Latest Producer Price Index Figures Show Prices for Diesel, Steel, Bars, Steel Pipe and Other Key Construction Materials Have Double-Digit Spikes During the Past 12 Months The prices contractors must pay for many essential construction materials continued to increase in January, even as the amount they charge for completed projects remains flat, according to an analysis of January producer price index figures released today by the Associated General Contractors of America. Association officials noted that the price trends are cutting into already tight bottom lines for contractors, undermining chances for an industry-wide recovery in 2011. “The last thing contractors need … Read more

Stronger gains for commercial real estate sector expected in 2012WASHINGTON DC — A slow recovery period is projected for the nonresidential construction industry this year, and 2011 spending levels are not anticipated to be enough to show growth over 2010 figures.   While activity for institutional projects should hover near 2010 levels, there is likely to be a modest decline in commercial construction.   Overall nonresidential construction spending is expected to decrease by two percent in 2011, with 2012 seeing an increase of five percent in inflation adjusted terms.   These are highlights from the American Institute of Architects (AIA) … Read more

Three out of past four months have seen positive business conditions WASHINGTON D.C..— On the heels of its highest mark since 2007, the Architecture Billings Index (ABI) jumped more than two points in December.   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 (AIA) reported the December ABI score was 54.2, up from a reading of 52.0 the previous month.   This score reflects an increase in demand for design services (any score above 50 indicates an … Read more