AGC Reports Soaring Materials Costs, Supply-Chain Problems + Project Cancelations Continue to Impact Construction Industry

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One year after the pandemic struck, construction firms are experiencing soaring materials costs, widespread supply-chain problems and continuing project deferrals and cancellations, according to a new survey that the Associated General Contractors of America has released. Association officials urged Congress and the Biden administration to take steps to eliminate tariffs on key materials, address shipping backups and boost funding for new infrastructure to help the industry recovery.   “The survey results make it clear that the construction industry faces a variety of challenges that threaten to leave many firms and workers behind, even as some parts of the economy are … Read more

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Construction Industry Needs to Hire 430,000+ Craft Professionals in 2021, Says ABC

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In 2021, construction companies will need to hire 430,000 more workers than they employed in 2020, according to an analysis of U.S. Bureau of Labor Statistics data released by Associated Builders and Contractors. The analysis also revealed that every $1 billion in extra construction spending generates an average of at least 5,700 construction jobs. “According to forecasts analyzed during the COVID-19 pandemic, an impressive 430,000 more construction workers still need to be hired in 2021 to meet the demand, evidence that the construction industry is powering America’s recovery and economic engine,” said ABC President and CEO Michael Bellaman. “ABC’s annual … Read more

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Construction Employment Declines, Severe Weather Compounds Falling Demand for Nonresidential Projects, says AGC

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Construction employment declined by 61,000 in February, while the sector’s unemployment rate soared to 9.6% amid severe winter weather and continuing weakness in new nonresidential projects, according to an analysis by the Associated General Contractors of America of government data. Association officials urged Congress and the Biden administration to focus on new infrastructure funding, address rising materials prices and avoid disruptive measures like the PRO Act to stem further construction job losses. “The steep decline in construction employment in February continues a downward trend in nonresidential activity that began before the disruptions caused by last month’s freezes and power losses,” … Read more

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Marcum 4Q Commercial Construction Index Shows Signs of Optimism, Pessimism

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The Marcum Commercial Construction Index for the fourth quarter of 2020 reports that the industry has reasons for optimism and pessimism as it recovers from the recession caused by COVID-19. Total construction employment has rebounded since plummeting in March and April but remains 3.3% below pre-pandemic levels. The index is produced by Marcum LLP’s national Construction Services group.  “Nonresidential construction employment declined by about 644,000 jobs between February and May of 2020 as the pandemic’s grip took firm hold,” wrote Anirban Basu, author of the report and Marcum’s chief construction economist. “As of January 2021, the nonresidential industry had recovered about … Read more

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Private Nonresidential Construction Increases First Time in 7 Months

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Construction spending rallied in January as private nonresidential construction increased for the first time in seven months, according to an analysis of new federal construction spending data by the Associated General Contractors of America. Association officials said that nonresidential construction spending remains below pre-pandemic levels and that rising materials prices and proposed labor law changes threaten the sector’s recovery.   “Despite a modest upturn in January, spending on private nonresidential construction remained at the second-lowest level in more than three years and was 10% below the January 2020 spending rate,” said Ken Simonson, the association’s chief economist. “All 11 of … Read more

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