3 29 0 106 2.3 108 0 21 127 55 1

Pacific Northwest 336 0 691 36 1,030 36 1,060 1.6 175 1,200 125 4.8

California 126 0 4.8 25 130 25 156 0.8 495 625 102 0.3

Alaska 5.2 0 106 0 111 0 111 0 18 129 13 0

Hawaii 20 0.6 23 0 43 0.6 44 0 7.5 51 2.2 0

Caribbean 11 1.2 0 50 11 51 62 0 12 23 6.5 1

Total 3,950 9.7 15,400 3,260 19,300 3,270 22,600 90 5,190 24,500 3,330 913
195

Part B. Million Liters Per Day

Self Supplied Withdrawals Total Use

Region Ground Water Surface Water Total Reclaimed

Waste Water

Public

Supply

Deliveries

Withdrawals

and Deliveries

Consumptive

Use

Fresh Saline Fresh Saline Fresh Saline Total Fresh Fresh Fresh Saline

New England 363 0 1,446 257 1,813 257 2,070 0 829 2,642 269 53

Mid-Atlantic 1,366 1 5,185 5,564 6,548 5,564 12,112 238 2,544 9,084 969 322

South Atlantic-Gulf 3,391 0 7,267 356 10,636 356 11,014 2 3,236 13,891 1,779 11

Great Lakes 889 14 14,951 0 15,859 14 15,859 0 3,225 19,076 1,734 2

Ohio 2,014 0 6,964 0 8,970 0 8,970 0 2,328 11,317 1,124 0

Tennessee 87 0 4,428 0 4,504 0 4,504 0 356 4,883 617 0

Upper Mississippi 1,321 0 2,339 0 3,660 0 3,660 0 1,768 5,413 810 0

Lower Mississippi 1,896 2 8,024 254 9,917 254 10,182 0 265 10,182 1,083 2

Souris-Red-Rainy 5 0 178 0 185 0 185 0 13 197 36 0

Missouri Basin 431 0 216 0 647 0 647 0 424 1,067 329 0

Arkansas-White-Red 254 0 1,139 0 1,393 0 1,393 7 973 2,366 428 0

Texas-Gulf 534 4 2,271 5,526 2,805 5,526 8,327 76 541 3,346 1,359 3,039

Rio Grande 42 0 4 0 45 0 45 2 72 117 61 0

Upper Colorado 11 0 9 0 20 0 20 0 17 37 18 0

Lower Colorado 185 0 469 0 659 0 659 9 303 961 859 0

Great Basin 291 9 110 0 401 9 409 0 79 481 208 4

Pacific Northwest 1,272 0 2,615 136 3,899 136 4,012 6 662 4,542 473 18

California 477 0 18 95 492 95 590 3 1,874 2,366 386 1

Alaska 20 0 401 0 420 0 420 0 68 488 49 0

Hawaii 76 2 87 0 163 2 167 0 28 193 8 0

Caribbean 42 5 0 189 42 193 235 0 45 87 25 4

Total 14,951 37 58,289 12,339 73,051 12,377 85,541 341 19,644 92,733 12,604 3,456

7.2.2 Baseline Measures for Energy Costs

Data from the EIA 1991 MECS have been used to generate Figures 7-8 through 7-21 in

this section. Figure 7-8 through 7-12 examine total energy consumption and expenditures

in the industrial sector. Figures 7-13 through 7-21 examine energy end-use in the sector,

and focus upon non-process related energy use for the three primary non-process

categories, which are facility HVAC, facility lighting, and facility support.

Primary energy consumption is defined as all energy consumed by end users, excluding

electricity, but including the energy consumed at electric utilities to generate electricity

(i.e., it accounts for any electricity generation and transmission losses). It includes all

energy produced off site, all energy produced on-site from non-energy sources (e.g.,

hydrogen), net electricity, net steam, and net hot water (these are the sum of purchases,

transfers in, and onsite production from renewables, minus the quantities sold/transferred

off-site), but excludes all energy sources produced onsite as a result of use of another

source (e.g. coal coke produced at steel works). The total primary consumption of energy

for all purposes in the US industrial sector in 1991 was 21.4 quadrillion kilojoules (20.3
196

quadrillion Btu), which compares with 21.2 quadrillion kilojoules (20.1 quadrillion Btu)

in 1988, and 18.5 quadrillion kilojoules (17.5 quadrillion Btu) in 1985. Figure 7-8 shows

the different fuel types which made up this total in 1991. This total primary energy

consumption comprised 2.64 quadrillion kilojoules (2.5 quadrillion Btu) of electricity

delivered to the manufacturing site, 11.1 quadrillion kilojoules (10.5 quadrillion Btu) of

natural gas, coal, fuel oil, and other major energy sources (with 7.9 quadrillion kilojoules

(7.5 quadrillion Btu) of this amount being used to produce heat and power on-site, and

3.17 quadrillion kilojoules (3.0 quadrillion Btu) being used for non-fuel purposes), 1.48

quadrillion kilojoules (1.4 quadrillion Btu) of off-site waste, byproducts and other

materials (0.53 quadrillion kilojoules/0.5 quadrillion Btu used for non-fuel purposes) and

3.27 quadrillion kilojoules (3.1 quadrillion Btu) of onsite-produced energy for heat,

power, and electricity.

Figure 7-8. Total Primary Energy Consumption by Type of Fuel: 1991

Natural Gas

30%

LPG

8%

Coal

10%

Coke and Breeze

2%

Other

35%

Net Electricity

12%

Distillate Fuel Oil

1%

Residual Fuel Oil

2%

Figure 7- 9 shows how total primary energy consumption is distributed by SIC Code for

SIC Codes 20-39. The source data are shown in Table 7-2. Reference to the figure

shows that the two largest consumers of energy in 1991 were the petroleum and coal (SIC

Code 29), and chemicals and allied products (SIC Code 28) major industry groups. Six

industry groups accounted for 88 percent of primary energy consumption. These were

food and kindred products, paper and allied products, chemicals and allied products,

petroleum and coal products, stone, clay and glass products, and primary metals. About
197

two-thirds of primary energy consumption was used to produce heat and power and to

generate electricity, and about one-third was consumed as raw material input.

Figure 7-9. Total Primary Consumption of Energy for All Purposes in Trillion Btu/

Trillion MJ: 1991

0

1000

2000

3000

4000

5000

6000

7000

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

SIC Code

0

1

2

3

4

5

Natural gas was the most heavily consumed energy source in 1991 (30 percent of primary

energy consumption). The chemicals sector accounted for 36 percent of all natural gas

consumption. Net electricity was the second most heavily used source for primary energy

consumption (12 percent), but taking into account site generation, accounted for 29

percent of site energy consumption. Four industry groups consumed 54 percent of

primary energy consumption. These were food and kindred products, paper and allied

products, chemicals and allied products, and primary metals. Of these, primary metals

was the largest consumer. Other energy sources included net steam and other energy used

as fuel or raw material input. Petroleum refinery products such as asphalt road oil and

solvents accounted for 40 percent of these other energy sources (see MECS for rationale

for the inclusion of these items).

Figure 7-10 shows the total expenditures for purchased energy sources by SIC Code in

1991. The highest expenditures occurred in the chemical and primary metal industries,

which have net electricity usage over twice those of any other industries. The paper and

food industries were the third and fourth largest consumers of net electricity respectively,

and this is also reflected in their total primary energy consumption expenditures.
198

Table 7-2. Total Primary Energy Consumption for All Purposes by Fuel Type and

Industry Group: 1991

Part A: Trillion Btu

SIC Code Total Net 

Electricity

Residual 

Fuel Oil

Distillate 

Fuel Oil Natural Gas LPG Coal Coke and Breeze Other

20 956 169 27 17 0 5 154 0 0

21 24 3 1 0 4 0 15 0 0

22 274 101 12 6 108 2 31 0 13

23 44 19 0 1 19 1 2 0 1

24 451 61 2 16 41 4 2 325

25 68 17 1 1 19 1 4 0 26

26 2,506 201 156 9 65 296 0 0 0

27 108 53 0 2 48 1 0 0 4

28 5,051 440 0 14 2,227 0 0 10 526

29 5,967 105 65 21 838 0 0 0 4,864

30 238 116 8 3 96 3 7 0 6

31 12 3 1 1 5 0 0 0 1

32 880 105 9 20 381 0 293 0 0

33 2,467 499 0 11 708 0 853 278 72

34 307 102 3 6 175 4 5 0 0

35 237 101 3 4 109 2 11 1 5

36 212 102 4 2 79 1 0 0 0

37 323 118 12 7 133 2 0 0 17

38 98 42 3 0 26 0 0 0 0

39 32 12 1 0 15 0 1 0 0

All Industries 20,257 2,370 454 146 6,095 1,574 2,006 308 7,304

Part B: Quadrillion Joules

SIC Code Total Net 

Electricity

Residual 

Fuel Oil

Distillate 

Fuel Oil Natural Gas LPG Coal Coke and 

Breeze Other

20 1,009 178 28 18 0 5 162 0 0

21 25 3 1 0 4 0 16 0 0

22 289 107 13 6 114 2 33 0 14

23 46 20 0 1 20 1 2 0 1

24 476 64 2 17 43 4 2 0 343

25 72 18 1 1 20 1 4 0 27

26 2,644 212 165 9 69 312 0 0 0

27 114 56 0 2 51 1 0 0 4

28 5,329 464 0 15 2,349 0 0 11 555

29 6,295 111 69 22 884 0 0 0 5,132

30 251 122 8 3 101 3 7 0 6

31 13 3 1 1 5 0 0 0 1

32 928 111 9 21 402 0 309 0 0

33 2,603 526 0 12 747 0 900 293 76

34 324 108 3 6 185 4 5 0 0

35 250 107 3 4 115 2 12 1 5

36 224 108 4 2 83 1 0 0 0

37 341 124 13 7 140 2 0 0 18

38 103 44 3 0 27 0 0 0 0

39 34 13 1 0 16 0 1 0 0

All Industries 21,371 2,500 479 154 6,430 1,661 2,116 325 7,706
199

Figure 7-10. Total Expenditures for Purchased Energy Sources by SIC Code: 1991

123 474

1,423

421

2,367

83 328

2,3032,063

2,586 2,571

939

3,218

3,757

1,883 1,274

5,385

9,358

15,867

4,637

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

SIC Code

Millions of Dollars

Reference to Figure 7-11, which shows primary energy consumption by size of

establishment, indicates that the larger establishments, whilst far fewer in number,

accounted for a higher proportion of primary energy consumption compared with smaller

establishments. For example, establishments with over 1,000 employees accounted for

less than 1 percent of total establishments in the industrial sector, but accounted for

approximately 30 percent of total primary energy consumed by the industrial sector.

Figure 7-12 shows primary energy consumption on a per-employee basis, by size of

establishment. The figure also shows that energy consumption on a per employee basis is

greater in larger establishments.

Figures 7-13 through 7-21 compare process and non-process energy inputs based upon

inputs of power for heat, power, and electrical generation. This energy measure includes

all energy sources used to produce heat and power, and to generate electricity whether

produced off-site or on-site. It also includes net electricity, steam, or hot water, but

excludes all energy sources used as raw material or for other non-fuel uses.
200

Figure 7-11. Total Primary Consumption of Energy by Size of Establishment: 1991

0

5000

10000

15000

20000

25000

Under 50 50-99 100-249 250-499 500-999 1000 and

over

Not

ascertained

Total

Employment Size

Trillion Btu

0

5

10

15

20

25

Trillion MJ

Figure 7-12. Consumption per Employee by Employment Size: 1991

Average Consumption per Employee 

= 976.6 million Btu (1.03 million MJ)

0

200

400

600

800

1000

1200

1400

1600

Under 50 50-99 100-249 250-499 500-999 1000 and

Over

Employment Size

Consumption per Employee

(million Btu)

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Consumption per Employee 

(million MJ)
201

Total input of energy for heat, power, and electrical generation in 1991 was 15.8

quadrillion kilojoules (15.0 quadrillion Btu), compared with 16.4 quadrillion kilojoules

(15.5 quadrillion Btu) in 1988, and 14.3 quadrillion kilojoules (13.6 quadrillion Btu) in

1985. Figure 7-13 shows the total inputs of energy for heat, power, and electrical

generation by fuel type and end use (i.e. total inputs for both process use, and nonprocess- see Chapter 4 of this document and MECS for full definitions). It should be

noted that the figure does not show boiler fuel end-use, which accounted for

approximately one third of end use consumption. Reference to the figure shows that

natural gas was the dominant energy source followed by other fuels (blast furnace gases,

waste gas, petroleum coke, pulping liquor, wood byproducts, and waste oil materials),

and net electricity. Energy produced off-site made up 72 percent of total inputs; fuels

produce on-site made up the remaining 28 percent. The major consumers of energy for

heat, power, and electrical generation are the same as those for primary energy

consumption. The major consumers of byproduct energy were the blast furnace,

petroleum refining, and pulp and paper industries, which primarily used byproduct energy

for boiler fuel.

Figure 7-14 compares total process and non-process uses of energy for electricity and

natural gas (this document focuses upon these two fuel types, as byproduct energy is not

associated with non-process uses such as facility HVAC, which are of interest here).

Reference to this figure shows that natural gas non-process uses accounted for 13 percent

of total gas and electricity consumption, and net electricity non-process uses accounted

for 7 percent. Thus 80 percent of gas and net electricity consumption for heat power and

electrical generation was attributed to process-related uses. When all energy sources are

considered, direct non-process uses accounted for only 12 percent of total energy

consumption for heat, power, and electrical generation in 1991.

Figure 7-15 and Figure 7-16 show how process and non-process inputs of net electricity

and gas varied by end use. Reference to the two figures indicates that the largest nonprocess end-uses of net electricity and natural gas were facility HVAC, facility lighting

and facility support (e.g., computing).

Figure 7-17 shows how non-process inputs of net electricity and natural gas are

distributed between the three largest non-process categories defined in the MECS (i.e.,

facility HVAC, facility lighting, and facility support). Facility HVAC inputs accounted

for about three percent of all process and non-process energy inputs, lighting accounted

for about one percent, and facility support accounted for less than half of one percent.

Thus non-process facility costs are very small compared with process costs.
202

Figure 7-13. Total Inputs of Energy for Heat Power and Electrical Generation by

Type of Fuel and Primary End Use: 1991

0

1,000

2,000

3,000

4,000

5,000

6,000

Net Electricity 

Residual Fuel

Oil 

Distillate Fuel

Oil and Diesel

Natural Gas

LPG 

Coal(excluding

Coal Coke and

Breeze)

Other

Fuel Type

Trillion Btu

0

1

2

3

4

5

6

Trillion MJ

Total Inputs

Total Process Uses

Total Non-Process Uses

Figure 7-14. Comparison of Process and Non-Process Uses of Energy for Heat

Power and Electrical Generation for Electricity and Natural Gas: 1991

Natural Gas Total 

Process Uses

46%

Net Electricity Total 

Non-Process Uses

7%

Natural Gas Total NonProcess Uses

13%

Net Electricity Total 

Process Uses

34%
203

Figure 7-15. Total Inputs of Net Electricity for Heat Power and Electricity Generation by End Use: 1991

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Total Inputs

Boiler Fuel

Total Process Uses

Process Heating

Process Cooling and

Refrigeration

Machine Drive

Electro-Chemical

Processes

Other Process Use

Total Non-Process

Uses

Facility Heating,

Ventilation and Air

Conditioning

Facility LightingFacility Support

Onsite Transportation

Conventional Electriity

Generation

Other Non-Process

Use

End Use Not Reported

End Use

Net Electricity (million kWh)

Note: Boiler Fuel Data Withheld by EIA
204

Figure 7-16. Total Inputs of Natural Gas for Heat Power and Electrical Generation by End Use: 1991

0

1,000

2,000

3,000

4,000

5,000

6,000

Total Inputs

Boiler Fuel

Total Process Uses

Process Heating

Process Cooling and

Refrigeration

Machine Drive

Electro-Chemical

Processes

Other Process Use

Total Non-Process

Uses

Facility Heating,

Ventilation and Air

Conditioning

Facility LightingFacility Support

Onsite

Transportation

Conventional

Electriity Generation

Other Non-Process

Use

End Use Not

Reported

End Use

Natural Gas (billion cubic feet)

0

20

40

60

80

100

120

140

160

Natural Gas (billion cubic meters)
205

Figure 7-17. Non-Process Inputs of Electricity and Natural Gas by End Use: 1991

0

50

100

150

200

250

300

Facility Heating,

Ventilation and Air

Conditioning

Facility Lighting Facility Support

Non-Process End Use

Trilliton Btu

Net Electricity 

Natural Gas

Figure 7-18 and Figure 7-19 compare inputs of net electricity and natural gas for heat

power and electrical generation by SIC Code. Reference to these two figures indicates

that many industries only use a small percentage of the energy they consume for nonprocess end-uses, as expected. It should be noted that the figures are not truly indicative

of the scale of the difference between total process and non-process energy inputs, as they

do not include boiler fuel, which is a major component of process-related energy

consumption. However, in those industries where assembly-type manufacturing takes

place in large, environmentally controlled buildings, non-process consumption can be

more significant. Examples of this are the furniture and fixtures industry (SIC 25), where

32 percent of energy consumption is non-process related, the transportation equipment

industry (SIC 37), where 25 percent is non-process related, and the office equipment

industry (SIC 36), where 43 percent is non-process related. The source data are shown in

Table 7-3 Part A and Part B.

Figure 7-20 and Figure 7-21 show how total inputs of net electricity and natural gas for

primary non-process end-uses vary by SIC Code. Reference to Figure 7-20 indicates that

net electricity inputs for HVAC and lighting are of similar magnitude in most industries,

and are generally much higher than facility support costs. In comparison, Figure 7-21

shows that the majority of natural gas consumption is attributable to HVAC use only.
206

Figure 7-18. Total Net Electricity Inputs for Heat Power and Electrical Generation

by SIC Code and End Use: 1991

0

50

100

150

200

250

300

350

400

450

500

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

SIC Code

Trillion Btu

0.0000

0.1000

0.2000

0.3000

0.4000

0.5000

Trillion MJ

Total Process Uses

Total Non-Process Uses

Figure 7-19. Total Natural Gas Inputs for Heat and Power and Electrical

Generation by SIC Code and End Use: 1991

0

100

200

300

400

500

600

700

800

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

SIC Code

Trillion Btu

0.0000

0.1000

0.2000

0.3000

0.4000

0.5000

0.6000

0.7000

Trillion MJ

Total Process Uses

Total Non-Process Uses
207

Table 7-3. Total Net Electricity and Natural Gas Inputs for Heat, Power and

Electrical Generation by SIC Code and Selected End Use: 1991

Part A: Trillion Btu

SIC Code Net Electricity Natural Gas

Total 

Process 

Uses

Total NonProcess Uses

Facility Heating, 

Ventilation and Air 

Conditioning

Facility 

Lighting

Facility 

Support

Total 

Process 

Uses

Total NonProcess Uses

Facility Heating, 

Ventilation and 

Air Conditioning

Facility 

Support

20 131 27 12 12 3 144 35 20 2

21 2 1 0 0 0 1 0 0 0

22 73 25 14 9 1 31 4 4 0

23 9 7 4 3 0 6 4 4 0

24 48 6 2 3 1 19 5 5 0

25 11 5 2 2 0 7 7 7 0

26 171 20 9 9 2 124 54 0 0

27 26 19 10 7 2 17 12 11 1

28 387 41 21 15 4 673 256 0 4

29 94 9 4 4 1 460 110 10 2

30 90 20 9 9 2 19 16 15 0

31 2 1 0 0 0 1 0 0 0

32 89 12 6 5 1 332 19 17 1

33 454 36 16 16 3 522 54 44 6

34 70 24 10 11 2 91 37 34 2

35 56 36 17 15 4 37 33 31 0

36 59 38 21 13 4 32 15 15 1

37 68 43 20 18 4 53 28 25 2

38 18 22 11 8 2 4 6 6 0

39 7 4 2 2 5 4 3 0 0

Part B: Quadrillion Joules

SIC Code Net Electricity Natural Gas

Total 

Process 

Uses

Total NonProcess Uses

Facility Heating, 

Ventilation and Air 

Conditioning

Facility 

Lighting

Facility 

Support

Total 

Process 

Uses

Total NonProcess Uses

Facility Heating, 

Ventilation and 

Air Conditioning

Facility 

Support

20 138 28 13 13 3 152 37 21 2

21 2 1 0 0 0 1 0 0 0

22 77 26 15 9 1 33 4 4 0

23 9 7 4 3 0 6 4 4 0

24 51 6 2 3 1 20 5 5 0

25 12 5 2 2 0 7 7 7 0

26 180 21 9 9 2 131 57 0 0

27 27 20 11 7 2 18 13 12 1

28 408 43 22 16 4 710 270 0 4

29 99 9 4 4 1 485 116 11 2

30 95 21 9 9 2 20 17 16 0

31 2 1 0 0 0 1 0 0 0

32 94 13 6 5 1 350 20 18 1

33 479 38 17 17 3 551 57 46 6

34 74 25 11 12 2 96 39 36 2

35 59 38 18 16 4 39 35 33 0

36 62 40 22 14 4 34 16 16 1

37 72 45 21 19 4 56 30 26 2

38 19 23 12 8 2 4 6 6 0

39 7 4 2 2 5 4 3 0 0
208

Figure 7-20. Total Net Electricity Inputs for Facility HVAC, Lighting and Facility

Support: 1991

0

5

10

15

20

25

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

SIC Code

Trillion Btu

0.0000

0.0050

0.0100

0.0150

0.0200

0.0250

Trillion MJ

Facility Heating, Ventilation and Air Conditioning

Facility Lighting

Facility Support

Figure 7-21. Total Natural Gas Inputs for Facility HVAC and Facility Support:

1991

0

5

10

15

20

25

30

35

40

45

50

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

SIC Code

Trillion Btu

0.0000

0.0050

0.0100

0.0150

0.0200

0.0250

0.0300

0.0350

0.0400

0.0450

Trillion MJ

Facility Heating, Ventilation and Air Conditioning

Facility Support
209

7.2.3 Baseline Measures for Operations, Maintenance, and Energy Costs Using

Data from the International Facility Management Association (IFMA)

Data which are presented in Section 7.2 of this document are sufficiently detailed to

establish energy baselines for the industrial sector. However, data that has been presented

so far for operations and maintenance costs in the sector are of a highly aggregated nature,

and are of limited usefulness for establishing baselines. For this reason, data from the

International Facility Management Association (IFMA) are used to establish more

detailed baselines for the industrial sector. When interpreting these data, it must be

remembered that the IFMA study is based upon a comparatively small survey sample, and

that all of the survey data are from IFMA members, and may not therefore represent

‘norms’ of industry-wide performance. However, in the absence of more comprehensive

research data, it is considered to be reasonable to make use of the IFMA data, at least to

establish some general baseline measures.

The IFMA Research Report “Benchmarks II” provides benchmark data for both the

commercial/institutional and industrial sectors. In this section of the document, only data

relevant to the industrial sector have been used. IFMA uses the following facility

categories in its report:

• Chemicals (chemicals, pharmaceuticals)

• Computers (computers, telecommunications, electronics)

• Consumer products (consumer products, food and related)

• Energy/mining (energy-related, mining)25

• Motor vehicles (motor vehicles, aircraft, industrial equipment)

• Other manufacturing

These classifications can be compared with the SIC Codes, as shown below:

IFMA Classification SIC Classification

Chemicals 28 - Chemicals and Allied Products

Computers 35 - Industrial and Commercial Machinery and

Computer Equipment

Consumer Products No Comparable Classification (primarily SIC 20,

21, 22, 23)

Motor Vehicles 37 - Transportation Equipment

Other 39 - Miscellaneous Manufacturing Establishments

 

25 Although mining is not included in this document, energy production/power generation

is considered as part of the public works sector in this document (See Chapter 8).
210

Because these classifications are different, it is not considered to be practical to attempt to

adjust IFMA data to match SIC Codes. Thus IFMA data are presented in the same format

as shown in the Benchmarks II report. However, where possible, comparisons are made

between IFMA data and Census data. IFMA also categorizes facilities by the

predominant use of that facility (e.g., customer service, computer center, research, factory

plant, etc.). However, no data using this form of categorization are used in this

document, primarily because the data cannot be mapped back into the building type with

the size of the survey sample given.

Table 7-4 shows the mean gross, rentable, and usable area of the sample facilities

according to industry type, in square feet and square meters respectively. Gross area is

defined by IFMA as the total of all floor areas of the building. Rentable area is computed

by measuring the inside finished surface of the dominant portion of the permanent outer

building wall and subtracting all major vertical penetrations. Usable area measures the

actual occupiable area of the building, and excludes circulation areas, common areas,

meeting areas and so forth from the rentable area calculation. Reference to Table 7-4

shows that the largest proportion of the surveyed buildings were in the computing

category. For those building types where the sample size is below 20, care should be

taken in interpreting the data. The data are presented graphically in Figure 7-22.

Table 7-5 shows the mean gross, rentable, and usable area per employee for the sample

facilities, according to type of building. The mean gross square feet per employee for the

sample was 45 square meters (479 square feet).

Table 7-4. IFMA Survey Sample: Gross, Rentable and Useable Floorspace by

Industry Type: 1993

Means Means

Industry Type N Gross

Sq.Ft.

Rentable

Sq.Ft.

Usable

Sq.Ft.

Gross Sq.

Meters

Rentable

Sq. Meters

Usable Sq.

Meters

Chemicals 9 628,658 455,242 437,537 58402 42292 40647

Computers 37 902,541 849,186 700,227 83846 78889 65051

Consumer

Products

18 350,294 338,766 290,659 32542 31471 27002

Energy/Mining 16 787,187 647,820 503,843 73130 60182 46807

Motor Vehicles 11 1,550,082 1,376,382 1,166,022 144003 127866 108323

Other

Manufacturing

22 689,711 642,967 598,959 64074 59732 55643
211

Figure 7-22. IFMA Survey Sample: Gross, Rentable and Useable Floorspace by

Industry Type: 1993

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Chemicals Computers Consumer

Products

Energy/MiningMotor Vehicles Other

Manufacturing

Industry Type

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000 Gross Area

Rentable Area

Usable Area

Table 7-5. IFMA Survey Sample: Gross, Rentable and Useable Floorspace per

Employee by Industry Type and Facility Use

Means Means

Industry Type N Gross

Sq.Ft.

Rentable

Sq.Ft.

Usable

Sq.Ft.

Gross Sq.

Meters

Rentable

Sq. Meters

Usable Sq.

Meters

Chemicals 8 433 349 341 40 32 32

Computers 36 434 424 324 40 39 30

Consumer

Products

16 379 356 289 35 33 27

Energy/Mining 14 533 493 359 50 46 33

Motor Vehicles 10 495 468 380 46 43 35

Other

Manufacturing

21 607 549 473 56 51 44
212

In Figures 7-23 through 7-31, a variety of operations, maintenance, and energy costs are

compared for each building type on a dollars per year per rentable square foot/square

meter basis. These include the following:

Operations

• Janitorial Costs - these are the costs associated with the cleaning of offices and other

work areas, rest-rooms, cafeteria, and support space

• Environmental Costs - these include building concerns, such as ‘sick building

syndrome’ and asbestos abatement, which incur consulting fees and monitoring costs,

as well as waste removal for standard and hazardous trash, and recycling costs

• Life Safety Costs - these include fire and safety equipment

• Indirect Costs - these include exterior maintenance costs, such as landscaping and

grounds, roadways, and parking facilities

• Security Costs - these include building and site security costs

Maintenance

• Maintenance Costs - these include items for the upkeep of the building and its

components such as HVAC, electrical and plumbing systems, elevators and painting

Energy

• Utility Costs - these include electricity, gas, steam, and water (note that ‘water’ has

previously been categorized under ‘operations’ in this document)

Figure 7-23 presents janitorial cost data in dollars per rentable square foot ($/RSF) and

dollars per rentable square meter ($/RSM). Costs range from $9.36/RSM ($0.87/RSF)

for “other manufacturing establishments” to $14.75/RSM ($1.37/RSF) in chemicals

establishments. Figure 7-24 and Figure 7-25 show environmental cost data. The highest

costs occur in the motor vehicles category, primarily due to a high component of

hazardous trash removal. Non-hazardous trash removal costs are relatively consistent

across all facility types, with a mean cost of $1.29/RSM ($0.12/RSF). Figure 7-26 shows

life safety costs by industry type. These are highest in the motor vehicles sector

($2.80/RSM/$0.26/RSF). In Figure 7-27, indirect costs are shown by industry type.

Reference to the figure shows that these are highest in chemical facilities. Figure 7-28

shows security costs. These are relatively consistent across all industry types, at around

$11.84/RSM ($1.10/RSF), with the exception of energy/mining, where security costs are

lower at $7.53/RSM ($0.70/RSF).
213

Figure 7-23. Janitorial Costs by Industry Type

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Chemicals Computers Consumer

Products

Energy/Mining Motor Vehicles Other

Manufacturing

Industry Type

Dollars per Rentable Square Foot

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Dollars per Rentable Square Meter

Figure 7-24. Environmental Costs by Industry Type

0.00

0.10

0.20

0.30

0.40

0.50

0.60

Chemicals Computers Consumers

Products

Energy/Mining Motor Vehicles Other

Manufacuring

Industry Type

Dollars per Rentable Square Foot

0

1

2

3

4

5

6

Dollars per Rentable Square Meter
214

Figure 7-25. Detailed Environmental Costs by Industry Type

0.00

0.05

0.10

0.15

0.20

0.25

0.30

Chemicals Computers Consumer

Products

Energy/Mining Motor Vehicals Other

Manufacturing

Industry Type

Mean Dollars per Rentable Square Foot

0

0.5

1

1.5

2

2.5

3

Mean Dollars per Rentable Square Meter

Monitoring

Consulting

Trash Removal

Hazardous Trash Removal

Recycling

Figure 7-26. Life Safety Costs by Industry Type

0.00

0.05

0.10

0.15

0.20

0.25

0.30

Chemicals Computers Consumer

Products

Energy/Mining Motor Vehicles Other

Manufacturing

Industry Type

Dollars per Rentable Square Foot

0

0.5

1

1.5

2

2.5

3

Dollars per Rentable Square Meter
215

Figure 7-27. Indirect Costs by Industry Type

0.00

0.10

0.20

0.30

0.40

0.50

0.60

Chemicals Computers Consumer

Products

Energy/Mining Motor Vehicles Other

Manufacturing

Industry Type

Dollars per Rentable Square Foot

0

1

2

3

4

5

6

Dollars per Rentable Square Meter

Figure 7-28. Security Costs by Industry Type

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

Chemicals Computers Consumer

Products

Energy/Mining Motor Vehicles Other

Manufacturing

Industry Type

Dollars per Rentable Square Foot

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Dollars per Rentable Square Meter
216

In Figure 7-29, maintenance costs are also shown to be relatively consistent across the

industrial sector, ranging from $25.19/RSM to $31.00/RSM ($2.34/RSF to $2.88/RSF),

with a mean cost of $28.95/RSM ($2.69/RSF). The IFMA report also provides

information about the amount spent on maintenance and repair compared with preventive

maintenance. The data indicate that more time is spent on preventive maintenance for

security and life safety systems compared with electrical, building, structural repair and

painting activities. However, overall, almost twice as much is spent on maintenance

repair compared with preventive maintenance.

Finally, Figure 7-30 and Figure 7-31 show utility costs by building type. Again, total

utility costs are similar across the sector, ranging from $25.19/RSM to $31.00/RSM

($2.34/RSF to $2.88/RSF), with a mean value of $28.85/RSM ($2.68/RSF). Reference to

Figure 7-31 indicates that utility costs are dominated by electricity costs (generally over

75 percent of total utility costs). Electricity costs are highest in the computer sector. The

mean electricity cost is $23.79/RSM ($2.21/RSF), the mean cost for oil, gas, and steam is

$3.44/RSM ($0.32/RSF), and the mean water cost is $1.61/RSM ($0.15/RSF).

Figure 7-29. Maintenance Costs by Industry Type

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Chemicals Computers Consumer

Products

Energy/Mining Motor Vehicles Other

Manufacturing

Industry Type

Dollars per Rentable Square Foot

0

5

10

15

20

25

30

Dollars per Rentable Square Meter
217

Figure 7-30. Total Utility Costs by Industry Type

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Chemicals Computers Consumer

Products

Energy/Mining Motor Vehicles Other

Manufacturing

Industry Type

Dollars per Rentable Square Foot 

0

5

10

15

20

25

30

Dollars per Rentable Square Meter 

Figure 7-31. Utility Costs by Fuel Type and by Industry Type

0.00

0.50

1.00

1.50

2.00

2.50

3.00

Chemicals Computers Consumer

Products

Energy/Mining Motor Vehicles Other

Manufacturing

Industry Type

Dollars per Rentable Square Foot 

0

5

10

15

20

25

Dollars per Rentable Square Meter 

Electricty

Oil/Gas/ Steam

Water
218

Some of the IFMA data for operations, maintenance, and energy costs can be compared

with general industrial sector Census data presented in Section 7-1 of this document.

However, in order to do this, given that census data are only available regarding number

of establishments and not total floorspace, one has to estimate the cost per establishment

from IFMA data, based upon the sample data.

The problem in doing this is that the IFMA data are probably not representative of the

entire manufacturing sector, given that many establishments have under twenty

employees, which were unlikely to be included in the IFMA sample. Therefore, if we

were to examine just one part of the industrial sector, which is likely to be characterized

by larger establishments, such as the chemicals and allied products industry (SIC 28), a

comparison between IFMA data and census data would be more valid.

SIC 28 comprised 12004 establishments in 1992, of which 5004 had more than 20

employees. The mean rentable area of the IFMA sample chemical facilities was 42,2943

square meters (455,242 square feet). We can therefore calculate the following mean costs

for the industrial sector:

Description Estimated Mean Cost Mean Cost

(based upon Census Data) (from IFMA data)

Purchased Fuels & Electric Energy $20.64/RSM26 $25.83/RSM

$1.92/RSF $2.40/RSF

Total Repair Services $7.10/RSM $25.83/RSM

(buildings, and machinery) $0.66/RSF $2.40/RSF

Refuse Removal (inc. hazardous) $1.51/RSM $1.18/RSM

$0.14/RSF $0.11/RSF

This comparison suggests that the IFMA figures are of the right order of magnitude for

this part of the sector (SIC 28). However, it is not considered to be advisable to extend

IFMA “mean” OM&E values from all categories to the entire industrial sector, given that

the mean RSF/establishment figures from the IFMA sample may not be representative of

the true industry “mean”. For this reason, IFMA data should only be used at the building

type specific level, as presented in this document, to generate baseline measures.

7.2.4 Energy Conservation in the Industrial Sector

This section addresses some general issues concerning energy conservation in the

industrial sector. This section examines fuel switching capability within the industrial

sector, and looks at the level of participation in energy management programs. It also

describes a variety of useful sources of information relating to energy conservation in the

sector.

 

26 Calculated as follows: $10,476.2 million/(42,293 m2

 area x 12,004 establishments)=$20.64/RSM

$10,476.2 million/(455,242 ft2 area x 12,004 establishments)=$1.92/RSF
219

The 1991 MECS provides detailed information on the ability of manufacturers to switch

between different types of fuel, in order to adapt to changes in economic conditions or

fuel supply interruptions, and thus reduce their fuel expenditures. This varies from one

industry to another, depending on the technologies and circumstances involved. For

example, many boilers may be able to use either natural gas or residual fuel oil, but few

can switch between natural gas and electricity. In 1991, manufacturers could switch 2.8

quadrillion Btu of all fuels, which represented 28 percent of total consumption. In 1991,

manufacturers reported being able to replace 40 percent of switchable natural gas

consumption with distillate fuel oil or 34 percent with residual fuel oil. However, the

switching potential for electricity is much more limited. Only two percent of

manufacturing electricity consumed in 1991 could have been replaced by alternatives.

While 45 percent of coal consumption was switchable, because coal was cheaper than any

competing fuel, there was little incentive to switch. For more detail on this subject refer

to the MECS.

The MECS also provides information on participation levels in various demand side

management (DSM) programs and other energy management programs. The greatest

benefits achieved through energy efficiency programs would be through improvement of

direct process operations, as these are a much greater consumer of energy compared with

non-process operations (only 12 percent of total energy consumed). From 1989 through

1991, the level of participation in direct process operation DSM programs, expressed as a

percentage of total input energy use was as follows: installing or retrofitting motors to

achieve better efficiency (36 percent), improving the efficiency of process heating (34

percent) and improving the efficiency of process cooling (15 percent).

To improve the energy efficiency of direct non-process operations, manufacturing

establishments also participated in other DSM programs. From 1989 through 1991, their

participation, expressed in terms of total input energy used by participating

establishments was as follows: improving the efficiency of facility lighting (36 percent),

and installing equipment to improve facility HVAC systems (23 percent). These data are

shown in Table 7-6. The MECS also provides information about the level of usage of

computer control systems for the building environments, which, for brevity are not

included here.

A variety of other sources of information have been identified which provide very

detailed information about manufacturing processes, and ways of improving process

efficiencies, for certain parts of the industrial sector. Although this is beyond the scope of

this document, given that the focus is upon non-process related activities, details of some

of the data sources are given below.

The Office of Industrial Technologies (OIT) provides detailed information about the

aluminum, chemicals, forest products, glass, metalcasting, petroleum, and steel industries,

which use more than 80 percent of the energy consumed by the US manufacturing sector.

A series of “technology roadmaps” are being developed which include performance goals

for each of those industries.
220

Table 7-6. Participation in Selected Demand Side Management Programs

Part A: Energy Input Attributable to Program in Trillion Btu

Energy Input Attributable to Energy Program

Census Region

SIC 

CODE

Participation in One or More of the Following Types of 

Programs All US Northeast Midwest South West

20-39 TOTAL ENERGY INPUTS 15,027 1,635 3,833 7,507 2,052

Energy Audits 7,083 665 2,085 3,543 791

Direct Electricity Load Control 5,086 664 1,459 2,536 427

Special Rate Schedule 6,517 813 1,708 3,225 772

Standby Generation Program 1,133 102 426 521 84

Equipment Rebate(s) 783 201 216 77 289

Equipment Installation or Retrofit for the Primary Purpose 

of Improving Energy Efficiency Affecting:

Steam Production 4,757 375 1,403 2,389 599

Direct/Indirect Process Heating 5,146 552 1,453 2,458 682

Direct Process Cooling/Refrigeration 2,212 167 579 1,193 272

Direct Machine Drive 5,354 570 1,465 2,575 744

Facility Heating, Ventilation, and Air Conditioning 3,424 388 1,325 1,330 381

Facility Lighting 5,405 828 1,788 2,068 721

Equipment Installation/Retrofit for the Primary Purpose of 

Using a Different Energy Source 1,693 213 541 681 258

Other 376 47 105 178 45

Part B: Energy Input Attributable to Program in Quadrillion Joules

Energy Input Attributable to Energy Program

Census Region

SIC 

CODE

Participation in One or More of the Following Types of 

Programs All US Northeast Midwest South West

20-39 TOTAL ENERGY INPUTS 15,853 1,725 4,044 7,920 2,165

Energy Audits 7,473 702 2,200 3,738 835

Direct Electricity Load Control 5,366 701 1,539 2,675 450

Special Rate Schedule 6,875 858 1,802 3,402 814

Standby Generation Program 1,195 108 449 550 89

Equipment Rebate(s) 826 212 228 81 305

Equipment Installation or Retrofit for the Primary Purpose 

of Improving Energy Efficiency Affecting:

Steam Production 5,019 396 1,480 2,520 632

Direct/Indirect Process Heating 5,429 582 1,533 2,593 720

Direct Process Cooling/Refrigeration 2,334 176 611 1,259 287

Direct Machine Drive 5,648 601 1,546 2,717 785

Facility Heating, Ventilation, and Air Conditioning 3,612 409 1,398 1,403 402

Facility Lighting 5,702 874 1,886 2,182 761

Equipment Installation/Retrofit for the Primary Purpose of 

Using a Different Energy Source 1,786 225 571 718 272

Other 397 50 111 188 47
221

Table 7-7 and Table 7-8 are extracted from the 1997 Report of the Aluminum Technology

Workshop sponsored by OIT and the Aluminum Association. Aluminum industry energy

expenditures represent about nine percent of total sales, which is the highest in the

manufacturing sector (industry average is approximately two percent of sales). Table 7-7

shows performance targets established for the aluminum industry, while Table 7-8 shows

targets for the primary products sector of the aluminum industry (this considers the

products of molten aluminum). As can be seen, these targets are very detailed. Other

data sources are shown in Section 7.1.

Table 7-7. Performance Targets for the Aluminum Industry

Cost and Productivity Targets

1. Reduce the costs associated with metal production by 25 %

2. Reduce the cost ratio of aluminum to steel to less than 3-1 for auto applications

3. Increase capital productivity of the aluminum industry

4. Reduce product costs and product lead times through process re-engineering

Market Targets

5. Increase aluminum use in auto markets by 40% in five years

6. Increase aluminum use in non-auto transportation markets

7. Increase aluminum use in infrastructure markets by 50%

8. Increase aluminum use in building and construction markets

Environmental Targets

9. Recycle and treat all types of aluminum wastes

10. Increase recyclability of aluminum scrap

11. Achieve 80% wrought recycling of autos by 2004

Energy Targets

12. Increase the efficiency of the Hall-Heroult cell process to over 97%

13. Reduce overall energy intensity of aluminum production

Health and Safety Targets

14. Increase the health and safety of workers

Workforce Targets

15. Increase the level of training and knowledge of the existing aluminum workforce

16. Increase the number of qualified scientists and engineers available to the aluminum

industry

Source: 1997 Report of the Aluminum Technology Workshop - The Office of

Industrial Technologies/Department of Energy
222

Table 7-8. Performance Targets for the Aluminum Industry Primary Products

Sector

DETAILED PERFORMANCE TARGETS

1. Improve the efficiency of the Hall-Heroult Cell:

Achieve an average efficiency of 97% on an annual basis (currently between 93 and

96%)

Reduce the energy intensity of aluminum production to 13kWh/kg (5.9 kWh/lb) using

retrofit technology (currently estimated to be 15.2kWh/kg/6.9kWh/lb) in near to mid

term

Reduce the energy intensity of aluminum production to 11kWh/kg (5kWh/lb) in the

long term

Reduce capital cost of aluminum production to $2500 per annual metric ton of

capacity

Cost-effectively minimize the generation of perfluorcarbons (PFCs)

2. Improve Bayer process productivity by approximately 20%

3. Reduce/eliminate carbon dioxide emissions during smelting

4. Enhance aluminum recycling technologies:

 Increase education on existing technologies

 Minimize or eliminate formation/landfilling of dross and salt cake

5. Improve metal quality:

 Adapt to using alternative sources of carbon

 Reduce impurities in recycled alumina

6. Reduce the cost of aluminum reduction by 25% using alternative technologies

7. Develop new uses for wastes and byproducts from aluminum processes

Source: 1997 Report of the Aluminum Technology Workshop - The Office of

Industrial Technologies/Department of Energy

7.3 Summary of Baseline Measures for the Industrial Sector

This section summarizes the baseline measures for the industrial sector which are

presented in Sections 7.2.1, 7.2.2 and 7.2.3 of this document. The summary data

concentrate upon cost rather than consumption, and are presented in Table 7-9 below.

Table 7-9 shows general information relating to the industrial sector, as well as key

operations, maintenance, and energy baseline data. The ‘General Information’ section

describes the total expenditures for new construction, maintenance and repair, and

improvements in the industrial sector in 1994. The section also shows the number of

industrial establishments in 1992.

The ‘Operations’ section provides baseline measures for water consumption (cost data are

not available) at an aggregated level, and for refuse removal for all industrial SIC Codes

20 through 39, both at an aggregated level, and for each individual SIC Code. The
223

‘Maintenance’ section provides information on maintenance and repairs for buildings

and structures, and for machinery. Baselines for repair of buildings are shown for each

SIC Code 20 through 39. Finally, the ‘Energy’ section provides information on total

energy expenditures for all fuel sources, at an aggregated level for all SIC Codes, and

then for each individual SIC Code. The energy baselines presented in the table include

both process and non-process energy components. These data are presented because all

other energy data provided in this document consider energy consumption measures,

rather than expenditure measures, as this is the only information available from EIA.

Summary of Abbreviations Used in Table 7-9

VIP Value of New Construction Put in Place

USGS United States Geological Survey

EIA Energy Information Administration
224

Table 7-9. Summary of Baseline Measures: Industrial Sector

DESCRIPTION YEAR BASELINE SOURCE27

GENERAL

INFORMATION

Value of New Construction

Put in Place

1994 $28,161 million (constant 1992

dollars)

Census VIP

Data

Total Maintenance and

Repair Expenditures

1994 $22,521 million (constant 1992

dollars)

Census Data

Total Expenditures for

Improvements

1994 $22,861 million (constant 1992

dollars)

Census Data

Total Number of

Establishments (SIC 20-39)

1992 382,000 Statistical

Abstract

OPERATIONS

Total Fresh Water Deliveries 1990 92,733 million liters per day

(24,500 million gallons per day)

USGS

Total Fresh Water

Consumption

1990 12,604 million liters per day

(3,330 million gallons per day)

USGS

Total Cost for Refuse

Removal

1992 $4,405 million Census Data

Cost of Refuse Removal -

SIC 20

1992 $379.9 million Census Data

Cost of Refuse Removal -

SIC 21

1992 $5.6 million Census Data

Cost of Refuse Removal -

SIC 22

1992 $52.7 million Census Data

Cost of Refuse Removal -

SIC 23

1992 $40.2 million Census Data

Cost of Refuse Removal -

SIC 24

1992 $61.1 million Census Data

Cost of Refuse Removal -

SIC 25

1992 $46.6 million Census Data

Cost of Refuse Removal -

SIC 26

1992 $262.2 million Census Data

Cost of Refuse Removal -

SIC 27

1992 $89.6 million Census Data

Cost of Refuse Removal -

SIC 28

1992 $792.3 million Census Data

Cost of Refuse Removal -

SIC 29

1992 $252.1 million Census Data

 

27 See accompanying text for description of abbreviations used in this table.
225

Table 7-9. Summary of Baseline Measures: Industrial Sector (continued)

DESCRIPTION YEAR BASELINE SOURCE

Cost of Refuse Removal -

SIC 30

1992 $157.7 million Census Data

Cost of Refuse Removal -

SIC 31

1992 $92.8 million Census Data

Cost of Refuse Removal -

SIC 32

1992 $93.8 million Census Data

Cost of Refuse Removal -

SIC 33

1992 $439.0 million Census Data

Cost of Refuse Removal -

SIC 34

1992 $607.1 million Census Data

Cost of Refuse Removal -

SIC 35

1992 $224.7 million Census Data

Cost of Refuse Removal -

SIC 36

1992 $188.9 million Census Data

Cost of Refuse Removal -

SIC 37

1992 $488.1 million Census Data

Cost of Refuse Removal -

SIC 38

1992 $97.1 million Census Data

Cost of Refuse Removal -

SIC 39

1992 $34.6 million Census Data

MAINTENANCE

Total Cost for Repair of

Buildings and Structures

1992 $5,426 million Census Data

Total Cost for Repair of

Machinery

1992 $23,302 million Census Data

Cost for Repair of Buildings -

SIC 20

1992 $496.1 million Census Data

Cost for Repair of Buildings -

SIC 21

1992 $28.6 million Census Data

Cost for Repair of Buildings -

SIC 22

1992 not available Census Data

Cost for Repair of Buildings -

SIC 23

1992 $53.9 million Census Data

Cost for Repair of Buildings -

SIC 24

1992 $60.9 million Census Data

Cost for Repair of Buildings -

SIC 25

1992 $81.7 million Census Data

Cost for Repair of Buildings -

SIC 26

1992 $261.3 million Census Data
226

Table 7-9. Summary of Baseline Measures: Industrial Sector (continued)

DESCRIPTION YEAR BASELINE SOURCE

Cost for Repair of Buildings -

SIC 27

1992 $243.7 million Census Data

Cost for Repair of Buildings -

SIC 28

1992 $583.7 million Census Data

Cost for Repair of Buildings -

SIC 29

1992 $306.0 million Census Data

Cost for Repair of Buildings -

SIC 30

1992 $201.9 million Census Data

Cost for Repair of Buildings -

SIC 31

1992 $9.6 million Census Data

Cost for Repair of Buildings -

SIC 32

1992 $113.1 million Census Data

Cost for Repair of Buildings -

SIC 33

1992 $302.2 million Census Data

Cost for Repair of Buildings -

SIC 34

1992 $442.6 million Census Data

Cost for Repair of Buildings -

SIC 35

1992 $444.0 million Census Data

Cost for Repair of Buildings -

SIC 36

1992 $631.6 million Census Data

Cost for Repair of Buildings -

SIC 37

1992 $691.8 million Census Data

Cost for Repair of Buildings -

SIC 38

1992 $216.8 million Census Data

Cost for Repair of Buildings -

SIC 39

1992 $47.4 million Census Data

ENERGY

Total Expenditures for

Purchased Energy Sources

1991 $61,059 million EIA

Cost of Purchased Energy

Sources - SIC 20

1991 $4,637 million EIA

Cost of Purchased Energy

Sources - SIC 21

1991 $123 million EIA
227

Table 7-9. Summary of Baseline Measures: Industrial Sector (continued)

DESCRIPTION YEAR BASELINE SOURCE

Cost of Purchased Energy

Sources - SIC 22

1991 $1,883 million EIA

Cost of Purchased Energy

Sources - SIC 23

1991 $474 million EIA

Cost of Purchased Energy

Sources - SIC 24

1991 $ 1,423 million EIA

Cost of Purchased Energy

Sources - SIC 25

1991 $421 million EIA

Cost of Purchased Energy

Sources - SIC 26

1991 $5,385 million EIA

Cost of Purchased Energy

Sources - SIC 27

1991 $1,274 million EIA

Cost of Purchased Energy

Sources - SIC 28

1991 $1,5867 million EIA

Cost of Purchased Energy

Sources - SIC 29

1991 $3,757 million EIA

Cost of Purchased Energy

Sources - SIC 30

1991 $2,367 million EIA

Cost of Purchased Energy

Sources - SIC 31

1991 $83 million EIA

Cost of Purchased Energy

Sources - SIC 32

1991 $3,218 million EIA

Cost of Purchased Energy

Sources - SIC 33

1991 $9,358 million EIA

Cost of Purchased Energy

Sources - SIC 34

1991 $2,586 million EIA

Cost of Purchased Energy

Sources - SIC 35

1991 $2,303 million EIA

Cost of Purchased Energy

Sources - SIC 36

1991 $2,063 million EIA

Cost of Purchased Energy

Sources - SIC 37

1991 $2,571 million EIA

Cost of Purchased Energy

Sources - SIC 38

1991 $939 million EIA

Cost of Purchased Energy

Sources - SIC 39

1991 $328 million EIA

229

8. OM&E Measures for the Public Works Sector

8.1 Key Considerations for the Public Works Sector

This section of the document addresses the issue of data sources, availability and

constraints in the public works sector, and summarizes the key data sources that are used

for developing the baseline measures. The section also provides a general overview of

the public works sector, as well as a brief overview of each of the sub-sectors. To re-cap,

the public works sub-sectors are as follows:

• Transportation (road, rail, transit, air, and water)

• Communications (masts, structures, and cabling services)

• Power Utilities (power generation and distribution)

• Water (storage, supply, treatment, and flood control)

• Solid Waste

• Pipelines (except natural gas)

For the reasons already given in Section 4.1.1 of this document, the communications and

solid waste sub-sectors will not be discussed further.

8.1.1 Data Considerations: Sources, Availability, and Constraints

Preliminary data searches for the public works sector indicated that there were a number

of organizations that produce reports about some of the sub-sectors identified within

Chapter 4 of this document. There do not appear to be any authoritative sources

examining the public works sector in its entirety. For this reason, the primary data

sources for each sub-sector are considered separately below.

8.1.1.1 Primary Data Sources: Transportation Sub-Sector

Data from the US Bureau of the Census

The US Bureau of the Census (USBC) carries out the Census of Construction and

produces the Current Construction Reports Series C30 publication Value of Construction

Put in Place, both of which are described in detail in Chapter 3 of this document. It also

produces data concerning government investment in transportation. These data are

available through the USBC Internet site, or via paper or electronic publications. For this

sub-sector, data from USBC have been used to quantify transportation investments and

construction expenditures.

Data from the Bureau of Transportation Statistics

The Bureau of Transportation Statistics (BTS) provides a wide range of information

about the transportation sector through the National Transportation Data Archives, the

National Transportation Library, and the Transportation Studies databases.
230

Documents which are of particular interest are the Transportation Statistics Annual

Report 1995, 1996, and 1997, which provide general information about the sector, and

the report Federal, State and Local Transportation Financial Statistics: Fiscal Years

1982-1994, which provides data on government expenditures for transportation. These

reports are available on the BTS Internet site (URL: http://www.bts.gov).

Data from the Statistical Abstract of the United States: 1996 and 1997

Some information from the Statistical Abstract has been used to quantify freight and

passenger volumes with the public works sector, and to provide a general overview of

selected operating expenses for railroads. Specific data sources are identified in the text

as appropriate.

Data from the Federal Highway Administration

The Federal Highway Administration (FHWA) publishes the annual report Highway

Statistics, which provides very detailed information about highway finances and highway

extent, characteristics, and performance. This is also referred to as the “Yellowbook”.

The 1994 report has been used in this document, although 1995 data have recently

become available. The report is available on the Bureau of Transportation Statistics

Internet site (URL: http://www.bts.gov/ohim/1994/index.html) or via paper publications.

In this document, data from Highway Statistics 1994 have been used to characterize the

size and nature of the US highway system, and to provide detailed data on highway

performance and expenditures.

Data from the Association of American Railroads

The Association of American Railroads (AAR) provides statistics for the US national

railroad system. Data are available via the AAR Internet site (URL: http://www.aar.org),

and have been used in this document to characterize the sector, and provide information

on Class I railroad operating expenses.

Data from the Federal Transit Administration

The Federal Transit Administration (FTA) provides access to a wide range of detailed

information about transit systems through the National Transit Library, and National

Transit Database. Documents of particular interest include FTA Budget Brief, and

Transit Agency Operating Expenses for 1995, 1996, 1997, and 1998, and the FTA report

Characteristics of Urban Transportation Systems-Revised Edition September 1992. Data

are available through the FTA Internet site (URL: http://www.fta.dot.gov). In this

document, data from the FTA have been used to characterize the extent of the transit

sector, and to provide general information on transit operations costs.
231

Data from the Federal Aviation Administration

The Federal Aviation Administration (FAA) publication FAA Statistical Handbook of

Aviation 1997 provides information on the size of the aviation sector. The report is

available at the BTS internet site.

Data from the Maritime Administration

The Maritime Administration Report to Congress on the Status of Public Ports of the

United States, 1994-1995, provides information on the number of ports in the US and

selected operating expenditures. The report is available through the Maritime

Administration Internet site (URL: http://marad.dot.gov).

Data from the US Army Corps of Engineers

The US Army Corps of Engineers (USACE) provides information on domestic

waterborne commerce in its report Commerce of the United States, Calendar Year 1995.

The Civil Works Division of the USACE provides information on the scope of its Civil

Works activities (see the information paper at the USACE Internet site:

http://www.usace.army.mil/inet/functions/cw/prog-man/cwmprog.htm). These include

navigation activities, which are considered in this sub-sector, and flood control and other

activities, which are considered in the “water” sub-sector.

The USACE provides data on dredging activities through its Water Resources Support

Center/Navigation Data Center. For details refer to its Internet site

(URL:http://www.wrc-ndc.usace.army.mil).

Data from Other Sources

A wide range of other transportation related data sources were examined, some of which

are described below:

• US Department of Transportation Surface Transportation Board (STB) Financial data

for Class I Railroads28 1996, available from STB Internet Site (URL:

http://www.stb.dot.gov/infoex1.htm#Finance).

• American Public Works Association- provides a range of data and publications

relating to all public works sub-sectors, including transportation, and a variety of

publications relating to public works facility and grounds management. (URL:

http://www.pubworks.org).

 

28 Class I railroads are defined as any railroad having an annual operating revenue of at least $255.9 million

(as of January 1997, there were 9 Class I railroads in the US).
232

• US Department of Energy Transportation Technologies (URL:

http://www.ott.doe.gov) provides information relating to energy conservation in the

transportation sector. However, given that this is primarily attributable to vehicle or

vessel operations, rather than infrastructure related energy consumption, this will not

be considered further in this document.

8.1.1.2 Primary Data Sources: Power Utilities Sub-Sector

Data from the Energy Information Administration

The EIA publishes the Annual Energy Review, which provides a range of information

relevant to power generation, distribution, and consumption in the US. Data from the

Annual Energy Review 1996, which are available through the EIA Internet Site (URL:

http://www.eia.doe.gov) have been used to characterize the electric power industry by net

generation and consumption by sector.

Data from the US Bureau of the Census

The USBC carries out the Census of Transportation, Communication, and Utilities

every five years - data are currently available for 1992. The Census covers SIC Codes 40,

41, 42, 44, 45, 46, 47, 48, and 49. This includes electric, gas and sanitary services (SIC

49), which are relevant to the power utilities sub-sector. Data from the Census have been

used to characterize the size of the industry, and provide aggregated data on maintenance

and repair expenditures.

Data from the Energy Information Administration

The EIA publication Natural Gas Monthly April 1997, provides details of interstate

natural gas pipeline capacity and planned additions for 1995-2000. The EIA also

produces detailed information regarding operations costs for domestic oil and gas fields

in the US (see Costs and Indices for Domestic Oil and Gas Field Equipment and

Production Operation, 1993 through 1996), but this is not included here, as it is beyond

the scope of this document.

Data from the United States Geological Survey (USGS)

The USGS provides data on water consumption for the generation of thermoelectric and

hydroelectric power. Data are available on the USGS Internet site (URL:

http://www.usgs.gov), and are used to establish baseline measures for the electric utility

industry in this document.
233

8.1.1.3 Primary Data Sources: Water Sub-Sector

Data from the US Army Corps of Engineers (USACE)

The USACE provides information on domestic waterborne commerce in its report

Waterborne Commerce of the United States, Calendar Year 1995. The Civil Works

Division of the USACE provides information on the scope of its Civil Works activities

(see the information paper at the USACE Internet site:

http://www.usace.army.mil/inet/functions/cw/prog-man/cwmprog.htm). These include

navigation activities, which are considered in the transportation sub-sector, and flood

control and other activities, which are considered in this sub-sector.

The USACE also provides information on the FY1998 budget for USACE Civil Works

Program, which includes information on the comparative magnitude of operations

expenditures by the Corps.

Data from the United States Geological Survey (USGS)

The USGS provides data on wastewater treatment in the US. Data are available at the

USGS Internet site, and are used to establish baseline measures in this document.

8.1.1.4 Primary Data Sources: Pipelines Sub-Sector

Data from the US Bureau of the Census

The USBC carries out the Census of Transportation, Communications and Utilities

every five years - data are currently available for 1992. The Census covers SIC Codes 40,

41, 42, 44, 45, 46, 47, 48, and 49. This includes pipelines, except natural gas (SIC 46)

which is relevant to the pipelines sub-sector. Data from the Census provide aggregated

maintenance and repair data for petroleum and other types of pipelines in the US.

8.1.2 Overview of the Transportation Sub-Sector - Introduction

This section first examines the transportation sub-sector as a whole, before moving on to

examine the principal components of the sub-sector in more detail (i.e. highways, rail,

transit, air, and water). The general overview examines government investment in

transportation, construction expenditures, and the volume of freight and passenger traffic

attributable to the different modes of transportation. The more detailed descriptions of

each of these transportation modes consider the extent of the infrastructure associated

with each mode, and key operational characteristics.

8.1.2.1 General Overview of the Transportation Sub-Sector

Transportation plays a pivotal role in the US economy, both by providing mobility for the

movement of passengers and freight, and as an intermediate good that is consumed at
234

every stage to create a final product. The Bureau of Transportation Statistics (BTS)

estimates that transportation services in 1993 accounted for about 11 percent of Gross

Domestic Product, but that even this may be an underestimate29.

Consumer expenditures for transportation, of which the largest element is personal

vehicle operation, upkeep, and purchase, is the second largest component of total

consumer spending (second only to housing). However, it will not be considered further

here, as it is beyond the scope of this document.

Government agencies play a significant role in providing transportation infrastructure and

services, and are also significant purchasers of transportation equipment and services.

Table 8-1 which is based upon data from the 1997 Transportation Statistics Annual

Report shows how government investment in infrastructure and equipment has changed

between 1983 and 1993. The table shows investment by type of government and mode of

transport, and compares total investment for all government with investment in

construction. Reference to the table indicates that in 1993, all levels of government

invested heavily in highways, but that the proportions were quite different, with state

government putting 92 percent of their transportation investment into highways, local

governments 47 percent, and federal government 32 percent. For all government

combined, the states made 75 percent of total government investment in highways. In

1993, local governments invested more in airports and urban transit combined than they

did in highways, and were responsible for over 70 percent of government investment in

these two modes that year. Investment in highways, transit and airports is heavily slanted

toward construction. Almost 90 percent of public investment in highways for 1993 was

for construction. The only mode experiencing a loss of investment in real terms between

1983 and 1993 was water transportation and terminals, due to a decrease in construction.

Equipment investment, however, increased 67 percent in real terms.

Table 8-1. Government Transportation Investment by Mode : 1983 and 1993

Investment in Billions of Constant 1992 Dollars, After Transfers

All Government Federal State Local Construction OutlaysAll Government

Mode 1983 1993 1983 1993 1983 1993 1983 1993 1983 1993

Transportation Total 34.1 51.3 1.4 2.1 19.9 30.6 13.4 18.7 28.6 43.0

Highways 25.2 37.5 0.3 0.7 18.3 28.1 7.2 8.8 22.1 33.2

Airports 2.3 6.3 0.4 1.0 0.3 0.8 1.8 4.5 1.7 4.6

Parking Facilities - 0.4 - - - - - 0.4 - 0.3

Water Transportation 

and Terminals 1.9 1.2 0.8 0.6 0.3 0.2 0.7 0.4 1.6 0.7

Transit 4.8 6.1 - - 1.2 1.4 3.8 4.7 3.0 4.2

 

29 See Transportation Statistics Annual Report 1995 pp. 33 for details.
235

Table 8-2 summarizes transportation construction expenditures by transportation mode

for 1987 and by year for highways, streets, and related facilities, the transportation mode

with the largest construction expenditures. Part A, which is based upon the Census of

Construction 1987 and Value Put in Place Series, examines expenditures by SIC 1611,

1622 and 1629 for each of the transportation modes in 1987. Reference to Table 8-2, Part

B shows how expenditures for highways and streets, which is the largest component of

transportation construction, have varied between 1989 and 1996. The Value of New

Construction Put in Place for highways, streets, and related facilities has risen by about 10

percent over this time in real terms. The second largest component of new construction

in the transportation sector is for buildings and other construction, which would include

new airport or rail terminals, and so forth. The data presented in Table 8-2 Part A are

shown graphically in Figure 8-1.

Table 8-2. Transportation Construction Expenditures

Part A. Transportation Construction Expenditures by Mode: 1987

Transportation Construction, 1987 (Thousands of Dollars)

Highway and 

Street 

Construction 

(SIC 1611)

Construction of 

Bridges, 

Tunnels, and 

Elevated 

Highways (SIC 

1622)

Heavy 

Construction Not 

Elsewhere 

Classified (SIC 

1629)

Total

Establishments 10,986 1,159 14,532 26,677

Employees 284,380 47,494 297,618 629,492

Value of Construction 34,161,427 5,480,936 25,632,969 65,275,332

Highways, Streets, and Related Facilities 28,123,431 387,161 923,313 29,433,905

Airport Runways 123,809 - - 123,809

Bridges, Tunnels, and Elevated Highways 1,152,276 4,476,501 532,104 6,160,881

Marine Construction 88,785 29,291 1,379,611 1,497,687

Harbor and Port Facilities 53,509 431,507 485,016

Mass Transit 54,092 - 780,781 834,873

Pipelines (Except Water) - - 249,086 249,086

Buildings and Other Construction 4,169,034 534,474 21,336,567 26,040,075

Part B. Value of New Construction put in Place for Highways Streets and Related

Facilities in Constant 1992 Dollars: 1989 to 1996

Value of New Construction put in Place in Millions of Constant 1992 Dollars 

Year 1989 1990 1991 1992 1993 1994 1995 1996

Highways and Streets 30,407 31,777 30,300 33,132 34,164 36,151 33,500 33,297

Table 8-3 Part A and Part B which is based upon data from the Statistical Abstract of the

United States: 1996, shows how the total volume of freight and passenger traffic using

each transportation mode has changed between 1980 and 1993. Reference to the table

indicates that there has been a 25 percent increase in total freight traffic over this period.

The largest increase has been in truck freight (461 billion ton-kilometers/316 billion ton-
236

miles, an increase of 57 percent), with a smaller increase in railroad freight (366 billion

ton-kilometers/251 billion ton-miles, an increase of 27 percent) There has been a

reduction in freight carried on the Great Lakes and by oil pipelines. The highest growth

in freight movement has occurred in domestic airways, but this still only represents less

than 0.5 percent of total freight movement in the US.

For passenger traffic, there has been a 45 percent growth in the number of passenger

miles/kilometers traveled between 1980 and 1993. Approximately 77 percent of this

growth is attributable to private automobile usage, and the majority of the remainder is

attributable to a 69 percent increase in air traffic passenger miles. Bus usage has declined

by 15 percent. Whilst railroad use has risen by 27 percent, it still only accounts for less

than one percent of total passenger miles traveled.

Figure 8-2 and Figure 8-3 show the distribution of total inter-city freight and passenger

traffic in 1993 respectively. Reference to Figure 8-2 indicates that highways and railroads

are the major transportation modes for freight movement in the US. Figure 8-3 indicates

that highways and domestic airways represent the bulk of all passenger miles traveled in

the US. In comparison, bus and railroad passenger miles traveled are very small. These

figures serve to emphasize the importance of highways to the US economy.

Figure 8-1. Government Transportation Investment by Mode: 1987

123,809

6,160,881

1,497,687 485,016 834,873 249,086

26,040,075

29,433,905

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Highways,

Streets,

and

Related

Facilities

Airport

Runways

Bridges,

Tunnels,

and

Elevated

Highways

Marine

Constr.

Harbor and

Port

Facilities

Mass

Transit

Pipelines

(Except

Water)

Buildings

and Other

Constr.

Type of Construction

Dollars (Thousands)
237

Table 8-3. Volume of Domestic Intercity Freight and Passenger Traffic: 1980 to

1993

Part A: Billion Ton-Miles/Billion Passenger-Miles

VOLUME OF DOMESTIC INTERCITY FREIGHT AND PASSENGER TRAFFIC

Transport Mode YEAR

1980 1985 1990 1992 1993

Freight Traffic (billion ton-miles)

Total 2,487 2,458 2,895 3,009 3,105

Railroads 932 895 1,091 1,138 1,183

Truck:

ICC Truck 242 250 311 342 365

Non-ICC Truck 313 360 424 473 506

Total Truck 555 610 735 815 871

Water:

Rivers/canals 311 306 390 397 393

Great Lakes 96 76 85 77 74

Oil Pipelines 588 564 584 571 572

Domestic Airways 5 7 10 11 12

Passenger Traffic (billion passenger-miles)

Total 1,467 1,635 1,993 2,079 2,126

Private Automobile 1,210 1,310 1,598 1,675 1,718

Air- Public Carrier 219 290 359 367 370

Bus 27 24 23 24 23

Railroads 11 11 13 14 14

Part B: Billion Metric Ton-Kilometers/Billion Passenger Kilometers

VOLUME OF DOMESTIC INTERCITY FREIGHT AND PASSENGER TRAFFIC

Transport Mode YEAR

1980 1985 1990 1992 1993

Freight Traffic (billion ton-kilometers)

Total 3,629 3,586 4,224 4,390 4,530

Railroads 1,360 1,306 1,592 1,660 1,726

Truck: 

ICC Truck 353 365 454 499 533

Non-ICC Truck 457 525 619 690 738

Total Truck 810 890 1,072 1,189 1,271

Water: 

Rivers/canals 454 446 569 579 573

Great Lakes 140 111 124 112 108

Oil Pipelines 858 823 852 833 835

Domestic Airways 7 10 15 16 18

Passenger Traffic (billion passenger-kilometers)

Total 2,360 2,631 3,207 3,345 3,421

Private Automobile 1,947 2,108 2,571 2,695 2,764

Air- Public Carrier 352 467 578 591 595

Bus 43 39 37 39 37

Railroads 18 18 21 23 23
238

Figure 8-2. Proportional Distribution of Freight Traffic by Mode: 1993

Railroads

39%

Total Truck

28%

Great Lakes

2%

Oil Pipelines

18%

Domestic Airways

< 1%

Rivers/Canals

13%

Figure 8-3. Proportional Distribution of Passenger Traffic by Mode: 1993

Private Automobile

81%

Domestic Airways

17%

Railroads

1%

Bus

1%
239

8.1.2.2 General Overview of Highway Transportation

The most widely used form of transportation in the US is the highway. It includes the

highway infrastructure, composed of roads, streets and bridges, traffic control devices

and additional facilities, as well as vehicles and drivers, and other highways-related

services. This section will deal only with highway infrastructure, as issues relating to

operations, maintenance, and energy costs of vehicles and their users are considered

beyond the scope of this document.

The highway network comprises 6.3 million kilometers (3.9 million miles) of public

roads, which are operated primarily by state and local governments. The total size of the

US highway system has been relatively stable for many years (in 1980, total mileage was

6.43 million kilometers (3.995 million miles), in 1994, it had fallen slightly to 6.29

million kilometers (3.906 million miles)). The US also has a substantial private road

mileage, but data to describe its extent and variety are lacking. The public road network

is classified according to the traffic functions the roads are intended to serve. The

functional types identified in this section are as follows:

• Interstates, Freeways, and Expressways

• Arterials

• Collectors, and

• Local Roads

Figure 8-4. Total Highway Mileage by Functional Type: 1993

Interstate/Freeways and Expessways: 45,583m (73,343km)

Arterial: 385,103m (619,631km)

Collector: 799,234m (1,285,967km)

Local: 2,676,624m (4,306,688km)

Collector

20%

Local

69%

Interstate/ Freeways & 

Expressways

1%

 Arterial

10%
240

Figure 8-4, which is based upon data from the 1996 Statistical Abstract, shows the

relative proportions of each of these functional types of roads. Local roads represent the

largest proportion of the highway network. Figure 8-5, which is also based upon data

from the 1996 Statistical Abstract, shows how total highway mileage is distributed

between urban and rural areas. Reference to the figure indicates that rural roads account

for about 80 percent of total mileage. However, if these figures are compared with

vehicle usage, in terms of vehicles miles of travel, a different pattern emerges. Urban

vehicle miles account for about 60 percent of total vehicle miles. In addition, only about

13 percent of total annual vehicle miles take place on local roads; approximately 71

percent take place on arterials and Interstates, with about one-third of this total on

Interstates alone.

Figure 8-5. Total Highway Mileage by Geographic Location: 1993

0

500

1000

1500

2000

2500

3000

3500

Urban Mileage Rural Mileage

Location

Thousands of Miles

0

500

1000

1500

2000

Thousands of Kilometers

While the federal government plays an important role in funding and managing US

highways, state and local governments control almost all of the roads and bridges in the

US. This is shown graphically in Figure 8-6, which shows how total highway mileage

was distributed by jurisdiction in 1993. A more detailed breakdown of highway mileage

by jurisdiction in 1994, for urban highway mileage, and for rural highway mileage, is

shown in Figure 8-7 and Figure 8-8 respectively, which are based upon data from

Highway Statistics, 1994. Reference to Figure 8-7 shows that 70 percent of total urban

mileage was under local control, 11 percent was under state control, 19 percent was not

classified by system, and less than one percent was under federal control. A very similar

picture merges for rural highway mileage jurisdiction, as shown in Figure 8-8.
241

Figure 8-6. Total Highway Mileage by Jurisdiction: 1993

Under State Control

20%

Under Local Control

75%

Under Federal Control

5%

Figure 8-7. Urban Highway Mileage by Jurisdiction: 1994

Total Urban Mileage = 813,591 miles (1,309,068 kilometers)

 Under Local Control

70%

 Under Federal 

Control:

< 1%

 Under State Control:

11%

 Not Classified by 

System:

19%
242

Figure 8-8. Rural Highway Mileage by Jurisdiction: 1994

Total Rural Mileage = 3,092,953 Miles (4,976,561 kilometers)

 Under State Control:

15%

Not Classified by

System

17%

 Local

68%

 Under Federal 

Control:

< 1%

Figure 8-9 and Figure 8-10 show road mileage by functional type for state and locally

administered roads in rural areas. The source data from Highway Statistics, 1994 (which

is compiled from reports by State Authorities) are shown in Table 8-4 Part A and Part B.

Comparison of the two figures shows that state authorities control a much higher mileage

of Interstates and arterial compared with local authorities, which control no Interstates.

Both authorities control similar total mileages of collector roads. However, local

authorities control over ten times the mileage of local roads compared with state

authorities.

Figure 8-11 and Figure 8-12 show similar information for urban highway mileage. Once

again, state authorities have control for more Interstates and arterial than local authorities,

who predominantly control local roads.

In Figure 8-13 and Figure 8-14, which are also based upon data from Highway Statistics,

1994, the number of bridges greater than or equal to 6.1 meters (20 feet) is shown by

functional type for rural and urban areas respectively. Of the 577,481 bridges in the US

with spans greater than or equal to 6.1 meters (20 feet), approximately 80 percent are in

rural areas; with 45 percent of these on local roads, and 33 percent of the remainder on

collectors. In comparison, urban bridges are more evenly distributed between the different

types of functional system.
243

Figure 8-9. State Highway Administered Roads in Rural Areas - Mileage by

Functional Type: 1994

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Interstate

Other

Freeways

and

Expressways

Arterial

Collector

Local

Total Rural

Functional Type

Miles

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

Kilometers

Figure 8-10. Locally Administered Roads in Rural Areas - Mileage by Functional

Type: 1994

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Arterial

Collector

Local

Total Rural

Functional Type

Miles

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Kilometers
244

Table 8-4. Highway Mileage by Functional System, Jurisdiction, and Location:

1994

Part A: Miles

URBAN

JURISDICTION Interstate Other Freeways and 

Expressways Principal Arterial Minor Arterial Total Arterial

State 13,126 8,532 36,431 24,489 60,920

Local - 400 16,576 63,244 79,820

Federal - 63 83 119 202

Major Collector Minor Collector Total Collector Local Total Urban

State 10,394 10,394 17,042 110,014

Local 75,644 75,644 546,231 702,095

Federal 60 60 1,157 1,482

RURAL

Interstate Other Freeways and 

Expressways Principal Arterial Minor Arterial Total Arterial

State 32,457 - 96,308 131,525 227,833

Local - - 514 5,156 5,670

Federal - - 173 1,490 1,663

Major Collector Minor Collector Total Collector Local Total Rural

State 198,614 68,568 267,182 162,899 690,371

Local 227,709 203,398 431,107 1,792,176 2,228,953

Federal 4,788 10,059 14,847 157,119 173,629

Part B: Kilometers

URBAN

JURISDICTION Interstate Other Freeways and 

Expressways Principal Arterial Minor Arterial Total Arterial

State 21,124 13,731 58,630 39,411 98,041

Local - 644 26,676 101,781 128,458

Federal - 101 134 192 325

Major Collector Minor Collector Total Collector Local Total Urban

State 16,728 16,728 27,426 177,050

Local 121,737 121,737 879,074 1,129,912

Federal 97 97 1,862 2,385

RURAL

Interstate Other Freeways and 

Expressways Principal Arterial Minor Arterial Total Arterial

State 52,234 - 154,993 211,669 366,662

Local - - 827 8,298 9,125

Federal - - 278 2,398 2,676

Major Collector Minor Collector Total Collector Local Total Rural

State 319,638 110,349 429,988 262,161 1,111,044

Local 366,462 327,337 693,799 2,884,228 3,587,152

Federal 7,706 16,188 23,894 252,859 279,429
245

Figure 8-11. State Highway Administered Roads in Urban Areas - Mileage by

Functional Type: 1994

0

20,000

40,000

60,000

80,000

100,000

120,000

Interstate

Other

Freeways and

Expressways

Arterial

Collector

Local

Total Urban

Functional Type

Miles

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Kilometers

Figure 8-12. Locally Administered Roads in Urban Areas - Mileage by Functional

Type: 1994

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Interstate

Other

Freeways and

Expressways

Arterial

Collector

Local

Total Urban

Functional Type

Miles

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

1,200,000

Kilometers
246

Figure 8-13. Number of Rural Bridges Greater Than or Equal to 20 Feet: 1994

Total = 456,806 bridges

Interstate

6%

Arterial

16%

Collector

32%

Local

46%

Figure 8-14. Number of Urban Bridges Greater Than or Equal to 20 Feet: 1994

Total = 120,675 bridges

Interstate/ Freeways & 

Expressways

33%

Arterial

35%

Collector

12%

Local

20%

Figures 8-15 through 8-18 show how pavement type and condition varied for rural and

urban areas in 1995. Reference to Figure 8-15, which shows rural pavement type, shows

that approximately 90 percent of all rural roads were surfaced (an increase of

approximately 10 percent over the previous ten years), but that of this total,

approximately one-third had a gravel or stone surfacing. Flexible pavements dominated

the higher service level categories, with rigid pavements representing only 3.4 percent of

total paved rural mileage. Figure 8-16 which shows urban pavement type, indicates that

less than 20 percent of urban roads had gravel, stone or unpaved surfaces, and that the

majority of roads had an intermediate or high service level surfacing. There was a higher

proportion of rigid pavements in urban areas compared with rural areas.
247

Figure 8-15. Rural Pavement Type: 1994

Gravel or Stone

Paved Intermediate 38%

11%

Paved High Flexible

22%

Paved Low

13%

Unimproved

4%

Paved High 

Composite

3%

Paved High Rigid

2%

Graded and Drained

7%

Figure 8-16. Urban Pavement Type: 1994

Paved High Flexible

45%

Paved Intermediate

25%

Paved Low

Paved High Composite 11%

6%

Paved High Rigid

9%

Graded and Drained

1%

Gravel or Stone

3%

Unimproved

< 1%
248

Highway pavement condition has been shown to have an effect upon vehicle operating

costs, and is thus an important factor when assessing highway performance. Data from

the publication Characteristics of Urban Transportation System, Chapter 4, Table 4-9

indicate that the operating cost factor for a vehicle may vary by as much as 50 percent

depending upon the condition of the pavement along which it is traveling.

An extract from the Transportation Statistics Annual Report 1995, indicates that:

“to maintain current highway conditions and performance, the FHWA estimates that

over 161,000 kilometers (100,000 miles) of highway and 11,000 bridges require some

degree of capital investment. In recent years, pavement conditions have been improving,

congestion has been worsening slightly, and bridge conditions have stabilized”.

The 1996 Annual Report expands upon this, noting that:

“between 1983 and 1991, highway pavement conditions improved as measured by the

Present Serviceability Rating. For example, the percentage of urban Interstates in poor

or mediocre condition dropped from 32.9 percent in 1983 to 23.2 percent in 1991. The

corresponding drop for rural Interstates is 27.1 to 23.2 percent.”

And also that:

“bridge conditions have improved over the past few years. The number of deficient

bridges on Interstates, arterials, and collectors have all decreased between 1990 and

1994. Approximately one-quarter of these bridges are still deficient” (see Table 8-5 for

details).

Table 8-5. Bridge Conditions by Functional System: 1990 and 1994

Functional System 1990 1994

Interstate Bridges 53,183 54,726

Number Deficient 15,208 13,262

Other Arterial Bridges 124,615 129,465

Number Deficient 39,492 36,199

Collector Bridges 164,300 162,314

Number Deficient 56,662 45,330

Note: Deficient Bridges include structurally deficient bridges, and functionally deficient bridges 

Figure 8-17 and Figure 8-18 show pavement condition in 1994 by functional system for

rural and urban roads respectively.
249

Figure 8-17. Rural Pavement Condition by Functional System: 1994

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Interstate/

Freeways &

Expressways

Arterial Collector

Functional Type

Miles

0

50,000

100,000

150,000

200,000

250,000

Kilometers

Not Reported

Poor

Mediocre

Fair

Good

Very Good

Total

Figure 8-18. Urban Pavement Condition by Functional System: 1994

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Interstate/

Freeways &

Expressways

Arterial Collector

Functional Type

Miles

0

10,000

20,000

30,000

40,000

50,000

Kilometers

Not Reported

Poor

Mediocre

Fair

Good

Very Good

Total
250

Finally, Figure 8-19 shows how prices for selected highway construction activities have

varied between 1980 and 1994. Reference to the figure indicates that most highway

construction costs are rising. Further details are available in the FHWA publication Price

Trends for Federal-aid Highway Construction, prepared by the Federal-aid and Design

Division, Office of Engineering.

Table 8-6, which is reproduced from the publication Characteristics of Urban

Transportation Systems shows selected highway improvement costs in urban areas in

thousands of 1989 dollars per lane mile.

Figure 8-19. Prices for Selected Federal Highway Construction Activities: 1980 to

1994

40.0

50.0

60.0

70.0

80.0

90.0

100.0

110.0

120.0

130.0

198019811982198319841985198619871988198919901991199219931994

Year

RESURFACING

COMPOSITE

STRUCTURES

EXCAVATION
251

Table 8-6. Highway Improvement Costs in Urban Areas: 1989

Highway Improvement Costs in Thousands of 1989 Dollars per Lane Mile

FACILITY/IMPROVEMENT TYPE BUILT-UP AREAS OUTLYING AREAS

Freeways and Expressways

Reconstruction with More Lanes 2,283 1,720

Reconstruction with Wider Lanes 1,676 1,210

Pavement Reconstruction 1,171 1,055

Major Widening 935 750

Minor Widening 676 519

Resurfacing with Shoulder Improvement 319 279

Resurfacing 139 128

Other Divided Highways

Reconstruction with More Lanes 2,056 1,548

Reconstruction with Wider Lanes 1,510 1,089

Pavement Reconstruction 1,058 950

Major Widening 842 676

Minor Widening 608 466

Resurfacing with Shoulder Improvement 288 252

Resurfacing 126 114

Undivided Highways

Reconstruction with More Lanes 1,850 1,393

Reconstruction with Wider Lanes 1,359 980

Pavement Reconstruction 954 856

Major Widening 757 608

Minor Widening 547 420

Resurfacing with Shoulder Improvement 260 226

Resurfacing 113 104

Note: Improvement Costs include Right-of-Way
252

8.1.2.3 General Overview of Railroad Transportation

The elements of the US rail system comprise rail tracks, operating equipment, and the

additional capital and human resources necessary to produce freight and passenger

services. This document focuses only upon rail track and associated infrastructure. Forhire rail freight is provided by a number of freight rail lines, and passenger service is the

responsibility primarily of Amtrak. Other rail-related railroads services are classified

under “transit” in this document. Railroads are not classified functionally, as are

highways, but an approximate equivalent is found in terms of the main-line, secondarymain, and branch line classifications. However, these rail terms are not precise, and no

time-series figures report changes in the extent of facilities for each category. The

Association of American Railroads (AAR) uses the following definitions for freight

railroads:

• Class I Railroads (as of January 1997, there were 9 Class I railroads in the US,

which are defined as any railroad having an annual operating revenue of at

least $255.9 million)

• Regional Railroads

• Local Railroads

Class I railroads account for 73 percent of the nations rail mileage, and 91 percent of

freight railroad revenue. In 1995, there were 201,241 kilometers (125,072 miles) of Class

I railroads operated (this excludes multiple main tracks, yard tracks, and sidings), 30,273

kilometers (18,815 miles) of regional railroad, 42,713 kilometers (26,546 miles) of local

railroad, and 39,421 kilometers (24,500 miles) of Amtrak railroad. There were 530 local

and regional railroad carriers. This information is presented graphically in Figure 8-20.

Figure 8-20. Railroads Operated in 1995 by Type

0

20000

40000

60000

80000

100000

120000

140000

Class I Regional Local Amtrak Passenger

Type of Railroad

Miles

0

30000

60000

90000

120000

150000

180000

210000

Freight Railroads

Kilometers
253

Information about Class I railroads is quite extensive, and is used to develop the baseline

measures for the rail sub sector. Information for smaller railroads is much more limited.

8.1.2.4 General Overview of Transit Transportation

In this document, transit is defined as encompassing commuter trains, heavy-rail (rapid

rail) and light-rail (streetcar) transit systems, local transit buses, vans and other vehicles,

and ferry boats. Most transit agencies that provide commuter rail service contract with

private railroads or Amtrak to operate the service. Passenger use is split about equally

between rail and non-rail systems. The operation of transit systems is overseen by public

transit authorities. About 2,250 public agencies provided transit services in US cities of

which approximately 6 percent operate one or more forms of rail mass transit. Many of

the largest cities received service from several transit operators.

Capital expenses are moneys paid for transit infrastructure and its planning, design, land

acquisition, and related costs. Data from the American Public Transit Association show

that in 1995, 25 percent of the $7.0 billion total was allotted for vehicles, 53 percent for

facilities, and 22 percent for equipment and services. 36 percent was spent on heavy rail,

26 percent on bus, 24 percent on commuter rail, 10 percent on light rail, and the

remainder on other modes.

Operating expenses in 1995 were $18.1 billion. Bus accounted for 58 percent, heavy rail

for 19.5 percent, commuter rail for 12 percent, demand response30 for 6 percent, light rail

for 2 percent, and other modes for 2.5 percent. About ten percent of operating expenses

were devoted to primary facilities maintenance. This figure has varied between about

eight and ten percent of total operating expenses between 1985 and 1995. This document

focuses only upon infrastructure related operations, maintenance, and energy costs, and

excludes vehicles/fleet operations costs.

8.1.2.5 General Overview of Air Transportation

The elements of the air transportation system are airports, air traffic control and

navigation aids, aircraft, pilots and other personnel, and suppliers of air passenger and

freight services. This document focuses only upon airports and the air traffic control

system for the development of baseline measures.

Data from the publication Transportation Statistics Annual Report 1997 indicate that in

1995 there were a total of 18,224 airports in the US (a decline from 18,343 in 1994, but a

substantial increase from the 15,161 operated in 1980). Private-use airports constitute 70

percent of these airports, and 96 percent of all airports are used by general aviation

aircraft. There were 5415 public-use airports in 1995.

 

30 Demand responsive transportation usually includes community transport and dial-a-ride services provided

by voluntary or statutory organizations for the elderly or other mobility handicapped persons. The term

demand responsive system means any system of providing designated public transportation which is not a

fixed route system.
254

General aviation airports are usually rudimentary facilities; only about half have paved

runways, and about one quarter have lighted runways. The number of civil certificated

airports (serving air carrier operations with aircraft seating more than 30 passengers) is

relatively stable at about 570. The majority of US airports are owned and operated by

state and local public bodies. Several publicly owned US airports are operated by private

bodies under a management contract. Table 8-7 shows the leading US airports in 1995 by

passenger emplanements and cargo volume respectively.

Table 8-7. Leading US Airports: 1995

PASSENGERS (arriving and departing)

Chicago O'Hare 67,254,586 Phoenix 27,820,144

Atlanta 57,734,755 Minneapolis/St Paul 26,782,915

Dallas Ft. Worth 54,298,930 Newark 26,566,948

Los Angeles 53,909,223 St. Louis 25,719,351

San Francisco 36,260,064 Boston 24,743,656

Miami 33,235,658 Houston 24,724,865

Denver 31,028,191 Honolulu 23,580,230

New York Kennedy 30,327,723 Seattle 22,790,920

Detroit 29,013,260 Orlando 22,365,503

Las Vegas 28,001,258 Charlotte 20,937,233

CARGO TONS (enplaned and deplaned)

Memphis 1,712,066 San Francisco 697,802

Los Angeles 1,597,219 Dayton 632,658

Miami 1,584,680 Philadelphia 564,880

New York Kennedy 1,572,840 Oakland 541,776

Louisville 1,351,147 Indianapolis 520,965

Chicago O'Hare 1,235,806 Honolulu 412,866

Anchorage 987,484 Seattle 407,473

Newark 905,966 Boston 395,589

Atlanta 771,389 Denver 376,074

Dallas Ft. Worth 765,630 Minneapolis/St. Paul 365,194

The National Airspace System (NAS), which is operated by the Federal Aviation

Administration, comprises over 32,000 facilities and pieces of equipment, including air

traffic control equipment, navigation and landing aids, automation systems,

communications equipment, and FAA plant facilities. Operations funding for the NAS

for FY1996 was $862,595,000, an increase of 2.7 percent from FY1995.31

 

31 Source: Management Advisory Memorandum on Resource Requirement Planning for

Operating and Maintaining the NAS, FAA Report Number AS-FA-7-004 Jan 1997.
255

8.1.2.6 General Overview of Water Transportation

Water transportation includes domestic movements on the inland waterways, the Great

Lakes, and along the coast, as well as between the contiguous 48 states and Alaska,

Hawaii, Guam, Puerto Rico, and the Virgin Islands. Water transport also encompasses

international ocean shipments. Facilities include harbors and ports, channels, navigation

aids, piers, wharves, cargo handling equipment, locks and dams, and storage facilities, as

well as vessels of various types. This document focuses upon ports, waterways, and

associated infrastructure for the development of baseline measures. Figure 8-21, which is

based upon data from the US Army Corps of Engineers, shows the relative proportion of

domestic waterborne commerce by type of traffic between 1980 and 1995. Reference to

the figure indicates that internal commerce32 represented about 56 percent of all freight

movements in 1995, and that total freight moved by water increased by 12 percent in this

time.

Figure 8-21. Domestic Waterborne Traffic by Type of Traffic: 1980 to 1995

0

200

400

600

800

1000

1200

1980198119821983198419851986198719881989199019911992199319941995

Year

0

200

400

600

800

1000

Total

Internal

Coastwise

Lakew ise

Intraport

Intraterritory

Data from the Transportation Statistics Annual Report 1997 indicate that in 1995 there

were 362 terminals on the Great Lakes with 507 berths, 1,811 inland terminals, and 1,578

ocean terminals with 2,672 berths. Of the 19,540 public and private deep-draft terminals

at ocean and Great Lakes ports, approximately 75 percent were privately owned. General

 

32 Internal commerce comprises all freight which is moved within the continental US via waterways

excluding coastal movements, Great Lake movements, and intraport/territory movements.
256

cargo berths made up 38 percent of all berths (e.g. for coal, grain, and ore) liquid berths

made up 20 percent (e.g. for crude and refined petroleum) and passenger berths accounted

for 3 percent. The remaining 18 percent were classified as other (e.g. berths for barges,

mooring, or inactive). Table 8-8, which is based upon data from the US Maritime

Administration, summarizes US seaport terminals and berths by coastal region. Inland

waterway ports and terminals generally have shallower water depths (4.3 meters/14 feet

or less) and can be located on the 25,000 miles of navigable inland waterways and

intracoastal waterways, providing more flexibility than coastal ports. In 1995, there were

about 1,800 river terminals in 21 states, of which about 89 percent were privately owned.

Of these terminals, approximately 4 percent were for general cargo, 58 percent were for

dry bulk cargo, 27 percent were for liquid bulk cargo, and 11 percent were multipurpose.

Data for US inland/riverport terminals are shown in Table 8-9, which is based upon data

from the US Maritime Administration.

Table 8-8. Summary of U.S. Seaport Terminals and Berths by Coastal Region

Coastal

Region

Number of

Terminals

Percen

t of

Total

Number of

Berths

Percent

of Total

North

Atlantic

 417 21.5% 756 23.8%

South

Atlantic

 187 9.6% 343 10.8%

Gulf 493 25.4% 790 24.9%

South Pacific 221 11.4% 405 12.7%

North Pacific 260 13.4% 378 11.9%

Great Lakes 362 18.7% 507 15.9%

Total 1,940 100.0% 3,179 100.0%

The US Army Corps of Engineers operates/maintains approximately 19,312 kilometers

(12,000 miles) of commercial shallow draft navigation channels. In 1996 the number of

locks owned and operated by USACE was 275. Of these, 61 percent were opened before

1960, and 9 percent were over 100 years old. The primary element of navigation channel

maintenance is associated with dredging.
257

Table 8-9. US Inland/Riverport Terminal Facilities by State

 State Number

of

Terminals

 Number and Type of Facilities

General Dry Bulk Cargo Liquid Bulk Cargo MultiCargo Grain Coal Ore Other Petrol LPG Other Purpose

Alabama 137 8 16 21 - 41 21 - 15 15

Arkansas 84 2 26 - - 24 7 - 6 19

Illinois 262 9 62 19 1 59 43 - 35 34

Indiana 60 2 8 14 1 16 9 - 2 8

Iowa 81 1 18 6 - 20 11 - 9 16

Kansas 8 - 4 - - 1 - - 2 1

Kentucky 175 3 13 48 - 49 32 1 15 14

Louisiana 66 1 8 2 - 12 19 1 14 9

Minnesota 62 2 13 4 - 16 12 - 7 8

Mississippi 69 1 16 - - 13 16 1 6 16

Missouri 135 2 23 6 - 59 17 - 16 12

Nebraska 17 1 7 - - 4 - - 4 1

Ohio 132 6 7 21 2 43 23 - 19 11

Oklahoma 27 3 5 - - 9 4 - 2 4

Pennsylvania 145 9 - 41 2 49 18 - 18 8

Tennessee 129 6 21 7 1 47 23 - 12 12

West Virginia 149 9 - 47 1 52 21 1 15 3

Wisconsin 18 - 1 4 - 6 2 - 4 1

Mississippi

System

Sub-total

1756 65 248 240 8 520 278 4 201 192

Idaho 4 1 2 - - 1 - - - -

Oregon 17 1 7 - - 4 - - 2 3

Washington 34 7 16 - - 2 2 - 3 4

Columbia/Snak

e Sub-total

55 9 25 0 0 7 2 0 5 7

Total 1811 74 273 240 8 527 280 4 206 199

Source: Maritime Administration
258

8.1.3 Overview of the Power Utilities Sub-Sector

This sub-sector is primarily concerned with the production of electricity, gas, or steam

from the primary fuel sources. The 1992 Census of Transportation, Communications,

and Utilities provides limited information about the amount of construction activity

carried out by establishments in SIC Code 49 (electric, gas, and sanitary services), as well

as more detailed information about the size of establishments, revenues, and payroll

costs.

Electric services (SIC 491) includes all establishments engaged in the generation,

transmission, and/or distribution of electric energy for sale. Gas production and

distribution (SIC 492) includes all establishments involved in the transmission and/or

storage of natural gas for sale. Combination utility services (SIC 493) includes all

establishments engaged in providing electric or gas services in combination with other

services. The number of establishments in the sub-sector in 1992 is shown in Table 8-10

(note that component figures may not add up to totals due to some establishments not

being operated in 1992).

Table 8-10. Number of Establishments in the Power Utilities Sub-Sector: 1992

NUMBER OF ESTABLISHMENTS BY EMPLOYMENT SIZE: 1992

Employment Size

SIC Code Total Establishments 9 or Fewer 

Employees 10-49 Employees 50-99 Employees 100 or More Employees

491 - Electric Services 5,374 1,687 2,139 669 793

492 - Gas Production and 

Distribution 3,968 1,689 1,535 282 317

493 - Combination Utility 

Services 1,814 502 568 267 429

Information from the EIA report Natural Gas Monthly, April 1997, provides a regional

summary of natural gas interstate pipeline capacity and planned additions between 1995

and 2000. In 1995, the total pipeline capacity entering the US was 2,371 million cubic

meters per day/83,746 million cubic feet per day, while the total pipeline capacity within

the US was 8,153 million cubic meters per day (287,918 million cubic feet/day). Natural

gas throughput in 1994 was about 1529 million cubic meters per day/54,000 million cubic

feet per day (refer to the EIA source document for further details). Natural gas pipelines

totaled 1,923,166 kilometers (1,195,000 miles) in 1994 (a slight decrease from 2,018,117

kilometers/1,254,000 miles in 1992). Distribution lines accounted for three-quarters of

this total mileage; transmission, field, and gathering lines made up the remaining quarter.

Since 1980, the total length of gas pipeline has increased by 24 percent, but transmission

pipeline length has only increased three percent over this period. In 1994, there were 150

interstate natural gas pipeline companies employing about 187,000 people.

Approximately 19 percent of natural gas pipelines were built before 1950. The effects of

corrosion and erosion of pipes over time reduces their ability to support stress and higher
259

pressures33. The number of gas pipeline failures was 216 in 1993, compared with a

previous 4-year average of 210 cases per year.

All other pipelines are considered in the pipelines sub-sector.

8.1.4 Overview of the Water Sub-Sector

The extent of the water sub-sector comprises water storage, supply, treatment, and flood

control. Water transportation and related activities, such as dredging, are considered in

the transportation sub-sector.

Data presented in Chapters 3, 5, 6, and 7 provide information regarding the consumption

of water in the residential, commercial, and industrial sectors. Data presented in this

Chapter for the power utilities sub-sector provide information about water consumption

for thermo-electric and hydo-electric power generation.

The 1992 Census of Transportation Communications and Utilities provides limited

information on the amount of construction activity carried out by establishments in SIC

Code 4941 (water supply), and SIC Code 4952 (sewerage systems). SIC Code 4941

includes all establishments engaged in distributing water for sale for domestic,

commercial, and industrial use. SIC Code 4952 includes all establishments engaged in

the collection and disposal of wastes conducted through a sewer system, including such

treatment processes as may be provided. The number of establishments in the sub-sector

in 1992 is shown in Table 8-11 (note that component figures made not add up to totals

due to some establishments not being operated in 1992).

Table 8-11. Number of Establishments in the Water Sub-Sector: 1992

NUMBER OF ESTABLISHMENTS BY EMPLOYMENT SIZE: 1992

Employment Size

SIC Code Total Establishments 9 or Fewer 

Employees 10-49 Employees 50-99 Employees 100 or More Employees

4952 - Sewerage Systems 470 331 75 7

4941 - Water Supply 3,453 2,934 285 75

The USACE provides historical information on expenditures for flood control and power

projects in the US. This information is be used to develop baseline measures for

operations and maintenance costs.

 

33 US Department of Commerce. 1978. “Effects of Metallic Corrosion in the United States.” NBS Special

Publication 511. Washington, DC: National Bureau of Standards. Further information about the economic

effects of corrosion in the US is available at the National Association of Corrosion Engineers Internet site

(URL:http://www.nace.org) .
260

The USACE manages 383 major lakes and reservoirs, with a total capacity of 483,778

million cubic meters (392.2 million acre-feet). These include 68 projects with authorized

irrigation storage, and 118 projects with authorized municipal and industrial water supply

storage. USACE is also responsible for 75 hydro-power projects with an installed

generating capacity of 20,720 megawatts. In 1994, these generated 68.2 billion kWh,

which represented about one-quarter of total US hydropower capacity, or 3 percent of

total US electric capacity. In addition, 67 non-federal power plants are operated at Corps

facilities, with a capacity of 1,957 megawatts. The Corps also manages 13,679

kilometers (8,500 miles) of levees in the US. Total flood control expenditures between

1928-1993 in current dollars were $34.7 billion.

8.1.5 Overview of the Pipelines Sub-Sector

The extent of this sub-sector comprises all pipelines for the transportation of petroleum

and other commodities except natural gas (included in the power utilities sub-sector).

The 1992 Census of Transportation Communications and Utilities provides limited

information on the amount of construction activity carried out by establishments in SIC

Code 46 (pipelines except natural gas), as well as more detailed information about the

size of establishments, revenues, payroll costs, and so forth.

Pipelines includes SIC 4612 (crude petroleum pipelines), SIC 4613 (refined petroleum

pipelines), and SIC 4619 (pipelines not elsewhere classified).

The number of establishments in the sub-sector in 1992 is shown in Table 8-12 (note that

component figures made not add up to totals due to some establishments not being

operated in 1992).

Table 8-12. Number of Establishments in the Pipelines Sub-Sector: 1992

NUMBER OF ESTABLISHMENTS BY EMPLOYMENT SIZE: 1992

Employment Size

SIC Code Total Establishments 9 or Fewer 

Employees 10-49 Employees 50-99 Employees 100 or More Employees

4612 - Crude Petroleum 

Pipelines 405 219 146 15 18

4613 - Refined Petroleum 

Pipelines 358 220 113 12 5

4619 - Pipelines not elsewhere 

classified 81 65 9 5 1

Oil pipeline mileage in the US in 1994 was 323,478 kilometers/201,000 miles (a slight

increase from 320,259 kilometers/199,000 miles in 1992), which is below that which

existed in 1980 (350,836 kilometers/218,000 miles). Crude oil pipeline mileage

decreased from 209,214 kilometers (130,000 miles) in 1980 to 183,465 kilometers
261

(114,000 miles) in 1994 (while oil product line mileage fell slightly from 143,231

kilometers/89,000 miles to 140,012 kilometers/87,000 miles over the same period).

In 1993, there were 228 liquid pipeline failures. For further information about the effects

of corrosion on pipeline performance refer to Section 8.1.3 of this document.

8.2 Baseline Measures for the Public Works Sector

This section of the document describes in detail the baseline measures for operations,

maintenance, and energy costs in the public works sector for each of the sub-sectors

previously identified in this document. For general definitions of “operations”,

“maintenance”, and “energy”, refer to Section 3.4 of this document. For detailed

information regarding the components within each of these general definitions, refer to

Sections 4.1.1 and 4.1.2.

8.2.1 Baseline Measures for the Transportation Sub-Sector

The baseline measures are presented as follows:

• Baselines for highways

• Baselines for railroads

• Baselines for transit

• Baselines for air

• Baselines for water

8.2.1.1 Baseline Measures for Highways Transportation

Data presented in Section 8.1.2.2 of this document examined the size of the highways

network, jurisdiction, and key characteristics, such as pavement condition. This section

begins by presenting general baseline data about government disbursements for highways

in 1994 for all government agencies, before moving on to provide more detailed

information about state and local government disbursements in 1994 and 1993

respectively. The FHWA publication Highway Statistics 1994 provides the source data

throughout this section.

Figure 8-22 shows selected government highway disbursements by type in 1994. The

source data, which show all categories of disbursement, are presented in Table 8-13.

Reference to the table shows that total disbursements, including such items as interest on

debt and bond retirements, totaled approximately $90 billion, of which nearly one half

was for capital outlays (i.e. costs associated with highway improvements), and onequarter was for maintenance and traffic services. Administration and research accounted

for about 9 percent of the total, and law enforcement and safety accounted for a further 8

percent. Whilst capital outlays on state-administered highways were over twice those for

locally-administered highways, the latter required higher maintenance and traffic services

funding compared with state highways.
262

Figure 8-23 shows the proportion of disbursements by type of government. Total federal

government disbursements accounted for only two percent of total government

disbursements in 1994.

Figures 8-24 through 8-35 show state-administered highway disbursements in increasing

level of detail for 1994. Figure 8-24 shows highway disbursements by major cost

category. Total disbursements were $54,752,569,000, of which $30,151,637,000 (55

percent) was for capital outlays for roads and bridges, and $10,073,131,000 (18 percent)

was for maintenance and highway services.
263

Figure 8-22. Highway Disbursements, All Government: 1994

23,774

8,443

7,552

42,128

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Capital Outlay

Subtotal:

Maintenance and

Traffic Services

Subtotal:

Administration and

Research

Highw ay Law

Enforcement and

Safety

Description of Outlay

Table 8-13. Highway Disbursements for All Government by Expending Agency:

1994

DISBURSEMENTS FOR HIGHWAYS - BY EXPENDING AGENCIES: 1994

TOTAL (millions 

of Dollars)

% OF 

TOTAL

Capital Outlay Subtotal: 42,128 46.77%

 On State-Administered Highways 30,152 33.47%

 On Locally Administered Roads 11,138 12.37%

 Not Classified by System 838 0.93%

Maintenance and Traffic Services Subtotal: 23,774 26.39%

 On State-Administered Highways 10,073 11.18%

 On Locally Administered Roads 13,630 15.13%

 Not Classified by System 71 0.08%

Administration and Research 8,443 9.37%

Highway Law Enforcement and Safety 7,552 8.38%

Interest on Debt 3,801 4.22%

Total Current Disbursements 85,698 95.14%

Bond Retirements 4,376 4.86%

Grand Total Disbursements 90,074 100.00%
264

Figure 8-23. Total Highway Disbursements by Type of Government: 1994

Total Disbursements = $90,074 Million

Total Federal

2%

State Agencies and DC

62%

Local Government

36%

Figure 8-24. State-Administered Highway Disbursements by Type: 1994

30,151,637

10,073,131

4,804,227 4,199,097

2,065,774 3,458,703

54,752,569

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Capital Outlay

for Roads and

Bridges

Maintenance

and Highway

Services

Administration

and

Miscellaneous

Highway Law

Enforcement

and Safety

Interest

Bond

Retirement

Total

Disbursements

Type of Disbursement

Thousanmds of Dollars
265

Figure 8-25 indicates that construction costs are the largest component of capital outlays

for roads and bridges (about 76 percent), with design costs accounting for about 16

percent, and the remainder required for acquisition of rights of way (ROW). The

maintenance and highway services major category can be split into physical

maintenance ($7,089,411,000) and highways and traffic services ($2,983,720,000)

which includes traffic control operations ($682,023,000) snow/ice removal

($1,082,327,000), other services such as highway beautification, litter control, vegetation

and erosion control, and air quality programs ($226,093,000), and toll facility collection

expenses ($993,237,000). General administration accounted for $4,171,251,000

research and planning for $632,976,000, and highway law enforcement and safety for

$4,199,097,000.

Figure 8-26 and Figure 8-27 examine state highway capital outlays by functional system

in urban and rural areas respectively. The source data are presented in Table 8-14, and

are shown in a more aggregated form in the two figures (e.g. small urban and urbanized

areas are combined, as are some functional system classifications) . Reference to Figure

8-26 shows that state highway capital outlays in urban areas in 1994 were predominantly

for Interstates/freeways and expressways and arterial routes, as opposed to collectors.

Total capital outlays were $15,770,199,000. This was slightly higher than total capital

outlays in rural areas ($12,450,712,000), as shown in Figure 8-27. As one would expect,

capital outlays in rural areas were less heavily biased toward Interstates/freeways and

expressways compared with urban areas.

In Figures 8-28 through 8-33, state highway capital outlays are shown in greater detail by

functional system, for Interstates, arterials, and collectors in rural and urban areas. The

expenditure categories which are shown are as follows:

• land acquisition, right of way and engineering

• new highway construction

• highway reconstruction

• major highway widening

• 3R (resurfacing, restoration, and rehabilitation of roadways and structures)

• bridge works

• safety and other (guard rails, fencing, signs, signals, etc.)

Figure 8-28 shows capital outlays for Interstates in urban areas, Figure 8-29 shows capital

outlays for arterials in urban areas, and Figure 8-30 shows capital outlays for collectors in

urban areas. Comparison of the three figures indicates that ROW/engineering costs are

one of the largest cost components irrespective of functional system. Total expenditures

for collectors are relatively small. 3R represents about 13 percent of total capital outlays

by state authorities for Interstates and arterials, and about 20 percent of total capital

outlays for urban collectors.
266

Figure 8-25. State Highway Disbursements by Type of Disbursement: 1994

2,572,025

4,772,042

22,807,570

30,151,637

7,089,411

682,063

1,082,327

226,093

993,237

2,983,720

4,171,251

632,976

4,804,227

3,176,700

568,069

218,686

235,642

4,199,097

0

10000000200000003000000040000000

Acquisition of ROW

Preliminary and Construction Engineering

Highway Construction

Total Capital Outlays

Physical Maintenance

Traffic Control Operations

Snow/Ice Removal

Other Services

Toll Facility Collection Expenses

Total Highway and Traffic Services

General Administration

Research and Planning

Total Administration and Research

Traffic Supervision

Highway Safety and Driver Education

Vehicle Inspection

Vehicle Size and Weight Enforcement

Total Highway Law Enforcement and Safety

Type of Disbursement 

Thousands of Dollars 
267

Figure 8-26. State Highway Capital Outlays in Urban Areas by Functional System:

1994

9,348,969

5,959,277

461,953

15,770,199

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Interstate/ Freeways &

Expressways

Arterial Collector Total Capital Outlay

Functional System

Thousands of Dollars

Figure 8-27. State Highway Capital Outlays in Rural Areas by Functional System:

1994

3,007,883

7,020,266

2,422,563

12,450,712

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Interstate Arterial Collector Total Capital Outlay

Functional System

Thousands of Dollars
268

Table 8-14. State Highway Capital and Maintenance Outlays in Rural, Small

Urban, and Urbanized Areas by Functional System: 1994

STATE HIGHWAY AGENCY CAPITAL OUTLAY AND MAINTENANCE - 1994 (THOUSANDS OF DOLLARS)

CAPITAL OUTLAY

In Rural Areas

Interstate Other Principal 

Arterial Minor Arterial Total Arterial Major Collector Minor Collector Total Collector Total Capital Outlay

3,007,883 4,625,364 2,394,902 7,020,266 2,013,412 409,151 2,422,563 12,450,712

In Small Urban Areas (5,000 - 49,999 Population)

Interstate Other Freeways 

and Expressways

Other Principal 

Arterial Minor Arterial Total Arterial Total Collector Total Capital Outlay

283,368 134,050 776,339 356,918 1,133,257 94,803 1,645,478

In Urbanized Areas (50,000 or more Population)

Interstate Other Freeways 

and Expressways

Other Principal 

Arterial Minor Arterial Total Arterial Total Collector Total Capital Outlay

6,359,923 2,571,628 3,485,276 1,340,744 4,826,020 367,150 14,124,721

MAINTENANCE OUTLAY

In Rural Areas

Interstate Other Principal 

Arterial Minor Arterial Total Arterial Major Collector Minor Collector Total Collector

Total 

Maintenance 

Outlay

816,351 796,542 797,252 1,593,794 886,760 235,554 1,122,314 3,532,459

In Small Urban Areas (5,000 - 49,999 Population)

Interstate Other Freeways 

and Expressways

Other Principal 

Arterial Minor Arterial Total Arterial Total Collector

Total 

Maintenance 

Outlay

68,513 45,617 141,582 99,965 241,547 20,715 376,392

In Urbanized Areas (50,000 or more Population)

Interstate Other Freeways 

and Expressways

Other Principal 

Arterial Minor Arterial Total Collector

Total 

Maintenance 

Outlay

488,093 324,070 453,696 236,046 60,028 1,561,933
269

Figure 8-28. State Highway Capital Expenditures for Interstates in Urban Areas:

1994

1,141,221 1,083,083

817,100 1,033,646

6,643,287

457,837 501,645

1,608,755

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

ROW &

Engineering

New Construction

Reconstruction

Major Widening

3R

Bridge Work

Safety & Other

Total

Type of Expenditure

Figure 8-29. State Highway Capital Expenditures for Arterial in Urban Areas: 1994

984,106 685,229

8,664,943

1,622,616

1,181,184

460,118

1,422,532

2,309,158

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

ROW &

Engineering

New Construction

Reconstruction

Major Widening

3R

Bridge Work

Safety & Other

Total

Type of Expenditure
270

Figure 8-30. State Highway Capital Expenditures for Urban Collectors: 1994

102,998 92,825

54,973 18,994

109,661

18,453 64,038

461,942

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

ROW &

Engineering

New Construction

Reconstruction

Major Widening

3R

Bridge Work

Safety & Other

Total

Type of Expenditure

Figures 8-31 through 8-33 show similar information for highways in rural areas. These

three figures indicate that the highest state capital outlays are for arterials in rural areas.

In comparison with urban highways, 3R is a larger component of total costs. This is

particularly true for rural Interstates. ROW and engineering costs also represent a smaller

proportion of total costs for rural Interstates, as might be expected. There is a very

similar distribution of expenditures by category between urban and rural collectors, with a

greater expenditure upon reconstruction rather than new construction compared with

Interstates and arterial roads.

Figures 8-34 and 8-35 show how state maintenance outlays vary by functional system in

urban and rural areas. Figure 8-34 shows that total expenditures for urban

Interstates/freeways and expressways and arterials are of similar magnitude, and are about

11 times greater than those for collectors. Figure 8-35 shows that collector expenditures

are much more significant in rural areas.
271

Figure 8-31. State Highway Capital Expenditures for Rural Interstates: 1994

447,106

77,696

1,364,432

197,758

3,007,889

233,373

353,825 333,699

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

ROW &

Engineering

New

Construction

Reconstruction

Major

Widening

3R

Bridge Work

Safety & Other

Total

Type of Expenditure

Thousands of Dollars

Figure 8-32. State Highway Capital Expenditures for Arterial in Rural Areas: 1994

1,669,806

1,126,342 916,631

411,765

1,882,478

738,863

274,383

7,020,268

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

ROW &

Engineering

New

Construction

Reconstruction

Major

Widening

3R

Bridge Work

Safety & Other

Total

Type of Expenditure

Thousands of Dollars
272

Figure 8-33. State Highway Capital Expenditures for Rural Collectors: 1994

516,063

200,570

365,244

62,521

692,233

472,215

113,720

2,422,566

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

ROW &

Engineering

New

Construction

Reconstruction

Major

Widening

3R

Bridge Work

Safety & Other

Total

Type of Expenditure

Thousands of Dollars

Figure 8-34. State Highway Maintenance Outlays in Urban Areas by Functional

System: 1994

926,293 931,289

80,743

1,938,325

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Interstate/

Freeways &

Expressways

Arterial Collector Total Capital

Outlay

Functional System

Thousands of Dollars
273

Figure 8-35. State Highway Maintenance Outlays in Rural Areas by Functional

System: 1994

816,351

1,593,794

1,122,314

3,532,459

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Interstate Arterial Collector Total

Maintenance

Outlay

Functional System

Thousands of Dollars

The data plotted in Figures 8-34 and 8-35 can be normalized on a “per-kilometer” basis or

on a “per-lane kilometer” basis, to allow comparison of maintenance costs by type of road

and geographic location. Data are available from FHWA which estimate lane kilometers

by functional system for all highways in the US, for urban and rural locations. In

addition, data are available for state administered highways, which estimate rural and

urban lane kilometers, but do not classify this by functional type. Thus, given that nearly

all Interstates/freeways and expressways are controlled by state authorities, we can derive

values for maintenance costs per-lane kilometer for Interstates, and for all roads

combined, but not for arterials or collectors. These data are summarized in Table 8-15.

Reference to the table indicates that maintenance costs per lane kilometer for all stateadministered highways are about $1,865 ($3,000/ per lane mile). Rural highway

maintenance costs are under half those of urban maintenance costs. However, urban and

rural Interstate costs are significantly higher than the average for all highways, with urban

costs of about $5,190 per lane kilometer ($8,350 per lane mile) and rural Interstate costs

of about $3,853 per lane kilometer ($6,200 per lane mile).
274

Table 8-15. State Highway Maintenance Outlays: 1994

Functional System Total Maintenance 

Cost (Dollars)

Total Miles 

(including 

local 

highways)

Total Lane 

Miles 

(estimated)

Estimated 

Maintenance 

Cost per Mile 

(Dollars)

Estimated 

Maintenance 

Cost per Lane 

Mile (Dollars)

Estimated 

Maintenance 

Cost per 

Kilometer 

(Dollars)

Estimated 

Maintenance 

Cost per Lane 

Kilometer 

(Dollars)

Urban Interstates/Freeways and 

Expressways 926,293,000 21,658 111,014 42,769 8,344 26,581 5,186

Urban Arterial 931,289,000 60,920 - 15,287 - 9,501 -

Urban Collector 80,743,000 10,394 - 7,768 - 4,828 -

All Urban Highways 1,938,325,000 110,014 346,460 17,619 5,595 10,950 3,477

Rural Interstate 816,351,000 32,457 131,288 25,152 6,218 15,632 3,865

Rural Arterial 1,593,794,000 227,833 - 6,995 - 4,347 -

Rural Collector 1,122,314,000 267,182 - 4,200 - 2,610 -

All Rural Highways 3,532,459,000 690,371 1,448,313 5,116 2,439 3,180 1,516

All Highways 5,470,784,000 800,385 1,794,773 6,835 3,048 4,248 1,894

Figure 8-36 through 8-38 show local government capital outlays for highways by type of

disbursement and functional type in 1993 (not 1994). No data have been located on

maintenance outlays by functional type which would be similar to that already presented

for state highways. However, data are available for selected local toll facilities in various

states, which include toll bridge and tunnel facilities, road facilities, and ferry facilities.

For brevity, these data are not included in this document. In general, data for locallyadministered highways are much less comprehensive than for state-administered

highways.

Figure 8-36 shows local government disbursements for all highways by type of

disbursements. Comparison of Figure 8-36 and Figure 8-24 shows that local government

allocates a much larger proportion of its budget to highway maintenance than to new road

and street construction, compared with state government, which has a much higher

proportional expenditure on new construction. For locally-administered highways,

maintenance costs in 1993 were $11,529,616,000 or 34 percent of total local government

highway expenditures (compared with about 18 percent for state government). Snow

removal costs were $1,011,638,000, and other costs, such as highway litter removal,

vegetation control, and erosion control, amounted to $759,059,000.

Figure 8-37 and Figure 8-38 show local government highway capital outlays in urban and

rural areas respectively. In urban areas, outlays for arterial roads accounted for about 70

percent of total expenditures. In comparison, in rural areas, the major proportion of

expenditures was for collectors.
275

Figure 8-36. Local Government Highway Capital Expenditures by Type: 1993

504,285

869,352

9,056,317

11,529,616

1,011,638

759,059

2,592,685

3,286,810

0

2,000,0004,000,0006,000,0008,000,000

10,000,00012,000,00014,000,000

Acquisition of ROW

Preliminary and Construction Engineering

Total Road and Street Construction

Maintenance

Snow Removal

Other

Administration and Miscellaneous

Law Enforcement and Safety

Type of Disbursement

Thousands of Dollars

Figure 8-37. Local Government Capital Expenditures in Urban Areas by Type:

1993

28,222

1,735,645

617,588

2,381,455

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Interstate/

Freeways &

Expressways

Arterial Collector Total

Functional Type

Thousands of Dollars
276

Figure 8-38. Local Government Capital Expenditures in Rural Areas by Type: 1993

0

48,600

760,084

808,684

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Interstate Arterial Collector Total

Functional Type

Thousands of Dollars

8.2.1.2 Baseline Measures for Railroads

As described in the general overview section, data for railroads other than Class I

railroads are very limited. However, some data exist for Class I railroads, which form a

large part of total track-miles in the US. These data describe operations and maintenance

costs. Energy costs will not be considered in this section, as these are primarily

attributable to rolling stock end-use, which is beyond the scope of this document.

Figure 8-39, which is based upon data from the Statistical Abstract 1996, shows how

total operating expenses, and total gross capital expenditures have varied for Class I

railroads between 1980 and 1992. The source data are shown in Table 8-16. Operating

expenses include annual payroll (about 40 percent of total expenses in 1992) purchased

fuels (7 percent), lease of equipment and rental (10 percent), insurance (5 percent),

depreciation (9 percent), taxes and licenses (4 percent), and other expenses (24 percent).

Total gross capital expenditures (i.e., new investment in track, facilities and equipment)

were $5,035 million in 1994. In 1992, about three-quarters of new investment was in

roadways and structures, and most of the remainder was for new equipment.
277

Figure 8-39. Selected Class I Railroad Expenses by Type: 1980 to 1992

0

5,000

10,000

15,000

20,000

25,000

30,000

1980 1985 1988 1989 1990 1991 1992

Year

Operating expenses

Gross capital Expenditures

Equipment

Roadw ay and Structures

The Surface Transportation Board - a part of the Department of Transportation - provides

detailed Class I railroad financial data. The 1996 Annual Report gives highly detailed

information about railway operating expenses for all Class I roadways, tunnels, bridges,

other facilities, and rolling stock.

Table 8-16. Detailed Description of Operating Expenses for All Class I Railroads

Unit Item 1980 1985 1988 1989 1990 1991 1992 1993 1994

Number Class I line-hauling companies 40 23 17 15 14 14 13 13 13

1,000 Employees 458 302 236 228 216 206 197 193 190

Million Dollars Compensation 11,318 10,563 9,301 9,043 8,654 8,695 8,753 8,732 8,874

1,000 miles Railroad line owned 178 162 150 149 146 143 139 137 132

1,000 miles Railroad track owned 292 269 251 250 244 241 234 231 222

Million Dollars Operating expenses 26,355 25,225 24,811 25,038 24,652 28,061 25,325 24,517 25,511

Million Dollars Gross Capital Expenditures (Total) 3,238 4,485 3,546 3,865 3,591 3,439 3,680 4,504 5,035

Million Dollars Equipment 2280 965 1027 1171 996 1068 874 - -

Million Dollars Roadway and Structures 953 3458 2654 2538 2644 2369 2763 - -

Million Dollars Other 5 62 -135 156 -49 2 69 - -
278

In 1996, total Class I operating expenses were $26,331,375,000. Repairs and

maintenance of roadways and structures accounted for $4,455,598,000, or about 17

percent of total operating expenses, with the remainder comprising administrative

expenses for roadways and structures ($334,180,000), maintenance and repairs of

equipment ($6,960,447,000), train operations ($7,809,600,000), yard operations

(2,150,265,000), train and yard common operations (182,964,000), specialized service

operations ($761,598,000), and administrative support ($4,010,903,000). These data are

shown graphically in Figure 8-40. Selected maintenance and repair costs for Class I

roadways and structures are shown in Table 8-17 and Figure 8-41.

Figure 8-40. Comparison of Total Class I Operating Expenses by Type: 1996

M&R: Equipment

26%

Train Operations

29%

Train/Yard Common 

Operations

1%

Yard Operations

8%

Specialized Service 

Operations

3%

Administrative Support

15%

M&R: Roadways and 

Structures

17%

Administration: 

Roadways and 

Structures

1%
279

Figure 8-41. Selected Class I Railroad Maintenance and Repair Expenses: 1996

160,499

1,527

94,046

25,609

382,260

35,457

29,588

217,039

109,598

10,179

39,138

73,635

29,072

0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

Roadway-running

Tunnels and subwaysrunning

Bridges and culvertsrunning

Ties-running

Rail and other track

material-running

Ballast-running

Road property damagedrunning

Signals and interlockersrunning

Communications systems

Power systems

Highway grade crossingsrunning

Station and office buildings

Snow removal

Description

Thousands of Dollars

8.2.1.3 Baseline Measures for Transit Systems

As has already been mentioned in Section 8.1, transit systems in the US are controlled by

many different public agencies. Data for each of these Transit Agencies are provided in

the National Transit Database. This database provides information on transit operating

expenses by mode. However, it does not appear to be possible to differentiate between

vehicle operations and maintenance, and infrastructure operations and maintenance from

these data, which combine these cost elements. Thus, this information is of limited

usefulness for establishing baselines. Furthermore, it is not considered desirable to

examine individual agencies in detail. This section therefore only considers aggregated

data for all Transit Agencies in the US.
280

Table 8-17. Selected Class I Railroad Operating Expenses: 1996

ALL CLASS I RAILROADS - SELECTED OPERATING EXPENSES

DESCRIPTION

EXPENSE 

(THOUSANDS OF 

1996 DOLLARS)

PERCENTAGE OF 

SUB-TOTAL

Ways and Structures Administration Sub-Total 334,180 100.00

Track 117,471 35.15

Bridge and Building 39,225 11.74

Signal 50,534 15.12

Communication 22,152 6.63

Other 104,798 31.36

Repairs and Maintenance Sub-Total 4,455,598 100.00

Roadway-running 160,499 3.60

Roadway-switching 25,868 0.58

Tunnels and subways-running 1,527 0.03

Tunnels and subways-switching 974 0.02

Bridges and culverts-running 94,046 2.11

Bridges and culverts-switching 11,413 0.26

Ties-running 25,609 0.57

Ties-switching 5,702 0.13

Rail and other track material-running 382,260 8.58

Rail and other track material-switching 62,356 1.40

Ballast-running 35,457 0.80

Ballast-switching 3,970 0.09

Road property damaged-running 29,588 0.66

Road property damaged-switching 2,174 0.05

Road property damaged-other 1,606 0.04

Signals and interlockers-running 217,039 4.87

Signals and interlockers-switching 28,781 0.65

Communications systems 109,598 2.46

Power systems 10,179 0.23

Highway grade crossings-running 39,138 0.88

Highway grade crossings-switching 543 0.01

Station and office buildings 73,635 1.65

Shop buildings-locomotives 26,926 0.60

Shop buildings-freight cars 10,926 0.25

Shop buildings-other equipment 12,740 0.29

Locomotive servicing facilities 11,546 0.26

Miscellaneous buildings and structures 25,839 0.58

Coal terminals 11,075 0.25

Ore terminals 8,085 0.18

Other marine terminals 1,848 0.04

Snow removal 29,072 0.65
281

Figure 8-42 shows how operating expenses in the passenger transit industry have varied

between 1985 and 1995, by expense category. Reference to the figure indicates that

vehicle operations is the largest cost component, followed by total maintenance costs

(both vehicles and facilities). In 1995, non-vehicle maintenance was $1,868.5 million, or

10.4 percent of total expenses. Non-vehicle maintenance was approximately 36 percent

of total transit maintenance. The source data from the Statistical Abstract 1997, and

American Public Transit Association (APTA), are shown in Table 8-18.

Figure 8-42. Passenger Transit Industry Operating Expenses by Type: 1985 to 1995

0

5,000

10,000

15,000

20,000

25,000

1985 1989 1990 1991 1992 1993 1994 1995

Year

Total expense

Operating expense

Vehicle operations

Total Maintenance

Non-Vehicle Maintenance

Table 8-18. Passenger Transit Industry Operating Expenses: Source Data

EXPENSE IN MILLIONS OF CURRENT DOLLARS

Description 1985 1989 1990 1991 1992 1993 1994 1995

Total expense 14,077 17,169 17,979 19,332 20,034 20,679 21,653 21,785

Operating expense 12,381 14,972 15,742 16,541 16,781 17,350 17,290 18,052

Vehicle operations 5,655 6,275 6,654 6,727 7,660 7,941 8,212 8,505

Total Maintenance 3,672 4,493 4,631 4,597 4,831 4,894 5,004 5,166

Non-Vehicle Maintenance 1,149 1,551 1,592 1,605 1,784 1,845 1,819 1,869

General Administration 2,505 3,251 3,450 3,585 2,674 2,715 2,725 2,716

Purchased Transportation 549 953 1,008 1,633 1,616 1,800 1,952 1,666

Reconciling Expense 1,696 2,196 2,237 2,791 3,253 3,329 3,733 3,733

Capital Expenditure, Federal 2,510 2,590 2,380 2,396 2,613 3,465 3,577 5,481
282

Table 8-19, which is extracted from Characteristics of Urban Transportation Systems

1992, shows how rail transit operating costs vary by type of transit system for rapid rail,

light rail, and commuter rail systems. Reference to the table shows that salaries, wages,

fringe benefits, and utilities represent the largest part of operating expenses. In

comparison, other expenses, which include maintenance costs, represent between 11.7

and 24.7 percent of total operating expenses.

Table 8-19. Percentage Distribution of Rail Transit Operating Costs by Type of

System: 1989

Description Percentage of Total Costs

Rapid Rail Light Rail Commuter Rail

Operator Salaries 9.3 18.1 11

Other Salaries and Wages 40.7 34.5 29.6

Fringe Benefits 29.2 26.2 28.6

Utilities 8.7 9.4 6.1

All Other Costs 12.1 11.7 24.7

Total 100 100 100

8.2.1.4 Baseline Measures for Air Transportation

The costs of operating, maintaining, and developing airports are similar to those costs

incurred by other transportation facilities. Airport operators seek to recover these costs

from airport users and tenants. All airports try to operate as financially self-sufficient

enterprises. The problem in establishing baseline measures for airports is that the cost

structure of each airport is unique. Operations costs will obviously be highly dependent

upon the size of the airport. This can be measured in terms of its “airside capacity”,

which is calculated by the FAA and expressed in terms of aircraft operations per hour, or

its “groundside” capacity, which is the number of passengers per year the airport’s roads,

parking lots, and terminals can handle. In addition, many of the operational aspects of

airport use by airlines are subject to federal regulation, and are linked to the overall

functioning of the National Airspace System, which will impact operations costs.

The authors have been unable to locate any data which provide aggregated or normalized

operating costs for airports. However, one alternative way of examining airport costs is

to look at airport charges to airlines, who pay for their share of the cost of airport facilities

and services. The commercial relationship between a public airport operator and an

airline company is established through regulations and standards. Federal law requires

that the charges to the airlines be reasonably related to the cost of providing the facilities

and services.
283

The relative proportion of the various airline cost elements has fluctuated over the years

in response to factors both internal and external to the airlines. However, the proportion

of an airlines total costs for its use and lease of airport facilities and services, compared to

its total costs, has remained relatively stable. On average, for the US airline industry,

approximately 4 percent of total airline costs are required for airport rents, fees, and

charges34. Increased airline operations resulting from growth in air travel has increased

airline costs in absolute terms. Airport facilities have expanded to accommodate this

growth. The majority of airport capital development plans are agreed to by tenant airlines

in order to meet traffic demand. The Airline Transport Association (ATA) states that

airline ‘per passenger’ costs for airport landing fees and rental rose by 76 percent between

1982-1991. During the same period, inflation increased by 41 percent. Thus, after

accounting for traffic growth and inflation, airport costs have been exceptionally stable

during this period. The Airports Council International report Airport Costs and the US

Airline Industry concludes that whilst the US airline industry has lost $8 billion in the last

three years, this is not attributable to increased airport costs, which are the most stable of

airlines’ cost elements.

Information showing Denver International Airport’s estimated operations and

maintenance costs for FY1996 by cost category has been extracted from the General

Accounting Office report GAO/AIMD-96-27. This is one of the few information sources

located by the authors which shows airport costs in any level of detail. It should be noted

that these relative costs may not be representative of other airports in the US. The

information is presented in Table 8-20.

8.2.1.5 Baseline Measures for Water Transportation

This section presents baseline measures for ports and waterways. The Maritime

Administration provides some data on capital expenditures for US ports, which include

expenses relating to port ‘modernization and rehabilitation’ (also referred to as

‘maintenance and repair’ by the Maritime Administration).

Capital expenditures for port facilities cover expenditures for the construction of new

facilities and the modernization and rehabilitation of existing ones. Table 8-21 shows

annual US port expenditures for 1992 through 1994, broken down by coastal region. For

1994, capital expenditures were $929.6 million - a 42 percent increase from 1993. This

sharp increase resulted from the purchase of a large tract of land for future port

development in the South Pacific region (California) for $243 million.

Table 8-22 shows how 1994 port expenditures were broken down by category. The last

row of Table 8-22 records the percentage of total expenditures for each facility type. Port

infrastructure improvements represented 21.1 percent (15.1 percent for off terminal

expenditures and 6.0 percent for terminal expenditures) of 1994 total expenditures. Offterminal expenditures were nearly three-quarters of this total. Dredging expenditures

 

34 Source: Airports Council International: Airport Costs and the US Airline Industry - A background paper

on the relationship between airports, airlines, competition, and economic growth.
284

amounted to 3.4 percent of total expenditures, with the majority occurring on the east and

gulf coasts. Expenditures for new construction represented 75 percent of the 1994 capital

expenditures; new construction expenditures totaled approximately $514 million in 1994.

Specialized general cargo facilities accounted for 40.3 percent of the new construction,

with conventional general cargo accounting for 26.6 percent, and infrastructure

accounting for 12.3 percent.

Table 8-20. Estimated Operating Costs for Denver International Airport: 1996

Cost Category Estimated Cost 

(Dollars) Percentage of Total

Personnel $44,125,000 27.8

Cleaning 20,648,000 13.0

Utilities 19,438,000 12.2

Supplies and materials 9,681,000 6.1

Repairs and maintenance 8,374,000 5.3

Professional services 8,099,000 5.1

Police 7,726,000 4.9

City interfund services 7,014,000 4.4

Stapleton International Airport 5,749,000 3.6

Underground train 5,662,000 3.6

Variable rate bond fees 5,142,000 3.2

Aircraft rescue and firefighting 5,012,000 3.2

Management fees 4,001,000 2.5

Shuttlebus services 3,120,000 2.0

De-icing facility management fee 2,027,000 1.3

Other contractual services 1,431,000 0.9

Fuel line fill-up 985,000 0.6

Miscellaneous 455,000 0.3

Total $158,689,000 100.0

Source: GAO Report February 1996 - Denver Airport - Operating Results and Financial Risks

The remaining 25 percent of capital expenditures were for modernization and

rehabilitation (maintenance and repair), and totaled approximately $172 million in 1994.

Of this total, 43.6 percent was spent on infrastructure. Other significant categories

included specialized general cargo (19.9 percent) and conventional general cargo (21.1

percent). Further information regarding individual port finances is available from the

(Internet URL: http://www.aapa-ports.gov).

There are over 400 ports, and 40,233 kilometers (25,000 miles) of navigation channels

throughout the US that need to be maintained. The US Army Corps of Engineers

(USACE) is responsible for dredging activities in federally maintained channels and
285

harbors, while permit applicants (e.g., port authorities, terminal operators, and other

private industry) apply to the Corps for additional dredging of berths, access channels and

so forth. Table 8-23, which is based upon data from the USACE, shows how dredging

costs and volumes have varied between 1980 and 1995. These data are presented

graphically in Figure 8-43 and Figure 8-44. Figure 8-43 shows dredging expenditures for

new construction, for maintenance of existing channels/harbors, and combined

expenditures, both for work carried out by USACE, and by industry. Figure 8-44 shows

total dredging expenditures in dollars per cubic yard/cubic meter.

Table 8-21. US Port Capital Expenditures (Thousands of Dollars): 1992 to 1994

Region 1994 1993 1992

Expenditures Percent Expenditures Percent Expenditures Percent

North

Atlantic

70,299 7.6% 91,198 14.0% 112,190 16.7%

South

Atlantic

124,853 13.4% 148,555 22.7% 123,065 18.3%

Gulf 109,297 11.8% 129,805 19.9% 145,358 21.6%

South Pacific 533,992 57.4% 139,275 21.3% 140,296 20.9%

North Pacific 40,628 4.4% 94,331 14.4% 45,632 6.8%

Great Lakes 754 0.1% 22,938 3.5% 3,206 0.5%

AK, HI, PR, &

V.I.*

35,420 3.8% 27,561 4.2% 102,021 15.2%

Guam,

Saipan

14,377 1.5% - - - -

Total $929,620 100.0% $653,663 100.0% $671,768 100.0%

Source: Maritime Administration

* Alaska, Hawaii, Puerto Rico, & Virgin Islands

The USACE also provides detailed information by state on its civil works expenditures

for navigation works between 1936 and 1996. These expenditures are broken down into

new construction, and operations and maintenance. Data for 1992 to 1996 are presented

graphically in Figure 8-45. Navigation costs comprise harbor and channel maintenance

and repair, and lock operations. The USACE provides an inventory of all Corps owned

and/or operated locks in its Navigation Data Center. However, this information does

not include operations costs for locks. Nor does its Port Series Reports provide

operations cost data for ports.
286

Table 8-22. US Port Capital Expenditures (Thousands of Dollars) by Type of Facility: 1994

Region Type of Facility

General

Cargo

Specialized

General

Cargo

Dry

Bulk

Liquid

Bulk

Passenger Other Infrastructure Dredging Total

 OffTerminalOnTerminal

North Atlantic 6,727 3,696 1,891 - - 1,946 48,868 1,233 5,938 70,299

South Atlantic 14,566 58,772 60 1,177 19,675 6,957 15,663 314 7,669 124,853

Gulf 53,718 1,450 2,119 904 11,725 25,341 4,080 3,324 6,636 109,297

South Pacific 52,218 152,136 28,982 88 714 1,397 25,856 28,589 1,012 290,992

North Pacific 459 5,659 5,053 - 422 12,830 8,642 7,563 - 40,628

Great Lakes 399 - 135 - - - - - 220 754

AK,HI,PR, &

VI*

28,126 6,132 - - - 333 532 - 297 35,420

Guam,

Saipan

- 11,391 - - - 986 - - 2,000 14,377

Total $156,213 $239,236 $38,240 $2,169 $32,536 $49,790 $103,641 $41,023 $23,772 $686,620

Percent by

Facility Type

22.8% 34.8% 5.6% 0.3% 4.7% 7.3% 15.1% 6.0% 3.4%

Source: Maritime Administration

* Alaska, Hawaii, Puerto Rico, & Virgin Islands
287

Table 8-23. Dredging Costs and Volumes by USACE and Industry: 1980 to 1995.

US ARMY CORPS OF ENGINEERS

YEAR Expenditures (millions of Dollars) Volume (Million Cubic Yards) Volume (Million Cubic Meters)

Maintenance New Work Total Maintenance New Work Total Maintenance New Work Total

1980 92.0 3.0 95.0 81.0 1.0 82.0 61.9 0.8 62.7

1981 104.0 0.0 104.0 88.0 0.0 88.0 67.3 0.0 67.3

1982 76.0 0.0 76.0 60.0 0.0 60.0 45.9 0.0 45.9

1983 64.0 1.0 65.0 48.0 1.0 49.0 36.7 0.8 37.5

1984 80.0 1.0 81.0 49.0 0.0 49.0 37.5 0.0 37.5

1985 73.0 0.0 73.0 65.0 0.0 65.0 49.7 0.0 49.7

1986 80.0 0.0 80.0 64.0 0.0 64.0 48.9 0.0 48.9

1987 66.0 0.3 66.3 47.7 0.3 48.0 36.5 0.2 36.7

1988 73.4 0.0 73.4 58.2 0.1 58.3 44.5 0.1 44.6

1989 68.5 0.0 68.5 58.7 0.0 58.7 44.9 0.0 44.9

1990 61.8 0.0 61.8 35.0 0.0 35.0 26.8 0.0 26.8

1991 99.6 0.0 99.6 62.4 0.0 62.4 47.7 0.0 47.7

1992 89.2 0.0 89.2 52.4 0.0 52.4 40.1 0.0 40.1

1993 75.1 0.7 75.8 38.3 0.1 38.4 29.3 0.1 29.4

1994 84.3 0.0 84.3 52.5 0.0 52.5 40.1 0.0 40.1

1995 88.8 6.5 95.3 53.8 7.9 61.7 41.1 6.0 47.2

INDUSTRY

YEAR Expenditures (millions of Dollars) Volume (Million Cubic Yards) Volume (Million Cubic Meters)

Maintenance New Work Total Maintenance New Work Total Maintenance New Work Total

1980 213.0 95.0 308.0 162.0 53.0 215.0 123.9 40.5 164.4

1981 240.0 115.0 355.0 174.0 97.0 271.0 133.0 74.2 207.2

1982 234.0 135.0 369.0 157.0 55.0 212.0 120.0 42.1 162.1

1983 291.0 88.0 379.0 206.0 32.0 238.0 157.5 24.5 182.0

1984 376.0 93.0 469.0 245.0 52.0 297.0 187.3 39.8 227.1

1985 313.0 63.0 376.0 208.0 30.0 238.0 159.0 22.9 182.0

1986 242.0 64.0 306.0 218.0 33.0 251.0 166.7 25.2 191.9

1987 222.2 98.9 321.2 167.4 42.8 210.2 128.0 32.7 160.7

1988 222.0 177.9 399.9 154.6 73.0 227.6 118.2 55.8 174.0

1989 249.6 164.0 413.6 222.4 52.7 275.1 170.0 40.3 210.3

1990 244.2 187.0 431.2 174.7 63.3 238.0 133.6 48.4 182.0

1991 323.4 89.4 412.9 209.2 28.4 237.6 159.9 21.7 181.7

1992 280.3 116.2 396.5 164.0 27.8 191.8 125.4 21.3 146.6

1993 335.2 103.9 439.1 197.2 33.4 230.6 150.8 25.5 176.3

1994 342.4 100.8 443.2 212.2 37.0 249.2 162.2 28.3 190.5

1995 319.4 116.3 435.7 163.4 26.1 189.5 124.9 20.0 144.9
288

Figure 8-43. Total Expenditures for Dredging by USACE and Industry, by Type:

1980 to 1995

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

1980198119821983198419851986198719881989199019911992199319941995

Year

Industry Total

Industry Maintenance

Industry New Work

USACE Total

USACE Maintenance

USACE New Work

Figure 8-44. Dredging Expenditures Per Cubic Yard/Cubic Meter: 1980 to 1995

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

1980198119821983198419851986198719881989199019911992199319941995

Year

Industry

New Work

USACE

Total

Industry

Total

Industry

Maintenance

USACE

Maintenance
289

Figure 8-45. USACE Total Expenditures for Navigation: 1992 to 1996

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1992 1993 1994 1995 1996

Year

Total

Operations and Maintenance

New Construction

8.2.2 Baseline Measures for the Power Utilities Sub-Sector

The power utilities sub-sector as defined in this document comprises electric utilities,

non-utility power producers, and gas production/distribution. The EIA Annual Energy

Review 1996, provides data on net generation by the different types of power station, and

on retail sales of electricity by end-use sector.

Table 8-24 shows electric power industry net generation by energy source, between 1992

and 1996. Total net generation in 1996 was 3.1 trillion kilowatt hours, of which 88

percent was produced by electric utilities. Figure 8-46 shows how electric utility net

generation was composed by power source in 1996. Reference to the figure shows that

coal-fired power stations comprised 56 percent of total net generation, with nuclear power

comprising a further 22 percent. Hydroelectric power (HEP) represented a further 11

percent of the remainder. Figure 8-47 shows similar information for non-utility power

producers. In comparison with the utility power sector, natural gas was the largest power

source for non-utilities, followed by other energy sources, which include HEP, petroleum,

renewable sources, nuclear, propane, butane, and so forth.
290

Table 8-24. Electric Power Industry Net Generation: 1992 to 1996

NET GENERATION IN BILLION KILOWATTHOURS

Year Coal Natural Gas Petroleum Hydroelectric 

Power

Geothermal 

Energy Wood Waste Solar Wind Nuclear Other Total

Electric Utilities

1992 1575.9 263.9 88.9 239.6 8.1 0.8 1.3 s s 618.8 0.0 2797.2

1993 1639.2 258.9 99.5 265.1 7.6 0.9 1.1 s s 610.3 0.0 2882.5

1994 1635.5 291.1 91.0 243.7 6.9 0.8 1.2 s s 640.4 0.0 2910.7

1995 1652.9 307.3 60.8 293.7 4.7 0.6 1.0 s s 673.4 0.0 2994.5

1996 1735.9 263.3 67.9 328.8 5.2 0.8 1.2 s s 674.8 0.0 3077.9

Nonutility Producers

1992 45.2 154.4 10.5 9.4 8.3 34.8 16.5 0.7 2.9 0.1 3.4 286.1

1993 50.9 169.5 12.8 11.4 9.5 35.9 17.4 0.9 3.0 0.1 3.1 314.4

1994 56.2 174.8 14.5 13.1 9.8 37.0 17.9 0.8 3.4 0.1 15.5 343.1

1995 54.8 191.1 16.3 14.6 9.6 35.5 19.0 0.8 3.2 0.0 17.1 361.9

1996 60.8 214.2 19.6 16.5 10.7 37.2 22.1 0.9 3.5 0.0 17.9 403.5

Total

1992 1621.1 418.3 99.4 124.9 16.4 35.6 17.8 0.7 2.9 618.8 3.4 3083.4

1993 1690.0 428.4 112.4 276.5 17.0 36.8 18.5 0.9 3.0 610.4 3.1 3196.9

1994 1691.7 465.9 105.5 256.5 16.8 37.8 19.1 0.8 3.4 640.5 15.5 3253.8

1995 1707.7 498.4 77.1 308.3 14.4 36.1 20.0 0.8 3.2 673.4 17.1 3356.4

1996 1796.7 477.5 87.5 345.4 15.9 38.0 23.3 0.9 3.5 674.8 17.9 3481.4

Note: 's' indicates less than 0.01 billion kilowatthours

Figure 8-46. Net Generation at Electric Utilities by Source of Power: 1996

Natural Gas 9%

Coal 56%

Nuclear 22%

Hydroelectric Power 

11%

Other 2%

Figure 8-47. Net Generation at Non-Utility Power Producers by Source of Power:

1996

Coal 15%

Natural Gas 53%

Wood 9%

Waste 5%

Other 17%
291

Since 1980, total electric utility net generation has risen from 2,286 billion kWh in 1980

to 3,078 billion kWh in 1996. Electric utility net generation from coal has risen steadily

from 1,162 billion kWh in 1980 to 1,736 billion kWh in 1996. In comparison natural gas

and petroleum usage have declined. Overall, fossil fuel usage has risen from 1,754

billion kWh in 1980 to 2,067 billion kWh in 1996. Nuclear power net generation has also

risen steadily over this period from 251 billion kWh in 1980 to 675 billion kWh in 1996.

In contrast, net generation from renewable sources (HEP, geothermal, solar, etc.)

increased from 282 billion kWh in 1980 to 339 billion kWh in 1996. In 1990, fossil fuel

net generation accounted for 67 percent of total net generation, nuclear electric power

accounted for 22 percent, and HEP accounted for 11 percent of the total. The relative

distribution of power from fossil fuel, nuclear, and HEP is compared with water

consumption data presented later in this section.

Table 8-25 shows electric utility retail sales of electricity by end-use sector between 1980

and 1996. In all sectors, there has been a steady increase in electricity retail sales over

this period. Figure 8-48 shows the relative proportions of electricity sales in each sector

for 1996. Reference to the figure indicates that the residential sector is the largest

consumer of utility electricity, with 35 percent of total sales.

Table 8-26 Part A and Part B shows water use by the thermoelectric power industry in

1990, by water resources region. This includes fossil fuel, nuclear, and geothermal

energy. Most of the water withdrawn by thermoelectric plants is used for condenser and

reactor cooling. Consumptive use occurs where water is evaporated in cooling towers or

ponds. In 1990, 495,889 million liters (131,000 million gallons) per day of freshwater

were delivered to power stations, with a further 244,159 million liters (64,500 million

gallons) per day of saline water delivered. Thermoelectric power represented 39 percent

of total US freshwater withdrawals, and 48 percent of combined fresh and saline water

withdrawals. Less the 0.1 percent of water for thermoelectric plants was delivered from

the public water supply, and only about 2 percent of total water withdrawals were

consumed.

Fossil fuel power plants, which accounted for 67 percent of net generation in 1990,

accounted for about 73 percent of total water withdrawals, nuclear plants for 27 percent,

and geothermal plants for less than 1 percent.

Table 8-27 shows HEP water use in the US in 1990, by water resources region. Water

use is classified as the water used at plants where the turbine generators are driven by

falling water. Where water is used only once, accurate measurements of flow rates can be

made, and water use figures are accurate. However, when water is recycled (i.e., there is

pumped storage of water in elevated reservoirs using excess generating capacity in offpeak times to supplement peak-load capacity) calculating net water use is more difficult.

No calculation of consumptive use is made, even though evaporation from reservoirs may

be substantial.
292

Table 8-25. Electric Utility Retail Sales of Electricity by End-Use Sector: 1980 to

1996

Retail Sales in Billion Kilowatthours

Year Residential Commercial Industrial Other Total

1980 717 488 815 74 2,094

1981 722 514 826 85 2,147

1982 730 526 745 86 2,086

1983 751 544 776 80 2,151

1984 780 583 838 85 2,286

1985 794 606 837 87 2,324

1986 819 631 831 89 2,369

1987 850 660 858 88 2,457

1988 893 699 896 90 2,578

1989 906 726 926 90 2,647

1990 924 751 946 92 2,713

1991 955 766 947 94 2,762

1992 936 761 973 93 2,763

1993 995 795 977 95 2,861

1994 1,008 820 1,008 98 2,935

1995 1,043 863 1,013 95 3,013

1996 1,078 888 1,017 101 3,084

"Other" includes public street and highway lighting, other sales to public authorities, 

sales to railroads and railways, and interdepartmental sales.

Figure 8-48. Total Electric Utility Retail Sales by Sector: 1996

Residential

35%

Commercial

29%

Industrial

33%

Other

3%
293

Table 8-26. Water Use By The Thermoelectric Power Industry: 1990

Part A: Million Gallons Per Day

Self-supplied withdrawals by source and type Total Use

Region Ground Water Surface Water Public Supply 

Deliveries

Withdrawals 

and Deliveries Consumptive Use

Fresh Fresh Saline Total Fresh Fresh Fresh Saline Total

Power 

Generated in 

million KWH

New England 3 2,400 9,090 11,500 7 2,410 48 182 230 93,000

Mid Atlantic 5 12,200 25,000 37,200 1 12,200 187 226 413 279,000

South Atlantic-Gulf 41 19,700 10,700 30,300 6 19,700 272 2 273 404,000

Great Lakes 3 22,800 0 22,800 0 22,800 476 0 476 179,000

Ohio 65 23,800 0 23,800 1 23,900 881 0 881 436,000

Tennessee 0 7,070 0 7,070 0 7,070 15 0 15 60,800

Upper Mississippi 21 16,500 0 16,500 6 16,500 635 0 635 194,000

Lower Mississippi 75 5,570 1,060 6,620 1 5,640 87 42 129 73,500

Souris-Red-Rainy 0 26 0 26 0 26 1 0 1 338

Missouri Basin 50 9,980 0 9,980 7 10,000 195 0 195 159,000

Arkansas-White-Red 31 4,500 0 4,500 26 4,550 144 0 144 132,000

Texas-Gulf 46 4,660 3,150 7,820 7 4,720 207 9 217 192,000

Rio Grande 16 2 0 2 0 18 12 0 12 7,780

Upper Colorado 0 177 0 177 0 177 165 0 165 91,400

Lower Colorado 47 62 0 62 1 110 107 0 107 54,000

Great Basin 7 24 0 24 0 31 31 0 31 17,300

Pacific Northwest 10 345 0 345 0 355 21 0 21 21,600

California 5 241 11,400 11,600 13 258 6 7 13 80,100

Alaska 5 26 0 26 1 32 3 0 3 3,820

Hawaii 95 0 1,550 1,550 0 96 2 15 17 8,320

Caribbean 3 0 2,570 2,570 3 6 1 1 2 15,000

Total 525 130,000 64,500 194,000 80 131,000 3,500 484 3,980 2,500,000

Part B: Million Liters per Day

Self-supplied withdrawals by source and type Total Use

Region Ground Water Surface Water Public Supply 

Deliveries

Withdrawals 

and Deliveries Consumptive Use

Fresh Fresh Saline Total Fresh Fresh Fresh Saline Total

Power 

Generated in 

million KWH

New England 11 9,084 34,406 43,528 25 9,122 182 689 871 93,000

Mid Atlantic 17 46,177 94,625 140,802 4 46,177 708 855 1,563 279,000

South Atlantic-Gulf 155 74,565 40,500 114,686 23 74,565 1,030 6 1,033 404,000

Great Lakes 12 86,298 0 86,298 0 86,298 1,802 0 1,802 179,000

Ohio 246 90,083 0 90,083 3 90,462 3,335 0 3,335 436,000

Tennessee 0 26,760 0 26,760 0 26,760 57 0 57 60,800

Upper Mississippi 79 62,453 0 62,453 22 62,453 2,403 0 2,403 194,000

Lower Mississippi 284 21,082 4,012 25,057 3 21,347 329 159 488 73,500

Souris-Red-Rainy 0 98 0 98 0 98 2 0 2 338

Missouri Basin 189 37,774 0 37,774 26 37,850 738 0 738 159,000

Arkansas-White-Red 117 17,033 0 17,033 98 17,222 545 0 545 132,000

Texas-Gulf 174 17,638 11,923 29,599 27 17,865 783 36 821 192,000

Rio Grande 61 7 0 7 0 68 45 0 45 7,780

Upper Colorado 0 670 0 670 0 670 625 0 625 91,400

Lower Colorado 178 235 2 235 3 416 405 2 405 54,000

Great Basin 27 91 0 91 0 117 117 0 117 17,300

Pacific Northwest 38 1,306 0 1,306 0 1,344 79 0 79 21,600

California 17 912 43,149 43,906 49 977 24 25 49 80,100

Alaska 18 98 0 98 4 121 12 0 12 3,820

Hawaii 360 0 5,867 5,867 2 363 6 57 64 8,320

Caribbean 10 0 9,727 9,727 12 22 4 4 8 15,000

 

Total 1,987 492,050 244,133 734,290 303 495,835 13,248 1,832 15,064 2,500,000
294

Table 8-27. Hydroelectric Power Water Use: 1990

Region

Million 

Gallons per 

Day

Million 

Liters per 

Day

Thousand 

acre-feet per 

year

Million 

cubic 

meters

Power Generated 

in million kWh

New England 168,000 635,880 188,000 231,896 8,080

Mid Atlantic 192,000 726,720 215,000 265,200 11,700

South Atlantic-Gulf 275,000 1,040,875 308,000 379,915 18,500

Great Lakes 506,000 1,915,210 567,000 699,388 30,100

Ohio 147,000 556,395 165,000 203,526 5,860

Tennessee 294,000 1,112,790 330,000 407,051 19,700

Upper Mississippi 73,200 277,062 82,100 101,269 2,200

Lower Mississippi 26,600 100,681 29,800 36,758 1,250

Souris-Red-Rainy 1,280 4,845 1,430 1,764 45

Missouri Basin 109,000 412,565 122,000 150,486 12,600

Arkansas-White-Red 109,000 412,565 122,000 150,486 8,370

Texas-Gulf 12,100 45,799 13,600 16,775 953

Rio Grande 3,520 13,323 3,950 4,872 569

Upper Colorado 11,900 45,042 13,300 16,405 4,760

Lower Colorado 34,700 131,340 38,900 47,983 6,640

Great Basin 2,360 8,933 2,650 3,269 284

Pacific Northwest 1,250,000 4,731,250 1,400,000 1,726,885 142,000

California 69,000 261,165 77,300 95,349 23,700

Alaska 1,790 6,775 2,010 2,479 980

Hawaii 264 999 296 365 89

Caribbean 362 1,370 406 501 108

Total 3,290,000 12,452,650 3,690,000 4,551,574 299,000

Fresh surface water provides virtually all water for HEP generation. The Pacific

Northwest region had the largest use of water, and accounted for about 38 percent of total

usage in the US. Almost half of the water used for HEP generation in the US was in

Washington, Oregon (primarily on the Columbia River) and New York (on the Niagara

and St. Lawrence River systems).

The Census of Transportation Communications and Utilities, provide limited

information on construction capital expenditures, and maintenance and repair

expenditures for SIC 491 (electric services), SIC 492 (gas production and distribution),

and SIC 493 (combination utility services). The data are shown in Table 8-28.

The figures for construction capital expenditures shown in Table 8-28 are similar to those

from the Value of New Construction Put in Place figures for 1992 for electric light and

power ($17,136 million) and gas ($6,901 million), thus the figures for maintenance and

repair (of both machinery and building) are probably reasonably representative of the

whole industry. It should be noted that the figures for gas utility construction

expenditures are different to those presented in the Statistical Abstract 1997 (based upon
295

American Gas Association Data for the gas utility industry) which show 1992

expenditures as $11,068 million. This suggests that a large proportion of SIC 493 is

attributable to the gas industry. The American Gas Association data show that the largest

component of capital costs is for transmission (52 percent), followed by distribution (35

percent), and production and storage (3 percent). In 1995, total expenditures were

$10,829 million. Other data relating to gas utility performance are available from the

American Gas Association (URL: http://www.aga.com), such as its 1995 publication

Performance Benchmarks for Natural Gas Utilities.

Table 8-28. Construction and Maintenance and Repair Expenditures: 1992

CONSTRUCTION CAPITAL EXPENDITURES MAINTENANCE AND REPAIR EXPENSES

SIC 

CODE Total ($1000) Percentage work carried out by Own Employees Total ($1000) Percentage work carried out by Own Employees

491 15,345,135 44 8,449,911 58

492 6,222,152 32 1,969,822 57

493 7,942,133 43 4,463,348 64

Data relating to electric utility operating performance are available from the Electric

Power Research Institute (URL: http://www.epri.com). Information is available about the

generation and transmission of electricity.

8.2.3 Baseline Measures for the Water Sub-Sector

This section considers baseline measures for water supply/treatment, for flood control,

and for hydroelectric power projects.

Data from the 1992 Census of Transportation Communications and Utilities provided

limited information on expenditures for new construction, and for maintenance and repair

for SIC Code 495 (sanitary services). This information is shown in Table 8-29.

Table 8-29. Construction and Maintenance and Repairs Expenditures: 1992

CONSTRUCTION CAPITAL EXPENDITURES MAINTENANCE AND REPAIR EXPENSES

SIC 

CODE Total ($1000) Percentage work carried out 

by Own Employees Total ($1000) Percentage work carried 

out by Own Employees

495 828,005 12 264,444 46

The figure for total construction capital expenditures shown in Table 8-29 is significantly

lower than the Value of New Construction Put in Place figure for 1992. The VIP data for

water supply facilities in 1992 show new construction amounting to $5,170 million.

However, this category is broader than SIC 495, as it includes potable water distribution
296

systems and storage facilities such as water lines, aqueducts, water pumping stations,

treatment plants, dams, reservoirs, artificial lakes, brooks, ponds, and water wells.

The US Army Corps of Engineers (USACE) provides data on the total Corps

expenditures for new construction, and for maintenance and repair, both for flood control,

and for HEP projects.

Table 8-30 shows USACE total expenditures for these categories between 1990 and

1996. Flood control expenditures for the Mississippi River and tributaries are broken out

as a separate category by the Corps.

Table 8-30. Total USACE Expenditures for New Construction and Operations and

Maintenance for Flood Control and Power Projects: 1990 to 1996

TOTAL ANNUAL USACE EXPENDITURES IN MILLIONS OF CURRENT DOLLARS

YEAR FLOOD CONTROL FLOOD CONTROL (MISSISSIPPI AND 

TRIBUTARIES) HEP PROJECTS

New 

Construction

Operations and 

Maintenance Total New Construction

Operations and 

Maintenance Total New Construction

Operations and 

Maintenance Total

1992 764,090 423,724 1,187,814 240,581 131,656 372,237 84,352 376,986 461,338

1993 615,764 405,459 1,021,223 191,271 119,069 310,340 78,909 376,237 455,146

1994 683,292 471,273 1,154,565 228,155 147,192 375,347 83,783 427,435 511,218

1995 607,741 507,526 1,115,267 111,582 271,990 383,572 124,559 460,662 585,221

1996 587,783 534,025 1,121,808 73,639 228,260 301,899 111,537 432,904 544,441

These data are shown graphically in Figure 8-49 and Figure 8-50. More detailed data on

maintenance and repair expenditures in the water sub-sector have not been located by the

authors.

8.2.4 Baseline Measures for the Pipelines Sub-Sector

Limited information relating to pipeline operations and maintenance costs has been

located by the authors. The 1992 Census of Transportation Communications and

Utilities provides some information regarding expenditures for new construction, and for

maintenance and repair for SIC Code 4613 (refined petroleum pipelines), and SIC Code

4612 and 4619 (crude petroleum pipelines, and pipelines not elsewhere classified). These

data are presented in Table 8-31.
297

Figure 8-49. USACE Total Expenditures for Flood Control: 1992 to 1996

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

1992 1993 1994 1995 1996

Year

Total

New Construction

Operations and Maintenance

Figure 8-50. USACE Expenditures for Multi-Purpose Power Projects: 1992 to 1996

0

100000

200000

300000

400000

500000

600000

700000

1992 1993 1994 1995 1996

Year

Total

Maintenance and Repair 

New Construction
298

Table 8-31. New Construction and Maintenance and Repair: 1992

CONSTRUCTION CAPITAL EXPENDITURES MAINTENANCE AND REPAIR EXPENSES

SIC CODE Total ($1000) Percentage work carried out 

by Own Employees Total ($1000) Percentage work carried out by Own Employees

4613 161,420 14 231,160 31

4612, 4619 465,106 18 537,379 34

The figures for capital expenditures in Table 8-31 are somewhat lower than the

comparable figure for Value of New Construction Put in Place in 1992 for petroleum

pipelines ($849 million). However, the latter figure also includes an element of nonpipeline construction, such as buildings for the pipeline industry.

Other data may be available from organizations such as the Independent Petroleum

Association of America (URL: http://www.ipaa.org), but this is likely to be at a companyspecific level, which is beyond the scope of this document.

8.3 Summary of Baseline Measures for the Public Works Sector

This section summarizes the baseline measures for the public works sector which are

presented in Sections 8.2.1 through 8.2.4. The summary data concentrate upon cost

rather than consumption. They are presented in Table 8-32 below.

Table 8-32 shows general information relating to the public works sector, as well as key

operations, maintenance, and energy baseline data for each of the sub-sectors identified in

Chapters 4 and 8 of this document. The ‘General Information’ section describes the total

expenditures for new construction, maintenance and repairs, and improvements in the

public works sector in 1994.

The transportation sub-sector provides baseline measures for each mode of

transportation and provides selected key characteristics for each mode. This section of

the table also presents general information about total government construction outlays

for highways, transit, air, and water transportation modes.

The highways section briefly describes the extent of the US highway system, its

geographic distribution, and jurisdiction. The baseline measures focus upon capital and

maintenance expenditures by State government, grouped by generic type of expenditure,

and by highway functional system (i.e., interstate, arterial, or collector road). The

baselines present both aggregated costs, and costs normalized per highway

mile/kilometer. Note that more detailed baselines in Section 8.2.1.1 also provide some

information on a ‘cost per lane mile’ basis.

The railroads section briefly describes the extent of the US railroad system, in terms of

miles of track operated (this excludes multiple mainline tracks and sidings). The baseline

measures focus upon maintenance and repair expenditures by all Class I railroad
299

operators (for definition of Class I railroads see Section 8.1.2.3), by generic type of

expenditure. Selected maintenance and repair cost components for running lines are

shown in the table. Detailed statistics are broken down by running and switching lines.

Given the high-level focus of this section, only data for running lines are shown. The full

list of cost components is very detailed. For this reason, the percentage of total

maintenance and repair costs for infrastructure (excluding vehicles and yards - see

Section 8.2.1.2) represented by each component is also shown.

The transit section provides limited baseline measures for all transit systems combined.

The baseline measures focus upon non-vehicle/primary facilities maintenance and repair

expenditures. The difficulties in obtaining more detailed baseline data are explained in

Section 8.2.1.3.

The air transportation section provides limited information about US airports. The

difficulties in establishing baseline measures for airports, each of which is likely to have

an unique operating cost structure, are explained in Section 8.2.1.4.

The water transportation section briefly describes the extent of the US water freight

system, in terms of terminals operated. The baseline measures focus upon capital/

maintenance and repair expenditures for all US ports, as well as dredging expenditures

for harbors and waterways by the US Army Corps of Engineers (USACE), and by

industry. Data are also shown for USACE expenditures for navigation (this would

include cost components such as lock operations).

The power utilities sub-sector provides baseline measures for power generation,

including the distribution of natural gas. This section of the table presents general

information about the size of the sub-sector, in terms of number of operating

establishments, and miles of pipeline operated. The baselines focus upon water use by

the sub-sector, as well as capital expenditures for construction, and for maintenance and

repair by SIC Code.

The water sub-sector provides baseline measures for water supply, treatment, and flood

control, as well as information regarding hydroelectric power related works by USACE.

This section presents general information about the size of the sub-sector, in terms of

number of operating establishments. The baselines focus upon capital expenditures for

new construction, and for maintenance and repair, by SIC Code, and for work carried out

by USACE.

The pipelines sub-sector provides baseline measures for petroleum and other pipelines

in the US, excluding natural gas pipelines. This section presents general information

about the size of the sub-sector, in terms of number of operating establishments, and

miles of pipeline operated. The baselines focus upon capital expenditures for new

construction, and for maintenance and repair, by SIC Code.
300

Summary of Abbreviations Used in Table 8-32

VIP Value of New Construction Put in Place

DOT Department of Transportation

FHWA Federal Highway Administration

STB Surface Transportation Board

FAA Federal Aviation Administration

ATA Airline Transport Association

MARAD Maritime Administration

USACE US Army Corps of Engineers

USGS US Geological Survey
301

Table 8-32. Summary of Baseline Measures: Public Works Sector

DESCRIPTION YEAR BASELINE SOURCE35

GENERAL

INFORMATION

Value of New Construction

Put in Place

1994 $103,360 million (constant

1992 dollars)

Census VIP

Data

Total Maintenance and

Repair Expenditures

1994 $24,714 million (constant 1992

dollars)

Census Data

Total Expenditures for

Improvements

1994 $31,404 million (constant 1992

dollars)

Census Data

TRANSPORTATION

SUB-SECTOR

Total Government Outlays 1993 43.0 billion (constant 1992

dollars)

DOT

Outlays for Highways 1993 33.2 billion (constant 1992

dollars)

DOT

Outlays for Airports 1993 4.6 billion (constant 1992

dollars)

DOT

Outlays for Transit 1993 4.2 billion (constant 1992

dollars)

DOT

Outlays for Water

Transportation and Terminals

1993 0.7 billion (constant 1992

dollars)

DOT

Outlays for Parking Facilities 1993 0.3 billion (constant 1992

dollars)

DOT

Highways

Total Mileage, Location, and

Jurisdiction

1994 6,285 million kilometers (3,906

million miles) - 21% urban, 79

% rural. Jurisdiction: 75%

Local, 20% State, 5% Federal

FHWA

State Capital Outlays 1994 $30,152 million FHWA

State Maintenance and

Traffic Services Outlays

1994 $10,073 million FHWA

State Physical Maintenance

Outlays

1994 $7,089 million FHWA

State Snow/Ice Removal 1994 $1,082 million FHWA

State Traffic Control

Operations

1994 $682 million FHWA

State Other (erosion,

vegetation control etc.)

1994 $226 million FHWA

 

35 See accompanying text for description of abbreviations used in this table.
302

Table 8-32. Summary of Baseline Measures: Public Works Sector (continued)

DESCRIPTION YEAR BASELINE SOURCE

 State Maintenance Outlays -

Urban Interstates

1994 $26,581 per kilometer ($42,769

per mile)

 FHWA

 State Maintenance Outlays -

Urban Arterials

1994 $9,501 per kilometer ($15,287

per mile)

 FHWA

 State Maintenance Outlays -

Urban Collectors

1994 $4,828 per kilometer ($7,768

per mile)

 FHWA

 State Maintenance Outlays -

Rural Interstates

1994 $15,632 per kilometer ($25,152

per mile)

 FHWA

 State Maintenance Outlays -

Rural Arterials

1994 $4,347 per kilometer ($6,995

per mile)

 FHWA

 State Maintenance Outlays -

Rural Collectors

1994 $2,610 per kilometer ($4,200

per mile)

FHWA

 State Maintenance Outlays -

All Highways

1994 $4,248 per kilometer ($6,835

per mile)

FHWA

Railroads

Railroad Mileage by

Classification

 1996 Class I - 201,241 kilometers

operated (125,072 miles)

Regional - 30,273 kilometers

operated (18,815 miles)

Local - 42,713 kilometers

operated (26,546 miles)

Amtrak - 39,421 kilometers

operated (24,500 miles)

STB

Class I Railroad M&R Costs

for Roadways and Structures

 1996 $4,456 million (17% of total

operating expenses)

STB

M&R Costs for Roadways -

Running

 1996 $160,499,000 (3.60% of total

M&R-excludes vehicle costs)

STB

M&R Costs for Tunnels and

Subways - Running

 1996 $1,527,000 (0.03% of total

M&R-excludes vehicle costs)

STB

M&R Costs for Bridges and

Culverts - Running

 1996 $94,046,000 (2.11% of total

M&R-excludes vehicle costs)

STB

M&R Costs for Ties -

Running

 1996 $25,609,000 (0.57% of total

M&R-excludes vehicle costs)

STB

M&R Costs for Rail and

Track Material - Running

 1996 $382,260,000 (8.58% of total

M&R-excludes vehicle costs)

STB

M&R Costs for Ballast -

Running

 1996 $35,457,000 (0.80% of total

M&R-excludes vehicle costs)

STB

M&R Costs for Signals -

Running

 1996 $217,039,000 (4.87% of total

M&R-excludes vehicle costs)

STB
303

Table 8-32. Summary of Baseline Measures: Public Works Sector (continued)

DESCRIPTION YEAR BASELINE SOURCE

Transit

Total Capital Outlays 1995 $7.0 billion FTA

Total Operating Expenses 1995 $18.1 billion FTA

Non-Vehicle Maintenance 1995 $1.868.5 million (10.4% of total

operating expenses)

FTA

Air Transportation

Number of Airports in the US 1995 18,224 Airports

5,415 Public Use Airports

FAA

Airline Costs for Use and

Lease of Airport Facilities

1995 Stable at approximately 4% of

Total Airline Operating Costs

ATA

National Airspace System

Operating Budget

1996 $863 million

Water Transportation

Number of Terminals 1995 362 Terminals on the Great

Lakes with 507 Berths

1811 Inland Terminals

1578 Ocean Terminals

MARAD

Total Port Capital and M&R

Expenditures

 1994 $687 million (excluding $243

million for land purchase in

California).

New Construction - 75%

M&R - 25% (172 million)

MARAD

Dredging Expenditures 1994 USACE Expenditures:

New Construction - 0

M&R - $84.3 million

Industry expenditures:

New Construction - $116.3

million

M&R - $342.4 million

USACE

Navigation Expenditures 1994 USACE Expenditures:

New Construction - $477

million

M&R - $1,035 million

USACE
304

Table 8-32. Summary of Baseline Measures: Public Works Sector (continued)

DESCRIPTION YEAR BASELINE SOURCE

POWER UTILITIES

SUB-SECTOR

Number of Establishments by

SIC Code

 1992 SIC 491 (Electric Utilities)-

5374 Establishments

SIC 492 (Gas Production and

Distribution) - 3968

Establishments

SIC 493 (Combination Utilities)

- 1814 Establishments

Census Data

Length of Natural Gas

Pipelines in US

1994 1,922,755 kilometers

(1,195,000 miles)

DOT

Water Consumption by

Power Utilities

1990 Thermoelectric Generation:

496,000 million liters fresh

water per day (131,000 million

gallons per day)

244,000 million liters saline

water per day (64,500 million

gallons per day)

Hydroelectric Generation:

12,500,000 million liters fresh

water per day (3,290,000

million gallons per day)

USGS

Construction Capital

Expenditures by SIC Code

1992 SIC 491 - $15,345 million

SIC 492 - $6,222 million

SIC 493 - $7,492 million

Census Data

Maintenance and Repair

Expenditures by SIC Code

1992 SIC 491 - $8,450 million

SIC 492 - $1,970 million

SIC 493 - $4,463 million

Census Data

WATER SUB-SECTOR

Number of Establishments by

SIC Code

 1992 SIC 4952 (Sewerage Systems)-

470 Establishments

SIC 4941 (Water Supply) -

3453 Establishments

Census Data

USACE Total Flood Control

Expenditures (including

Mississippi)

 1994 New Construction - $911

million

M&R - $619 million

USACE

USACE Hydropower

Expenditures

 1994 New Construction - $84 million

M&R - $427 million

USACE
305

Table 8-32. Summary of Baseline Measures: Public Works Sector (continued)

DESCRIPTION YEAR BASELINE SOURCE

PIPELINES SUBSECTOR

Number of Establishments by

SIC Code

 1992 SIC 4612 (Crude Petroleum)-

405 Establishments

SIC 4613 (Refined Petroleum) -

358 Establishments

SIC 4619 (Pipelines n.e.c) - 81

Establishments

Census Data

Length of Selected Pipelines

in US

1994 Oil Pipeline:

323,000 kilometers total

(201,000 miles)

183,000 kilometers crude oil

pipeline (114,000 miles)

DOT

Construction Capital

Expenditures by SIC Code

1992 SIC 4613 - $161 million

SIC 4612 & 4619 - $465 million

Census Data

Maintenance and Repair

Expenditures by SIC Code

1992 SIC 4613 - $231 million

SIC 4612 & 4619 - $537 million

Census Data

307

9. Summary and Suggestions for Further Research

9.1 Summary

The Construction and Building Subcommittee of the National Science and Technology

Council is developing baseline measures of current construction industry practices and

measures of progress for each of the seven National Construction Goals (NCGs). The

seven NCGs are concerned with: (1) reductions in the delivery time of constructed

facilities; (2) reductions in operations, maintenance, and energy costs; (3) increases in

occupant productivity and comfort; (4) reductions in occupant-related illnesses and

injuries; (5) reductions in waste and pollution; (6) increases in the durability and

flexibility of constructed facilities; and (7) reductions in construction worker illnesses and

injuries. Baseline measures are being produced for each of the four key construction

industry sectors. The four sectors are: (1) residential; (2) commercial/institutional; (3)

industrial; and (4) public works. This report provides a detailed set of baseline measures

for NCG 2 (reductions in operations, maintenance, and energy (OM&E) costs). These

baseline measures will assist in determining the success of actions taken to improve the

competitiveness of the US construction industry.

Chapter 1 provides background information about the project, its purpose, and scope.

Chapter 2 describes the NCGs in more detail, explains BFRL’s strategy for collecting

information on each NCG, and the limitations of this approach, and reports on progress to

date. Chapter 3 provides an overview of the construction industry. This examines the

size of the industry, and its importance to the US economy. The chapter also presents

general non-sector specific data relevant to the generation of baseline measures. Chapter

4 presents the data classification hierarchies that were used to define each sector, to

identify critical factors influencing NCG 2, and to establish data linkages. It also

discusses data sources and availability. Chapters 5 through 8 present an overview and

detailed baseline measures for each of the four industry sectors, as well as a description of

data sources used to develop the baselines. The overview of each sector examines the

sector size, changes in the sector, and key sector characteristics. The detailed baseline

measures examine operations, maintenance, and energy categories separately. These are

summarized in tabular form at the end of each chapter.

Extensive use of charts and tables is made throughout this document to illustrate the

process by which the baseline measures were developed. Sufficient data have been

collected to establish baselines for OM&E costs across all four sectors. However, the

level of detail of the baselines is highly variable, depending upon data availability. In

general, energy baselines are more detailed than operations and maintenance baselines,

due to the wealth of data available.
308

9.2 Suggestions for Further Research

The work for this report uncovered areas of research that might be of value to government

agencies and private bodies who are responsible for the operations and maintenance of

the built environment. These areas of research are concerned with: (1) accounting for the

discrepancies between data which quantify annual construction outputs for new

construction, additions and alterations, and maintenance and repair; (2) additional data

collection; and (3) evaluations of progress toward achievement of NCG 2.

As has been discussed in detail in Chapter 3, there are significant differences between

different data sources which attempt to quantify the annual output of the construction

industry. At the most aggregated level, this makes it difficult to accurately assess how the

construction industry is changing over time, and, perhaps more importantly, to attribute

these changes to particular causes. Thus, further research to examine the reasons for

these discrepancies would be valuable.

In order to be able to generate useful baseline measures, detailed source information is

required. As this document has shown, there are a number of areas where data appear to

be either absent, or only of a very generalized nature. In particular, additional data

collection is required in the following areas:

• Water consumption costs in the commercial/institutional, industrial, and public works

sectors.

• Operations and maintenance costs in the commercial/institutional sector grouped by

principal building activity in a manner comparable with the EIA classifications, for

buildings other than commercial office buildings, shopping centers, and education

facilities.

• Local Government expenditures for maintenance of highways.

• Railroad operations and maintenance costs for non-freight railroads.

• Airport and runway pavement maintenance and repair costs.

• Water transportation operations costs (locks, navigation channels, ports).

• Pipeline maintenance and repair costs.

Finally, in order to be able to measure progress toward NCG 2, periodic reports need to

be produced which re-visit the same data sources used to generate the original baselines,

and refine or expand the original baselines as necessary to meet the changing needs of the

construction industry stakeholders. This subject is discussed briefly in Chapter 2.
309

Appendix A. Data Classification Hierarchies for the Residential Sector

This appendix includes two data classification hierarchies for the residential sector. The

first hierarchy covers operations and maintenance costs. The second hierarchy covers

energy consumption and energy costs.

The two-stage process through which these hierarchies were developed and modified is

described in detail in Chapter 4. A brief description of the process is as follows. First, a

series of “idealized” industry oriented hierarchies were produced. The purpose of these

“idealized” hierarchies was to sort data into relevant categories, to prioritize data, and to

establish data linkages. Second, as the data collection effort progressed, these “idealized”

hierarchies were modified. The resultant data oriented hierarchies represent the

modification of the “idealized” hierarchies to reflect data availability and other

constraints.

Each of the two hierarchies—operations and maintenance costs and energy consumption

and energy costs—presents the “idealized” hierarchy overlaid by the data oriented

hierarchy. In each case, the data oriented hierarchy is represented with shading.

Specifically, those “blocks” in the hierarchy which are shaded correspond to cases for

which data were collected and which are summarized in Chapter 5 of this document.
310

NATIONAL CONSTRUCTION GOAL 2 - 50% REDUCTION IN OPERATIONS, MAINTENANCE AND ENERGY COSTS - FACTORS INFLUENCING GOAL

Residential Sector - Operations and Maintenance

OPERATIONS MAINTENANCE

Water 

Consumption

Sewage 

Treatment

Domestic 

Waste/Refuse Other HVAC Electrical & Security Plumbing Roof & Structure

Water 

Saving 

Devices

Water Metering Taxation & 

Legislation

Environmental 

Issues

Insurance, Taxes, 

Communications

Recycling Maintenance Requirements are dependent upon the following critical factors:-

*Design Life of system and current age and condition

*Serviceability Criteria

*Legislative and Safety Requirements

*Budget constraints and NPV of asset (maintain or replace)

Notes:- ( a ) Buildings are Grouped according to geographic location, type, size and age of structure. 

( b ) Data Availability is indicated where cells in hierarchy are shaded 
311

NATIONAL CONSTRUCTION GOAL 2 - 50% REDUCTION IN OPERATIONS, MAINTENANCE AND ENERGY COSTS

Residential Sector - Energy

ENERGY

Electricity Natural Gas Heating Fuel Coal Wood Renewables

Air 

Conditioning Appliances Water Heating Space Heating

Type of 

System & 

Technology

Type of 

Appliances and 

Technology

Type of System 

& Technology

Level of 

Comfort

Thermal 

Efficiency of 

Heating systems 

and Building 

Shell

Thermostatic 

Devices

Power Saving 

Devices

Water 

Consumption

Wall Area and 

Insulation

Ceiling and Floor 

area and 

Insulation

Glazed Area 

and extent of 

Double Glazing

Type of Heating 

System and 

degree of 

Automation

Automation 

(Timers etc)

Design, Aesthetic and Building Regulations Issues

Notes:- ( a ) Energy costs exclude costs associated with constructing building

( b ) Energy Figures based on Annual Average Figures, including transmission/distribution losses

( c ) Buildings are Grouped according to geographic location, type, size and age of structure. 

( d ) Data Availability is indicated where cells in hierarchy are shaded 

313

Appendix B. Data Classification Hierarchies for the Commercial/

Institutional Sector

This appendix includes two data classification hierarchies for the commercial/institutional

sector. The first hierarchy covers operations and maintenance costs. The second

hierarchy covers energy consumption and energy costs.

The two-stage process through which these hierarchies were developed and modified is

described in detail in Chapter 4. A brief description of the process is as follows. First, a

series of “idealized” industry oriented hierarchies were produced. The purpose of these

“idealized” hierarchies was to sort data into relevant categories, to prioritize data, and to

establish data linkages. Second, as the data collection effort progressed, these “idealized”

hierarchies were modified. The resultant data oriented hierarchies represent the

modification of the “idealized” hierarchies to reflect data availability and other

constraints.

Each of the two hierarchies—operations and maintenance costs and energy consumption

and energy costs—presents the “idealized” hierarchy overlaid by the data oriented

hierarchy. In each case, the data oriented hierarchy is represented with shading.

Specifically, those “blocks” in the hierarchy which are shaded correspond to cases for

which data were collected and which are summarized in Chapter 6 of this document.
314

NATIONAL CONSTRUCTION GOAL 2 - 50% REDUCTION IN OPERATIONS, MAINTENANCE AND ENERGY COSTS - FACTORS INFLUENCING GOAL

Commercial Sector - Operations and Maintenance

OPERATIONS

Water 

Consumption Sewage Treatment Cleaning and Waste Disposal

Water Saving 

Devices Water Metering

Taxation, 

Environmental Issues & 

Legislation

Supplies Payroll (in-house) Contract 

(External) Trash Removal

Type of 

System

OPERATIONS (Cont)

Roads, 

Grounds and 

Security 

Administration Fixed 

Expenses

Roads and 

Grounds Security Payroll (in-house)

Management 

and Professional 

Fees

General 

Expenses

Tax and 

Insurance Leasing

MAINTENANCE

Payroll Elevator or 

Escalator HVAC Electrical Structure/Roof Plumbing Fire/Life Safety Other

All dependent upon the following factors:-

*Design Life and current age/condition

*Serviceability Criteria

*Legislative/Safety requirements

*Budget constraints and NPV (maintain/replace)

Notes:- ( a ) Energy costs exclude costs associated with constructing building

( b ) Energy Figures based on Annual Average Figures, including transmission/distribution losses

( c ) Buildings are Grouped according to geographic location, type, size and age of structure. 

( d ) Data Availability is indicated where cells in hierarchy are shaded (selected parts of sector)
315

NATIONAL CONSTRUCTION GOAL 2 - 50% REDUCTION IN OPERATIONS, MAINTENANCE AND ENERGY COSTS - FACTORS INFLUENCING GOAL

Commercial Sector - Energy

ENERGY

Electricity Natural Gas Fuel Oil Purchased 

Steam

Purchased Chilled 

Water Propane Other

Space Heating Cooling/Air 

Conditioning Water Heating Cooking Manufacturing

Building Shell Type of System Type of System

Roof 

Construction Wall Construction Percentage Glazed

Type of 

Distribution 

System

Percentage of floorspace Heated Number of Workers

Percentage of Floorspace Lit Lighting System Number of Hours Worked

Number of Workers

Hours Worked

Energy Conservation Features

Energy Management Practices

Demand Side 

Management

Level of Participation

Reduction in Use 

outside working 

hours

Notes:- ( a ) Energy costs exclude costs associated with constructing building

( b ) Energy Figures based on Annual Average Figures, including transmission/distribution losses

( c ) Buildings are Grouped according to geographic location, type, size and age of structure. 

( d ) Data Availability is indicated where cells in hierarchy are shaded (selected parts of sector)

317

Appendix C. Data Classification Hierarchies for the Industrial Sector

This appendix includes two data classification hierarchies for the industrial sector. The

first hierarchy covers operations and maintenance costs. The second hierarchy covers

energy consumption and energy costs.

The two-stage process through which these hierarchies were developed and modified is

described in detail in Chapter 4. A brief description of the process is as follows. First, a

series of “idealized” industry oriented hierarchies were produced. The purpose of these

“idealized” hierarchies was to sort data into relevant categories, to prioritize data, and to

establish data linkages. Second, as the data collection effort progressed, these “idealized”

hierarchies were modified. The resultant data oriented hierarchies represent the

modification of the “idealized” hierarchies to reflect data availability and other

constraints.

Each of the two hierarchies—operations and maintenance costs and energy consumption

and energy costs—presents the “idealized” hierarchy overlaid by the data oriented

hierarchy. In each case, the data oriented hierarchy is represented with shading.

Specifically, those “blocks” in the hierarchy which are shaded correspond to cases for

which data were collected and which are summarized in Chapter 7 of this document.
318

NATIONAL CONSTRUCTION GOAL 2 - REDUCTION IN OPERATIONS, MAINTENANCE & ENERGY COSTS - FACTORS INFLUENCING GOAL

Industrial Sector - Operations and Maintenance

OPERATIONS

Cost of 

Purchased 

Fuels used for 

Heat and 

Power

Number and Cost of 

all Employees Fixed Expenses Cost of Materials 

Used

Value of 

Shipments

Capital 

Expenditure

Number/Cost/Hours 

Worked of 

Production Workers

Tax and Insurance Water 

Consumption All Other Materials

Value Added 

by 

Manufacture

New Buildings 

and Structures

Voluntary 

Costs

Supplemental Labour 

Costs Legal Costs Type of System Water Quality at Outfall

Taxation, 

Environmental 

Issues & 

Legislation

New Machinery 

and Equipment

MAINTENANCE

Buildings and Other Structures Machinery and Equipment

All dependent upon the following factors:-

*Design Life and current age/condition

*Serviceability Criteria

*Legislative/Safety requirements

*Budget constraints and NPV (maintain/replace)

Notes:- ( a ) Energy costs exclude costs associated with constructing facility

( b ) Energy Figures based on Annual Average Figures, including transmission/distribution losses

( c ) Facilities are Grouped according to geographic location and type. 

( d ) Facilities Classifications are :- Food and Allied Products, Paper and Allied Products, Chemicals and Allied Products, Petroleum and

 Coal Products, Stone Clay and Glass Products, Primary Metals, Other.

( e ) Data Availability is indicated where cells in hierarchy are shaded. 
319

NATIONAL CONSTRUCTION GOAL 2 - 50% REDUCTION IN OPERATIONS, MAINTENANCE AND ENERGY COSTS - FACTORS INFLUENCING GOAL

Industrial Sector - Energy

ENERGY

Natural Gas Electricity Coal Liquified 

Petroleum Gas Distillate Fuel Oil Residual Fuel Oil Coke Other (Byproduct Energy)

Still Gas Waste Gas Petroleum 

Coke Pulping Liquor Other

CONSUMPTION:- Heat; Power; Electricity Generation; Raw Materials Input

End-Use

Supply 

Characteristics 

(Percentage 

in/out etc)

Indirect Use Direct Process 

Use

Direct NonProcess Use

SEE 

CONTINUATION 

FOR DETAILS

Non-Assigned 

End Use

Boiler Fuel Process Heating Process Cooling Machine Drive Electro-Chemical

Improve System 

Efficiency

Install/Retrofit 

more efficient 

motors

Demand Side Management Systems

Type of System

Level of Participation

Fuel Switching 

Capability

Disretionary 

Use Rates

Minimum NonSwitchable 

Requirements

Cost of Energy 

Source Type of System Production Interruption

Supply and 

Environmental 

Constraints

Notes:- ( a ) Energy costs exclude costs associated with constructing facility

( b ) Energy Figures based on Annual Average Figures, including transmission/distribution losses
320

NATIONAL CONSTRUCTION GOAL 2 - 50% REDUCTION IN ENERGY COSTS - FACTORS INFLUENCING GOAL

Industrial Sector - Energy (continuation)

ENERGY

CONSUMPTION:- Heat; Power; Electricity Generation; Raw Materials Input

End-Use

Direct NonProcess Use

HVAC Lighting Other Facility 

Support

On-site 

Transportation

Electrical 

Generation Other

Improve System 

Efficiency

Floorspace and 

percentage 

conditioned

Demand Side Management Systems

Type of System

Level of Participation

Notes:- ( a ) Energy costs exclude costs associated with constructing facility

( b ) Energy Figures based on Annual Average Figures, including transmission/distribution losses

( c ) Facilities are Grouped according to geographic location and type. 

( d ) Facilities Classifications are :- Food and Allied Products, Paper and Allied Products, Chemicals and Allied Products, Petroleum and

 Coal Products, Stone Clay and Glass Products, Primary Metals, Other.

( e ) Data Availability is indicated where cells in hierarchy are shaded
321

Appendix D. Data Classification Hierarchies for the Public Works

Sector

This appendix includes six data classification hierarchies for the public works sector.

The first hierarchy covers the entire public works sector; it serves to define each of the

five key sub-sectors covered in this document. The five key sub-sectors are: (1)

transportation; (2) communications; (3) power utilities; (4) water; and (5) solid waste.

The second hierarchy covers the transportation sub-sector. The third hierarchy covers the

communications sub-sector. The fourth hierarchy covers the power utilities sub-sector.

The fifth hierarchy covers the water sub-sector. The sixth hierarchy covers the solid

waste sub-sector.

The two-stage process through which these hierarchies were developed and modified is

described in detail in Chapter 4. A brief description of the process is as follows. First, a

series of “idealized” industry oriented hierarchies were produced. The purpose of these

“idealized” hierarchies was to sort data into relevant categories, to prioritize data, and to

establish data linkages. Second, as the data collection effort progressed, these “idealized”

hierarchies were modified. The resultant data oriented hierarchies represent the

modification of the “idealized” hierarchies to reflect data availability and other

constraints.

With the exception of the first hierarchy, each of the five sub-sector hierarchies presents

the corresponding “idealized” hierarchy overlaid by the data oriented hierarchy. In each

case, the data oriented hierarchy is represented with shading. Specifically, those “blocks”

in the hierarchy which are shaded correspond to cases for which data were collected and

which are summarized in Chapter 8 of this document.
322

NATIONAL CONSTRUCTION GOAL 2 - 50% REDUCTION IN OPERATIONS, MAINTENANCE AND ENERGY COSTS

PUBLIC WORKS SECTOR - DEFINITION OF SUB-SECTORS

TRANSPORTATION COMMUNICATIONS

Roads Rail Water Air Cabling 

Services

Masts and 

other 

Structures

Highways

Bridges 

and 

Tunnels

Track and Infrastructure Canals and Ports Airports and Infrastructure Public or Privately Owned

State and Federal

POWER UTILITIES WATER SOLID WASTE

Electric Gas Coal Nuclear Other Supply Storage Treatment

Flood and 

Storm Water 

Control

Collection Disposal

Generating Stations Distribution 

System

Dams and 

Reservoirs Facilities Flood Defences Handling Facilities

Distribution Networks/Sub-stations

Hydroelectric 

Projects

River and 

Coastal 

Engineering
323

NATIONAL CONSTRUCTION GOAL 2

50% REDUCTION IN OPERATIONS, MAINTENANCE AND ENERGY COSTS

PUBLIC WORKS SECTOR - TRANSPORTATION SUB-SECTOR

TRANSPORTATION

Roads Rail Air Water

Highways Bridges Track and Infrastructure Airports and Infrastructure Canals & 

Locks Ports

State or Federal

OPERATIONS (BUILDINGS)

Water 

Consumption

Sewage 

Treatment

Cleaning and 

Waste 

Disposal

Roads, 

Grounds and 

Security 

Administration Leasing 

Expenses

Fixed 

Expenses Other

OPERATIONS (OTHER)

Network Administration

MAINTENANCE (BUILDINGS)

Payroll Elevator or 

Escalator HVAC Electrical Structure/Roof Plumbing Fire/Life 

Safety Other

MAINTENANCE (ROADS)

Reconstruct, Widen, New Build

Pavement Earthworks Drainage Structures Safety/Street 

Furniture Other

MAINTENANCE (OTHER)

Track 

Maintenance

Track 

Structures 

(bridges etc)

Waterways 

and Ports

Airport 

Pavements 

(runways)

Associated 

Services 

(Track 

Signalling, 

Airport ATC)

Fleet 

Maintenance 

Costs (rolling 

stock etc)

Not directly construction related

All maintenance operations dependent upon the following factors:-

*Design Life and current age/condition

*Serviceability Criteria

*Legislative/Safety requirements

*Budget constraints and NPV (maintain/replace)

ENERGY Consumption by Sector

Electricity Natural Gas Gasoline Diesel Aviation Fuel Level of Use, Legislative and 

Environmental Issues

Notes:- ( a ) Data Availability is indicated where cells in hierarchy are shaded 
324

NATIONAL CONSTRUCTION GOAL 2

50% REDUCTION IN OPERATIONS, MAINTENANCE AND ENERGY COSTS

PUBLIC WORKS SECTOR - COMMUNICATIONS SUB-SECTOR

COMMUNICATIONS UTILITIES

Telephone TV and Radio Broadcast Cable and Pay TV

Masts and Other Structures

Cabling Services

OPERATIONS

Network Administration Costs

MAINTENANCE

Structures Electrical Systems Mechanical Systems

All maintenance operations dependent upon the following factors:-

*Design Life and current age/condition

*Serviceability Criteria

*Legislative/Safety requirements

*Budget constraints and NPV (maintain/replace)

ENERGY

Electrical Consumption

Notes:- ( a ) Data Availability is indicated where cells in hierarchy are shaded 
325

NATIONAL CONSTRUCTION GOAL 2

50% REDUCTION IN OPERATIONS, MAINTENANCE AND ENERGY COSTS

PUBLIC WORKS SECTOR - POWER UTILITIES SUB-SECTOR

POWER UTILITIES

Electric Gas Coal Nuclear

Other 

(renewables 

inc. HEP)

Generating Stations

Distribution Networks/Sub-stations

OPERATIONS

Consumption of Raw Materials Buildings and 

Structures

Machinery and 

Systems

Fossil 

Fuels

Fissile 

Material Natural Gas Water Administrative and Fixed Costs

MAINTENANCE

Structure 

and Roof Electrical Plumbing HVAC Fire/Life Safety Other

All maintenance operations dependent upon the following factors:-

*Design Life and current age/condition

*Serviceability Criteria

*Legislative/Safety requirements

*Budget constraints and NPV (maintain/replace)

ENERGY

Consumtion of each Energy 

Source

Power Station Efficiency

Network Distribution Losses

Notes:- ( a ) Data Availability is indicated where cells in hierarchy are shaded 
326

NATIONAL CONSTRUCTION GOAL 2

50% REDUCTION IN OPERATIONS, MAINTENANCE AND ENERGY COSTS

PUBLIC WORKS SECTOR - WATER SUB-SECTOR

WATER

Supply Storage Treatment

Flood 

Control/Storm 

Water 

Management

Distribution 

System

Dams and 

Reservoirs Facilities Flood 

Defences

Hydro-electric 

Projects

River and 

Coastal 

Engineering

OPERATIONS

Administrative and Fixed Costs Water 

Consumption

Treatment 

Chemicals

MAINTENANCE

Dam and 

Reservoir 

Maintenance

Pipe Leakage

Water Quality 

Issues/Public 

safety

Flood Defence 

Maintenance

Pumping 

Stations and 

Treatment Works

Other

All maintenance operations dependent upon the following factors:-

*Design Life and current age/condition

*Serviceability Criteria

*Legislative/Safety requirements

*Budget constraints and NPV (maintain/replace)

ENERGY

Electricity

Pumping Station Efficiency

Notes:- ( a ) Data Availability is indicated where cells in hierarchy are shaded 
327

NATIONAL CONSTRUCTION GOAL 2

50% REDUCTION IN OPERATIONS, MAINTENANCE AND ENERGY COSTS

PUBLIC WORKS SECTOR - SOLID WASTE SUB-SECTOR

SOLID WASTE

Collection Disposal

Processing Facilities and Landfill Sites

OPERATIONS

Waste 

Transportation Landfill Incineration Network Administration

MAINTENANCE

Landfill Site Maintenance and Incinerator Maintenance

All maintenance operations dependent upon the following factors:-

*Design Life and current age/condition

*Serviceability Criteria

*Legislative/Safety requirements

*Budget constraints and NPV (maintain/replace)

ENERGY

Waste Gases Electricity Other

Incineration Biofuels

Notes:- ( a ) Data Availability is indicated where cells in hierarchy are shaded 

329

Appendix E. Assignment of States to Census Regions

NORTHEAST SOUTH

New England States South Atlantic States

Connecticut Delaware

Maine District of Columbia

Massachusetts Florida

New Hampshire Georgia

Rhode Island Maryland

Vermont North Carolina

Mid Atlantic States South Carolina

New Jersey Virginia

New York West Virginia

Pennsylvania East South Central States

Alabama

MIDWEST Kentucky

East North Central States Mississippi

Illinois Tennessee

Indiana West South Central States

Michigan Arkansas

Ohio Louisiana

Wisconsin Oklahoma

West North Central States Texas

Iowa

Kansas WEST

Minnesota Mountain States

Missouri Arizona

Nebraska Colorado

North Dakota Idaho

South Dakota Montana

Nevada

New Mexico

Utah

Wyoming

Pacific States

Alaska

California

Hawaii

Oregon

Washington

Source: US Bureau of the Census

331

Appendix F. Two-Digit Standard Industrial Classification (SIC) Codes

SIC

Code

Label

01 Agricultural production - crops

02 Agricultural production livestock and animal specialties

07 Agricultural services

08 Forestry

09 Fishing, hunting, and trapping

10 Metal mining

12 Coal mining

13 Oil and gas extraction

14 Mining and quarrying of nonmetallic minerals, except fuels

15 Building construction - general contractors and operative builders

16 Heavy construction other than building construction - contractors

17 Construction - special trade contractors

20 Food and kindred products

21 Tobacco products

22 Textile mill products

23 Apparel and other finished products made from fabrics and similar materials

24 Lumber and wood products, except furniture

25 Furniture and fixtures

26 Paper and allied products

27 Printing, publishing, and allied industries

28 Chemicals and allied products

29 Petroleum refining and related industries

30 Rubber and miscellaneous plastic products

31 Leather and leather products

32 Stone, clay, glass, and concrete products

33 Primary metal industries

34 Fabricated metal products, except machinery and transportation equipment

35 Industrial and commercial machinery and computer equipment

36 Electronic and other electrical equipment and components, except computer

equipment

37 Transportation equipment

38 Measuring, analyzing, and controlling instruments; photographic, medical and

optical goods; watches and clocks

39 Miscellaneous manufacturing industries

40 Railroad transportation

41 Local and suburban transit and interurban highway passenger transportation

42 Motor freight transportation and warehousing

43 United States Postal Service
332

44 Water transportation

45 Transportation by air

46 Pipelines, except natural gas

47 Transportation services

48 Communications

49 Electric, gas, and sanitary services

50 Wholesale trade - durable goods

51 Wholesale trade - nondurable goods

52 Building materials, hardware, garden supply, and mobile home dealers

53 General merchandise stores

54 Food stores

55 Automotive dealers and gasoline service stations

56 Apparel and accessory stores

57 Home furniture, furnishings, and equipment stores

58 Eating and drinking places

59 Miscellaneous retail

60 Depository institutions

61 Nondepository credit institutions

62 Security and commodity brokers, dealers, exchanges, and services

63 Insurance carriers

64 Insurance agents, brokers and service

65 Real estate

67 Holding and other investment offices

70 Hotels, rooming houses, camps, and other lodging places

72 Personal services

73 Business services

75 Automotive repair, services, and parking

76 Miscellaneous repair services

78 Motion pictures

79 Amusement and recreation services

80 Health services

81 Legal services

82 Educational services

83 Social services

84 Museums, art galleries, and botanical and zoological gardens

86 Membership organizations

87 Engineering, accounting, research, management, and related services

88 Private households

89 Miscellaneous services
333

Appendix G. List of Acronyms

Acronym Definition

AAO Average Actual Occupancy

AAR Association of American Railroads

AER Annual Energy Review

AFUE Annual Fuel Utilization Efficiency

AHS American Housing Survey

APPA The Association of Higher Education Facilities Officers

APTA American Public Transit Association

ATA Airline Transport Association

BFRL Building and Fire Research Laboratory

BOMA Buildings Owners and Managers Association

BTS Bureau of Transportation Statistics

C&B Construction and Building

CBECS Commercial Buildings Energy Consumption Survey

CCI Census of the Construction Industry

CDD Cooling degree days

CSI Census of Service Industries

DOE Department of Energy

DOT Department of Transportation

DSM Demand-Side Management

EER Energy Efficiency Ratio

EIA Energy Information Administration

EPA Environmental Protection Agency

EREN Energy Efficiency and Renewable Energy Network

FAA Federal Aviation Administration

FEMP Federal Energy Management Program

FHWA Federal Highway Administration

FTA Federal Transit Administration

FTE Full-Time Equivalent

GDP Gross domestic product

GSF Gross square foot

GSM Gross square meter

HDD Heating degree days

HEP Hydro-electric power

HID High intensity discharge

HUD Department of Housing and Urban Development

HVAC Heating, ventilation and air conditioning

IFMA International Facility Management Association

IREM Institute of Real Estate Management

M&R Maintenance and Repair
334

MA Metropolitan Areas

MADA Multiattribute Decision Analysis

MARAD Maritime Administration

MECS Manufacturing Energy Consumption Survey

MHI Manufactured Housing Institute

NAHB National Association of Home Builders

NAS National Airspace System

NCG National Construction Goal

NIST National Institute of Standards and Technology

OIT Office of Industrial Technologies

OM&E Operations, Maintenance and Energy

RD&D Research, development and deployment

RECS Residential Energy Consumption Survey

ROW Rights of Way

RSF Rentable Square Foot

RSM Rentable Square Meter

SEER Seasonal Energy Efficiency Rating

SIC Standard Industrial Classification

STB Surface Transportation Board

USACE US Army Corps of Engineers

USBC US Bureau of the Census

USGS United States Geological Survey

VIP Value of Construction Put in Place

3R Resurfacing, Restoration, and Rehabilitation
335

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