5 Factors That Affect the Insulation Market

Insulation remains an important element of construction projects in the United States and abroad. Insulation improves energy efficiency, boosts indoor comfort, allows HVAC systems to work better, and decreases energy costs in both commercial and residential applications. The market has grown by about 3 percent each year between 2000 and 2010, according to Insulation Outlook. Globally, the 2012 insulation market totaled more than $84 billion.

building insulation
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The insulation market is affected by five important factors:

  1. Codes and regulations – Building codes in the United States and abroad have placed restrictions on the types of material that can be used in building applications. This has extended into the insulation market to affect the type of material that’s appropriate or allowed in certain situations.
  2. Urbanization and increased population – Increases in population drive the need for more residential structures, which in turn drives the need for more insulation. This is especially true in situations where urban populations are growing. A little more than half of the global population is living in urban areas.
  3. New building construction – More and more construction of new buildings, whether commercial, industrial or residential, demands more and more insulation for those structures.
  4. Cost of energy – Energy costs continue to be a major influence on the global and domestic economies. Since the use of insulation in construction projects tends to reduce the costs of energy for commercial or residential clients, insulation is likely to continue as an effective solution to keeping energy costs under control.
  5. Sustainability – Sustainability and its associated areas in energy use will continue to influence the use of insulation and the type of insulation used. While insulation itself may not be a sustainable material, the significant energy savings it promises allows it to contribute to energy conservation and sustainability in different contexts.

Construction Monitor provides regular reports and detailed analysis of news and developments in the construction industry. Contact us today for more information on the global insulation market and what these factors could mean for your company over the next few years.

U.S. Hotel Construction at 6-Year High

According to Lodging Econometrics, a Portsmouth, New Hampshire-based strategic intelligence and consulting company serving the hospitality and lodging industry, the total number of hotel construction projects in 2014 reached a six-year high. A total of 3,645 projects, comprising more than 460,000 rooms, were identified by Lodging Econometrics. The data indicates five consecutive quarters of double-digit year-over-year growth.

construction on roof
Source: iStock.com/sculpies

The Lodging Econometrics data included all known hotel projects in the construction pipeline, including those in the early planning stages, those expected to begin within the next 12 months, and those currently under construction.

Total hotel projects under construction were 1,086 in the fourth quarter of 2014, with a total of 136,442 rooms. In contrast, the number for the fourth quarter of 2013 were 793 under construction for a total of 101,735 rooms.

More than 1,200 hotel projects were in the early planning stages as of the fourth quarter of 2014, compared to 1,071 in the fourth quarter of 2013. These projects represent hotels that are expected to be completed and in operation within three to five year.

Projects expected to begin within 12 months were listed at 1,351 in the fourth quarter of 2014 and 1,156 during the same period in 2013.

Though current construction trends in the hotel industry are showing encouraging signs of significant growth, the industry still hasn’t bounced back to levels seen in 2007. In that year, the total number of projects in the construction pipeline was 5,438, totaling 718,387 rooms.

Construction Monitor regularly reports on trends and developments in the U.S. construction industry, including housing starts, building permit issuances and important construction events. Contact us today for more information on the latest trends in hotel construction throughout the United States.

Boise Construction Project Focuses on Infill Development

LocalConstruct, a Boise construction company, is focusing its latest efforts on creating an infill project for one of the city’s main neighborhoods. This is the seven-story apartment building on the west side of 5th Street in the Central Addition neighborhood of Boise. The building is expected to contain 150 apartment units, ground-floor commercial and retail space, and a two-story covered parking facility.

construction
Source: iStock.com/DragonImages

“Infill” refers to projects and developments that “fill in” gaps of undeveloped or underdeveloped spaces in existing neighborhoods and urban areas. Infill can involve designing and constructing entirely new buildings, or it can also be accomplished through the renovation and retrofitting of existing structures.

A major goal of infill projects is to create a greater density of residential and commercial space in a particular area. For city managers, this is often seen as a way to encourage more development while at the same time relieving stress on roads and other infrastructure. When a neighborhood has a substantial amount of residential and commercial options in a smaller space, both visitors and residents are more likely to walk rather than use their cars.

The Boise project reveals some of the difficulties posed by infill development. For example, LocalConstruct’s proposed building site isn’t empty, nor is it undeveloped greenfield land. The lot contains three empty historic houses that have long had the attention of local historic preservationists. Efforts to raise interest in saving those buildings and other historic structures in Central Addition are ongoing.

As of early 2015, Boise’s preservationist community had not protested LocalConstruct’s plans for the apartment and commercial building. However, dealing with the issue of historic preservation is likely to become necessary as the project moves forward.

Construction Monitor helps construction professionals plan and execute their projects using the latest and most accurate data on housing starts, building permits and industry trends. Contact us today for more information on Boise construction and on industry developments in areas related to infill and urban center expansion.

Waikiki’s Ritz-Carlton Tower Part of Construction in Hawaii

Construction in Hawaii continues to expand as a new hotel and condominium residential tower nears completion in early 2016.

construction growthThe Ritz-Carlson Residences are under construction on Waikiki Beach at 2121 Kuhio Avenue.

The project consists of two towers combining condominiums, hotel rooms and retail businesses. It’s being developed by Pacrep LLC, an affiliate of prominent California real estate firm Irongate.

The first tower is expected to be finished by early 2016. In February 2015, the structure was completed up to the 24th of 38 floors. The 309 units in the tower have already sold out.

Retail shopping and dining facilities will be part of the first Ritz-Carlton Residences tower. The building is expected to include a BLT Market, BLT Bar & Grill, Sushi Sho and Hawaii’s first Dean & DeLuca, an upscale grocery store and market.

Groundbreaking for the second tower is anticipated in early spring of 2015. The second tower will be 39 stories tall and will contain 280 units. Construction is expected to take approximately two years, and completion is expected in 2017. Nearly 80 percent of the units in the second tower have already been sold.

The new Hawaii construction in Waikiki reflects a continued expansion of construction business and employment across the country and in Hawaii in particular.

Construction Monitor is the construction industry’s go-to source for the most accurate and up-to-date information on building permits, housing starts and industry trends. Contact us today for more information on current developments in Hawaii construction and what the expansion of projects in this area could mean for your business.

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Construction in New Jersey Downtown Areas Increasing Thanks to Zoning Changes

Zoning changes in some of New Jersey’s cities are bringing about an unprecedented increase in residential construction in downtown areas. Several downtown areas in New Jersey are being transformed by apartment buildings and residential units serving individual and multifamily clients.

The trend toward downtown residential construction is slowly reversing decades of housing trends that housed New Jersey residents outside of urban areas. The New Jersey construction trend could bring about the most significant change in New Jersey urban areas since the advent of shopping malls began to encroach on downtown commerce in the 1960s and 1970s.construction

Changes in downtown zoning that encourage residential construction are coming in response to demands from younger adults of the millennial generation, mostly individuals aged between 18 and 33 years old. These individuals are interested in living in urban areas with easy access to transportation, shopping and other amenities.

Older residents of suburban towns such as Hoboken, Hackensack, Fort Lee and Brooklyn will also benefit, as these residents are interested in downsizing their living quarters without leaving their familiar hometown areas.

The New Jersey Department of Community Affairs reports that more building permits for multifamily dwellings have been issued than permits for single and two-family residences in areas such as Bergen County.

Apartment buildings and residential construction projects are transforming downtown areas that haven’t seen much change in decades. For example, a 222-unit building is under construction a block from the Hackensack downtown area. Englewood’s downtown is the home to a 150-unit apartment building, Town Centre, and more downtown construction is being encouraged by the city council. In upscale Westwood, multi-use structures that include residential spaces are being built that reflect the boutique nature of the town.

Construction Monitor provides construction industry professionals with the most up-to-date inside information on building permits and construction trends. Contact us today for more information on developments in New Jersey construction and what the trend toward more residential units in the states urban areas could mean for your company.

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Top A/V Trends in Homes Across the U.S.

A/V home trendsToday’s home is both wired and networked, not only for convenience and security, but for entertainment, too, as A/V home trends increasingly demonstrate. Contractors who perform home entertainment or automation installations can verify that the market is expanding as the home becomes the entertainment hub of people’s lives. For both the consumer and the contractor tracking the latest A/V home trends, here are some of the directions the industry is heading: Continue reading Top A/V Trends in Homes Across the U.S.

Spending on Construction Across U.S. Unexpectedly Down in August

Spending on Construction Across U.S downSummer may be a traditionally busy time in the construction industry, but this August turned disappointing for many building professionals. Based in part of positive trends in U.S. construction spending, economists polled by Reuters had predicted a 0.5 percent spending increase for August. Considering July saw a spending uptick of 1.2 percent, the forecast seemed reasonably conservative. Continue reading Spending on Construction Across U.S. Unexpectedly Down in August

Home Remodeling Market Remains Busy as U.S. Homeowners Continue Making Improvements

home remodelingWhen the economy is sluggish, home remodeling often falls by the wayside in favor of basic maintenance. With the general economy picking up these days, however, there’s been a promising and steady increase in spending on remodeling. Continue reading Home Remodeling Market Remains Busy as U.S. Homeowners Continue Making Improvements

Construction Begins on High-End Apartments in Tempe

high end apartments in Tempe The Tempe construction scene has a new entrant you’ll want to keep an eye on if residential construction is an interest of yours. In early October, the boutique real estate developer OliverMcMillan broke ground on one of the most recent upscale residential developments in Tempe. Continue reading Construction Begins on High-End Apartments in Tempe