Association Reports Construction Spending Posts Small Increase, Coronavirus + Soaring Costs, Supply Disruptions Threaten Further Gains

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Total construction spending ticked up from June to July, as gains in residential and public construction offset a dip in private nonresidential projects, according to a new analysis of federal construction spending data the Associated General Contractors of America recently released. Officials noted, however, that challenges remain for the industry, particularly because of continuing problems with coronavirus flare-ups and supply-chain disruptions. “Although nonresidential construction is no longer in free fall, many categories face continuing challenges,” said Ken Simonson, the association’s chief economist. “The rapid spread of the delta variant of COVID-19 is causing a pullback in re-openings and travel that … Read more

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Nonresidential Construction Adds 2,900 Jobs in July, Says ABC

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The nation’s construction industry added 11,000 jobs on net in July, according to an Associated Builders and Contractors analysis of data released by the U.S. Bureau of Labor Statistics. Overall, the industry has recovered 886,000 (79.6%) of the jobs lost during earlier stages of the pandemic. Nonresidential construction employment expanded by 2,900 positions on net, though more than 100% of the gains were among nonresidential specialty trade contractors, which added 7,500 jobs. The nonresidential building (-2,500) and heavy and civil engineering (-2,100) segments both lost jobs in July. The construction unemployment rate fell to 6.1% in July. Unemployment across all … Read more

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July Construction Employment Lags Pre-Pandemic Peak in 36 States, Delta Variant Threatens Further Gains

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Construction employment in July remained below the levels reached before the pre-pandemic peak in February 2020 in 36 states, according to an analysis by the Associated General Contractors of America of government employment data. Association officials said construction employment would benefit from new federal infrastructure investments and urged the House to quickly pass the bipartisan infrastructure bill. “This data shows that full recovery remains elusive for construction in most states,” said Ken Simonson, the association’s chief economist. “In fact, the fast-spreading COVID-19 delta variant may make it harder to find employees eligible to work on restricted sites and may also … Read more

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Construction Officials Call for End to Damaging Tariffs, Quotas on Materials + Services

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Extreme price increases continued in July for a wide range of goods and services used in construction, according to an analysis by the Associated General Contractors of America of government data. Association officials urged President Biden to immediately end tariffs and quotas on steel, aluminum, lumber and other essential construction items to help stave off inflationary pressure in the construction industry. “July was the sixth-straight month of double-digit price increases for construction inputs,” said Ken Simonson, the association’s chief economist. “In addition, lead times to produce or deliver many items keep lengthening. Many reports since the government collected this price … Read more

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U.S. Economy Expands in Q2, Investment in Structures Contracts, Says ABC

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The U.S. economy expanded at a 6.5% annualized rate in the second quarter of 2021, pushing overall gross domestic product above pre-pandemic levels. Investment in nonresidential structures, however, declined 7% for the quarter and has now contracted in six of the past seven quarters, according to an analysis by Associated Builders and Contractors of data released by the U.S. Bureau of Economic Analysis. The overall growth in GDP was almost entirely driven by increases in personal consumption expenditures, with sales of goods increasing by 11.6% and sales of services by 12%. “Today’s GDP report was terrific by normal standards, but … Read more

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