Nonresidential Building Spending to Grow through 2019, Cautious Outlook for 2020

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WASHINGTON, D.C. – Nonresidential construction spending on buildings is projected to grow by 4.4 percent through 2019, according to a new consensus forecast from The American Institute of Architects. Healthy gains in the industrial and institutional building sectors have bolstered growth projections for 2019; however, the AIA Consensus Construction Forecast Panel—consisting of leading economic forecasters—is suggesting that a broader economic downturn may be materializing over the next 12-24 months. Learn more about this Consensus Construction Forecast online. “Though the economy has been performing very well recently, trends in business confidence scores are red flags that suggest a slowdown is likely … Read more

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New Construction Starts in December Decline 10%

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NEW YORK, N.Y. – New construction starts in December fell 10 percent to a seasonally adjusted annual rate of $708.9 billion, continuing to retreat after November’s 7 percent slide, according to Dodge Data & Analytics. The December downturn reflected diminished activity for each of the three main construction sectors. Nonresidential building dropped 14 percent, as its commercial building segment lost momentum following its heightened November amount. Residential building pulled back 8 percent, due to reduced activity in December for both single-family and multifamily housing. Nonbuilding construction decreased 9 percent, with a steep plunge by the electric utility/gas plant category that … Read more

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Construction Employment Increases in December 2018 in 43 States, D.C.

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Forty-three states and the District of Columbia added construction jobs between December 2017 and December 2018, while 36 states added construction jobs between November and December, according to an analysis by the Associated General Contractors of America of Labor Department data. Association officials cautioned that growing labor shortages and trade disputes were leading to higher construction costs. “The construction industry ended 2018 in good shape in nearly all parts of the country, and contractors are optimistic about the volume of work available in 2019,” stated chief economist Ken Simonson. “But finding workers to execute those projects is likely to be … Read more

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Contractors Expect Demand to Expand in Every Market Segment in 2019

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Seventy-nine percent of construction firms plan to expand their payrolls in 2019 but an almost equal percentage are worried about their ability to locate and hire qualified workers, according to survey results released by the Associated General Contractors of America and Sage Construction and Real Estate. The findings are detailed in Contractors Remain Confident About Demand, Worried About Labor Supply: The 2019 Construction Hiring and Business Outlook Report. “Construction executives appear to remain confident about their market prospects for 2019 and plan to add headcount to cope with the added workload,” said Stephen E. Sandherr, the association’s CEO. “Even as … Read more

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Construction Input Prices Continue to Fall in December, Says ABC

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Construction input prices declined 1.7 percent in December on a month-over-month basis, yet are 3.5 percent higher than the same time last year, according to a recent Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. In December, nonresidential construction prices fell 1.6 percent but are up 4.1 percent compared to one year ago. Among 11 subcategories monitored in the data, six declined in price in last month, with the crude petroleum category registering the largest decrease at 3.7 percent and 11.1 percent year-over-year. The decline in input prices occurred despite a massive run-up in natural gas … Read more

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