Image courtesy Dodge Construction Network
The Dodge Momentum Index (DMI), issued by Dodge Construction Network, fell 8.6 percent in March to 164 from the revised February reading of 179.5. Over the month, commercial planning fell 3.2 percent and institutional planning dropped 17.2 percent.
“In 2023, commercial planning decreased while institutional planning notably improved, sitting 29 percent above year-ago levels in February 2024,” says Sarah Martin, associate director of forecasting at Dodge Construction Network. “While strong market fundamentals should support institutional planning this year, this side of the index is more at risk for a substantive correction after last year’s growth.
“Much of the decline on the institutional side is credited to lower levels of education planning. Between February 2023 and February 2024, life science and R&D laboratory projects account for roughly 34 percent of education planning value, with that share reaching 59 percent in some months. In March, however, that share dropped to 7 percent. The surge of lab construction in recent years may lead to decreased planning demand as the market absorbs new supply in 2024. Likely, lower lab volumes will result in education planning returning to its long-run, and more sustainable, average.”
On the commercial side, slower growth in office and hotel planning pulled down this portion of the index. Year over year, the DMI was 12 percent lower than in March 2023. The commercial segment was down 14 percent from year-ago levels, while the institutional segment was down 10 percent over the same period.
