Steel Markets

Dodge Momentum Index Rebounds in February

Written by David Schollaert

March 8, 2022

The Dodge Momentum Index rose in February by 4.0%, rebounding from three consecutive months of declines, according to data and analytics from the Dodge Construction Network. The index registered 158.2 last month, up from January’s revised reading of 151.9.

In February, commercial planning moved 1.0% higher while institutional planning rose by 9.0%. The index reached a 14-year high in 2021, riding a 23% surge. Last month’s recovery was due to a sizable jump in the institutional component, as education and healthcare projects entered the pipeline, while commercial planning was steady thanks to office and warehouse projects, said Dodge.

When compared to February 2021, the overall Momentum Index was 11% higher last month. The institutional component was up 37%, but the commercial component was down 1% on a year-over-year basis.

Dodge 2022 2.2

The report noted that a total of 22 projects with a value of $100 million or more entered planning in February. The leading institutional projects were a $500 million first phase of the OC Vibe recreation and mixed-use space in Anaheim, Calif., and the $299 million Kaiser Roseville Medical Center in Roseville, Calif. The leading commercial projects were the $500 million Potomac Technology Park data center in Manassas, Va., and a $175 million Chick-fil-A refrigerated warehouse in Hutchins, Texas.

February’s overall index gain suggests that the construction sector continues to weather the storm of higher material prices and labor scarcity and is looking past the pandemic’s unique issues for projects like schools and offices, Dodge said.

A more pronounced recovery in construction starts could take hold should the pipeline of projects awaiting groundbreaking continue to fill, the report said.

By David Schollaert, David@SteelMarketUpdate.com

An interactive history of the Dodge Momentum Index is available on our website. If you need assistance logging into or navigating the website, please contact us at info@SteelMarketUpdate.com.

David Schollaert

David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.

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