Proposal Activity for Q2 Construction Released

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According to a recent report released by PSMJ Resources, proposal activity for architecture, engineering and construction firms sank to its lowest quarterly level in over a decade in the 2nd quarter of 2020, as the coronavirus-related downturn trimmed backlog and reduced revenue for firms coast to coast. PSMJ Resources’ Quarterly Market Forecast reported a near-record-low net plus/minus index of -22% for proposal activity in the latest quarter, substantially down from the +17% recorded in the 1st quarter. Backlog slid from an NPMI of +6% in the 1st quarter to -24% in the 2nd, while the revenue NPMI dropped from +9% to […]

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Construction Industry Adds 158,000 Workers in June, Infrastructure Jobs Decline, Says AGC

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Construction employment increased by 158,000 jobs in June, but employment related to infrastructure slipped, according to a newly released analysis by the Associated General Contractors of America of government data. Association officials cautioned that additional infrastructure-building job losses are inevitable unless the federal government replenishes depleted state and local budgets for roads and other public works.   “The gain in construction employment in June was concentrated in homebuilding, with scattered increases in nonresidential building, while heavy and civil engineering construction employment—the category that includes many highway and other infrastructure workers—shrank by nearly 10,000 jobs,” said Ken Simonson, the association’s chief […]

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Report Reveals Commercial Construction Index Drops Amid Coronavirus Pandemic

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The recently released Q2 2020 USG Corporation + U.S. Chamber of Commerce Commercial Construction Index plunged from 74 in Q1 to 56 in Q2. Two of the index’s three main indicators—confidence in new business and revenue expectations—both fell 26 points, to 50 and 44, respectively, revealing the severe impact of the coronavirus pandemic on the construction industry. However, the third indicator, backlog, dropped only a modest three points, remaining consistent with the first half of 2018. Survey results were largely collected in the month of April, at the height of shutdown restrictions. The overall drop in the index stemmed in part from the fact […]

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Construction Spending Declines 2.1%, Private Work Outweighs Public Pickup, Says AGC

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Construction spending declined for the third month in a row in May as a sharp slowdown in private projects more than offset a rise in public work, according to an analysis by the Associated General Contractors of America of government data. Association officials warned that the pickup in public projects is likely to reverse soon unless the federal government acts quickly to invest in needed infrastructure and shore up crumbling state and local budgets.   “Three short-lived factors may have boosted construction spending in May: emergency healthcare projects, acceleration of highway work to make use of the drop in road […]

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Construction Input Prices Rise in May, Says ABC

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Construction input prices rose 0.8% in May compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released recently. Nonresidential construction input prices rose by 0.8% for the month as well. Of the 11 subcategories, only three experienced monthly decreases, with the largest decrease in steel mill products, which fell 3.1% in May. The rise in prices was driven primarily by the three energy subcategories, which experienced significant increases over the previous month. Crude petroleum was up 41.6%, while natural gas and unprocessed energy materials were up […]

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