Wages Increasing for Skilled Labor in Construction Industry

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Turner Construction Company announced the Third Quarter 2022 Turner Building Cost Index — which measures costs in the nonresidential building construction market in the United States — had increased to the value of 1311. This represents a 2.18% quarterly increase from second quarter 2022 and an 8.62% yearly increase from third quarter 2021. “We are experiencing a robust market with numerous mega-jobs. A shortage of skilled labor continues to lead contractors to be more selective in the projects they pursue. Wages are increasing to attract more labor into the industry and to incentivize skilled labor to travel to meet project … Read more

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Construction Spending Ticks Up, Driven by Nonresidential Construction

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Total construction spending increased by .2% for the month of September and by 10.9% for the year as nonresidential construction activity now outpaces residential construction, according to an analysis the Associated General Contractors of America released of federal spending data. Association officials noted that gains in public sector transportation construction have lagged other fast-growing segments as officials grapple with Buy America and other new regulatory requirements. Construction spending, not adjusted for inflation, totaled $1.811 trillion at a seasonally adjusted annual rate in September, .2% above the August rate and 10.9% above the September 2021 rate. Spending on private residential construction … Read more

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Equipment Finance Industry Confidence Eases in September

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The Equipment Leasing & Finance Foundation released the September 2022 Monthly Confidence Index for the Equipment Finance Industry. The index reports a qualitative assessment of both the prevailing business conditions, and expectations for the future, as reported by key executives from the $900-billion equipment finance sector. Overall, confidence in the equipment finance market is 48.7, a decrease from the August index of 50. When asked about the outlook for the future, MCI-EFI survey respondent Bruce J. Winter, president, FSG Capital, Inc., said, “The Fed has made it crystal clear that bringing inflation back to target is its number one goal. … Read more

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Weakened Economy, Higher Borrowing Costs Effect Construction Industry, Reports Marcum Survey

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The Marcum Commercial Construction Index for the second quarter of 2022 reports that the construction industry continues to face rising costs and shortages of both labor and materials, but now also must contend with a weakening economy and elevated borrowing costs.   Notably, the residential sector has weakened significantly, while the outlook remains dicey for the nonresidential sector. The index is produced by Marcum’s National Construction Services group. As of March, construction employment surpassed pre-pandemic levels, but the industry continues to grapple with unprecedented labor shortages. Despite a somewhat bleak outlook, the Marcum index points to one segment that remains an outperformer. Spending … Read more

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ABC’s Construction Backlog Indicator Jumps; Contractor Confidence Remains Steady

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Associated Builders and Contractors reports that its Construction Backlog Indicator increased to 9 months in September, according to an ABC member survey conducted Sept. 20-Oct. 5. The reading is 1.4 months higher than in Sept. 2021. View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for September. Backlog reached its highest level since May and is once again above the level observed at the start of the pandemic (8.9 months in February 2020). Backlog in heavy industrial increased sizably in September, spurred by a 21.5% year-over-year increase in manufacturing-related construction spending. ABC’s Construction Confidence Index readings for profit margins … Read more

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