Prices for construction materials jumped in February, driven by extreme increases in items used in new housing and nonresidential building renovations, according to an analysis of new federal figures released today by the Associated General Contractors of America. Association officials said the increased materials prices are hitting contractors struggling to recover from a years-long downturn in construction demand. “For the second month in a row, contractors endured outsized price hikes for gypsum wallboard, lumber, and insulation materials,” said Ken Simonson, chief economist for the construction trade association. “In addition, soaring diesel prices mean contractors are paying more for fuel they … Read more

RALEIGH, N.C. — FMI, provider of management consulting and investment banking to the engineering and construction industry, announced the release of The 2013 First Quarter Nonresidential Construction Index report. The NRCI of 58.1 is a 2.6-point improvement over the fourth quarter of 2012. The improvement reflects fundamental bright spots in the economy. “Optimistic but not bullish” is the way one panelist described his outlook on hiring for his company in 2013. Reflective of this is that 45 percent of NRCI panelists expect to increase full-time direct employees by as much as 5 percent, with most noting that hiring will be … Read more

Construction spending snapped a nine-month string of monthly gains with a sharp decline in January but still rose from year-ago levels, according to an analysis of new Census Bureau data by the Associated General Contractors of America. Association officials cautioned that “across-the-board” federal spending cuts known as sequestration, along with a possible shutdown of the federal government later this month, could hit construction harder than most sectors and dampen demand for needed projects. “At first glance, January was a bad month for construction, with a sharp drop in private nonresidential spending, along with small dips in residential and public construction,” … Read more

WASHINGTON, D.C. — As the prognosis for the design and construction industry continues to improve, the Architecture Billings Index is reflecting its strongest growth since November 2007.   As a leading economic indicator of construction activity, the ABI reflects the approximate nine- to twelve-month lag time between architecture billings and construction spending.   The American Institute of Architects reported the January ABI score was 54.2, up sharply from a mark of 51.2* in December.   This score reflects a strong increase in demand for design services (any score above 50 indicates an increase in billings).   The new projects inquiry … Read more