High Level of Construction Activity in Urban Areas Drives Increase in Costs

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Turner Construction Company announced that the Fourth Quarter 2014 Turner Building Cost Index — which measures costs in the nonresidential building construction market in the United States — has increased to a value of 917. This reflects a 0.99 percent increase from the third quarter 2014 and a 4.45 percent increase from the fourth quarter 2013. “Growth in nonresidential construction was steady in the fourth quarter in virtually all domestic markets,” said Attilio Rivetti, the Turner vice president responsible for the cost index. He continued, “Higher construction cost escalations in urban centers with increased construction activity, as well as selective … Read more

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Dodge Momentum Index Falls in January

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NEW YORK, N.Y. — The Dodge Momentum Index fell 4.8 percent in January to 121.1 (2000=100), down from a revised 127.2 in December, according to Dodge Data & Analytics. 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. During the final three months of 2014, the Momentum Index had jumped 11.7 percent, so while January’s 4.8 percent drop showed decreased activity relative to December, it was still in line with the moderate, if at times … Read more

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Construction Employment at Highest Level Since 2009, Reports AGC

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Construction employers added 39,000 jobs in January and 308,000 over the past year, reaching the highest employment total since February 2009, as the sector’s unemployment rate fell to 9.8 percent, according to an analysis by the Associated General Contractors of America. Association officials said the job gains come as most construction firms report plans to expand headcount this year, but worry about growing shortages of qualified workers. “Contractors have stayed busy this winter and expect to keep hiring through 2015—if they can find the workers they need,” said Ken Simonson, the association’s chief economist. “The list of projects is growing … Read more

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Architecture Billings Index Softens in January

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WASHINGTON, D.C. — Following a nine-month stretch of positive billings, the Architecture Billings Index showed no increase in design activity in January. 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 January ABI score was 49.9, down from a mark of 52.7 in December. This score reflects a very modest decrease in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 58.7, down from the reading of 59.1 the previous month. “This … Read more

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Construction Employment Increases in 257 out of 339 Metro Areas December 2013, 2014

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Construction employment expanded in 257 metro areas, declined in 43 and was stagnant in 39 between December 2013 and December 2014, according to a new analysis of federal employment data released by the Associated General Contractors of America. Association officials said the construction industry should continue to expand in 2015, noting that 80 percent of contractors report plans to add new employees this year. “While weather patterns certainly had an impact on construction employment during the past year, there is little doubt that the construction sector is in recovery mode in most parts of the country,” said Ken Simonson, chief … Read more

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