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

  • Posted on

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

Filed under: Economic NewsTagged with:

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

  • Posted on

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

Filed under: Economic NewsTagged with: ,

H2 2022 Construction Outlook: Rising Costs, Tempered Outlooks

  • Posted on

The first half of 2022 saw cost inflation persist at an elevated rate as strong construction demand competed with a broad range of global and local issues. Though inflation and supply chain troubles are reminiscent of 2021, the contributing material components have shifted and new supply side issues have emerged. Despite a global inability to control the wide ranging disruptions and widespread fear of a recession, the industry is only just beginning to see a modest pullback and tempering of builder confidence. How will the industry’s existing inertia fare against changing economic outlooks and uncertainty? JLL’s latest Construction Outlook updates … Read more

Filed under: Economic News, eNewsTagged with: , ,

Monthly Construction Input Prices Dip, But Are Up 17% From a Year Ago, Says ABC

  • Posted on

Construction input prices decreased 1.4% in August compared to the previous month, according to the Associated Builders and Contractors’ analysis of U.S. Bureau of Labor Statistics Producer Price Index data. Nonresidential construction input prices fell 1.4% for the month, as well. Construction input prices are up 16.7% from a year ago, while nonresidential construction input prices are 16.3% higher. Input prices were up in six of 11 subcategories on a monthly basis. Natural gas prices increased 35.3% (and are 457.9% higher than they were in February 2020), followed by unprocessed energy materials prices, which rose 13.5%. Crude petroleum prices were … Read more

Filed under: Economic NewsTagged with:

Construction Employment Increases by 16,000, ABC Says

  • Posted on

The construction industry added 16,000 jobs on net in August, 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 risen by 311,000 jobs or 4.2%. Nonresidential construction employment rose by 4,300 positions on net, with positive growth in two of three subcategories. Nonresidential specialty trade added 5,600 net new jobs, while nonresidential building added 700 jobs. Heavy and civil engineering employment fell by 2,000 positions. The construction unemployment rate rose to 3.9% in August. Unemployment across all industries expanded from 3.5% in July to … Read more

Filed under: Economic NewsTagged with: