Construction Costs Soar in May, Outpace Contractor Pricing

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Construction costs accelerated again in May, with steep increases for a wide range of building and road materials, including many that are subject to tariffs that could drive prices still higher, according to an analysis by the Associated General Contractors of America of new Labor Department data. Association officials say that the construction industry will bear a heavy share of the tariffs’ costs. “Prices jumped at double-digit annual rates for metals, lumber and plywood, and diesel fuel, while ready-mixed concrete, asphalt paving and roofing materials also had unusually large increases,” said the association’s chief economist, Ken Simonson. “The cost of … Read more

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Construction Costs Surge in April

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The cost of goods used in construction jumped in April at the fastest year-over-year rate since 2011, with ongoing increases for a wide range of building materials, including many that are subject to proposed tariffs that could drive prices still higher and cause scarcities, according to an analysis by the Associated General Contractors of America of Labor Department data. Association officials said that the new data indicates many firms are already being squeezed by higher materials prices that they are unable to pass along to their customers. “Contractors have started to boost the prices they charge, but they are falling … Read more

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New Construction Starts in April Pull Back 13 Percent

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NEW YORK, N.Y. – The value of new construction starts in April fell 13 percent from the previous month to a seasonally adjusted annual rate of $674.3 billion, according to Dodge Data & Analytics. The decline follows the 11 percent gain reported for March, which was the highest level of construction starts over the preceding six months. The loss of momentum in April was widespread, involving each of the three main construction sectors. Nonbuilding construction (public works and electric utilities/gas plants) plunged 22 percent after its 74 percent hike in March that featured the start of the $3.5-billion Mountain Valley … Read more

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Dodge Momentum Index Moves Higher in April

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NEW YORK, N.Y. – The Dodge Momentum Index jumped 6.1 percent in April to 163.0 (2000=100) from the revised March reading of 153.7. The momentum index 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. Both components of the momentum index moved higher in April, with the commercial component up 6.3 percent and the institutional component up 5.8 percent. Over the last two months the commercial portion of the index has posted the most aggressive growth, fueled by … Read more

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Construction Employment Rises in 38 States & D.C. Year-Over-Year, 29 States Add Construction Jobs in April

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Thirty-eight states and the District of Columbia added construction jobs between April 2017 and April 2018, while 29 states added construction jobs between March and April, according to an analysis by the Associated General Contractors of America of Labor Department data. Association officials said the employment growth likely would have been higher if firms could find more qualified workers to hire. “Firms in many parts of the country are working to keep pace with growing demand for construction services,” said chief economist Ken Simonson. “Many of those firms are having a hard time finding and hiring enough qualified workers as … Read more

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