Almost Half of 2019’s Mega Project Initiations were in the South
U.S. country-wide construction starts in 2019 had a greater than normal weighting of ‘mega’ projects. ‘Megas’ are projects valued at $1.0 billion or more each.
In 2018, there were 20 mega projects nationally adding to $47.2 billion. In 2019, there were 35 mega projects (+75% y/y), summing to $79.1 billion (+68% y/y).
In 2019, mega projects accounted for 15% of the total value of U.S. nonresidential starts.
In the three tables which follow, all 35 U.S. mega projects are set out according to the region of the country where their groundbreakings occurred.
The breakdown by number of projects had the South in the lead with 16, followed by the West with 8 and the Midwest with 7. The Northeast recorded only 4 such projects.
Interactive Visual
Northeast Plus Midwest Yielded One-fifth of Total ‘Megas’ Value
The value of mega project start-ups in the Northeast Region of the U.S. in 2019, at $6.0 billion, was 7.7% of the America-wide figure of $79.1 billion. By state, two of the NE’s four projects were in New York.
In the Midwest, the total value of the region’s seven mega project start-ups, at $10.2 billion, was 12.9% of the U.S. total. Michigan accounted for three of the seven and Illinois contributed two.
Among mega projects in the NE and MW, there was a big transportation component, with groundbreakings on rail, rapid transit and airport work. Also noteworthy were large car plant, sports arena and electric power plant projects.
The Northeast and Midwest in combination contributed one-fifth towards the total value of U.S. mega projects last year.
| northeast | Share of | ||||
| State | City/County | Type of Structure | Name/Description of Project | $ Billions | U.S. Total |
| New York | New York | Commercial | St. John’s Terminal Redevelopment | $2.000 | |
| Pennsylvania | Monongahela | Engineering/Civil | Lower Mon Project – Charleroi Dam Stilling Basin Extension | $1.685 | |
| New York | Elmont | Commercial | Belmont Park Redevelopment, Sports/Arena Complex | $1.300 | |
| Massachusetts | Boston | Engineering/Civil | South Coast Rail – Phase 1 | $1.047 | |
| Sum | $6.032 | 7.7% | |||
| midwest | Share of | ||||
| State | City/County | Type of Structure | Name/Description of Project | $ Billions | U.S. Total |
| Illinois | Chicago | Engineering/Civil | Red & Purple Line Modernization (RPM) Project Phase One | $2.100 | |
| Minnesota | Eden Prairie | Engineering/Civil | Green Line Light Rail Transit Extension (Southwest LRT) | $2.000 | |
| Michigan | Detroit | Industrial | Fiat Chrysler Assembly Plant | $1.600 | |
| Missouri | Kansas City | Commercial | Kansas City International Airport – New Single Terminal | $1.500 | |
| Michigan | East China | Engineering/Civil | Blue Water Energy Center / East China Township | $1.000 | |
| Michigan | Niles | Engineering/Civil | Indeck Niles Energy Center (natural gas-powered) | $1.000 | |
| Illinois | Chicago | Commercial | Union Station Commercial Development + 50-story tower | $1.000 | |
| Sum | $10.200 | 12.9% |
The South’s Mega Project Listing Dominated by Texas
The South was the nation’s standard bearer for mega projects in 2019. Its $47.5 billion worth of work was 60.0%, or three-fifths, of the country-wide total.
Half of the South’s 16 mega projects were launched in Texas. By value, Texas was 62% of the South’s total.
Two other states managed multiple entries in the South’s 2019 mega projects listing, Georgia with three and Alabama with two.
Texas mega projects were heavily concentrated in the energy sphere – refinery, ethane cracker, LNG and pipeline work. The state also ‘scored’ an Apple campus for Austin.
Georgia’s three mega projects were diverse ‒ a data center, a motor vehicle battery plant and a children’s healthcare project.
Alabama’s ‘megas’ were both in the auto sector ‒ the Toyota/Mazda joint venture and a battery plant for Mercedes-Benz.
Other mega projects in the South included an LNG facility in Louisiana, an Amazon air distribution center in Kentucky and railroad work in Florida.
| south | Share of | ||||
| State | City/County | Type of Structure | Name/Description of Project | $ Billions | U.S. Total |
| Texas | Sabine Pass | Industrial | Golden Pass LNG Export Terminal | $10.000 | |
| Texas | Corpus Christi | Industrial | ExxonMobil Ethane Cracker Plant | $10.000 | |
| Louisiana | Cameron | Industrial | Calcasieu Pass – LNG Project | $4.500 | |
| Florida | Orlando | Engineering/Civil | Virgin Trains (formerly Brightline Express) – Second Phase | $4.000 | |
| Georgia | Lithia Springs | Commercial | Switch Data Center Campus (Project Hoover) | $2.500 | |
| Texas | Houston | Engineering/Civil | Permico Energia LLC Permian Basin Natural Gas Liquids Pipeline | $2.000 | |
| Texas | Kyle | Engineering/Civil | Permian Highway Pipeline Project (natural gas) | $2.000 | |
| Georgia | Commerce | Industrial | SK Innovation Factory, Motor Vehicle Battery Plant | $1.670 | |
| Alabama | Madison | Industrial | Toyota Mazda Auto Plant / Southpoint Industrial Park / Huntsville | $1.600 | |
| Texas | Beaumont | Industrial | Ethane Export Facility – Martin Midstream Partners | $1.500 | |
| Texas | Beaumont | Industrial | ExxonMobil Expansion | $1.500 | |
| Kentucky | Hebron | Industrial | Amazon Prime Air Distribution Center – Cincinnati Airport | $1.500 | |
| Georgia | Brookhaven | Institutional | Children’s Healthcare of Atlanta Replacement Hospital Campus | $1.500 | |
| Texas | Texas City | Industrial | Marathon Galveston Bay Refinery | $1.200 | |
| Alabama | Woodstock | Industrial | Mercedes-Benz Battery Factory | $1.000 | |
| Texas | Austin | Commercial | Apple Campus / North Austin | $1.000 | |
| Sum | $47.470 | 60.0% |
Washington and Wyoming Led the West for Mega Projects in 2019
The West accounted for the final one-fifth (19.4%) of the U.S. total dollar volume of mega project starts last year.
Washington with three projects and Wyoming with two figured prominently in the West’s mega projects inventory. Washington was home to rapid transit work and a Microsoft headquarters expansion. Wyoming featured a wind power station and a crude oil pipeline.
Elsewhere in the West, Arizona could boast of a light rail extension; Nevada of a new casino project; and Colorado of an Amazon fulfilment center.
Notably missing from the catalogue of jurisdictions in the West with mega projects last year was the large-population and large-economy state of California.
| west | Share of | ||||
| State | City/County | Type of Structure | Name/Description of Project | $ Billions | U.S. Total |
| Washington | Seattle | Commercial | Lynnwood Link Extension – Sound Transit, Alterations | $3.200 | |
| Wyoming | Saratoga | Engineering/Civil | Energy Vision 2020 Wind Power Station Upgrades | $3.100 | |
| Washington | Lynnwood (north Seattle) | Engineering/Civil | Sound Transit Lynnwood Link Extension – Northgate to NE 200th | $2.770 | |
| Washington | Redmond | Commercial | Microsoft Campus Headquarters Expansion | $2.000 | |
| Arizona | Phoenix | Engineering/Civil | South Central Light Rail Extension | $1.300 | |
| Nevada | Las Vegas | Commercial | Circa Resort & Casino | $1.000 | |
| Colorado | Colorado Springs | Industrial | Amazon Fulfilment Center – Project Rodeo | $1.000 | |
| Wyoming | Hulett | Engineering/Civil | Equality Pipeline (crude oil) | $1.000 | |
| Sum | $15.370 | 19.4% | |||
2019 Not a Typical Year for Mega Project Start-ups in Canada
In Canada, where ‘mega’ project groundbreakings are traditionally a big part of the annual construction scene, they were mainly absent in 2019. There were only four such projects, although two of them were quite out-sized. The total value of the four projects was $16.7 billion.
The two biggest mega projects were both pipelines located in Western Canada: TransMountain (oil) for $7.4 billion and Coastal GasLink (natural gas) for $6.2 billion.
Furthermore, all four mega project initiations occurred in the second half of the year. 2019’s first half was silent on the mega project front.
In 2018, there had been eight mega project start-ups in Canada for a total value of $31.4 billion.
In 2018, Canada’s mega project total of $31.4 billion relative to the U.S. total of $47.2 billion was impressive. The favorable comparison is dialed back a little, however, when the currency exchange rate is considered. The $31.4 billion for north of the border was in lower-valued Canadian dollars.
Alex Carrick is Chief Economist for ConstructConnect. He has delivered presentations throughout North America on the U.S., Canadian and world construction outlooks. Mr. Carrick has been with the company since 1985. Links to his numerous articles are featured on Twitter @ConstructConnx, which has 50,000 followers.
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