Nonresidential Construction Spending Expected to Moderate Through 2024

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While spending on nonresidential construction picked up momentum toward the end of 2022, construction spending will moderate in 2023 and slow significantly in 2024, according to a new report from the American Institute of Architects. Despite macroeconomic headwinds such as inflation, rising interest rates and weak consumer sentiment scores, the AIA’s Consensus Construction Forecast panel is projecting nonresidential construction spending to grow 5.8%  in 2023 but slow to under 1% in 2024. Similar to 2022, growth in construction spending in 2023 will be uneven with a projected 2.6% increase in the commercial sector, 15.1% for industrial facilities and 4.1% for … Read more

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Construction Firms Look to Public Sector Demand in 2023; 69% of Firms Plan to Hire, Says AGC

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A new industry outlook survey from The Associated General Contractors of America and Sage shows contractors expect infrastructure and other public-sector funding will help as growth slows for many types of private construction. Labor shortages and supply chain issues persist. Construction contractors are less optimistic about many private-sector segments than they were a year ago, but their expectations for the public sector market have remained relatively bullish. The findings are detailed in High Hopes for Public Sector Funding Amid Workforce and Supply Chain Challenges: The 2023 Construction Hiring & Business Outlook. “Contractors are optimistic about the construction outlook for 2023, yet … Read more

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Nonresidential Construction Spending Increases 1%, Says ABC

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National nonresidential construction spending grew .9% in November, 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 $930.1 billion for the month. Spending was up on a monthly basis in nine of the 16 nonresidential subcategories. Private nonresidential spending was up 1.7%, while public nonresidential construction spending was down .1% in November.

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ABC: Florida, Arizona Are Best States for Construction

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For the fourth time, Florida claimed the top spot in Associated Builders and Contractors’ eighth annual Merit Shop Scorecard, a ranking of all 50 states and the District of Columbia based on policies and programs that strengthen career pathways in construction, encourage workforce development and advocate for fair and open competition on taxpayer-funded construction projects. In addition to fostering fair and open competition in public construction work, Florida continues to reap the benefits of providing students with a multitude of career pathways, which in 2022 yielded a graduation rate of 96% for career and technical education program students. Arizona again followed … Read more

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Commercial, Institutional, Healthcare Construction Drive ABC’s Backlog Indicator to Highest Level Since Q2 2019

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Associated Builders and Contractors’ Construction Backlog Indicator has increased to 9.2 months in November, according to an ABC member survey conducted Nov. 21-Dec. 6. The reading is .8 months higher than in November 2021. View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for November 2022. Backlog is now at its highest level since the second quarter of 2019. The increase in backlog observed in November is largely attributed to contractors with under $30 million in revenue, which now have their highest level of backlog in over three years. ABC’s Construction Confidence Index reading for profit margins and staffing … Read more

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