Equipment Leasing and Finance Association’s Survey of Economic Activity: Monthly Leasing and Finance Index

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The Equipment Leasing and Finance Association’s Monthly Leasing and Finance Index showed its overall new business volume for March was $10.6 billion, up 14% year-over-year from new business volume in March 2021. Volume was up 49% month-to-month from $7.1 billion in February. Year-to-date, cumulative new business volume was up 5% compared to 2021. Receivables over 30 days were 1.5%, down from 1.7% the previous month and down from 1.9% in the same period in 2021. Charge-offs were 0.10%, up from 0.09% the previous month and down from 0.43% in the year-earlier period. Credit approvals totaled 78.3%, up from 78.2% in … Read more

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Input Prices for Nonresidential Construction Climb 21% between March 2021, March 2022

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Prices of materials and services used in new nonresidential construction jumped more than 21% from March 2021 to March 2022, according to an analysis by the Associated General Contractors of America of government data. “Construction firms have been burdened with cost increases of 20% per year or more since early 2021,” said Ken Simonson, the association’s chief economist. “Since contractors can seldom pass along increases on projects that are underway, these extreme price hikes threaten the viability of many firms. Unfortunately, the continuing war in Ukraine is likely to keep input costs elevated for many more months, if not longer.” … Read more

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Construction Input Prices Up 3% in March, 24% Year Over Year

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Construction input prices rose 2.9% in March, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices expanded 2.8% for the month. Construction input prices are up 24.4% from a year ago and 39.1% from February 2020, while nonresidential construction input prices are 25% and 39.2% higher. Natural gas prices are up more than 200% since the start of the pandemic, while crude petroleum prices are up more than 100% over that span. “Despite recent growth in the nation’s labor force participation rate, contractors continue to contend … Read more

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Construction Backlog Up, Contractor Confidence Down in March   

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Associated Builders and Contractors’ latest Construction Backlog Indicator has increased to 8.3 months in March, according to an ABC member survey. The reading is up .5 months from March 2021. ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels declined in March. All three indices remain above the threshold of 50, however, indicating expectations of growth over the next six months. “Demand for construction services remains strong despite sky-high materials prices, skills shortages and elevated bids,” said ABC Chief Economist Anirban Basu. “ABC contractors indicate that demand will remain strong, with 65% of contractors expecting sales to … Read more

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JLL Launches 2022 Construction Outlook

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The construction industry entered 2022 alongside broad economic recovery from the COVID-19 pandemic, with an outlook tempered by record high materials costs, construction labor shortages and continuing supply chain disruptions. Hopes for a near-term return to normal were dashed by the Russian invasion of Ukraine late in the first quarter, as the conflict and global economic sanctions have further disrupted critical material markets. Additionally, the U.S. construction labor market is exceptionally tight, with notable wage growth and demographic shifts amidst increasing demand. How will all of this play out for construction over the coming year? JLL’s H1 2022 Construction Outlook … Read more

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