Construction Employment Inches Up in July

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Construction employment inched up by 8,000 jobs to a 15-month high in July but remained far below the peak set in early 2006, according to an analysis of new federal employment data released by the Associated General Contractors of America. Association officials said a grim outlook for public sector construction activity will act as a drag on expanding private sector construction. They urged lawmakers to pass adequate long-term funding for public projects, without unnecessary strings attached. The industry unemployment rate fell from 17.3 percent a year earlier to 13.6 percent in July 2011, and the number of unemployed people who … Read more

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Construction Employment Increases in 149 Out of 337 Metro Areas between June 2010 and 2011

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Construction employment increased in 149 out of 337 metropolitan areas between June 2010 and June 2011, declined in 141 and stayed level in 47, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials noted that the local employment data posted slightly stronger gains largely because of growing private sector demand for construction. “A lot of metro areas appear to be benefitting from growing demand from the private sector for new construction,” said Ken Simonson, the association's chief economist. “Declining public sector demand is clearly taking a toll on just … Read more

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Construction Spending Edges Up in June

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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

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Modest Growth Projected for 2012 in Nonresidential Construction Spending

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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

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Construction Material Costs Outrun Finished Building Prices in June

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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

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