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However, the report notes that traditional post-construction builds, according to Dodge Construction Network.
efficiency upgrades—like insulation, lighting improvements, or The Dodge Momentum Index, which tracks non-residential
renewable energy adoption—offer diminishing returns. projects entering the planning stage and leads actual spending
Instead, the authors propose a strategic pivot toward by a full year, jumped 6.8 percent in June. Commercial planning

timber-based off-site construction (OSC), where pre-fabricated climbed 7.3 percent, while institutional planning increased 5.7
wood components are assembled on-site. percent, according to the report.
Timber offers superior insulation—seven times that of “Non-residential planning steadily improved in June,
concrete and 176 times that of steel—and stores carbon alongside strength in warehouse, recreational, and data centre
rather than emitting it. planning,” said Sarah Martin, associate director of forecasting
Research cited in the report suggests that replacing at Dodge Construction Network. “Planning momentum in
concrete frames with timber can reduce emissions by up to other key sectors, like education, hotels, and retail stores,
49 percent, with further savings possible through the use of was more subdued.”
wood-based interior walls. Slower activity in those sectors is likely tied to caution

In economic terms, wood-based OSC also shortens around the economic outlook, said Martin.
construction timelines and improves airtightness, enhancing Weaker consumer spending expectations and uncertainty
energy efficiency and overall housing quality. over project financing have caused developers to tap the
LH’s existing roadmap for modular housing, however, brakes on new entries in those categories, she added.
currently focuses on concrete and steel, which the report For example, a Pittsfield, Massachusetts-based construction
says runs counter to decarbonisation goals. company recently laid off nearly half of its workers due to
As a practical first step, LH is considering replacing pre-cast delays on two major construction contracts.

concrete apartment exteriors with timber-based OSC panels. Yale University, among other higher education institutions,
The study identifies ten government-led projects—including also paused 10 construction projects due to uncertainty
public housing renovations and redevelopment agreements—as around federal funding.
suitable candidates for such pilot programs. Warehouse activity gained meaningful traction in June,
The report also suggests prioritizing wooden structures in and data centre planning remained elevated, according to
facilities for seniors and families with young children due to the report.
their environmental and health benefits. On the institutional side, large recreational projects helped
“With one-third of global industrial emissions coming from drive gains, while healthcare-related planning also continued
the construction sector, South Korea cannot achieve its 2050 to accelerate, according to Dodge.

carbon neutrality target without a radical transformation in Despite some sector slowdowns, planning activity remains
building materials,” the report concludes. far above last year’s weak June levels. The overall index
“Timber-based architecture is emerging as a crucial solution jumped 20 percent year over year, with institutional planning
globally and domestically for reducing and storing carbon.” up 46 percent and commercial planning up 11 percent.
Even excluding all data centre projects from 2023 through
Recent US construction planning climbs again despite 2025, commercial planning would still be up 12 percent over
some sector slowdowns the past year, and the overall index would have increased 23

Signs of life are returning to planning desks across the country, percent, according to Dodge.
as momentum builds behind large-scale projects and complex