Marcum Construction Index Shows Industry Holding Steady in COVID-19 Economy

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The Marcum Commercial Construction Index for the second quarter of 2020 reports the industry is holding relatively well in the face of the COVID-19-driven recession. Construction employment has rebounded since plummeting in March and April, and the industry’s unemployment rate stands at 8.9%, below the 10.2% rate observed across all industries. The index is produced by Marcum’s National Construction Services group. “The data indicate that construction has recovered faster than any other major economic segment. Over the three-month period ending in July, the industry recovered 59% of the jobs lost in March and April,” wrote Anirban Basu, author of the … Read more

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Construction Sector Adds 16K Workers in August, Nonresidential Jobs Shrink + Pessimism Rises, Says AGC

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Construction employment increased by 16,000 jobs in August, but the gains were concentrated in housing, while the infrastructure and nonresidential building construction sector lost 11,000 jobs, according to an analysis by the Associated General Contractors of America of government data. The new jobs data comes as association officials reported that a survey of more than 2000 contractors it released found growing pessimism about a return to normal levels of construction business amid a proliferation of project cancellations.   “Construction is becoming a tale of two sectors, as homebuilding and limited nonresidential niches thrive but most other private, as well as … Read more

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Coronavirus Causes Project Delays + Cancellations, Demand for Skilled Labor High, Says AGC

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The coronavirus has harmed the construction industry, prompting project delays and cancellations, layoffs and furloughs. However, it remains difficult for a majority of firms to find craftworkers to hire, according to the results of a workforce survey conducted by the Associated General Contractors of America and Autodesk. The survey paints a picture of an industry in need of immediate recovery measures and longer-term workforce development support, association officials added. “Few firms have survived unscathed from the pandemic amid widespread project delays and cancellations,” said Ken Simonson, the association’s chief economist. “Ironically, even as the pandemic undermines demand for construction services, … Read more

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Dodge Momentum Index Climbs in August

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The Dodge Momentum Index increased 1.8% in August to 126.5 (2000=1000) from the revised July reading of 124.2. 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. In August, the commercial component rose 3.3%, while the institutional component moved 1.2% lower. The August increase in the overall momentum index is the second consecutive rise and a further sign that the construction sector continues to post a modest recovery following … Read more

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Construction Employment Continues to Decline, AGC Calls for New Relief Steps

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Construction employment decreased from June to July in 26 states and the District of Columbia as earlier widespread job gains gave way to more project cancellations, according to an analysis by the Associated General Contractors of America of government employment data. Association officials said construction employment is likely to continue falling in many parts of the country without new federal recovery measures, including liability reform and new infrastructure funding. “Renewed outbreaks of coronavirus in numerous states likely caused many project owners and investors to pull back on planned construction,” said Ken Simonson, the association’s chief economist. “Meanwhile, budget problems in … Read more

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