Marcum 2024 Q1 Report: Construction Sector Defies Rising Costs and Interest Rates

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The Marcum Commercial Construction Index for the first quarter of 2024 reports that the construction industry continued growing despite various challenges. The construction industry continues to benefit from massive investment in manufacturing structures. “Construction spending on manufacturing structures is up 184% over the past four years,” said Anirban Basu, Marcum’s chief construction economist and report author. “Given the size of many of these projects and ongoing efforts to strengthen the nation’s semiconductor, clean energy, and electric vehicle production capacity, the manufacturing-related construction segment will retain momentum through the entirety of 2024.” Input prices, after remaining relatively flat throughout 2023, resumed … Read more

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ABC: Nonresidential Construction Adds 17,100 Jobs

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The construction industry added 21,000 jobs on net in May, according to an Associated Builders and Contractors analysis of data released by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has increased by 251,000 jobs, an increase of 3.1%. Nonresidential construction employment increased by 17,100 positions on net in May, with growth registered in all three major subcategories. Nonresidential specialty trade added the most jobs, with employment increasing by 13,000 positions. Nonresidential building and heavy and civil engineering added 3,000 and 1,100 jobs, respectively. The construction unemployment rate fell to 3.9% in May. Unemployment across all industries rose from 3.9% in April to 4% last month. “Every monthly employment report is important,” … Read more

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ABC: Nonresidential Construction Spending Remains Near Record High

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National nonresidential construction spending decreased 0.3% in April, according to the latest Associated Builders and Contractors’ analysis of data published by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.20 trillion. Spending was down on a monthly basis in 10 of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.3%, while public nonresidential construction spending was down 0.2% in April. “Nonresidential construction spending fell for the second consecutive month in April but remains just 0.3% below the all-time high established in February,” said ABC Chief Economist Anirban Basu. “An unprecedented increase in manufacturing construction spending has pushed overall nonresidential activity 31.9% higher over the past two years. Ongoing investment in industrial facilities as well as significant infrastructure-related outlays will keep nonresidential spending elevated despite the current expectation that interest … Read more

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AIA/Deltek Release Latest Architecture Billings Index

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Architecture firm billings remained soft entering into 2024, with an AIA/Deltek Architecture Billings Index score of 46.2 in January. Any score below 50 indicates decreasing business conditions. “This now marks the lengthiest period of declining billings since 2010, although it is reassuring that the pace of this decline is less rapid and the broader economy showed improvement in January,” said Kermit Baker, Ph.D., AIA Chief Economist. “Firms are seeing growth with inquiries into new projects and value of newly signed design contracts is holding steady, showing potential signs of interest from clients in new projects.” Business conditions remained weak at firms in all regions of the country except the Midwest, where modest … Read more

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Construction Sector Adds 9,000 Jobs in April

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The construction industry added 9,000 jobs in April — the fewest since August 2022 — as a downturn among residential remodelers and subcontractors undercut job gains at nonresidential construction firms, according to an analysis of new government data released by the Associated General Contractors of America. Association officials noted that demand for workers remains high among nonresidential firms, and they urged government officials to enhance support for career development and more employment-based immigration. “It appears that high interest rates are dragging down remodeling, homebuilding and apartment construction,” said Ken Simonson, the association’s chief economist. “But firms working on infrastructure, data … Read more

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