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

  • Posted on

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 […]

Filed under: Economic NewsTagged with: , ,

Private Nonresidential Construction Increases First Time in 7 Months

  • Posted on

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 […]

Filed under: Economic NewsTagged with: ,

Construction Employment Stalls, New Measures Threaten to Undermine Recovery of Sector

  • Posted on

Construction employment stagnated in January, ending eight months of recovery from the pandemic-related losses of early 2020, according to an analysis by the Associated General Contractors of America of government data. Association officials added that new measures being considered in Congress, including the PRO Act and the National Apprenticeship Act, threaten to undermine the sector’s recovery by disrupting ongoing projects and hampering employers’ ability to train workers.   “The stagnation in construction employment in January may foreshadow further deterioration in the industry as projects that had started before the pandemic finish up and owners hold off on awarding new work,” […]

Filed under: Economic NewsTagged with: , , ,

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

  • Posted on

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 […]

Filed under: Economic NewsTagged with: , , ,

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

  • Posted on

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 […]

Filed under: Economic NewsTagged with: ,