Construction spending edged up 0.2 percent in June as increases in private nonresidential construction outweighed continuing declines in private residential and public construction spending, the Associated General Contractors of America reported in an analysis of new Census Bureau data. The construction trade association's chief economist, Ken Simonson, predicted further imbalances in spending, with further cuts in public spending likely to offset most or all of the gains in private investment. “Private nonresidential construction is rebounding, thanks to renewed investments in power, manufacturing, and warehousing and distribution facilities,” Simonson said. “A small rise in homebuilding also helped overall spending rise for … Read more

WASHINGTON, D.C. — A multitude of factors are preventing a recovery for the beleaguered design and construction industry. Lenders that have been extremely reticent to finance construction projects, budget shortfalls at all levels of government, the ripple effect of overbuilding and rising costs of key construction commodities are all contributing to what projects to be a decline of 5.6% in spending this year for nonresidential construction projects. The American Institute of Architects (AIA) semi-annual Consensus Construction Forecast, a survey of the nation's leading construction forecasters, also projects a 6.4% increase of spending in 2012. “Consumer and business confidence is poor … Read more

Construction costs again outpaced other producer prices in June but contractors remained unable to recoup the costs through higher bid prices, according to an analysis of producer price index figures released by the Associated General Contractors of America. Association officials said the ongoing cost squeeze will put new pressure on construction firms to reduce staff and possibly close. “Despite a one-month dip in the prices of some key materials in June, construction costs rose on a year-over-year basis at the highest rate since 2008,” said Ken Simonson, the association's chief economist. “Worse, prices are rising amid continued layoffs and construction … Read more

CHICAGO — The American Institute of Architects announced it would make available to potential investors a database of stalled building projects nationwide that make economic sense, but which lack the financing to be completed. The AIA is announcing this commitment as a participating member at CGI America, the first conference of the Clinton Global Initiative solely dedicated to economic issues impacting the United States. The database should be available in coming months. “We are committing to developing this database not just with the fortunes of architects in mind,” said AIA President Clark Manus, FAIA. “In large part the fortunes of … Read more