PROVIDENCE, R.I. — Gilbane Building Company announced the Summer 2014 edition of its in-house economics report, Building for the Future – Construction Economics: Market Conditions in Construction. The report predicts rapid growth coupled with the lack of skilled, experienced labor and the ability to meet schedule will be some of the most important industry issues to address over the next few years. “The good, if not, great news is that the most favorable, forward-looking conditions support expectations for strong industry growth in 2015,” said Ed Zarenski, a Gilbane estimating executive with more than 40 years in the construction business. “Very … Read more
Construction Spending in July Reaches Highest Level Since 2008
All major categories of construction spending increased in July and total construction reached the highest level since December 2008, according to an analysis by the Associated General Contractors of America. Association officials welcomed the robust spending figures, but cautioned that growing demand will put new pressure on an already tight labor market. “It is encouraging to see signs of a broad-based recovery in private construction along with a recovery—at least for now—in public construction investment,” said Ken Simonson, the association’s chief economist. “Private nonresidential construction should remain strong through the rest of 2014 and beyond, while residential spending is likely … Read more
Construction Employment Increases Between July 2013, July 2014
Construction employment expanded in 223 metro areas, declined in 72 and was stagnant in 44 between July 2013 and July 2014, according to a new analysis of federal employment data released by the Associated General Contractors of America. As employment grows, 25 percent of firms report labor shortages are forcing them to turn down work according to a new survey conducted by SmartBrief, a curator of business news and custom content, in partnership with the association. “Many construction firms looking to expand their payrolls are finding a surprisingly tight labor market,” said Ken Simonson, the association’s chief economist. “These expanding … Read more
Equipment Leasing and Finance Industry Confidence Eases from Previous Two Months
WASHINGTON, D.C. — The Equipment Leasing & Finance Foundation recently released the August 2014 Monthly Confidence Index for the Equipment Finance Industry. Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $827-billion equipment finance sector. Overall, confidence in the equipment finance market is 58.9, easing from the previous two months" indexes of 61.4. When asked about the outlook for the future, MCI-EFI survey respondent Thomas Jaschik, president, BB&T Equipment Finance, said, “The next two months will be very interesting … Read more
Nonresidential Construction Index Dips in Q3
NRCI = 62.5 RALEIGH, N.C. — FMI, a provider of management consulting and investment banking* to the engineering and construction industry, released the 2014 Third Quarter Nonresidential Construction Index report. The NRCI shows a decrease of 3.3 points from Q2, but is still above the same time period in 2013. The cost of materials and labor continues to climb weighing negatively on the index. Other factors keeping the NRCI from rising are government entities continuing to reduce spending and avoid making final decisions on the highway bills, as well as private investors taking a passive role waiting for others to … Read more