Nonresidential Construction Spending Projected to Increase Through 2023

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Construction spending on buildings is projected to increase just over 9% this year and another 6% in 2023, according to a report from the American Institute of Architects. While the outlook for the broader economy has become more uncertain, the prospects for construction spending have improved since the beginning of the year. The outlook from the AIA Consensus Construction Forecast Panel, in its mid-year update, is more optimistic than what was projected at the beginning of the year, largely due to the extremely strong gains in the manufacturing category, as well as surprising strength in retail facilities. The industrial market … Read more

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ABC’s Construction Backlog Inches Lower

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Associated Builders and Contractors reports that its Construction Backlog Indicator fell 0.1 months in June and stands at 8.9 months, according to an ABC member survey conducted June 21-July 5. The reading is up 0.4 months from June 2021. The index readings for sales, profit margins and staffing levels declined in June. The indices for sales and staffing remain above the threshold of 50, indicating expectations of growth over the next six months, while the reading for profit margins fell below the threshold of 50 for the first time since October 2021.

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First Quarter Marcum Construction Index Reports Increasing Costs, Labor & Material Shortages, Rising Interest Rates

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The Marcum Commercial Construction Index for the first quarter of 2022 reports that the construction industry faces increasing costs and shortages of both labor and materials, as well as rising interest rates. The residential sector has maintained its momentum while weakness continues to characterize the nonresidential sector. “While overall contractor confidence has dipped a bit recently, many contractors continue to expect growth in sales, employment and even profit margins over the next six months,” said Anirban Basu, Marcum’s chief construction economist and author of the report. “Despite rising costs of capital, demand for construction services remains elevated. Many contractors report … Read more

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Nonresidential Construction Employment Increases, Says ABC

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The construction industry added 13,000 jobs on net in June, 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 292,000 jobs, an increase of 4.0%. Nonresidential construction employment increased by 16,500 positions on net, with all three subsectors showing positive growth. Nonresidential specialty trade added 11,400 net new jobs, while heavy and civil engineering added 4,500. Nonresidential building also added 600 new positions. The construction industry unemployment rate dropped slightly to 3.7% in June. Unemployment across all industries remained unchanged for the … Read more

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Material and Labor Cost Escalation Continues to Drive Increases in Construction Costs

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Turner Construction Company released its Second Quarter 2022 Turner Building Cost Index — which measures costs in the non-residential building construction market in the United States — had increased to the value of 1283. This represents a 2.23% quarterly increase from the first quarter 2022 and an 8.09% yearly increase from the second quarter 2021. The building costs and price trends tracked by the index may or may not reflect regional conditions in any given quarter. The cost index is determined by several factors considered on a nationwide basis, including labor rates and productivity, material prices and the competitive condition … Read more

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