Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1954-08-05
Construction Up
II Per Cent for
Eastern States

An all-time high in construc-
ton contracts has led to the pre-
diction that no recession is on
the horizon.
George Cline Smith, economist
for the F. w. Dodge corporation,
a construction news and market
ing specialist, reported contract
awards were II percent above
any previous first-half year
analysis.
Smiths review covered con-
fed contract awards in 81 East
ern States for commercial build
lngs, single-family units and
schools.
Following is his summary:
During the Fall and Winter,
when many lines of business
were falling off somewhat, con-
struction contract awards set
new records month after month,
serving notice that there could
be no long, severe recession Turk
ing in the immediate economic
future.
AS Viously announced,
Dodge Reports of construction
contract awards in the 81 East
ern States totalled nine and a
quarter billion dollars in the first
six months of 1854, setting a new
record II percent above the same
period of last year.
A closer look at the details re-
Veals these significant trends:
1. Continued strength of resi-
dental construction, well beyond
the expectations of most fore
casters; and a strong trend to-
ward construction of single-fam.
lily homes at the expense of multi
family housing.
Y 2. A sharp drop in awards for
construction of manufacturing
facilities, which was more than
offset by sizeable increase in
the commercial category, so that
these two groups combined, made
up predominantly of business
construction, showed a net in
crease.
3. Continued growth in the i'm
portance of schools as major
factor in the construction boom.
Manufacturing: The post-Ko-
rea decline in manufacturing
construction continued, as reflect
ed in a sharp drop in awards for
manufacturing facilities. Awards
in this category in the first half
of 1854 totalled 1884 100000 down
% percent below the same period
last year and II percent below
the first.half record set in 1851.
The decline does not reflect a
sharp economic downturn, how
ever, since much of it is account
ed for by the fact that large
atomic energy contracts were let
~. the first half of 1858 and also
IRON last year in what might be
called ordinary contract awards
for manufacturing facilities is
only nine percent.
Within the manufacturing cate
CORY there were wide variations,
with declines characterizing those
industries which expanded the
most during the Korean War,
and increases in many consumer
goods industries.
Sharpest decline in the awards
figures was in the chemicals and
allied products category, which
includes atomic energy, down 70
percent from last year; other no.
* table declines were in primary
ferrous metals, down Sc percent;
and non-electrical machinery,
down 60 percent.
Contract awards for construc-
ton in several industries increas-
I'D. Among theme were food and
kindred products, up SIS percent;
petroleum refineries, up 40 per-
cent; automotive, up 255 percent; ;
and aircraft, up CT percent.
Commercial: Awards for com.
mercial construction rose more
than enough to offset the decline
in manufacturing (even includ.
ing atomic energy contracts
Commercial awards in the first
six months of 1854 totalled $500.
100000, or "a percent above last
year, which was the previous all.
time high in this category.
All types of commercial con.
struction tabulated by Dodge
were up over last year, with the
greatest increase in commercial
warehouses, up 95 percent; office
and loft buildings, up 46 percent;
and stores, up 81 percent.
Residential: A striking feat.
ure of residential awards was a
great increase in emphasis on