College Planning & Management

FEB 2013

College Planning & Management is the information resource for professionals serving the college and university market. Covering facilities, security, technology and business.

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expected to be completed or started in 2013. To prepare this report, College Planning & Management received information on college and university construction completed and underway during 2012 and planned to start in 2013 from Market Data Retrieval (MDR), a company of Dun and Bradstreet (D&B). MDR contacts two-year and four-year colleges and universities, public and private, throughout the United States seeking information on their construction plans — new buildings, additions to existing buildings and major renovation, and retrofit or modernization projects. (The three terms are used interchangeably throughout this report.) We take that project information and use it to estimate construction on a national and regional basis, and to report on how dollars are being allocated to new buildings, including those dedicated to classrooms, to library services, to science, etc. All of the figures published are "annual in nature." That is, they do not accumulate ongoing construction, but rather compile information on what was completed or expected to be completed or started in a given calendar year. Colleges may be involved in more construction, but work started or completed outside the targeted years is not included. Construction Activity, Nationally and by Region College construction completed in 2012 totaled $9.735B (see Table 2 on page CR4), more than $1B less than was spent in 2011. A LOOK BACK 1 CONSTRUCTION COMPLETED ($000s), 1995 THROUGH 2012 1995 Cost $4,131,972 New Additons Retrofits TOTAL % of Total 67.7% 1996 Cost $4,528,792 % of Total 72.4% 1997 Cost $4,260,969 % of Total 73.8% 1998 Cost $4,384,893 % of Total 69.2% 1999 Cost $4,567,166 % of Total 67.2% $507,809 8.3% $541,697 8.7% $529,013 9.2% $857,051 13.5% $986,864 14.5% $1,463,373 24.0% $1,181,310 18.9% $986,993 17.1% $1,090,206 17.2% $1,239,307 18.2% $6,103,154 $6,251,799 $5,776,975 $6,332,150 $6,793,337 New 2000 Cost $4,780,898 % of Total 65.6% 2001 Cost $6,029,621 % of Total 61.8% 2002 Cost $7,050,533 % of Total 63.8% 2003 Cost $7,453,511 % of Total 67.4% 2004 Cost $9,024,829 % of Total 66.0% Additons $1,039,178 14.3% $1,586,614 16.2% $1,732,084 15.7% $1,761,110 15.9% $2,151,836 15.7% $1,467,785 20.1% $2,147,947 22.0% $2,272,794 20.6% $1,843,611 16.7% $2,491,079 18.2% Retrofits TOTAL $7,287,861 2005 Cost $9,792,474 New $9,764,182 $11,055,411 % of Total 67.4% 2006 Cost $10,327,086 % of Total 68.6% $11,058,232 2007 Cost $10,186,254 % of Total 70.2% 2008 Cost $9,345,152 $13,667,744 % of Total 70.3% 2009 Cost $8,087,132 % of Total 75.5% Additons $2,067,987 14.2% $2,109,843 14.0% $1,774,674 12.2% $1,981,866 14.9% $1,254,902 11.7% Retrofits $2,662,689 18.3% $2,615,611 17.4% $2,539,088 17.5% $1,972,920 14.8% $1,370,462 12.8% TOTAL $15,052,540 $14,523,150 % of Total 73.5% 2011 Cost $8,122,015 % of Total 73.5% $1,545,743 14.0% $1,307,710 13.4% 12.5% $1,293,629 13.3% New 2010 Cost $7,913,650 Additons $1,440,304 14.0% Retrofits $1,703,390 12.5% TOTAL CR2 $11,057,344 $13,299,939 $14,500,016 $1,376,209 $11,043,967 2012 Cost $7,133,195 % of Total 73.3% $9,734,535 CP&M – 2013 ANNUAL COLLEGE CONSTRUCTION REPORT / FEBRUARY 2013 $10,712,496 Charting construction costs: From 1995 to 2006, college construction spending in the United States rose from $6.1B annually to $15.1B, more than doubling. But in the following three years, annual construction fell almost two-thirds to $10.7B in 2009. There was a slight rebound the next two years, but in 2012 college construction totaled just $9.7B, the first time it had dropped below $10B since 2001. WWW.PLANNING 4EDUCATION.COM PHOTOS COURTESY OF MCCARTHY BUILDING COMPANIES, INC. (TAKEN AT UNIVERSITY OF CALIFORNIA, BERKELEY) A Short Construction History I have been tracking college construction for College Planning & Management magazine since 1995, when $6.1B worth of construction was put in place (see Table 1). Construction stayed close to $6B per year from 1995 through 1999, when it reached $6.8B. Starting in 2000, college construction began to shift into a higher gear. In 2000 it broke the $7B barrier for the first time ever, and then jumped to $9.8B in 2001. In 2002, annual college construction spending, including new buildings and additions and retrofits of existing buildings, broke above the $11B mark. By 2004, annual construction was up above $13B and it stayed there for the next five years, topping $15B in 2006, falling back slightly to $14.5B in 2007 and to $13.3B in 2008. Then, in 2009, with the recession impacting endowments and contributions alike, construction fell to $10.7B. It had stayed close to that level since, rebounding to just over $11B in 2010 and 2011. In 2012, reported construction activity — work completed in the calendar year — dropped down to just $9.7B. Looking ahead at projections for work to be completed in 2013 and expected to start this year, it appears that college construction may not recover very quickly. These are among the major findings and conclusions to be drawn from College Planning & Management's 18th Annual College Construction Report, covering activity completed in 2012 and

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