Widespread Steep Increases in Materials Costs in November Outrun Prices for Construction Projects, According to AGC Analysis

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Prices of numerous construction materials soared again in November, outpacing the rate at which contractors raised their bid prices, according to an analysis by the Associated General Contractors of America of government data. Association officials said the current steps being taken to address supply chain problems and rising prices have been insufficient and urged public officials to redouble their efforts. “Prices for nearly every type of construction material are rising at runaway rates,” said Ken Simonson, the association’s chief economist. “These costs are compounding the difficulties contractors are experiencing from long lead times for production, gridlocked supply chains and record … Read more

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Inflation + Labor Shortages Weigh Down Construction Industry in 3rd Quarter, Finds Marcum Index

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The Marcum Commercial Construction Index for the third quarter of 2021 reports that the construction industry’s recovery slowed during the summer in the face of labor shortages and rising material prices. Nonresidential construction spending remains 10.7% below January 2020 levels, but is 1.3 lower than it was one year ago. The index is produced by Marcum’s National Construction Services group. “The nonresidential construction segment added 33,000 net new jobs in October 2021 and supports 46,500 more jobs than it did in October 2020,” said Anirban Basu, Marcum’s chief construction economist and author of the report. “But a majority of that … Read more

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Two-Thirds of Metro Areas Add Construction Jobs from October 2020 to October 2021

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Nearly two out of three U.S. metro areas added construction jobs between October 2020 and October 2021, according to an analysis by the Associated General Contractors of America of government employment data. Association officials noted that the job gains would likely have been larger and more widespread if firms weren’t dealing with the twin challenges of supply chain problems and labor shortages. “While it is heartening that construction is recovering from the lows of 2020 in much of the country, the pandemic is still causing major supply-chain problems and is keeping some workers from seeking employment,” said Ken Simonson, the … Read more

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National Association Reports Construction Firms Add 44K Jobs in October, Struggle with Supply Chain Challenges

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The construction industry added 44,000 jobs between September and October as nonresidential construction firms posted back-to-back increases for the first time since January, according to an analysis of government date by the Associated General Contractors of America. Association officials said the employment gains were welcome news but cautioned that employment levels remain well-below pre-pandemic totals as firms struggle with supply chain problems, labor shortages and federal inaction on infrastructure funding. “It is encouraging to see continuing job growth in nonresidential construction but the industry remains far behind the overall economy in recovering all of the job losses from the pandemic,” … Read more

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ABC’s Construction Backlog Rebounds in October, Contractor Confidence Falls

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Associated Builders and Contractors reports that its Construction Backlog Indicator rose to 8.1 months in October, according to an ABC member survey conducted from Oct. 20 to Nov. 2. The reading is up 0.5 months from September 2021 and 0.4 months from October 2020. However, ABC’s Construction Confidence Index readings for sales and profit margins declined in October, while the index for staffing rose slightly. The sales and staffing readings are still above the threshold of 50, indicating expectations of growth over the next six months. The index for profit margins fell below that threshold, pointing to expectations of decline. … Read more

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