Association Officials Call for Tariff Removal on Key Materials to Provide Immediate Relief for Hard-Hit Contractors

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Price increases—some to record-setting levels—and long delivery delays are causing hardships for construction firms that are also experiencing challenges in completing projects with crews limited by illness or new work site procedures resulting from the pandemic, according to an analysis by the Associated General Contractors of America of government data. Association officials urged the Biden administration to review and rescind a range of trade tariffs in place, including for Canadian lumber, that are contributing to the price increases.   “The extreme price increases, as reflected in today’s producer price index report and other sources, are harming contractors on existing projects … Read more

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Construction Backlog and Contractor Optimism Rise to Start 2021, According to ABC Member Survey

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Associated Builders and Contractors reported today that its Construction Backlog Indicator rose to 7.5 months in January 2021, an increase of 0.2 months from its December 2020 reading, according to an ABC member survey conducted from Jan. 20 to Feb. 2. Despite the monthly uptick, backlog is 0.9 months lower than in January 2020. ABC’s Construction Confidence Index readings for sales and staffing levels increased in January and remain above the threshold of 50, indicating expectations of growth over the next six months. The index reading for profit margins remained below that threshold, slipping to 47.5 in January. “Though nonresidential … Read more

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Construction Employment in December Trails Pre-Pandemic Levels in 34 States

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Construction employment in December remained below pre-pandemic levels in two-thirds of the states even though 37 states and the District of Columbia added construction jobs from November to December, according to an analysis by the Associated General Contractors of America of government employment data. Association officials said the new data highlights how broadly the industry has been impacted by the pandemic and underscores the need for additional coronavirus recovery measures.   “While most states recorded construction employment gains in December, the pickup is likely to be temporary for many,” said Ken Simonson, the association’s chief economist. “Participants in our association’s … Read more

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Construction Starts End 2020 on Sour Note

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Total construction starts lost 5% in December, falling to a seasonally adjusted annual rate of $784.3 billion. Nonresidential building starts fell 11% during the month, while nonbuilding starts were 5% lower. Residential starts were essentially flat over the month. Starts were lower in three of the four regions in December; the South Central was the only region to post an increase. For the full year, total construction starts fell 10% to $766.3 billion. Nonresidential building starts saw the steepest drop, losing 24%, while nonbuilding starts fell 14%. Residential construction starts ended 2020 up 4% thanks to strong single-family activity. In … Read more

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Dodge Momentum Index Ends 2020 on High Note

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The Dodge Momentum Index jumped 9.2% in December to 134.6 (2000=100) from the revised November reading of 123.3. 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. The commercial component of the momentum index rose 14.0%, while the institutional component rose by 0.3%. The gain in the commercial component of the momentum index was heartening even though the increase was mostly the result of a sizeable increase in warehouse … Read more

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