A Closer Look at the Skilled Labor Shortage

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The whys, tactics and what comes next By Bud LaRosa The construction industry is enjoying an enormous economic recovery. Many urban centers are dotted with cranes. There are several private and public projects on the drawing board and, last year, Congress passed a $1.1-trillion budget with $1.6 billion going toward the General Services Administration’s construction account. This 300 percent increase includes a doubling of the Department of Veterans Affairs construction budget to $1.2 billion. With projections for growth in 2017 forecasting the recovery to continue, one of the greatest threats that could derail the recovery is the lack of skilled […]

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Construction Firms Add 19,000 Jobs in November, Drop in Infrastructure Spending Slows Growth

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Construction employers added 19,000 jobs in November, reaching the highest employment level since November 2008, but a drop in public sector investments in construction projects held down employment among heavy and civil engineering firms, according to an analysis by the Associated General Contractors of America. Association officials noted that recent construction spending numbers show a decline in most categories of infrastructure investment. “This report shows the construction industry has the capacity to handle additional infrastructure work even as private nonresidential projects, apartments and homebuilding continue to go up,” said Ken Simonson, the association’s chief economist. “The industry would be adding […]

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Construction Unemployment Rates Improve in 33 States Year-Over-Year, ABC Says

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Construction Unemployment Rates Improve in 33 States Year-Over-Year, ABC Says WASHINGTON, D.C. – October not seasonally adjusted construction unemployment rates were down in 33 states and the nation on a year-over-year basis, according to a recent release by Associated Builders and Contractors. The national NSA construction unemployment rate of 5.7 percent was down 0.5 percent from a year ago, according to data from the Bureau of Labor Statistics. This was the lowest national October construction unemployment rate since 2006, when it was 4.5 percent. BLS data also reported that the industry employed 175,000 more people than in October 2015. “October […]

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National Construction Spending Reaches Cyclical Highs in Q3 2016

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CHICAGO, Ill. – According to JLL’s latest report on United States construction activity, construction spending in 2016 has continued to hit cyclical highs, reaching $317 billion in the third quarter, a one percent growth increase year-over-year. While this may be the highest point this cycle, compared to past third quarter growth averages of 7-10 percent year-over-year, the small increase could indicate an impending slowdown. A robust construction pipeline combined with rising building and materials costs and a shrinking labor pool could explain the lackluster growth. Materials costs have reached a 2.2 percent growth rate year-over-year, a five-year high, largely due […]

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Dodge Momentum Index Inches Up in November

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NEW YORK, N.Y. – The Dodge Momentum Index moved 0.3 percent higher in November to 133.2 from its revised October reading of 132.7 (2000=100). The 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 overall index has now posted increases in 10 of the last 12 months, and stands 18 percent higher than its November 2015 reading. This suggests that construction activity should continue to strengthen in 2017. The uptick for the index in November was due to […]

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