NRCI = 65.8 RALEIGH, N.C. — FMI announces the release of the 2014 Second Quarter Nonresidential Construction Index report. The NRCI shows slight improvement of a 0.9 point increase from Q1 and a 5.7 point increase from Q2 2013. Although growth continues, it is beginning to slow indicating that the economy still holds a lingering recession mentality. The largest repercussion of this mindset is that it keeps companies from investing, banks from lending and consumers from spending. Thus, the pressure to keep prices low continues along with the need for greater profitability, leading to two key challenges: How to improve … Read more
Construction Unemployment Rate Declines, Reports AGC
The unemployment rate in construction dropped to the lowest April level in seven years as contractors added 32,000 workers to payrolls in April, bringing industry employment to 6.0 million, the highest level since June 2009, according to an analysis of new government data by the Associated General Contractors of America. Association officials warned that it is essential to revive and expand training opportunities before the industry runs short of workers. “It is heartening that all categories of construction employers added workers, not only in April but over the past 12 months,” said Ken Simonson, the association’s chief economist. “Moreover, contractors … Read more
Construction Spending Edges Higher, Public Outlays Drop
Total construction spending remained in a holding pattern in March as strong gains in apartment construction and modest growth in homebuilding and private nonresidential activity offset falling public outlays, according to an analysis of new Census Bureau data by the Associated General Contractors of America. Association officials noted that the construction spending figures may get dramatically worse unless public officials act urgently to maintain federal highway funding. “Overall construction spending has increased from a year ago but has stayed in a narrow range since December,” said Ken Simonson, the association’s chief economist. “It is encouraging that spending remained level despite … Read more
AGC Reports on March Year-Over-Year Construction Employment
Construction employment expanded in 197 metro areas, declined in 87 and was stagnant in 55 between March 2013 and March 2014, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials noted, however, that construction employment stands to suffer if Congress allows federal highway funding to stop this summer. “Much of the country experienced relatively robust growth in construction employment during the past year,” said Ken Simonson, the association’s chief economist. “But the fact construction employment remains below prior peak levels in most areas shows just how hard hit the … Read more
AIA Unveils New Leading Indicator in Construction Research White Paper
WASHINGTON, D.C. — By measuring the movement of design contracts in the monthly Architecture Billings Index, the American Institute of Architects is now able to trace the path of resources into the design and construction industry from the earliest conceptualization until it results in finished projects. This new indicator is being spotlighted in an AIA economic research white paper, Designing the Construction Future. “We have been tracking new project inquiries — bids, general solicitations, interview invitations — which tend to be rather subjective, so we began looking for a more precise way of estimating future levels of billings activity at … Read more