Market Forecast: Nonresidential Construction to Rebound in 2017

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CHICAGO, Ill. – A market study released by the Metal Construction Association reports that 2017 will be the year the nonresidential construction industry will return to the peak levels last seen in 2007. The residential market will take a bit longer to hit the mark, but the news is positive across the board for industry stakeholders. According to the study, conducted by FMI, the growth has been steady and moderate over the past five years and is slowly inching its way back to high levels seen a decade ago. Growth is predicted to reach 8 percent in 2016 reaching $1.14 … Read more

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Dodge Momentum Index Continues Ascent in August

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NEW YORK, N.Y. – The Dodge Momentum Index grew 1.3 percent in August to 134.9 (2000=100), from its revised July reading of 133.2. The momentum index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. The move higher in August was the result of a 1.7 percent increase from July for institutional planning, as well as a 1 percent gain for commercial planning. August is the fifth consecutive month that the momentum index has increased, marking the longest … Read more

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Construction Input Prices Dip in August

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WASHINGTON, D.C. – Both nonresidential construction input prices and overall input prices fell in August as energy prices retrenched, according to a recent analysis of the Bureau of Labor Statistics Producer Price Index released by Associated  Builders and Contractors. Nonresidential construction input prices were down 0.2 percent on a month-over-month basis and 1.7 percent on a year-over-year basis. “The fact that overall construction input prices have remained stable is more important in the current context than it might be normally,” said ABC Chief Economist Anirban Basu. “With industry labor costs now rising aggressively and the subcontracting community generally busy, falling … Read more

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Nonresidential Spending Inches Lower in July, June Data Upwardly Revised to Eight-Year Record

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WASHINGTON, D.C. – Nonresidential construction spending inched 0.3 percent lower in July largely due to a significant upward revision to June’s spending figure, according to analysis of U.S. Census Bureau data recently released by Associated Builders and Contractors. Nonresidential spending totaled $701.4 billion on a seasonally adjusted annualized basis in July, the second highest month since November of 2008, right behind June, which was revised upward from $682 billion to $703.5 billion. Public nonresidential spending continued to falter, declining 3.2 percent for the month and 6.5 percent for the year. “A number of factors have suppressed nonresidential construction spending over … Read more

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Construction Employment Declines Amidst Qualified Worker Shortages

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Construction employment slipped from July to August for the fourth time in five months, but year-over-year job gains and recently released spending data suggest the recent weakness is due to firms having a hard time finding workers rather than lack of demand, according to an analysis by the Associated General Contractors of America. Association officials said its recent survey that found two-thirds of contractors are having a hard time finding qualified craft workers underscores the need for measures to boost recruitment and training on new workers. “A variety of indicators suggest contractors would be adding to headcount if they could … Read more

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