bls_0915_1948.pdf

UNITED STATES DEPARTM ENT OF LABORL. B. Schwellenbach, Secretary

BUREAU OF LABOR STATISTICS Ewan Clague, Commissioner

CONSTRUCTION IN THE WAR YEARS1942-45

Employment, Expenditures, and Building Volume

Bulletin No. 915

For sale by the Superintendent of Documents, U. S. Government Printing Office Washington 25, D. C. - Price 55 cents

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Letter o f Transmittal

United States Department of Labor,Bureau of Labor Statistics,

Washington, D . C., June 16 , 1948.The Secretary of Labor:

I have the honor to transmit herewith a statistical report showing trends in construction activity, particularly during the 4 years of World War II. In addition to presenting the effects of war on the construction industry, this report resumes the annual publication of a statistical bulletin on construction expenditures, employment, and building volume, interrupted in 1944 by wartime pressures.

This bulletin was prepared in the Bureaus Division of Construction Statistics, H. E. Riley, Chief. Henry F. Haase was in charge of statistical estimating and developed the tabulating and estimating techniques. Adela L. Stucke planned the tables and prepared the text, under the general direction of Dorothy K. Newman.

Ewan Clague, Commissioner.

Hon. L. B. SC H W ELLEN BACH ,Secretary of Labor.

ii


ContentsPage

Total construction activity................................................................................................................. 1Expenditures for construction.................................................................................................... 1

Estimating construction expenditures.............................................................................. 2New construction expenditures, 1942-45...................................................................... 4

Employment in the construction industry.............................................................................. 7Estimating methods............................................................................................................. 7Employment by type of project, 1941-45....................................................................... 8Construction compared with total nonagricultural employment................................ 9

Volume of Federal construction, 1935-45................................................................................ 10Trend, 1935-45..................................................................................................................... 11Types of projects included in the program..................................................................... 12

Building construction................................................................................................................ 12Trends in city building............................................................................................................. 12

257 cities, 1921-45 ........................................................................................................... 12All urban areas, 1942-45.................................................. 16

New housing units in nonfarm areas............... ......................................................................... 22Estimating dwellings started.............................................................................................. 22Trends from 1910 through 1945........................................................................................ 24Monthly variations; influencing legislation and regulations, 1939-45....................... 26

Trends in private building construction costs.................................... ............................................ 30Composite index..................................................................................................................... 31Residential construction costs.................................................................................................... 35

Shifts in location of construction activity in wartime................................................................... 37Flow between large and small places........................................................................................ 37

Urban-rural movements...................................................................................................... 37Size of city shifts................................... 39

Geographic shifts........................................................................................................................ 39Between States..................................................................... 39From region to region....................................................................................................... 47

Appendix. Building construction in all reporting cities, 1943, 1944, and 1945..... ................ 57

Tables

1. Estimated construction expenditures, by type of construction, 1915-45__________ 22. Estimated construction employment, private and public projects, 1929-45----------- 73. Estimated construction employment, by type of construction, 1941-45.---------------- 84. Estimated construction employment compared with nonagricultural employment,

1929-45_______________________________ _____ :___________________________________ 105. Value of contracts awarded and force-account work started on construction projects

financed wholly or partially from Federal funds, by type of project, 1935-45-------- 116. Estimated valuation, and indexes, of building construction for which permits were

issued in 257 cities, by class of construction, 192145_____________________________ 137. Estimated number of new family dwelling units for which permits were issued, in

relation to population, in 257 cities, and index of residential rents, 1910-45---------- 138. Five cities leading in permit valuations for building construction, 1921-45.............. 149. Estimated number of new family dwelling units for which permits were issued in 257

cities, by type of structure, 1921-45______________________________________________ 1610. Estimated valuation of the various classes of building construction for which permits

were issued in all urban areas, by source of funds and by months, 194245------------ 1811. Estimated valuation and number of new nonresidential buildings for which permits

were issued in all urban areas, by type of building and by source of funds, 1942-45.. 1912. Indexes of the estimated number of new family dwelling units and valuation of the

various classes of building construction for which permits were issued in urbanareas, 1929-45___________________________________________________________________ 20

13. Estimated number of new family dwelling units started in nonfarm areas, by type ofarea and by type of structure, 1910-45___________________________________________ 24

14. Estimated number and construction cost of new family dwelling units started in nonfarm areas, by source of funds, 1920-45._________________________________________ 26

III


Estimated number of new family dwelling units started in nonfarm areas, by source

of funds and by month, 1939-45--------------------------------------------------------------------------- 2716. Estimated number of new family dwelling units started in nonfarm areas, by source

of funds and by quarter, 1935-45________________________________________________ 2917. Indexes of construction costs and expenditures for new private building, 1934-45_ 3118. Average hourly and weekly earnings and weekly hours worked on private building

construction, and index numbers, 1934-45________________________________________ 3119. Average hourly and weekly earnings and weekly hours worked on private building

construction, by selected types of work, specified months, 1940-45............................. 3220. Average hourly and weekly earnings and weekly hours worked on Federal construction

projects, and index numbers, by type of project, 1935-45_________________________ 3321. Average union hourly wage rates in selected building trades, 1934-45_____________ 3422. Union wage scales for selected building trades in 75 cities, June 1, 1940, July 1, 1942,

and July 1, 1945---------------------------------------------------------------------------------------------------- 3423. Weighted indexes of wholesale prices of building materials, 1934r4:5______________ 3624. Change in estimated construction cost of new private 1-family nonfarm dwellings,

quarterly, 1940-45....................................................... 3625. Estimated permit valuation per new family dwelling unit in 257 cities, by type of

structure, 1921-45.................................................................................................................... 3726. Estimated number and valuation of new family dwelling units for which permits were

issued in nonfarm areas, by type of area, size of city, and source of funds, 1942-45.. 3827. Estimated number and valuation of privately financed new family dwelling units for

which permits were issued in nonfarm areas, by type of area, size of city, and type of structure, 1942-45.................................................................. 38

28. Estimated valuation of the various classes of building construction for which permitswere issued in all urban areas, by size of city and by source of funds, 1942-45____ 40

29. Estimated number of new family dwelling units for which permits were issued in nonfarm areas, by geographic division, by State, and by source of funds, 1940-45........ 42

30. Estimated number and valuation of privately financed new family dwelling units forwhich permits were issued in nonfarm areas, by State and by type of structure, 1940-45...................................................................................................................................... 43

31. Estimated number of new family dwelling units and valuation of building constructionfor which permits were issued in urban areas, by State and by class of construction, 1942-45........................................................... 48

32. Value of contracts awarded and force-account work started on construction projectsfinanced wholly or partially from Federal funds, by State, 194345.............................. 51

33. Estimated number and valuation of new family dwelling units for which permits wereissued in nonfarm areas, by geographic division and by source of funds, 1942-45.... 52

34. Estimated number and valuation of privately financed new family dwelling units forwhich permits were issued in nonfarm areas, by geographic division and by type of structure, 1942-45.................................................................................................................... 52

35. Estimated valuation of the various classes of building construction for which permitswere issued in all urban areas, by geographic division and by source of funds, 1942-45...................................................................................................................................... 53

36. Estimated valuation of new nonresidential building for which permits were issued inall urban areas, by general type of building, by geographic division, and by source of funds, 1943-45..................................................................................................................... 55

Charts

1. Construction expenditures compared with gross national product (1915-45)............ 12. Construction expenditures Annual (1915-45)................................................................. 43. Construction expenditures Monthly (1939-45).............................................................. 64. Construction employment (1929-45).................................................................................. 95. Estimated permit valuation of building construction in 257 cities (1921-45)........... 156. Estimated permit valuation of urban building construction (1942-45)....................... 177. Number of new urban dwelling units for which permits were issued Distribution by

source of funds and type of structure (1942-45).............................................................. 218. New nonfarm dwelling units started (1920-45)............................................................... 239. Nonfarm housing in relation to population (1916-45).................................................... 25

10. War shift in new nonfarm housing (1940-45)....................................................................... 41IV


CONSTRUCTION IN THE WAR YEARSTotal Construction Activity

Expenditures for ConstructionThe course of construction activity during the

years 1940 to 1945 reflects clearly the pressures and tensions of a wartime economy. Stimulated first by the national defense program and later by the all-out war production effort, expenditures for construction reached a new high in 1942 over 14 billion dollars. By 1944, however, as a result of the

completion of most war construction and curtailment of all nonessential building, expenditures had dropped to less than 5 billion dollars a 66-percent decline. This was the most violent downsweep in any 2-year period for which reliable figures are available. Thus, the developing construction boom of the 1940s was split in two by the war.

Available evidence, dating from 1915, points to a similarity in the pattern of both long-term trends

CHART I

CONSTRUCTION EXPENDITURES COMPARED WITH GROSS NATIONAL PRODUCT

BILLIONS OF BILLIONS OFDOLLARS DOLLARS

UNITED STATES DEPARTMENT OF LABORBUREAU OF LABOR STATISTICS * SOURCE*. U.S. DEPARTMENT OF COMMERCE

in construction expenditures and general movements in the value of gross national product.1 Major swings occur in both series at about the same time, but fluctuations are more extreme in the case of construction. During the period between World Wars I and II, for example, construction volume and national product both were at peak in the last

1 Gross national product figures shown here are derived by the U. S. Department of Commerce. Estimates for the period prior to 1929 are adjusted data of the National Bureau of Economic Research.

half of the 1920s and both dropped to the low point in their cycle in the depression year of 1933. The range from peak to trough for construction expenditures was 79 percent (from 12.3 billion to2.6 billion dollars), in contrast to 45 percent (from 99.4 billion to 54.8 billion dollars) for national product.

From 1934 on, construction activity moved in the same direction with general business activity but expanded more rapidly, until 1942. Then the

1


2 CONSTRUCTION IN WAR YEARS 1942-45

impact of the war caused the two series to develop opposite trends business continued sharply upward while construction was forced to contract drastically. As soon as the war ended, however, construction began to expand t a much higher rate than national product as a whole.

Although these figures, which are in current dollars, may not state the case fully because they do not allow for changes in prices and differences in pricing bases between war and nonwar production, they demonstrate adequately the relationship of movements in the construction industry to those in the economy as a whole. The extreme year-to-year fluctuations which characterize construction activ

ity cause repercussions upon other components of general business. For this reason, and because it is the largest single industry except agriculture, construction is a particularly important part of the economy.

Estimating construction expendituresConstruction expenditures are a measure of the

dollar value of construction work actually done. Hence, they differ from the building permit and contract award series, discussed on pages 12-22, which represents the value of work planned to be started immediately or in the near future. Expenditures include the installed value of equipment considered

T a b l e 1. Estimated construction expenditures, by type of construction, 1915~^5l

Expenditures (in millions of dollars)Type of construction

1945 1944 1943 1942 1941 1940 1939 1938 1937 1936 1935 1934 1933 1932 1931

Total construction.. . ------------------------------ 5,696 4,837 8,411 14,130 11,260 7,661 6,836 5,738 6,182 5,410 3,746 3,321 2,594 3,604 6,504

New construction2........................................... 4,609 4,073 7,734 13,353 10,308 6,807 6,062 5,018 5,308 4,714 3,110 2,756 2,223 3,260 5,980Private construction____________________ 2,569 1,746 1,669 2,908 5,288 4,199 8,619 2,941 8,274 2,486 1,648 1,221 1,005 1,482 8,416

Residential building (nonfarm)-------------------Nonresidential building8____________________

684 535 650 1,315 2,765 2,355 2,114 1,511 1,372 1,131 665 361 278 462 1,2281,014 350 232 635 1,486 1,028 785 764 1,088

492712 472 455 404 499 1,104

Industrial . ____ ______ 642 208 156 346 801 442 254 232 266 158 191 176 74 221Commercial___________________________ 199 55 32 150 400 342 287 279 378 283 206 169 127 216 437

Warehouses, office and loft buildings--------- 52 16 13 57 114 85 76 89 128 104 70 62 41 110 259Stores, restaurants and garages.-------------- .' 147 39 19 93 286 257 211 190 250 179 136 107 86 106 178

Religious................................... 26 11 5 29 59 56 46 48 42 32 26 20 20 43 82Educational----------------------------------------- 28 10 6 23 55 47 37 38 40 37 16 13 14 50 94Social and recreational----------------------------- 24 16 6 28 68 63 94 92 69 51 32 32 32 57 116Hospital and institutional------------------------- 34 25 11 27. 44 31 29 33 30 16 10 8 9 32 67Hotels .........___________ ____________ 11 4 2 14 27 23 17 19 22 15 11 8 8 15 46Miscellaneous__________________________ 50 21 14 18 32 24 21 23 15 12 13 14 18 12 41

Farm construction............................................ 191 213 292 271 303 236 226 196 225 189 176 93 69 39 97Residential____________________________ 116 136 185 144 174 127 120 104 118 104 96 54 43 26 59Nonresidential--------------------------------------- 75 77 107 127 129 109 106 92 107 85 80 39 26 13 38

Public utilities___________________________ 672 648 495 687 684 580 494 470 589 454 335 312 254 482 987Railroads.............. ....................................... 264 247 211 197 187 167 137 119 199 149 116 128 94 139 292Street railways................. ............................. 20 15 14 12 30 50 54 41 39 45 40 30 21 29 69Pipe lines--------------------------- --------------- 50 71 77 80 60 30 35 21 67 41 20 12 7 37 77Electric light and power.-------------------------- 102 86 69 156 117 120 114 132 102 75 59 52 52 124 266Gas__ ______________________________ 119 146 63 87 111 91 61 65 80 77 48 43 35 66 117Telephone and telegraph............................. 117 83 61 155 179 122 93 92 102 67 52 47 45 87 166

Public construction.------------------------------- 2,048 2,827 6,065 10,445 5,070 2,608 2,448 2,077 2,034 2,228 1,462 1,585 1#18 1,778 2,564Residential building..................................... 71 190 700 545 430 200 65 35 93 61 9 1 0 0 0Nonresidential building------------------------------- 652 638 1,800 3,634 1,540 519 835 556 459 597 273 256 193 392 578

Industrial......................... ........................... 470 507 1,668 3,437 1,280 164 23 12 2 4 2 11 2 (5) ?Commercial_________________ _________ 4 4 4 6 21 34 32 18 22 14 7 13 4 (5) (5)Public administration.......... ......................... 15 11 9 28 45 96 180 127 110 130 74 44 89 173 173Educational____________________ ______ 59 41 62 116 135 132 418 266 221 323 130 110 43 123 269Social and recreational------------------ ---------- 9 7 8 5 15 18 47 37 34 50 19 27 6 15 18Hospital and institutional.............................. 85 58 43 32 34 50 114 83 62 63 31 41 43 78 104Miscellaneous._____________________ _____ 10 10 6 10 10 25 21 13 8 13 10 10 6 3 14

Military and naval facilities..............................Highways-----------------------------------------------

State_________________________________

690 837 2,550 5,016 1,620 385 125 62 37 29 37 47 36 34 40342 360 450 675 850 875 835 837 850 876 622 821 675 916 1,323220 215 270 396 525 529 470 521 557 601 412 544 424 524 694

County........-----------------------------------------Municipal--------------------------------------------

Sewage disposal--------------- ------------------------

79 94 108 154 176 186 185 130 139 150 111 163 136 183 27843 51 72 125 149 160 180 186 154 125 99 114 115 209 35137 26 32 39 48 67 82 89 95 115 68 54 34 69 114

Water supply.------------------------------------------ 60 53 70 100 120 127 80 90 79 93 69 62 47 87 156Miscellaneous public service enterprises----------- 55 46 43 36 63 90 91 94 101 111 59 41 61 135 209Conservation and development.--------------------- 130 163 285 350 354 310 310 299 310 339 317 245 168 139 135

Bureau of Reclamation---------------------- ------ 39 36 42 60 79 74 72 67 60 56 47 35 26 26 20Army Engineers.______________ _________ 63 73 160 150 159 158 157 157 176 192 177 142 102 81 81Tennessee Valley Authority-------:.................. 18 45 76 131 83 38 32 31 30 32 28 17 5 0 0Other.________________________________ 10 9 7 9 33 40 49 44 44 59 65 51 35 32 34

All other Federal----------------------------------- ... 11 14 135 50 45 35 20 15 10 7 8 8 4 6 9Pipe lines...................... ..............................Other Federal----------------------------------------

0 4 125 25 0 0 0 0 0 0 0 0 0 0 011 10 10 25 45 35 20 15 10 7 8 8 4 6 9

M in o r build ing repairs...................................... 1,087 764 677 777 952 854 774 720 874 696 636 565 371 344 524Nonfarm8_______________________________ 770 415 340 435 540 520 470 469 601 470 427 413 246 243 354

Residential................................................... 310 215 150 210 340 300 290 250 261 221 238 222 132 166 180Nonresidential................. ............................. 460 200 190 225 200 220 180 219 340 249 189 191 114 77 174

Farm9 ___________ - .............................. 317 349 337 342 412 334 304 251 273 226 209 152 125 101 170

See footnotes at end of table.


TOTAL CONSTRUCTION ACTIVITY 3T a b l e 1. Estimated construction expenditures, by type of construction, 1915-45 Continued

Expenditures (in millions of dollars)Type ot construction

1930 1929 1928 1927 1926 1925 1924 1923 1922 1921 1920 1919 1918 1917 1916 1915

Total construction-------------------------- 8,782 10,828 11,848 12,282 12,209 11,488 10,555 9,637 7,948 6,391 7,146 6,549 5,299 4,693 3,928 3,313New construction1 * 3............................... 8,059 9,913 10,801 11,130 11,179 10,559 9,577 8,604 7,042 5,548 6,119 5,738 4,717 4,142 3,456 2,935

Private construction.____________ 5,306 7,522 8,339 8,762 9,066 8,451 7,715 7,006 5,385 3,998 4,785 3,775 2,486 2,869 2,753 2,220Residential building (nonfarm)----------- 1,446 2,797 3,869 4,175 4,496 4,505 4,195 3,640 2,734 1,661 1,545 1,536 691 902 1,066 950Nonresidential building8------------------- 2,099 2,822 2,797 2,825 2,878 2,373 1,897 1,896 1,638 1,543 2,082 1,147 771 860 771 513

Industrial-___________________ 532 949 802 696 727 513 460 549 467 574 1,099 (4) (4) (4) (4) (4)Commercial____________________ 856 1,097 1,121 1,145 1,107 940 740 716 613 570 625 (4) (4) (4) (4) (4)

Warehouses, office and loft buildings 559 581 (4) (4) (> (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) faStores, restaurants and garages___ 297 516 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4)Religious---------------------------------- 128 139 168 179 177 165 130 117 103 71 55 (4) 4) 4) (4) )Educational____________________ 112 113 107 106 108 108 91 83 61 32 22 (4) (4) (4) (4> ( )Social and recreational------------------ 140 164 224 252 255 199 131 128 132 119 104 4) (4) (4) (4) )Hospital and institutional_________ 103 98 100 106 83 79 63 57 53 44 30 4) 4) (4) (4) (4)Hotels..................................... ........ 164 199 224 291 365 313 222 199 181 109 118 4) (4) (4) (4) (4)Miscellaneous___________________ 64 63 51 50 56 56 60 47 28 24 29 (4) (4) (4) (4) (4)

Farm construction_________________ 193 279 275 283 251 259 257 270 218 183 381 414 323 315 255 205Residential_____________________ 107 147 145 149 132 136 135 142 115 96 201 218 170 166 134 108Nonresidential.__________________ 86 132 130 134 119 123 122 128 103 87 180 196 153 149 121 97

Public utilities.____________________ 1,568 1,624 1,398 1,479 1,441 1,314 1,366 1,200 795 611 777 678 701 792 661 552Railroads_____ ____ _______ 521 510 433 462 491 393 365 361 176 184 184 266 365 361 281 241Street railways--------------------------- 85 82 90 77 51 52 56 74 85 59 82 63 107 154 109 112Pipe lines.______________________ 30 97 53 80 36 55 70 53 41 30 41 56 24 20 20 20Electric light and power---------------- 418 396 364 391 388 433 473 421 237 170 268 161 106 127 120 95Gas______ _____ __ __________ 181 185 212 257 248 171 206 133 139 66 78 56 26 45 70 41Telephone and telegraph.__________ 333 354 246 212 227 210 196 158 117 102 124 76 73 85 61 43* Public construction_____________ 2,753 2,391 2,462 2,368 2,113 2,108 1,862 1,598 1,657 1,650 1,334 1,963 2,231 1,273 703 716

Residential building._______________ 0 0 0 0 0 0 0 0 0 0 0 14 28 0 0 0Nonresidential building..,____________ 623 622 638 596 603 573 494 481 481 387 283 246 199 192 207 217

Industrial______________________ (5) (5) (5) (5) (5) (5) (5) (5) (5) (5) (8) (4) (4) (4) (4) (4)Commercial____________________ (5) (5) (5) (5) (5) (5) (5) (5) (5) (5) (5) (4) (4) 4) (4) (4)Public administration____ ________ 121 103 85 84 70 56 39 44 55 51 38 (4) (4) (4) (4) 4)Educational. __________ ______ 344 367 378 367 399 400 353 346 342 274 190 (4) (4) (4) (4) (4)Social and recreational_____ _____ 26 36 50 48 47 37 22 20 15 14 12 (4) (4) (4) (4) (4)Hospital and institutional_________ 111 95 108 80 68 61 60 55 60 40 33 (4) (4) (4) (4) faMiscellaneous....... ........................... 21 21 17 17 19 19 20 16 9 8 10 (4) (4) (4) (4) (4)

Military and naval facilities._________ 29 19 15 12 11 8 9 16 25 49 161 1,089 1,555 608 21 17Highways._______________________ 1,481 1,248 1,270 1,190 1,039 1,056 951 783 851 840 640 415 288 313 308 298

State.- _______________________ 678 529 511 416 363 396 384 284 286 281 432 256 180 174 168 165County.________________________ 297 257 282 289 266 265 256 242 330 337 (6) (6) (6) (6) (6) (6)Municipal______________________ 506 462 477 485 410 395 311 257 235 222 208 159 108 139 140 133

Sewage disposal_____ ..... 142 127 183 174 145 133 108 90 88 78 67 53 38 45 46 52Water supply._____________ 201 126 117 138 140 145 155 113 113 100 86 71 56 46 49 54Miscellaneous public service enterprises.. 157 150 157 192 112 119 65 48 49 43 41 35 37 41 43 40Conservation and development____ 111 86 72 63 61 73 79 65 48 52 55 39 29 27 28 36

Bureau of Reclamation----------- 11 8 7 6 6 7 8 9 9 7 5 5 6 6 6 7Army Engineers_________________ 75 59 46 40 41 51 55 43 30 36 41 29 20 18 20 27Tennessee Valley Authority._______ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Other 25 19 19 17 14 15 16 13 9 9 9 5 3 3 2 2

All other Federal.. _____ 9 13 10 3 2 1 1 2 2 1 1 1 1 1 1 1Pipe lines______________________ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Other Federal.________ _____ ___ 9 13 10 3 2 1 1 2 2 1 1 1 1 1 t 1

M in or building repairs......................... 723 915 1,047 1,152 1,030 929 978 1,033 906 843 1,027 7 811 7 582 7 551 7 472 7 378

Nonfarm8________________________ 485 563 697 792 710 599 652 690 629 611 543 7 285 7 170 7 151 7 147 7 118Residential_____________________ 204 233 328 406 338 281 374 417 353 349 228 (4) (4) (4) (4) (4)Nonresidential__ __ ___________ 281 330 369 386 372 318 278 273 276 262 315 285 170 151 147 118

Farm9.__________________________ 238 352 350 360 320 330 326 343 277 232 484 526 412 400 325 260

1 Revised as of April 1947.* Estimates of new construction from 1915 through 1938, except for nonfarm residential building, were made by the Office of Domestic Commerce, U. S. Department of Commerce. For 1939 and subsequent years estimates were made jointly by the Bureau of Labor Statistics, U. S. Department of Labor, and the Office of Domestic Commerce. New construction includes expenditures for major additions and alterations.* Excludes nonresidential building by privately owned public utilities.4 Unavailable.

5 Public industrial and commercial building not segregable from private for 1920 through 1932, but the amount involved is believed to be negligible. Included in State.7 Excludes residential nonfarm minor building repairs because the data are unavailable.8 Covers privately financed structural repairs of the type for which building permits are generally required.9 Covers maintenance and repairs.

an integral part of a structure, but exclude the value of land, machinery, and movable equipment. Included under new construction is the value of major additions and alterations. Minor building repairs, which are shown separately, include those types of work for which building permits are generally issued. They exclude maintenance work such as painting, plumbing and heating, water

proofing, papering, electrical repairs, etc., not incident to structural repairs.

Estimates of expenditures for private residential building are based on the valuation figures recorded on reports of building permits issued, which are submitted to the Bureau of Labor Statistics by local building officials. These data are adjusted to account for residential building activity in non



permit issuing places, abandonments, and for the understatement of construction costs inherent in building permit valuations.

Separate estimates are made for each of several types of private nonresidential building, based upon records of contracts awarded as reported monthly by the F. W. Dodge Corp. Estimates for the other types of construction, Federal and non- Federal, are for the most part derived from reports obtained from other government agencies and private industry, as well as published sources such as the weekly periodical, Engineering News-

Record, and the annuals, Budget of the United States Government and Financial Statistics of Cities.

New construction expenditures, 1942-45New private construction expenditures, which

accounted for approximately 80 percent of all the money spent for new construction during the entire period of the 1920,s, dropped to 22 percent of the total in 1942, the first year of World War II. In 1942, outlays from private funds amounted to only 2.9 billion dollars, compared with the 1926 peak of

over 9 billion dollars. On the other hand, an unprecedented volume of publicly financed construction (10.4 billion dollars) brought the total for new work to 13.3 billion dollars the highest level in the countrys history.

Expenditures for military and naval facilities construction, which ordinarily account for only a few million, and even in 1918 totaled but 1.6 billion dollars, rose to over 5 billion dollars in 1942. This was almost two-fifths of the 1942 expenditures for all new work. The largest category after military and naval facilities was publicly financed industrial buildings, which reached the unprecedented amount

of 3.4 billion dollars. In no year prior to 1941 was more than about 164 million dollars spent for construction of new public industrial buildings. Highway construction, which normally forms a larger part of the public total than any of the other classes, exceeded a billion dollars each year between 1925 and 1931 but fell to 675 million dollars in 1942.

Private residential construction, at 1.3 billion dollars, comprised the third largest segment of new construction expenditures in the opening war year. This was less than half the amount (2.8 billion dollars) spent in the good prewar home-building year 1941.


TOTAL CONSTRUCTION ACTIVITY 5

In 1943, new construction expenditures totaled7.7 billion dollars a drop of more than 40 percent from the 1942 high mark; in 1944, they fell even more to around 4 billion dollars. Completion of most war construction projects was entirely responsible for the drop between 1943 and 1944. Private work was about the same in both years,1.7 billion dollars, whereas public activity declined from 6 billion dollars in 1943 to 2.3 billion dollars in 1944.

By 1944, construction of military and naval facilities was down to 837 million dollars; private residential building accounted for only 535 million dollars, and publicly financed industrial buildings for 507 million dollars.

Commercial building financed from private funds shrank to 32 million dollars in 1943 the lowest dollar volume in any year for which estimates are available. In the middle 1920's this type of construction came to over a billion dollars a year.

Privately financed construction, previously restricted by wartime necessities, was allowed to expand prior to the actual termination of the war. Limitation orders were eased at an early date, opening the road to recovery of civilian construction. The problems connected with reconversion were not the same in the construction industry as those confronting manufacturers. For example, there were no plants to clear out, very little war work to complete, and few contracts to terminate. On the other hand, a great deal of recruitment was necessary to expand the construction work force. In addition, there was the task of organizing new undertakings, getting materials assembled on the site, and obtaining sufficient supplies of building materials from plants operating far below capacity.

Work forged ahead on many fronts, however, as soon as labor was recruited and the required inventories were accumulated. The latter, especially, presented grave obstacles, but they were overcome sufficiently for construction to advance notably in the closing months of 1945. The dollarvolume of new private construction put in place in the last half of the year was about double that for the first 6 months.

For the year as a whole, new construction expenditures totaled 4.6 billion dollars, an increase of 13 percent over 1944. One of the outstanding features of this expansion was the marked shift in importance between publicly and privately financed activity. In the early part of 1945, expenditures averaged over 160 million dollars a month for new

public construction and around 120 million dollars for new private work. By December, the public construction volume dropped to 98 million dollars, but private activity rose to 352 million dollars.

The greatest advance, by far, took place in private nonresidential building construction. This was one of the first areas to be affected by the changing military situation. On May 29,1945, and again on June 11, the War Production Board relaxed the terms of L-412 to hasten the construction or alteration of industrial plants for the production of bottleneck items and essential civilian articles in short supply. These amendments were made to insure that limitations on construction would not obstruct the rapid reconversion of industry nor delay the reemployment in civilian production of the greatest possible number of workers.

This policy was further implemented as soon as the war was over by the issuance of an order permitting the building of industrial plants without WPB authorization after August 21, 1945. Consequently, outlays for new private nonresidential building construction in 1945 amounted to over a billion dollars, three-fifths of which were for industrial facilities. The 1944 figure for private nonresidential building (350 million dollars) was about a third of the 1945 total.

Private new residential construction also increased substantially in 1945. All during the war, home building had been subordinated to the needs of vital industrial construction, so that the demand for new houses was extremely urgent by the end of the period. On the assumption that the most expeditious way to get an immediate expansion of residential building was to remove restrictions on all construction, the War Production Board revoked L-41 on October 15, 1945. As a result expenditure figures for the last months of 1945 rose markedly. Within the short span of a year the monthly volume of private housing expenditures increased fivefold. In the first quarter of 1945 the monthly rate was about 23 million dollars, the lowest in the entire war period; by December, despite normal seasonal tendencies, it was 116 million dollars. During the entire year, 670 million dollars was spent for residential buildinga fourth above the 1944 dollar volume.3 Conservation Order L-41 was issued on April 9, 1942, placing all construction under rigid control. The order made it necessary for builders to obtain authorization from the War Production Board to begin residential construction costing $500 or more; agricultural construction costing $1,000 or more; or commercial and other construction costing $5,000 or more during any continuous 12-month period.



C H A R T 3

CONSTRUCTION EXPENDITURESMILLIONS

OF DOLLARS

MONTHLY

1939 1940 1941 1942 1943 1944 1945UNITEO STATES DEPARTMENT OP LABOR BUREAU OP LABOR STATISTICS


TOTAL CONSTRUCTION ACTIVITY 7T able 2. Estimated construction em ployment, private and public projects, 1929-451

Year and month

1929 _________1930 _________1931 _________1932 _________________1933 _________1934 _________1935 _________1936 _________1937 _________________1938 _________________

1939: Average________January.__________February._________March____________

June.July.--------------August_______September.____October______November.____December-------

1940: Average.............January.---------------February._________March------------------April_____________May_____________June._____________July_____________August.___________September.________October___________

Average monthly employment (m thousands) on

Allcon

structionPrivateprojects

Publicprojects

2,508 1,997 5112,102 1,487 6151,759 1,120 6391,165 597 568

976 452 524 :1,151 538 6131,292 680 6121,763 920 8431,778 1,054 7241,524 918 606

1,909 1,181 7281,582 974 6081,564 968 5961,552 953 5991,813 1,118 6951,973 1,198 7752,144 1,292 852 ,2,249 1,386 8632,276 1,415 8612,215 1,386 8292,035 1,253 7821,853 1,155 6981,650 1,073 577

1,916 1,320 5961,420 995 4251,367 981 3861,418 991 4271,657 1,169 4881,872 1,320 5522,090 1,501 589 :2,210 1,595 6152,228 1,615 6132,220 1,593 6272,146 1,454 692

Year and month

1940ContinuedNovember.__December.___

1941: Average.___January.____February.___March---------April...May...JuneJuly-August-SeptemberOctober-----NovemberDecember....

January.....February...March----April.____May-June._July-August.____September._October____November.__December.__

1943: Average.___January.------February.___March_____April.----------

Average monthly employment (in thousands) on

Year and month

Average monthly employment (in thousands) on

Allcon


Publicprojects

Allcon


Publicprojects

1943Continued2,186 1,353 833 May.-------------------- 1,465 362 1,1032,173 1,276 897 June._____________ 1,365 374 991

July._____________ 1,301 392 9092,446 1,423 1,023 August.___________ 1,254 412 8422,073 1,100 973 September_.______ 1,177 415 7622,047 1,080 967 October___________ 1,083 404 6792,078 1,098 980 November.________ 996 401 5952,216 1,275 941 December_________ 905 384 5212,448 1,495 9532,615 1,693 922 1944: Average._________ 762 375 3872,774 1,799 975 January.__________ 827 348 4792,863 1,765 1,098 February._________ 779 336 4432,879 1,679 1,200 March------------------ 746 339 4072,698 1,544 1,154 April_____________ 759 359 4002,498 1,395 1,103 May..____________ 769 372 3972,160 1,157 1,003 June._____________ 779 385 394

July __________ 787 395 3922,214 726 1,488 August ---------- 790 400 3901,960 953 1,007 September _______ 760 390 3701,902 906 996 October._____ _____ 741 383 3581,912 868 1,044 November_________ 720 398 3222,106 936 1,170 December... ....... . 683 395 2882,251 896 1,3552,292 770 1,522 1945: Average.. - ----- 968 685 2832,453 665 1,788 January. ________ 689 403 2862,579 629 1,950 February_________ 708 421 2872,469 586 1,883 March------------------ 758 448 3102,400 557 1,843 April__ ___ ____ 809 492 3172,262 513 1,749 May._____________ 908 580 3281,987 436 1,551 June_____________ 970 636 334

July._____________ 1,043 724 3191,338 381 957 August.____ ______ 1,065 765 3001,827 395 1,432 September.________ 1,097 843 2541,653 356 1,297 October__________ 1,175 939 2361,551 331 1,220 November.------------ 1,183 953 2301,482 344 1,138 December-------------- 1,215 1,021 194

1 Covers all types of workers (wage earners, salaried employees, working proprietors, and self-employed persons, as well as force-account workers) actively engaged on all types of new construction work and on alteration, addition, and repair work of the kind usually covered by building permits. (Force-account employees are workers hired, not through a contractor, but directly by a business or government agency, and utilized as a separate work force to perform nonmaintenance construction work on the agencys own

Employment in the Construction IndustryEstimating methods

Construction employment figures presented in this section are estimates of the average number of workers employed in connection with construction operations in the United States. They include wage earners and salaried employees engaged on all types of new construction work and on alteration, addition, and repair work of the kind usually covered by building permits. Force-account workers3 are also included, as well as self-employed persons, working proprietors, and workers employed by construction firms either on or off the construction site. The estimates exclude persons engaged in maintenance work.

* Force-account employees are workers hired not through a contractor, but directly by a business or government agency, and utilized as a separate work force to perform nonmaintenance construction work on the agencys own properties.

properties.) Persons engaged in maintenance work are not included.These estimates indicate average employment during the month (as

distinguished from the number of different persons shown on pay-roll or employment records) and have been derived primarily by the conversion of dollar-expenditure figures into employment by the use of average performance factors.

The employment averages are derived primarily by converting construction expenditure figures into the average number of man-months of labor ordinarily required to perform the volume of work reported, using a currently adjusted figure for the value of work performed per man per month. The average employment figures obtained for the periods specified (man-months of employment) may be considerably lower than the number of different individuals employed during these periods as shown on pay-roll records, because of the high turn-over in the construction industry.

It should be noted that the above procedure is used only in the case of nonfederally financed construction. In the case of Federal construction, employment is estimated directly from reports on employment obtained from contractors.

Estimates of the value of work performed per man-month on non-Federal work are adjusted regularly for changes in average hourly earnings



and in the average workweek of construction workers, as well as for changes in materials prices. They are checked periodically also against actual experience, using data on the operation of sample projects under construction.

It is assumed in making these adjustments that contractors overhead and profit remain a constant percentage of the value of work performed. This assumption introduces error in the results, since the percentage undoubtedly changes with competitive conditions and as mechanization and other developments in method of operation affect overhead. Another assumption affecting the level of the employment figures is that productivity per man-hour is constant. While changes in productivity are ordinarily slow, they can be rapid when technological developments occur. They are both rapid and erratic during periods of shortages and other conditions of disorganization similar to those of the recent past. Sufficient information is not available to adjust for these considerations. The average employment figures shown must therefore be interpreted accordingly.

Employment by type of project, 1941-45During 1941 and 1942, employment on all types

of construction projects exceeded the 2-million- mark for the first time in a decade. Average monthly employment on public construction projects, which had fluctuated relatively little during the 12 years 1929-40, rose almost constantly during early war preparations to an unprecedented level of1.950.000 persons in August 1942. The decline from that month on was consistent and rapid. In fact, the decrease in 1943 released an average of almost86.000 persons a month. (More than 90 percent of the publicly financed war construction program was completed by the end of 1943.) Average employment on public construction for 1943 was 957,000, compared with 1,488,000 in 1942, and by 1945, the average for the year was only 283,000.

With recovery and growing economic prosperity, average employment on private construction projects rose steeply in the early defense period, reaching almost 1,800,000 in July 1941. The high employment volume in 1929 (which averaged 2J^ million for the year) was never again attained, however, for late in 1941 control of materials and restrictions on private projects were imposed to assure materials and men for war production. Private construction employment then decreased

sharply to an average of 726,000 workers in 1942, slightly over half the 1,423,000 average for 1941. The decline to 375,000 in 1944 gave employment to 21 percent fewer workers in that year than in the depression year 1933. Although the monthly average for the entire year had recovered to only685,000 in 1945, by December over a million persons were working on private construction, foreshadowing the surge in postwar building.

T able 3 . Estimated construction employment, by type o f __________________ construction, ____________________

Type of construction1945 1944 1943 1942 1941

All types------------------------------------------------ 968 762 1,338 2,214 2,446New construction..................... ....................... 771 658 1,244 2,066 2,233Private construction________________________ 488 271 287 578 1,210Residential (nonfarm) building...______ _____ 129 88 118 256 627Nonresidential (nonfarm) building... ............... 200 66 47 142 324Farm construction___ ________ _________ 33 17 23 43 75Public utilities.___________________________ 126 100 99 137 184Public construction________________________ 288 887 957 1,488 1,028

Federal........................................... 226 344 909 1,372 841Residential building___________ _________ 11 28 85 76 85Nonresidential building.................................... 2157 2222 2598 1,021 571RftRlfl.Tnat.inTi 7 14 27 43 34River, harbor, and flood control._____________ 17 22 32 38 35Streets and highways_____________________ 10 16 30 50 69All other8_______________________________ 24 42 137 144 47

Nonfederal______________________ 57 43 48 116 182Streets and highways_____________________ 28 27 37 86 115All other4___________________________ ____ 29 16 11 30 67M inor building repairs_______________________ 197 104 94 148 213Residential (nonfarm)_____________________ 49 35 27 40 77Nonresidential (nonfarm)................................. 89 38 37 51 44Farm construction________________________ 59 31 30 57 92

Average monthly employment (in thousands)

1 See footnote 1, table 2.2 Includes construction workers engaged on the atomic bomb project.2 Mainly airports, water and sewer systems, and electrification projects.4 Includes community buildings, water supply and sewage disposal projects, and miscellaneous public service enterprises.

About half the 2 million persons engaged on new construction in 1942 were working on federally financed nonresidential building projects such as barracks, ordnance plants, shipbuilding and repair facilities, and warehouses. This type of employment, which declined over 40 percent between 1942 and 1943 and another 63 percent in the following year, dropped to a monthly average of 157,000 in 1945.

Because of the need for emergency housing and highways to move war goods, Federal residential building and non-Federal street and highway construction were the next most important types of public projects in providing employment in the defense and early war periods. About 85,000 workers were employed on the former and 115,000 on the latter in 1941. By 1945, however, the respective averages were 11,000 and 28,000.

Home construction has been the most important segment of private building, and in 1941, the very



good housing year, 627,000 workers were employed on privately financed residential building. A rapid decline to an average of 256,000 in 1942 was brought about by the initiation of construction controls in April of that year. In 1944, the monthly employment figure for new private residential construction averaged only 88,000; but it increased by almost 50 percent in 1945.

Both residential and nonresidential building were given impetus by the lifting of wartime controls in

1945; however, the backlog of ready funds and completed plans was especially great in business and industry. Although privately financed nonresidential building accounted for only about half as much employment as residential building in 1941, the relationship was reversed as soon as the war ended. In 1945 an average of 200,000 persons a month were working on private new nonresidential building, compared with 129,000 on new housing construction.

CHART 4

CONSTRUCTION EMPLOYMENTAVERAGE MONTHLY

MILLIONS MILLIONS

1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945UNITEO STATES DEPARTMENT OP LABOR BUREAU OP LABOR STATISTICS

Construction compared with total nonagricultural employment

An approximation of the weight of construction in the whole nonagricultural employment picture is given in table 4. It should be noted that figures shown for employment in all nonagricultural establishments exclude the self-employed, working proprietors, and firm members, whereas estimates for construction employment include such persons.

In addition, the construction employment series is designed to show the total employment effect of construction activity and, therefore, includes employees of nonconstruction (or multi-industry) organizations who may engage in construction. For example, a firm concerned principally with the*

marketing of lumber may at the same time contract for and build houses. Workers of such a firm would be counted in the nonagricultural series under wholesale or retail trade and again in the construction series under residential building.

Recognizing that the two series are not directly comparable because of the inclusion of self-employed and firm members in construction estimates, the series do, nevertheless, provide a rough measure of the relative importance of all construction employment to total nonagricultural employment.

Construction employment appears from such a comparison to be an exaggerated indicator of the trend in all nonfarm work, because it comprises a much greater proportion of total nonagricultural



T able 4. Estimated construction employment compared with nonagricultural em ployment, 1929-451

Year

Average monthly employment

(in thousands)Percent of construction em

ployment onConstruction employment

as percent of all nonagricultural employment

Nonagricultural

Construction

Publicprojects

Privateprojects

Allcon

structionPublic Private

1929__________ 51,149 2,508 20.4 79.6 8.1 1.7 6.41930._________ 28,996 2,102 29.3 70.7 7.2 2.1 5.11931__________ 26,125 1,759 36.3 63.7 6.7 2.4 4.31932__________ 22,921 1,165 48.8 51.2 5.1 2.5 2.61933__________ 23,060 976 53.7 46.3 4.2 2.3 1.91934__________ 25,449 1,151 53.3 46.7 4.5 2.4 2.11935__________ 26,599 1,292 47.4 52.6 4.9 2.3 2.61936._________ 28,809 1,763 47.8 52.2 6.1 2.9 3.21937__________ 30,627 1,778 40.7 59.3 5.8 2.4 3.41938... 28,663 1,524 39.8 60.2 5.3 2.1 3.21939__________ 30,353 1,909 38.1 61.9 6.3 2.4 3.91940__________ 31,784 1,916 31.1 68.9 6.0 1.9 4.11941_____ .... 35,668 2,446 41.8 58.2 6.9 2.9 4.01942__________ 38,447 2,214 67.2 32.8 5.8 3.9 1.91943__________ 40,185 1,338 71.5 28.5 3.3 2.4 .91944__________ 39,689 762 50.8 49.2 1.9 1.0 .91945__________ 38,144 968 29.2 70.8 2.5 .7 1.8

1 Data on employment in all nonagricultural establishments cover wage and salaried employees and exclude self-employed persons, working proprietors, and firm members. All of the groups mentioned are included in the construction employment estimates. The wage earners and salaried employees included in the construction series are construction and special trades contractors wage-earner and salaried employees, whether working at the construction site or in the contractors offices, shops, or yards.The construction employment estimates are designed to show all employment afforded by construction activity; thus, they cover all persons performing work on, or employed on work directly incident to, new construction, major additions and alterations, and building repairs of the type for which building permits are usually issued. These employees are included even if working as force-account workers or as contract-construction employees in industries classified as nonconstruction for the purposes of the nonagricultural series. Persons engaged in maintenance work, however, are not included.Force-account employees are workers hired, not through a contractor, but directly by a business or government agency, and utilized as a separate work force to perform nonmaintenance construction work on the agencys own properties.

employment in prosperous peacetime years than in depression years. Construction activity is affected so directly by good or bad times that employment in this field increases or falls off proportionately more than in industry as a whole.

Employment on construction projects comprised over 8 percent of the estimated total (31.1 million workers) employed in all nonagricultural establishments in 1929. After this boom year, the proportion of construction employment to total nonagricultural employment dropped each year to an average of 4.5 percent in the depression years 1933-35. Construction employment rose again in importance in the total nonagricultural labor force beginning with 1936; between 1936 and 1940 construction site workers comprised about 6 percent of all nonagricultural workers, and in 1941 the proportion was 6.9 percent.

Total industrial employment continued to rise steeply during the war years, while restraints on

nonessential construction activity, instituted in 1942, and subsequent completion of the major part of the war construction program caused employment in the construction industry to fall off heavily. In 1943 construction employment comprised only 3.3 percent of the nonagricultural employed labor force, and in 1944 as little as 1.9 percent. By 1945, construction rose to 2.5 percent of total nonagricultural employment, but that was still below the proportion for the depression year 1933.

Volume of Federal Construction, 1935-45

A good indicator of the fluctuations in Federal construction in response to national programs and policies, is the value of contracts awarded and force- account work started on construction projects financed from Federal funds (either wholly or partially). Construction work by force account under a Federal agency is work for which no contract is let but which is conducted directly by the agency itself. The workers are usually employed for a specific project at completion of which their services may be terminated. Data presented here are a compilation of reports from Federal agencies on the value of construction contracts they awarded or of force-account work they started. Estimates of actual expenditures on all public works, State and local as well as Federal, are given on pages 2 to 6.

During the 11-year period January 1935 to December 1945, Federal construction awards and force-account work came to almost 29 billion dollars.4 Considerably more than half of that amount, or 16 billion dollars, was for nonresidential building construction; the remainder, over 12 billion dollars, was spent for such construction projects as highways and roads, housing, airports, bridges, reclamation, and water supply and sewerage systems. In addition to projects financed from regular Federal appropriations, four emergency or special construction programs were either in operation or introduced within the 11-year period covered. The first and largest of these was the Public Works Administration program, which began in July 1933 and was practically completed by December 1941. The next largest program, financed from Work Projects Administration funds, but operated by * 4 Data presented here somewhat understate the final value of contract awards, since it was impractical to ascertain every revision made in initial

construction estimates, and projects classified as secret by the military (including atomic bomb production facilities) are excluded.



other Federal agencies, included projects other than work relief and was in effect during the period July 1935 to December 1941. The other two programs were the low-rent housing projects under the United States Housing Authority, and the construction of schools, water systems, sewer systems, and various other types of facilities needed in crowded war areas under the War Pubic Works program begun in late 1941.

Trend, 1935-45Although there has always been some construc

tion financed by regular Federal appropriations, the PWA program in 1933 was the forerunner of large- scale Federal public works programs. From 1935

to 1939 well over three-fifths of Federal construction award values were for PWA and W PA projects. After extension of PWA from funds made available by the Emergency Relief Appropriation Act of 1935 and the inception of the W PA program financed from the same act, the contracts awarded or force- account work started in 1935 amounted to somewhat over billion dollars 87 percent of the total for the year. Continuance of the PWA and W PA programs in 1936 raised the value of Federal awards slightly from 1,478 million to 1,543 million dollars. Smaller PWA appropriations and a reduction in amounts transferred from W PA funds to Federal construction wprk in 1937 resulted in a drop in total Federal awards of nearly half a billion

T able 5. Value of contracts awarded and force-account work started on construction financed wholly or partially from Federal funds,by type of project, 1985-451

Value (in thousands of dollars)Type of project

Total1935-45 1945 1944 1943 1942 1941 1940 1939 1938 1937 1936 1935

All types of projects-------------------------------Airport construction2.____________________Building construction8 _______________

Residential________________________Nonresidential_____________________

Conservation and development.____________Reclamation_______________________River, harbor, and flood control._______

Electrification4--------------------------------------Highway, streets and roads_______________Water and sewerage_____________________All other types5_________ ________________

28,558,712 1,029,571 1,342,536 2,518,878 7,814,446 6,014,091 2,394,938 1,686,874 1,689,992 1,046,067 1,543,246 1,478,073

(?)442,782

77,833434,949438,725158,027280,698

5,497381,037136,24373,789

1,616,00217,975,0191,997,903

15,997,1162,246,1121,042,1991,203,913

787,4893,515,091

885,6371,533,362

41,219617,00153,133

563,86872,15030,76541,385

131,914100,96923,02043,298

110,872875,002101,491773,511112,41566,67945,73649,428

111,80531,04651,968

243,4431,698,079

375,4711,322,608

155,737101,27054,46724,391

161,85237,694

197,682

579,1766,130,389

549,4725,580,917

217,795150,70867,08771,487

347,988152,343315,268

499,4274,422,131

322,2484,099,883

199,68441,880

157,80486,680

446,90323,672

335,594

137,1121,537,910

244,6711,293,239

197,58969,028

128,56196,039

364,04816,80945,431

4,753669,222231,071438,151225,423115,612109,811130,045355,701118,131183,599

(6)676,542 731,809 644,733 303,874 175,382 128,492 104,981 372,238 116,314 116,043

(6)344,567717,239327,328133,01059,05173,95962,342

360,86575,55869,725

()561,394763,465497,929189,71073,797

115,91324,685

511,685154,807100,965

1 Data somewhat understate the final value of contract awards, since it was impractical to ascertain every revision made in initial construction estimates, and projects classified as secret by the military (including atomic bomb production facilities) are excluded. Figures for 1935 through 1942 include off-continent construction.2 Excludes hangars and other buildings, which are included under building construction.8 Includes additions, alterations, and repairs.

dollars. The 1937 figure of 1,046 million dollars was the lowest for any year, except 1945, during the 11-year period. Passage of the Public Works Administration Act of 1938 and the inception of the USHA program, however, caused total awards to mount again in 1938 and remain steady in 1939.

The next few years witnessed the introduction of the defense program, in June 1940 and the war program, after the attack on Pearl Harbor. PWA and W PA were decreasing in importance, but the defense program, including the first cantonment camp project, pushed 1940 Federal construction awards to $2,395,000,000, well over two-fifths above the 1939 figure. With increased demands for military camps and posts, and expanded construction

4 Covers primarily loans granted by the Rural Electrification Administration. Includes hydroelectric power plants.5 Covers forestry, railroad construction, and other types of heavy engineering projects, and various military installations, n.e.c.6 Included in AH other types .7 Includes nonresidential construction at the site of 3 Resettlement Administration projects for which a breakdown of residential and nonresidential costs is not available.

of such production facilities as shipyards and aircraft and other munitions plants, the total for 1941 rose abruptly to $6,014,000,000, over times that for the previous year. The peak was reached in 1942 when contract awards for the war construction program amounted to more than $7,814,000,000, or 27 percent of the total for the entire period 1935-45.

A sudden drop occurred the following year, however, to a figure near the 1940 level because many of the most important war construction projects were already under way. Thus, in the 4-year period 1940-43, nearly 19 billion dollars worth of contracts were awarded for defense and war purposes, amounting to 66 percent of the 11-year total and over 2}/2 times the total for the 5 years 1935-39.



Further reductions occurred in 1944 as the bulk of the war construction projects were completed; and in 1945 the total dropped to $1,030,000,000, the lowest volume reported in any year in the period under discussion.

Types of projects included in the program

Of all the types of projects undertaken, nonresidential building construction was by far the most important. The money for nonresidential building (16 billion dollars), from 1935 to 1945, was allocated for schools, hospitals, post offices, public buildings of all types, and, tin connection with the war program, cantonment camps and barracks* hangars, magazines and storehouses, and the many different types of industrial plants and factories required to produce the supplies and equipment needed by a Nation at war. Next in importance in amount of contract awards was street, road, and highway construction with about 3 % billion dollars. Over four-fifths of this amount was administered under the Public Roads Administration.

Slum-clearance and low-rent housing projects accounted for nearly 2 billion dollars in awards and

were built largely under jurisdiction of three agencies: The Housing Division of PWA, theUnited States Housing Authority, and the Federal Public Housing Authority, the latter having major responsibility for the large war housing program. Airport construction (withawardsof $1,616,000,000), river, harbor, and flood-control projects ($1,204,- 000,000), and reclamation projects ($1,042,000,000) were the only other types to reach the billion-dollar mark.

The reclamation work that was carried on under Federal contract included large dams in the West and the TVA in the South. Enlargement and improvement of the Panama Canal, accounting for more than 275 million dollars appropriated in 1941, and construction of the Midtown Hudson Tunnel of New York City were among the largest heavyengineering projects accomplished in the 11-year, period. Miscellaneous projects swelled the total, especially in 1941 and 1942 when a great number of multiple-use military installations were begun. Sometimes as many as five or six different types of facilities were provided in one projectbarracks, roads, sanitation, communication, and training facilities, hospitals, and administration buildings.

Building Construction

Building construction comprises the largest and most violently fluctuating part of total construction activity and strongly influences the behavior of the remainder. A great deal of nonbuilding construction, such as streets and highways, pipe lines, sewer systems, telephone equipment, which follows immediately after or is performed simultaneously with building construction, constitutes the other part of what is practically a joint demand. When building construction rises and falls, therefore, nonbuilding moves in the same direction, although frequently not to the same extreme degree.

During the 30-year period 1915-45, expenditures for building construction in almost every year amounted to at least half the dollar volume of all construction put in place, and in a number of years the proportion was well over three-fifths (table 1). In prosperous years especially, building construction forms the major part of the total.

Trends in City Building257 cities, 1921-45

To relate current activity to past performances in city building construction, the Bureau of Labor Statistics prepares series showing the annual volume pf building construction since 1921 in 257 large cities5 (tables 6, 7, and 9). From 1929 on, building- construction trends are reflected more accurately through indexes (see table 12), which are based on data from a larger and more representative sample of incorporated places.

Both sets of figures reveal an almost continuous upward trend in permit valuation6 of building con-5 Cities with population of 25,000 or more, of which there were 412 in 1940. The 257 cities are marked with an asterisk in the appendix Building Construction Reported to the Bureau of Labor Statistics, by City and by Class of Construction, 1943, 1944, and 1945 (p. 57).6 Permit valuation figures are estimates based on reports of construction cost as recorded on building permits, and on notifications of Federal building construction contracts awarded.


BUILDING CONSTRUCTION 13T a b l e 6 . Estimated valuation, and indexes, of building construction for which permits were issued in 257 cities, by class of

construction, 1921-451[Indexes: 5-year average 1935-39=100]

YearAll building construction New residential buildings New nonresidential buildings Additions, alterations, and repairs

Valuation Indexnumber ValuationIndex

number ValuationIndex

number ValuationIndex

number

1921__________________________ $1,837,841,665 166.0 $933,868,739 187.9 $631,167,199 167.8 $272,805,727 116.52,767,782,634 250.0 1,614,891,486 324.9 869,512,807 231.2 283,378,341 121.0

|QM 3,398,884,406 307.0 1,998,393,400 402.1 1,065,624,238 283.4 334,866,768 143.01924.___________________ ;_____ 3,508,266,587 316.9 2,038,427,392 410.2 1,125,290,699 299.2 344,548,496 147.2

4,028,066,479 363.8 2,390,390,182 481.0 1,300,494,326 345.8 337,181,971 144.0

1926._________________________ 3,826,927,204 345.7 2,222,874,645 447.3 1,262,738,028 335.8 341,314,531 145.81927__________________________ 3,478,604,263 314.2 1,906,003,260 383.5 1,231,785,870 327.6 340,815,133 145.61928. ________________________ 3,304,699,712 298.5 1,859,423,751 374.1 1,135,569,986 302.0 309,705,975 132.31929._________________________ 2,933,212,041 264.9 1,433,715,542 288.5 1,147,796,781 305.2 351,699,718 150.2193a_________________________ 1,697,724,944 153.3 601,269,847 121.0 849,386,873 225.9 247,068,224 105.5

1931__________________________ 1,237,457,788 111.8 426,270,111 85.8 622,830,444 165.6 188,357,233 80.51932............................................... 481,219,448 43.5 103,445,244 20.8 275,509,435 73.3 102,264,769 43.71933__________________________ 383,363,271 34.6 92,175,207 18.5 183,241,951 48.7 107,946,113 46.11934._________________________ 413,335,750 37.3 78,322,545 15.8 197,407,829 52.5 137,605,376 58.81935__________________________ 690,980,829 62.4 213,547,937 43.0 288,503,017 76.7 188,929,875 80.7

1936._________________________ 1,074,041,134 97.0 460,957,356 92.7 376,062,438 100.0 237,021,340 101.21,187,141,752 107.2 475,966,515 95.8 434,602,894 115.6 276,572,343 118.1

1938ZZZZZZZZZZZZZZ 1,185,561,486 107.1 580,028,372 116.7 382,633,246 101.8 222,899,868 95.21939._______________________ __ 1,398,020,069 126.3 754,471,224 151.8 398,430,016 106.0 245,118,829 104.7194a___________________ 1,760,881,878 159.0 797,284,564 160.4 720,323,251 191.6 243,274,063 103.91941_________________________ 2,043,689,769 184.6 869,659,543 175.0 906,299,499 241.0 267,730,777 114.41942____________________ _____ 1,651,899,995 149.2 478,756,747 96.3 986,022,154 262.2 187,121,094 79.91943__________________________ 796,629,716 72.0 327,986,684 66.0 301,560,271 80.2 167,082,761 71.41944._________________________ 720,343,577 65.1 207,038,816 41.7 291,385,390 77.5 221,919,371 94.81945__________________________ 1,172,364,909 105.9 350,175,495 70.5 505,226,097 134.4 316,963,317 135.4

1 Includes value of building construction in the 257 cities for which Federal construction contracts were awarded.

T able 7. Estimated number of new fam ily dwelling units for which permits were issued1 in relation to population, in 257 cities,and index of residential rents, 1910-45

[Indexes: 5-year average 1935-39 = 100]

YearPopulation2

(inthousands)

New family dwelling units

New family dwelling units per 10,000

population Index of residential rents4

YearPopulation2

(inthousands)

New family dwelling units

New family dwelling units per 10,000

population Index of residential rents4

Number8 Index Number Index Number8 Index Number Index

1910________ 28,629 238,000 184.0 83.1 298.3 (5) 1928________ 43,242 388,678 300.4 89.9 322.7 144.81911________ 29,424 241,000 186.3 81.9 294.0 (5) 1929________ 44,075 244,394 188.9 55.4 198.8 141.41015 30,218 245,000 189.4 81.1 291.1 (5) 1930... 44,908 125,315 96.9 27.9 100.1 137.51013 31,013 228,000 176.2 73.5 263.8 92.2 1931__ 45,108 98,158 75.9 21.8 78.2 130.31914________ 31,808 223,000 172.4 70.1 251.6 92.2 1932________ 45,308 27,380 21.2 6.0 21.5 116.91013 32,603 237,000 183.2 72.7 260.9 92.9 1933 45,507 25,885 20.0 5.7 20.4 100.71916________ 33,397 241,000 186.3 72.2 259.2 94.0 1934________ 45,709 20,952 16.2 4.6 16.5 94.41917________ 34,192 116,000 89.7 33.9 121.7 93.2 1935________ 45,906 55,490 42.9 12.1 43.4 94.21918________ 34,987 61,000 47.2 17.4 62.5 94.9 1936________ 46,106 113,646 87.8 24.6 88.3 96.41919________ 35,782 166,000 128.3 46.4 166.5 102.7 1937________ 46,306 117,307 90.7 25.3 90.8 100.91920________ 36,576 110,000 85.0 30.1 108.0 120.7 1938________ 46,505 157,008 121.4 33.8 121.3 104.11921________ 37,409 224,545 173.6 60.0 215.4 138.6 1939________ 46,705 203,392 157.2 43.5 156.1 104.3

1922________ 38,243 377,305 291.6 98.7 354.3 142.7 1940________ 46,905 220,928 170.8 47.1 169.1 104.61923________ 39,076 453,673 350.7 116.1 416.7 146.4 1941________ 46,905 232,345 179.6 49.5 177.7 106.21Q5d 39,909 442,096 341.7 110.8 397.7 151.6 1942________ 46,905 142,628 110.2 30.4 109.1 108.51925________ 40,742 491,032 379.6 120.5 432.5 152.2 1943________ 46,905 115,122 89.0 24.5 88.1 108.01926________ 41,575 462,208 357.3 111.2 399.1 150.7 1944________ 46,905 63,711 49.2 13.6 48.7 108.21927________ 42,409 406,095 313.9 95.8 343.9 148.3 1945________ 46,905 78,173 60.4 16.7 59.9 108.3

t Includes number of units for which Federal construction contracts were awarded.2 Population figures are actual enumerations for the 257 cities in the census years 1910,1920,1930, and 1940; estimates for other years prior to 1940 are straight-line interpolations of Census figures while those subsequent to 1940 are based on the 1940 Census, since no further information is available.* Estimates for the period prior to 1921 are based on building-permit data

746862 48 2

made available by the building-permit survey which the Bureau of Labor Statistics conducted in cooperation with the Work Projects Administration. Data were available for 118 cities for 1910 and for a progressively greater number of cities each successive year, reaching a total of 229 cities in 1926. Since that time, all 257 cities have reported directly to the Bureau.4 Bureau of Labor Statistics index of rents for wage earners and lower- salaried workers in large cities. 5 Data not available.


14 CONSTRUCTION IN WAR YEARS 1942-45T a b l e 8 . Five cities leading in permit valuation1 for building construction, 1921-45

Year and city

1921: New York.____________Chicago.______________Cleveland...... .................Los Angeles....................Detroit_______________

1922: New York.____________Chicago.______________Los Angeles___________Philadelphia.... ...............Detroit............ ...............

1923: New York.____________Chicago.______________Los Angeles....................Detroit...........................Philadelphia......... ..........

1924: New York.____________Chicago.______________Detroit_______________Los Angeles ...............Philadelphia....................

1925: New York____________Chicago.............. ............Detroit...... ....................Philadelphia....................Los Angeles....................

1926: New York_____________Chicago.______________Detroit_______________Philadelphia.__________Los Angeles....................

1927: New York.____________Chicago.______________Detroit-----------------------Los Angeles ...............Philadelphia. ..............

1928: New York.____________Chicago.______________Detroit________ ______Philadelphia....................Los Angeles....................

1929: New York.____________Chicago.______________

Permitvaluation$442,285,248133,027,91086,680,02382,761,38658,086,053

1929:

1930:645,176,481229,853,125121,206,787114,190,52593,614,593 1931:

789,265,335334.164.404 200,133,181 129,719,831128.227.405 1932:

836,043,604308,911,159160,547,723150,147,516141,402,655 1933:

1,020,604,713373,803,571180,132,528171,034,280152,646,436 1934:

1,039,670,572376,808,480183,721,443140,093,075123,006,215 1935:

880,333,455365,065,042145,555,647123,027,139117,590,650 1936:

916,671,855323,509,048129,260,285112,225,865101,678,768

1937:

942,297,219210,797,640

Year and city

Philadelphia._______Detroit____________Los Angeles------------

New York._________Chicago.___________Los Angeles...._____Philadelphia_______Washington------------

New York._________Chicago.___________Washington________Los Angeles------------Philadelphia_____.....

New York._________Washington------------Philadelphia_______Los Angeles------------San Francisco---------

New York._________San Francisco---------Los Angeles------------St. Louis.__________Philadelphia._______

New York._________Washington________Chicago.___________Los Angeles..............Boston.____________

New York._________Washington________Los Angeles________Detroit____________Chicago.___________

Permitvaluation Year and city

$104,405,545100,567,49793,020,160

410,165,78985,749,16775,356,71553,141,77048,823,891

362,864,07666,693,55652,588,15141,421,68535,265,216

1938: New York._______Los Angeles______Detroit__________Washington----------Chicago.----- ---------

1939: New York._______Los Angeles----------Washington----------Detroit----------------Chicago._________

1940: New York._______Los Angeles______Detroit__________

78,851,58859,927,30217,862,66117,785,62716,465,09286,554,56758,198,28215,534,38413,067,66612,099,056

100,908,48720,928,63117,032,68114,981,77710,374,194

167,027,93247,101,40833,465,81122,218,02718,812,060

Philadelphia.____Chicago.________

1941: New York._______Los Angeles_______Detroit----------------Washington----------Chicago._________ _

1942: Chicago._________Los Angeles______New York._______Washington______Philadelphia.______

1943: Chicago._________Detroit__________Los Angeles----------San Francisco.........New Orleans...........

New York.________________Los Angeles-----------------------Washington_______________Detroit..................................Chicago.................................

224,066,92464.104.82551.112.826 43,052,100 35,911,134

1944: Los Angeles______New York._______Chicago.________Detroit--------------Oakland................

New York.__Los Angeles...Detroit........Washington...Philadelphia..

314,604,08664,614,08956,543,06043,294,63237,284,118

1945: Los Angeles_____Detroit________Chicago________Houston_______New York______

Permitvaluation$341,360,748

70,968,52653,471,18051,577,52229,441,756

247,084,62774,090,81871,436,88662,773,16354,601,244

249,895,95791,171,43088,904,01875,862,76366,785,392

214,442,061121,958,491108,488,95274,997,35865.714.457

98,289,67292,301,67685,363,63880,697,32472.522.457

69,775,15846,977,76439,590,67928,432,17327,663,522

66,295,18141,401,75735,751,17934,160,60824,689,185

91,569,73967,974,84463,080,28545,335,87135,090,013

Includes value of Federal construction contracts awarded.New York ity data are not exactly comparable throughout the years. From 1921 through 1944 figures presented here are based on applications filed rather than on permits issued. For the years 1942 through 1944 large projects which were definitely determined to represent postwar plans have

struction, commencing immediately after the depression low in 1933 and lasting through 1941. This was followed by a sharp decline in 1942, further decreases in 1943 and 1944, and the first signs of recovery in 1945.

Permit valuations in the 257 cities in 1944 were less than half as great as in 1942, the first war year, but were almost double the figure for 1933 when building slumped to the lowest point recorded in the 23^2 decades for which data are shown. Valuations were highest in the 1920,s, especially 1925 and 1926. Only in 1941 when national-defense building was in its stride has any year since 1929 even approached the level of building construction between 1922 and 1929. Except for 1935, the 1944 figure was the lowest in a decade; however, in 1945 valuations rose again by 63 percent.

been omitted. Figures for 1945 are based on inspection records and represent work actually started.Data for Boston are based on permit applications filed rather than building permits issued.

Usually residential building7 exceeds nonresidential, and in prosperous years it accounts for the 'major part of building activity. In the depression years 1930-35, on the other hand, and in the defense and war years 1941 and 1942, the reverse was true. In fact, new residential building valuations fell so low in 1933 and 1934 that they were considerably below those reported for additions, alterations, and repairs. In 1942 permit valuations in the 257 cities for nonresidential building were more than twice the residential, mainly because of extensive construction of military and war industry facilities and rigid curtailment under Government order of nonessential building.7 Building permit data on residential construction include hotels, lodging houses, and such miscellaneous living quarters as dormitories and clubs, in addition to the housekeeping accommodations which are referred to as new family dwelling units in other parts of this section.


BUILDING CONSTRUCTION 15

ESTIMATED PERMIT VALUATION OF BUILDING CONSTRUCTION IN 257 CITIES

BILLIONS OP OOLLARS

UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS

INCLUDES VALUE OF BUIL0IN6 CONSTRUCTION IN THE 257 CITIES FOR WHICH FEDERAL CONSTRUCTION CONTRACTS WERE AWARDED

All three classes of building construction shared in the sharp decrease in activity from 1942 to 1943; additions, alterations, and repairs had the smallest decline and nonresidential building the greatest, so that again in 1943 the volume of residential building was larger than that of nonresidential. In 1944, when construction of war housing was nearly completed, residential permit valuations once more dropped below nonresidential and retained that relative position in 1945.

Five leading cities. New York City8 led all other cities for 21 years (1921-41) with respect to the dollar volume of permits issued for building construction. In 1942, however, New York dropped to third place, and in 1943 it did not even appear among the five leading cities. Chicago moved into the lead in 1942 and remained there in 1943; Los Angeles ranked first in 1944 and 1945.

New Orleans, Oakland, and Houston, in 1943, 1944, and 1945, respectively, were among the leading five for the first time within the 2J^ decades *

* Data for New York City are not exactly comparable throughout the years. From 1921 through 1944 figures presented here are based on applications filed rather than on permits issued. For the years 1942 through 1944 large projects which were definitely determined to represent postwar plans have been omitted. Figures for 1945 are based on inspection records and represent work actually started.

under survey. Construction of enormous aircraft and shipbuilding facilities accounted for the greatest portion of increased activity in New Orleans and Oakland. Houston came to the fore in 1945 mainly because a huge Navy hospital building program got under way in the first part of the year and a spurt in private commercial building took place as soon as construction controls were lifted in the latter part of the year.

New dwelling units. Estimates of the number of new dwelling units for which permits were issued in the 257 cities, each year from 1910 to 1945, are presented in table 7. This series provides a reliable measure of year-to-year fluctuations in urban residential construction during the decade which included World War I. Since that time, however, the urban population of the country has been growing at an increasingly greater rate than in the 257 cities. Other biases inherent in fixed samples have also affected this series. Eor the period commencing with 1920, when these biases become noticeable, more reliable estimates of fluctuations in residential construction will be found in tables 13 and 14, which show the number of new dwelling units started in all urban and rural nonfarm areas.

Permits were issued for more new dwelling units



in the 257 cities in 1941 than in any other year after 1929. Although the total of the 232,000 homes shown in table 9 for 1941 was over 11 times that for the low year 1934, it was only about half the volume for each year 1923 through 1926. By 1944 the number had dropped to only a little over a fourth of the 1941 figure, but was still 3 times the 1934 volume. There was a reversal of the down-trend in 1945, particularly in the last quarter of the year when wartime restrictions on all construction were lifted. The total in 1945 was 23 percent higher than in the preceding year.

Though the Bureau of Labor Statistics index of residential rents moves within a narrower range than the index of new dwelling units for which permits were issued, it follows approximately the same cyclical phases, except in wartime. For example, in 1942 the rent index reached a 10-year high and remained at almost that level through 1945, whereas the index of new dwelling units decreased sharply in each year from 1942 through 1944. Increased demand, coupled with curtailment of all but the most essential building, tended to push up rents. Undoubtedly, without rent control initiated with the Emergency Price Control Act of

T able 9. Estimated number of new fam ily dwelling units for which permits were issued in 257 cities, by type of structure, jm i -t f1

Year

Number of new family dwelling units in

Percent of new family dwelling units in

Alltypes of

structures1-family

structures2-family2structures

Multifamily8

structures1-family

structures2-family2structures

Multi-family*

structures1921________ 224,545 130,873 38,858 54,814 58.3 17.3 24.41922________ 377,305 179,364 80,252 117,689 47.5 21.3 31.21923________ 453,673 207,632 96,444 149,597 45.8 21.2 33.01924________ 442,096 209,578 94,717 137,801 47.4 21.4 31.21925________ 491,032 225,222 86,133 179,677 45.9 17.5 36.61926________ 462,208 188,074 64,131 210,003 40.7 13.9 45.41927________ 406,095 155,512 54,320 196,263 38.3 13.4 48.31928________ 388,678 136,907 43,098 208,673 35.

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