Construction Starts Increase 5% in November

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Total construction starts increased 5% in November to a seasonally adjusted annual rate of $1.2 trillion, according to Dodge Construction Network. Nonresidential building starts grew 2%, nonbuilding starts moved 16% higher, while residential building starts fell 1%. On a year-to-date basis through November, total construction starts were up 5% from the first 11 months of 2023. Nonresidential starts were up 4%, residential starts were up 7% and nonbuilding starts were up by 5%. For the 12 months ending November 2024, total construction starts were up 4% from the 12 months ending November 2023. Residential starts were up 7%, nonresidential starts … Read more

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Favorable Financing Creating Construction Tailwind as Labor Shortage Continues

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More favorable interest rates and materials prices are colliding with an ongoing labor shortage, bringing a mix of challenges and opportunities for construction project owners, according to DPR Construction’s latest Market Conditions Report. Labor shortages are a critical issue with 77% of contractors reporting increased difficulty in filling skilled craft positions compared to a year ago. While post-election economic policies are still being determined, lower interest rates and inflation are opening financing options for construction project owners. “Factors like interest rates and inflation will continue to play a significant role in determining financing options for construction projects,” said Matt Murphy, … Read more

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ABC: Wisconsin is Top State for Construction

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Wisconsin is the No. 1 state for construction, according to Associated Builders and Contractors’ 10th annual Merit Shop Scorecard. The scorecard, released annually since 2015, ranks all 50 states and the District of Columbia based on policies and programs that better career pathways in construction, further workforce development and strengthen fair and open competition on taxpayer-funded construction projects. Arkansas, Kentucky, West Virginia and Florida rounded out the top five states in 2024, in ranking order. Wisconsin has been a high-performing state year after year, but takes the top spot for the highest scores on fair and open competition policies prohibiting … Read more

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Monthly Construction Input Prices Unchanged in November, Says ABC

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Construction input prices were unchanged in November compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices increased .1% for the month. Overall construction input prices are .5% higher than a year ago, while nonresidential construction input prices are .3% higher. Prices decreased in two of the three energy subcategories last month. Crude petroleum prices were down 3.3%, while unprocessed energy materials prices were down 2%. Natural gas prices were up 2.6% in November. “Construction input prices are up just .2% through the … Read more

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ABC’s Construction Backlog Indicator Holds Steady in November, Contractor Confidence Surges

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Associated Builders and Contractors reported its Construction Backlog Indicator remained unchanged at 8.4 months in November, according to an ABC member survey conducted Nov. 20-Dec. 3. The reading is down .1 months from November 2023. Backlog in the infrastructure category contracted in November, though it is still the only category with higher backlog on a year-over-year basis. ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels improved in November. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months. “Contractor confidence surged in November even though … Read more

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