3 Mega Projects Propel ConstructConnect’s September Starts Higher by Nearly One-Third

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ConstructConnect recently announced that September’s volume of construction starts, excluding residential activity, was $42.8 billion. The month-to-month percentage change versus August was an outsized +31.5 percent (or plus nearly one-third). The big improvement in the latest period was thanks to go-aheads for three mega projects combining for a total of $17 billion. The three extraordinary projects were an Exxon Mobil petrochemical plant in Texas ($10 billion categorized as industrial); the new Delta Airlines Terminal at LaGuardia Airport in New York ($4 billion categorized as civil/engineering) and the Atlantic Sunrise natural gas pipeline in Pennsylvania ($3 billion, also in the civil/engineering … Read more

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Construction Spending Up in September, Down on YOY Basis

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WASHINGTON, D.C. – Nonresidential construction spending rose .5 percent in September, totaling $698.1 billion on a seasonally adjusted basis, according to an Associated Builders and Contractors analysis of data from the U.S. Census Bureau. However, nonresidential construction spending is down 2.9 percent on a year-over-year basis, with construction spending related to manufacturing down 20.3 percent since September 2016. August and July nonresidential spending totals were revised upwards by a collective $11 billion, however. “There is a lot of positive news about the U.S. economy right now,” said ABC Chief Economist Anirban Basu. “The nation has added nearly 1.8 million net … Read more

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Construction Spending Increases Between September 2016, 2017 as Growing Private-Sector Outpaces Public-Sector Declines

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Overall construction spending increased between September 2016 and September 2017 as growing private-sector residential demand continues to offset annual declines in public-sector investments in infrastructure and other projects, according to an analysis of new government data by the Associated General Contractors of America. Association officials urged members of Congress and the Trump administration to include new funding for roads, bridges, clean water and other important infrastructure as part of any new tax reform measure. “The ongoing economic expansion is a favorable sign for private residential and nonresidential construction,” said Ken Simonson, the association’s chief economist. “But lawmakers continue to underfund … Read more

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Congressional Tax Reform Proposal Aims to Lower Tax Rates for Construction Employers

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The CEO of the Associated General Contractors of America, Stephen E. Sandherr, released the following statement in reaction to the release today of a Congressional proposal to reform the federal tax code: “The tax proposal released today provides a much-needed framework that will provoke important debate about the best way to improve the tax environment for employers and workers. As Congress and the Trump administration work to further refine today’s proposal, we will continue our vigorous advocacy work to ensure the measure benefits construction employers of all types and sizes. In particular, we will work to ensure that pass-through businesses, … Read more

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Construction Employment Increases in 250 out of 358 Metro Areas between August 2016, 2017

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Construction employment increased in 250 out of 358 metro areas between September 2016 and September 2017, declined in 56 and stagnated in 52, according to a new analysis of federal employment data released by the Associated General Contractors of America. Association officials noted that continued strong demand for construction is placing new strains on an already tight construction labor market. “Construction firms in many parts of the country continue to expand to keep up with demand for their services,” said Ken Simonson, the association’s chief economist. “Yet construction growth would likely have been even more robust if contractors could find … Read more

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