Fourth Quarter Marcum Construction Index Available

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The Marcum Commercial Construction Index for the fourth quarter of 2022 reveals that the construction industry retained momentum at year’s end despite constraints facing the industry, including labor shortages, materials costs and elevated borrowing costs. While some construction segments have fared better than others, an overheated economy and gloomy economic outlook will eventually begin to drag on the industry. Labor shortages remain the most pressing issue for the construction industry. Material prices rebounded at the start of 2023, but the moderating input price escalation observed across much of 2022 is likely here to stay. While higher interest rates have significantly diminished … Read more

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Economic Pressures Drive Change for Construction and Engineering Companies in 2023

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There is huge potential for those looking to adapt and become more resilient explains Kenny Ingram, vice president of Construction & Engineering and Chris Knight, global industry director of Construction & Engineering at IFS. With a combined 60+ years of industry expertise, they analyze key market data and identify three areas of change that will help C&E organizations navigate the turbulent market dynamic. 1: The rise of the industrialized construction model – becoming the next-gen construction company Increasingly, we are seeing the industrialization of construction processes; in fact, by 2025, 30% of companies will change their construction processes to an … Read more

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Construction Workforce Shortage Tops Half a Million in 2023, Says ABC

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The construction industry will need to attract an estimated 546,000 additional workers on top of the normal pace of hiring in 2023 to meet the demand for labor, according to a proprietary model developed by Associated Builders and Contractors. ABC’s proprietary model uses the historical relationship between inflation-adjusted construction spending growth, sourced from the U.S. Census Bureau’s Construction Put in Place survey, as well as payroll construction employment, sourced from the U.S. Bureau of Labor Statistics, to convert anticipated increases in construction outlays into demand for construction labor at a rate of approximately 3,620 new jobs per billion dollars of … Read more

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ABC: Nonresidential Construction Spending Dips .5% in December

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National nonresidential construction spending decreased by 0.5% in December, according to an Associated Builders and Contractors analysis of data published by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $943.5 billion for the month. Spending fell on a monthly basis in 10 of the 16 nonresidential subcategories. Private nonresidential spending was down .5%, while public nonresidential construction spending was down .4% in December.

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Total Construction Starts Increase in December

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Total construction starts jumped 27% in December to a seasonally adjusted annual rate of $1.185 trillion, according to Dodge Construction Network. During the month, nonresidential building starts increased 51%, nonbuilding starts increased 30% and residential starts rose less than 1%. Across 2022, total construction starts were 15% higher than in 2021. Nonresidential building starts rose 38% over the year, nonbuilding starts were up 19% and residential starts were down 3%. Nonbuilding construction starts rose 30% in December to a seasonally adjusted annual rate of $281.4 billion. The utility/gas category was the main driver of the growth due to the start of a transmission … Read more

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