Incremental Increase in Nonresidential Construction Spending Forecast for 2013

Washington, D.C. — Growing at a faster rate than the overall U.S. economy, the nonresidential construction industry is expected to see solid, yet measured, increases in activity this year.   High demand for hotels and retail projects have the commercial sector pacing what projects to be a rise in spending this year for nonresidential construction projects of 5.0% — up from a projection of a 4.4% increase in the July 2012 forecast.   The American Institute of Architects semi-annual Consensus Construction Forecast, a survey of the nation's leading construction forecasters, also projects a 7.2% increase of spending in 2014. “After … Read more

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AGC Construction Employment December Update

Construction employment increased in 139 out of 337 metropolitan areas between December 2011 and December 2012, declined in 131 and was stagnant in 65, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials noted that growing private sector demand for new construction projects boosted employment in a slight plurality of metro areas. “Private sector demand for energy, health care, higher education and residential construction is having a positive impact in a growing number of metro areas,” said Ken Simonson, the association's chief economist. “Unfortunately, construction employment in almost as … Read more

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Fifth Consecutive Month of Gains in Architecture Billings Index

WASHINGTON, D.C. — Business conditions at architecture firms continue to improve. As a leading economic indicator of construction activity, the Architecture Billings Index reflects the approximate nine- to twelve- month lag time between architecture billings and construction spending. The American Institute of Architects reported the December ABI score was 52.0, down from the mark of 53.2 in November.   This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 59.4, down slightly from the 59.6 mark of the previous month. “While it’s not an across-the-board … Read more

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Construction Employment, Optimism Grows

Construction employment expanded in two-thirds of all states in December and in half the nation last year as the industry showed signs of emerging from a six-year slump, according to an analysis by the Associated General Contractors of America of Labor Department data. Association officials noted that contractors responding to a recent survey expect to add more workers in 2013. “These results show that contractors are finding work in more parts of the country than they have for many months,” said Ken Simonson, the association's chief economist. “Further gains appear likely but could be derailed if lawmakers do not keep … Read more

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Construction Material Prices Down Slightly Between November and December

Prices for construction materials inched down in December, closing out a year of relatively subdued changes in both materials costs and bid prices, according to an analysis of new federal figures released today by the Associated General Contractors of America. Association officials said the price decline was likely to be temporary, noting that the vast majority of contractors predict materials prices will rise in 2013. “Moderate price swings for several materials last year gave contractors some breathing room, but future price spikes could push many firms into the red,” said Ken Simonson, chief economist for the construction trade association. “Contractors … Read more

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