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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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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