United States construction spending increase 0.80% to $1.30 trillion during the month of November 2018, according to data just published by the U.S. Census Bureau. This compared to consensus estimates of a 0.20% increase during the month. The November 2018 results showed the strongest surge in spending since April 2018.
The rebound in spending comes after particularly weak results in September 2018, which saw spending decline 1.80% to $1.28 trillion. According to Trading Economics, “construction spending in the United states averages 0.45% from 1964 until 2018, reaching an all-time high of 5.90% in April of 1978 and a record low of -4.80% in February of 1975.”
Analysts are estimating that construction spending will only continue to grow for the next several years. According to analysts at Statista, total United States construction spending is forecast to reach $1.53 trillion in 2022. This estimate represents a growth of around 18% between 2018-2022.
One company that will likely be a major benefactor from the growth in U.S. construction spending is Innovest Global, Inc. (OTC Pink: IVST) and its Construction & Building Materials division.
IVST: Building Formidable Construction & Building Materials Division After Two Major Acquisitions
Ohio-based Innovest Global has been hard-at-work expanding its conglomerate business model. Currently, Innovest operates three divisions: Commercial & Industrial, Biotechnology & Health Sciences, and Construction & Building Materials. The construction division is the newest of the three, but has already begun to show strong promise thus far.
The Construction & Building Materials division is broken down into two subsidiaries: Authority National Supply (ANS) and Midwest Curtainwalls. ANS was originally founded in 2012 and is based out of Akron, Ohio. ANS is a national sup
plier of a variety of building materials, including: roofing, windows, siding, tools, and more. Midwest Curtainwalls was founded in 1959 and is based out of Cleveland, Ohio. Midwest Curtainwalls provides curtainwall construction and services.
Innovest Global’s Building Materials Division should benefit from construction spending rebound and in fact they announced on February 8, 2019 that Authority National Supply (ANS) added four new members in its first sixty days since being acquired by Innovest Global. Management estimates that this will add an additional $5.2 million in annual revenues to 2019 results.
Innovest Global’s Twitter page recently announced plans to add curtainwalls to a new project contract that was won by the Commercial & Industrial division in Downtown Los Angeles. The company shares a “before” shot of the massive building that is the focus on the project and curtainwall installation. Innovest estimates that the Downtown LA project at Broadway & 4th Ave to be completed in Spring 2019.
Overall, the United States construction market is estimated to see continued spending growth, which is great news to building materials companies and suppliers. Innovest Global is one such company that operates a blooming Construction & Building Materials division, which continues to see strong growth.
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