Construction Firms Look to Public Sector Demand in 2023; 69% of Firms Plan to Hire, Says AGC

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A new industry outlook survey from The Associated General Contractors of America and Sage shows contractors expect infrastructure and other public-sector funding will help as growth slows for many types of private construction. Labor shortages and supply chain issues persist. Construction contractors are less optimistic about many private-sector segments than they were a year ago, but their expectations for the public sector market have remained relatively bullish. The findings are detailed in High Hopes for Public Sector Funding Amid Workforce and Supply Chain Challenges: The 2023 Construction Hiring & Business Outlook. “Contractors are optimistic about the construction outlook for 2023, yet … Read more

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Construction Spending Ticks Up, Driven by Nonresidential Construction

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Total construction spending increased by .2% for the month of September and by 10.9% for the year as nonresidential construction activity now outpaces residential construction, according to an analysis the Associated General Contractors of America released of federal spending data. Association officials noted that gains in public sector transportation construction have lagged other fast-growing segments as officials grapple with Buy America and other new regulatory requirements. Construction spending, not adjusted for inflation, totaled $1.811 trillion at a seasonally adjusted annual rate in September, .2% above the August rate and 10.9% above the September 2021 rate. Spending on private residential construction … Read more

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Construction Spending Falls with Declines in Residential, Nonresidential Activity Amid Growing Labor and Materials Shortages

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Total construction spending fell by 1.1% in June as spending on new housing and nonresidential projects declined compared to May, according to an analysis the Associated General Contractors of America released of federal spending data. Association officials said that the construction spending figures are being impacted as materials and labor shortages are slowing schedules and increasing the cost of construction. Construction spending, not adjusted for inflation, totaled $1.76 trillion at a seasonally adjusted annual rate in June. That figure was 1.1% below the upwardly revised May rate and 8.3% higher than in June 2021. Private nonresidential construction spending declined for the … Read more

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Construction Employment Exceeds Pre-Pandemic Peak in 32 States in April

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Construction employment exceeded pre-pandemic levels in 32 states in April, according to a new analysis of federal employment data released by the Associated General Contractors of America. Association officials cautioned, however, that record high job opening levels in the construction sector indicate that many firms are having a hard time finding workers to hire, putting future job gains at risk.   Ken Simonson, the association’s chief economist noted that government data from the monthly job openings and labor turnover survey show that there were 415,000 job openings in the construction industry at the end of March. That was the highest … Read more

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Nonresidential Construction Input Prices Soar 21% From April 2021 to Last Month

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Prices of materials and services used in new nonresidential construction leaped nearly 21% in April from year-ago levels, according to an analysis by the Associated General Contractors of America of government data. The association urged the Biden administration to provide relief to hard-hit employers by ending tariffs on key construction materials and reconsidering its recently proposed buy America regulations that will make it harder for firms to find and pay for key construction materials.   “Nonresidential contractors have endured 12 months of 20% increases in the cost of items they need to build projects,” said Ken Simonson, the association’s chief … Read more

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