Total Construction Starts Slip in June

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Total construction starts lost 7% in June, slipping to a seasonally adjusted annual rate of $863.6 billion, according to Dodge Data & Analytics. All three major sectors (residential, nonresidential building and nonbuilding) pulled back during the month. Single-family housing starts are feeling the detrimental effects of rising materials prices. Large projects that broke ground in May were absent in June for nonresidential building and nonbuilding starts, resulting in declines. “Unabated materials price inflation has driven a significant deceleration in single-family construction,” stated Richard Branch, chief economist for Dodge Data & Analytics. “Lumber futures have eased in recent weeks, but builders … Read more

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Construction Employment Declines or Stagnates in 101 Metro Areas, Reports Association

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Construction employment declined or stagnated in 101 metro areas between February 2020, the last month before the pandemic, and June 2021, according to an analysis by the Associated General Contractors of America of government employment data. Association officials said that labor shortages and supply chain problems were keeping many firms from adding workers in many parts of the country. “Typically, construction employment increases between February and June in all but 30 metro areas,” said Ken Simonson, the association’s chief economist. “The fact that more than three times as many metros as usual failed to add construction jobs, despite a hot housing … Read more

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Construction Officials Caution Rising Materials Prices Threaten to Undermine Economic Recovery

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Unprecedented price increases for a wide range of goods and services used in construction pushed up contractors’ costs by a devastating 26.3% from June 2020 to June 2021, according to an analysis by the Associated General Contractors of America of government data. Association officials cautioned that rising materials prices are making it difficult for many construction firms to benefit from the re-opening of the economy, undermining the sector’s ability to add new, high-paying jobs. “Contractors have been pummeled in the past year by cost increases, supply shortages and transport bottlenecks,” said Ken Simonson, the association’s chief economist. “Meanwhile, falling demand … Read more

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Association Officials Report Construction Employment Declines by 7,000 in June

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Construction employment declined by 7,000 between May and June as the industry still employs 238,000 fewer people than before the pandemic, according to an analysis by the Associated General Contractors of America of government data. Association officials said that job losses in the nonresidential construction sector offset modest monthly gains in residential construction as many firms struggle with worker shortages, supply chain disruptions and rising materials prices. “It is hard for the industry to expand when it can’t find qualified workers, key building materials are scarce and the prices for them keep climbing,” said Stephen E. Sandherr, the association’s CEO. … Read more

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Construction Employment Trails Pre-Pandemic Level in 39 States, Reports AGC

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Construction employment in June remained below the levels reached before the pre-pandemic peak in February 2020 in 39 states, according to an analysis by the Associated General Contractors of America of government employment data. Association officials noted that many construction firms are struggling to cope with supply chain challenges and rising materials prices, which is undermining demand for new projects and impacting firms’ ability to hire new workers. “The construction industry is a long way from full recovery in most states, in spite of a hot homebuilding market in many areas,” said Ken Simonson, the association’s chief economist. “Soaring materials … Read more

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