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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Construction Job Openings Decline, Says ABC

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The construction industry registered 434,000 job openings in May, according to an Associated Builders and Contractors’ analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. The JOLTS survey defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings decreased by 6,000 in May but are up 126,000 from the same month last year. Construction workers again quit their jobs at a faster rate than they were laid off or discharged in May. The quits rate of 2.9% was meaningfully above the layoff/discharge rate of 1.4%. … Read more

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Nonresidential Construction Spending Slightly Dips, Says ABC

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National nonresidential construction spending was down by 0.6% in May, 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 $832.5 billion for the month. Spending was down on a monthly basis in 10 of the 16 nonresidential subcategories. Private nonresidential spending was down 0.4%, while public nonresidential construction spending was down 0.8% in May. Nonresidential construction spending is up 1% over the past year, though spending is down in 10 of 16 categories over that span. The best performer is manufacturing, a segment in … Read more

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