Steel Costs Begin to Level out, Supply + Demand Stabilizes 

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In March 2018, when a large tariff increase—25%—on steel imports went into effect, alarm bells went off in the construction industry. A cost increase of this size impacts bottom lines, so everyone in the industry braced for a blow. The tension was high. The U.S. is the largest steel importer throughout the world (Trade.gov) and, when the new tariff began, the construction industry was growing faster than at any time since 2010, when recovery from the Great Recession began. Just when recovery was taking off, this new threat loomed. Questions related to the new cost of steel and its available … Read more

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High Level of Construction Activity Continues to Stretch Skilled Labor Availability

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Turner Construction Company announced that the Fourth Quarter 2019 Turner Building Cost Index—which measures costs in the non-residential building construction market in the United States—has increased to a value of 1177. This represents a 1.29% quarterly increase from the third quarter of 2019 and a 4.84% annual increase from the fourth quarter of 2018, respectively. “We continue to see the national construction market fairly busy with several large projects starting in the fourth quarter,” said Attilio Rivetti, the Turner vice president responsible for compiling the cost index. Attilio continued, “Raw material costs in the fourth quarter of 2019 have been … Read more

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Industry Survey Shows Strong 2020 Demand for Projects and Workers

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Construction spending rose 4.1% from November 2018 to November 2019, while industry employment grew in 226, or 63%, out of 358 metro areas, according to a new analysis of federal data released by the Associated General Contractors of America. Association officials noted that its recent survey found most contractors are optimistic about the dollar value of projects available and expect to keep adding workers in 2020 but they are finding it hard to fill positions and anticipate it will continue to be hard to hire employees. “Both the actual spending totals for November and our members’ expectations for 2020 point … Read more

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Outlook Predicts Economic Slowdown, Broad-Based Impact on Construction Growth

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Dodge Data & Analytics recently released its 2020 Dodge Construction Outlook, a mainstay in construction industry forecasting and business planning. The report predicts that total U.S. construction starts will slip to $776 billion in 2020, a decline of 4% from the 2019 estimated level of activity. “The recovery in construction starts that began during 2010 in the aftermath of the Great Recession is coming to an end,” stated Richard Branch, chief economist for Dodge Data & Analytics. “Easing economic growth driven by mounting trade tensions and lack of skilled labor will lead to a broad-based, but orderly pullback in construction … Read more

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Construction Employment Increases in 38 States, D.C. from November 2018 to November 2019

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Thirty-eight states and the District of Columbia added construction jobs between November 2018 and November 2019, while construction employment increased in 18 states from October to November, according to an analysis by the Associated General Contractors of America of Labor Department data. Association officials noted that a survey it recently released found most contractors expect to keep adding workers in 2020 but they are finding it hard to fill positions and anticipate it will continue to be hard to hire employees. “It is encouraging that so many contractors were able to add employees even with overall unemployment at a 50-year … Read more

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