Architecture Billings Index Ends the First Quarter on Upswing

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WASHINGTON, D.C.  – The Architecture Billings Index reflects consecutive months of increasing demand for design activity at architecture firms. As a leading economic indicator of construction activity, the ABI reflects the approximate 9-12-month lead time between architecture billings and construction spending. The American Institute of Architects reported the March ABI score was 51.9, up from the mark of 50.3 in the previous month. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 58.1, down from a reading of 59.5 the previous month. “The first quarter was somewhat disappointing […]

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Turner’s First Quarter 2016 Building Cost Index Reflects Continued Growth in Construction Activity

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The First Quarter 2016 Turner Building Cost Index—which measures costs in the nonresidential building construction market in the United States—has increased to a value of 970, according to Turner Construction Company. This reflects a 1.15 percent increase from fourth quarter 2015 and a 4.64 percent yearly increase from first quarter 2015. “The shortage of skilled labor is outweighing the impact of declining material prices,” said Attilio Rivetti, Turner’s vice president responsible for preparing the cost index. “As the volume of work remains relatively high, we expect subcontractors to continue to be strategic in pursuits, ultimately resulting in upward cost pressures.” […]

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Construction Industry Faces Highest Tax Burden, According to U.S. Treasury

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WASHINGTON, D.C. – Construction shoulders a bigger tax burden than any other industry in the United States with an effective rate over 30 percent, according to a new report from the U.S. Department of the Treasury. Associated Builders and Contractors responded to the report by urging lawmakers to pass tax reform that would encourage economic growth by lowering rates for both corporate and pass-through businesses. “Tax Day is a painful reminder to construction companies that they carry a larger tax burden than any other industry,” said 2016 ABC National Chair David Chapin, president of Willmar Electric Service, Lincoln, Nebraska. “While […]

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Construction Firms Add 37,000 Jobs in March, 300,000+ in Past Year

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Construction employment rose sharply in March by 37,000 for the month and 301,000 for the year, while construction spending in February logged a solid year-over-year increase despite a dip compared with January, according to an analysis by the Associated General Contractors of America. Association officials said the new jobs and spending indicate that the industry is steadily expanding to meet growing demand. “These two reports confirm that demand for construction is robust and well-balanced among residential, private nonresidential and public segments,” said Ken Simonson, the association’s chief economist. “Compared with the same month a year ago, the industry is adding […]

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Dodge Momentum Index Falls in March

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NEW YORK, N.Y. –The Dodge Momentum Index fell 7 percent in March to 117.4 from its revised February reading of 126.4 (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 decline in March is the first setback for the index following three months of gains. Over the last 12 months the index has been particularly volatile, increasing in seven months and dropping in five, mirroring the saw tooth pattern of growth in the overall […]

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