Dodge Data & Analytics Reports Construction Starts for Single-Family Decline, Nonresidential Gain

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Total construction starts fell 2% in April to a seasonally adjusted annual rate of $853.5 billion, according to Dodge Data & Analytics. Single-family construction posted a sizeable decline following months of strong activity, while nonresidential building and nonbuilding starts both gained. “The pullback in single-family construction starts was inevitable after showing exceptional strength over the past year,” said Richard Branch, chief economist for Dodge Data & Analytics. “Higher material prices, supply shortages and a dearth of skilled construction labor were bound to catch up with housing and will ultimately limit the ability of this sector to show the same rate … Read more

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Materials Price Increases, Supply Chain Cause Contractor Concerns

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The cost of goods and services used in construction accelerated further in April as more items logged double-digit increases over the past year, according to an analysis by the Associated General Contractors of America of government data. Meanwhile, nonresidential contractors struggled with delays in receiving materials and intensifying competition that limited their ability to pass on higher costs. Association officials urged the Biden administration to quickly roll back tariffs and quotas on imported construction materials that are adding to costs and availability problems.   “Today’s producer price index report — bad though it is — actually understates the severity of … Read more

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Dodge Momentum Index Hits 12-Year High Led by Institutional Planning

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The Dodge Momentum Index posted an 8.6% gain in April, climbing to 162.4 (2000=100) from the revised reading of 149.5 in March. The momentum index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. April’s gain marks the fifth consecutive monthly increase, and similar to February and March, was due to a large increase in institutional buildings entering the planning stage while commercial planning eased by less than 1%. Since hitting its … Read more

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PCA Releases Spring 2021 Cement Consumption and Construction Activity Outlook

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Portland Cement Association Market Intelligence Group’s Senior Vice President and Chief Economist Ed Sullivan recently presented its annual Spring cement consumption forecast, predicting an increase in cement consumption for 2021 and 2022. “Remarkably, U.S. cement consumption recorded 2% growth during 2020. It is remarkable because COVID-19 exerted a terrible toll on the economy. Consumers bunkered down; states enacted rigid lockdowns. Real GDP declined to a rate not matched since 1946 as the economy transitioned from war time to peace time,” said Sullivan. “Nearly 9.5 million fewer jobs now exist compared to pre-COVID-19 levels. Many businesses did not survive the threat.  … Read more

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AGC Reports Construction Employment Declines in 203 Metro Areas March 2020-March 2021 Despite Homebuilding Boom, Improving Economy

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Construction employment decreased from March 2020 to March 2021 in 203, or 57%, of the nation’s metro areas, according to an analysis by the Associated General Contractors of America of government employment data recently released. Association officials said the industry’s broader recovery in many parts of the country is being hampered by rising materials prices, supply chain disruptions and project cancellations.   “Nearly twice as many metros have lost construction jobs as gained them in the past 12 months, even though homebuilding has recovered strongly and the overall economy is in much better shape than it was a year ago,” … Read more

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