Persistent Financing Crunch Continues to Plague Design, Construction Sector WASHINGTON, D.C. — The American Institute of Architects released a comprehensive report that concludes that the major obstacle holding back job creation in the United States is the persistent lack of construction financing, despite record low interest rates. “This report should lay to rest any doubt about what is a key source for holding back job creation in the United States," said Kermit Baker, chief economist of the AIA. “It is the lack of financing especially to the design and construction sector, which accounts for $1 in $9 of U.S. Gross … Read more
Construction Spending Increases Slightly in September
Construction spending increased by 0.2 percent between August and September but was down 1.3 percent compared to September 2010, the Associated General Contractors of America reported in an analysis of new Census Bureau data. Association officials noted that growing declines in public sector activity continue to offset modest increases in private sector demand for construction. “In less than a year's time, the public sector has gone from propping up the construction industry to holding,” said the association's chief economist, Ken Simonson. “Even as local and state budgets continue to contract, the federal government is winding the stimulus and base realignment … Read more
AGC of America: Water Trust Fund, 3% Tax Repeal will Help Add Construction Jobs
Construction employment declined in 153 out of 337 metropolitan areas between September 2010 and September 2011, increased in 145 and stayed level in 39, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials noted that declines in publicly funded construction projects continue to offset modest improvements in the private sector market. “Despite the fact the industry added 26,000 new jobs in September, industry employment continues to fall in far too many metro areas,” said Ken Simonson, the association's chief economist. “Construction demand in many parts of the country seems … Read more
Construction Materials Prices Flatten in September
The amount contractors pay for a range of key construction materials held steady in September but climbed 8.1 percent from the year-earlier level, according to an analysis of producer price index figures released by the Associated General Contractors of America. Meanwhile, the price contractors charge for new nonresidential building construction edged up only 2 to 3 percent over 12 months, depending on building type. “Feeble demand for construction is forcing contractors to absorb the bulk of materials price hikes, instead of passing them along to owners,” said Ken Simonson, the association's chief economist. “This pattern has persisted for more than … Read more
Construction Sector Adds 26,000 Jobs in September
Industry Unemployment Rate Drops to 13.3 Percent Construction employers added 26,000 jobs between August and September as the industry's unemployment rate dropped to 13.3 percent, according to an analysis of new federal employment data released by the Associated General Contractors of America. Association officials said the increase is the first significant change in construction-employment levels since February and reflects growing private sector demand for nonresidential construction projects. “These numbers give us a taste for how investing in construction activity can really boost overall employment figures,” said Stephen E. Sandherr, the association's chief executive officer. “However, the real question is whether … Read more