New Industry Outlook Reports on Industry Struggles with Declining Demand, Growing Project Delays + Cancelations

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Most contractors expect demand for many types of construction to shrink in 2021 even as the pandemic is prompting many owners to delay or cancel already-planned projects, meaning few firms will hire new workers, according to survey results released by the Associated General Contractors of America and Sage Construction and Real Estate. The findings are detailed in The Pandemic’s Growing Impacts on the Construction Industry: The 2021 Construction Hiring and Business Outlook Report.   “This is clearly going to be a difficult year for the construction industry,” said Stephen E. Sandherr, the association’s CEO. “Demand looks likely to continue shrinking, … Read more

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New Coronavirus Recovery Measure to Provide Relief for Contractors Coping with Project Cancelations, Falling Demand

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The Associated General Contractors of America’s CEO Stephen E. Sandherr issued the following statement in reaction to the release of compromise coronavirus relief legislation slated for House and Senate votes as early as Dec. 21:   “The new coronavirus recovery measure announced today should provide some needed relief for a construction industry that is coping with project cancellations and job losses in most parts of the country. Most notably, the measure includes $10 billion in needed funding to help address the pandemic-induced shortfalls in state transportation revenues. This new funding should keep a number of road projects from getting canceled … Read more

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One-Third Metro Areas Add Construction Jobs in Latest 12 Months

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Only 30% of the nation’s metro areas added construction jobs in the past year, according to an analysis of new government data that the Associated General Contractors of America released. Association officials said construction employment in most parts of the country was being impacted by the pandemic as businesses and local governments curtail planned construction projects. “The pandemic has devastated the finances for businesses, institutions and state and local governments, leading to widespread postponements and cancellations of construction projects,” said Ken Simonson, the association’s chief economist. “As contractors use up the funds from Paycheck Protection Program loans, even more job … Read more

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Nonresidential Construction Spending Remains Flat in October, Residential Construction Expands, says AGC

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The construction industry’s fortunes continued to diverge in October, as residential construction expanded again while nonresidential construction remained largely unchanged from a month ago and is down compared to last year, according to an analysis of new federal construction spending data by the Associated General Contractors of America. Association officials said that demand for nonresidential construction is being hit by private sector worries about the coronavirus, tighter state and local budgets and the lack of new federal pandemic relief measures.   “The October spending report shows private nonresidential construction is continuing to slide,” said Ken Simonson, the association’s chief economist. … Read more

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Construction Sector Adds 84,000 Workers in October, Project Cancellations Undermine Future Gains, says AGC

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Construction employment increased by 84,000 jobs in October, with jobs added in both nonresidential and residential categories, according to a recent analysis by the Associated General Contractors of America of government data. Association officials cautioned, however, that the pandemic is causing a growing number of construction projects to be canceled or delayed, according to a survey the association released in late October.   “The employment data for October is good news, but our latest survey found that only a minority of contractors expect to add to their workforce in the next 12 months,” said Ken Simonson, the association’s chief economist. … Read more

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