The Madison, Wis., metropolitan area saw a slight dip in construction starts in 2004 over the previous year despite the warming overall economy, but work bounced back in 2005.

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The 2004 downturn was partly attributable to the completion of some major projects that had started early in the decade, such as the $180 million West Campus cogeneration facility at the University of Wisconsin and the $100 million renovation of Camp Randall Stadium, also at UW.

But Madison is virtually recession proof because it is the state capital and the home of UW, a Big Ten university with a strong research culture. Data show the area experienced an 8.3 percent increase in starts in 2005, to $1.87 billion.

"You can drive around Dane County and count the number of tower cranes, let alone regular crawler cranes," said David Cullen, president of Janesville-based J.P. Cullen & Sons Inc., a general contractor. "You can visibly see all the construction, and that's just the large projects. It's a tremendously hot market now."

Indeed, Madison's metropolitan population is about a quarter of Milwaukee's but the capital city's construction activity is about 60 percent that of the most populous Wisconsin city.

Commercial Activity

Commercial construction is driving the increase in starts.

Mirroring other parts of the country, hospital construction in Madison is particularly strong in part because the sizable baby-boom population is taking its first steps into its gray years.

The Madison area's hospital segment more than doubled in construction starts in 2005 over 2004, to $189 million.

At least three major projects are under way, including the $175 million, 10-year expansion of St. Marys Hospital, the $75 million pediatrics addition to the UW hospital called American Family Children's Hospital and the 108,000-sq.-ft. expansion to Meriter Hospital for which a cost has not been released.

A related segment, life sciences research, is also strong in part because it is a stronghold at UW. University and school starts were up 80 percent to $166 million.

Work has started at UW on the $135 million Interdisciplinary Research Complex, an element of the HealthStar Initiative, a $210 million research development that the university and the state are jointly funding. Also on campus, construction is continuing for the $120 million Microbial Sciences Building, a project that is part of BioStar, another development package jointly funded by the university and state that is projected to cost $317 million.

Retail was strong, showing a 40 percent increase to $58 million.

Bob Barker, executive vice president of the Madison-based Associated General Contractors of Wisconsin, said the increase was partly attributable to new stores, parking and cinema at the Hilldale Mall on Midvale and University avenues in Madison.

Projects are also under way in west suburban Middleton and Janesville where a Super Wal-Mart just started.

"The [Interstate] 90 corridor has become a hot retail market," Cullen added. "They (retailers) draw from Rock County, east and west of there and from northern Illinois."
Infrastructure held steady in 2005, at $155 million, partly because several projects finished at Dane County Regional Airport.

The major exceptions in infrastructure were water supply systems, up 40 percent to $13 million, and sewerage and waste disposal systems, up 568 percent, to $52 million. Wastewater treatment plants are under construction or being expanded in outlying Sun Prairie ($21 million), Wisconsin Dells ($10 million), Cambridge ($8 million) and Cross Plains ($6 million).

Like other parts of the country, residential construction is waning slightly as the Federal Reserve raises interest rates to keep a rein on inflation. The region was down 5 percent in residential starts in 2005, but still strong with $904 million in work.

Hiring, Backlogs

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