Price spikes for several key construction materials in September threaten to push contractors out of business, according to an analysis of federal figures released by the Associated General Contractors of America. The recent surge comes despite mild year-over-year changes in materials prices overall. “The latest surge in materials costs may push subcontractors and some general contractors into insolvency, following years of razor-thin margins and shrunken levels of activity,” said Ken Simonson, chief economist for the construction trade association. “Most contractors have no ability to pass on unexpected cost increases.” The producer price index for inputs to construction—covering materials that go … Read more

Construction employers added 5,000 jobs in September while the industry’s unemployment rate hit 11.9 percent, according to an analysis of new federal data released by the Associated General Contractors of America. Association officials cautioned that construction employment has been relatively flat for more than a year as growing demand for residential and some commercial projects has been offset by declining public sector construction activity. “Despite the slight uptick in construction employment for the past month, the industry is a bit smaller than it was one year ago,” said Stephen E. Sandherr, the association’s chief executive officer. “It appears that for … Read more

Construction employers added 1,000 jobs in August while the industry’s unemployment rate fell to 11.3 percent, according to an analysis of new federal data released by the Associated General Contractors of America. The unemployment declines come as the construction industry continues to shrink, association officials noted, adding that over 214,000 workers have left the industry since August 2011. The construction employment gains for the past month and past year have largely come from the residential sector. The residential construction sector added 7,100 jobs between July and August and 23,900 jobs since August 2011. Residential building contractors actually lost 1,000 jobs … Read more