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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Nonresidential Construction Spending Shrinks, Says AGC

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Construction spending was a tale of two industries again in November, as soaring single-family construction masked ongoing downturns in private and public nonresidential construction, according to an analysis of new federal construction spending data by the Associated General Contractors of America. Association officials said the new figures underscore the need for new infrastructure investments and other measures to boost demand for nonresidential construction amid the pandemic. “Private nonresidential construction declined for the fifth-straight month in November, while public nonresidential spending slipped for the fifth time in the past six months,” said Ken Simonson, the association’s chief economist. “Unfortunately, our latest … Read more

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New Industry Outlook Reports on Industry Struggles with Declining Demand, Growing Project Delays + Cancelations

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Most contractors expect demand for many types of construction to shrink in 2021 even as the pandemic is prompting many owners to delay or cancel already-planned projects, meaning few firms will hire new workers, according to survey results released by the Associated General Contractors of America and Sage Construction and Real Estate. The findings are detailed in The Pandemic’s Growing Impacts on the Construction Industry: The 2021 Construction Hiring and Business Outlook Report.   “This is clearly going to be a difficult year for the construction industry,” said Stephen E. Sandherr, the association’s CEO. “Demand looks likely to continue shrinking, … Read more

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New Coronavirus Recovery Measure to Provide Relief for Contractors Coping with Project Cancelations, Falling Demand

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The Associated General Contractors of America’s CEO Stephen E. Sandherr issued the following statement in reaction to the release of compromise coronavirus relief legislation slated for House and Senate votes as early as Dec. 21:   “The new coronavirus recovery measure announced today should provide some needed relief for a construction industry that is coping with project cancellations and job losses in most parts of the country. Most notably, the measure includes $10 billion in needed funding to help address the pandemic-induced shortfalls in state transportation revenues. This new funding should keep a number of road projects from getting canceled … Read more

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