Nonresidential Construction Spending in April Declines for 5th Straight Month, Reports AGC

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Nonresidential construction spending in April declined for the fifth-straight month to a two-year low as demand waned for numerous public and private project categories in the face of lengthening production and delivery times for materials, along with fast-rising prices for many items, according to an analysis of new federal construction spending data by the Associated General Contractors of America. Officials with the association urged the President and Congress to boost infrastructure investments, remove tariffs on key materials and take steps to address production and deliver backups for key construction supplies. “Both public and private nonresidential spending overall continued to shrink … Read more

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April Construction Employment Remains Below Pre-Pandemic Peak in 36 States, Reports AGC

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Construction employment in April remained below the pre-pandemic high set in February 2020 in 36 states and the District of Columbia, despite increases from March to April in 26 states, according to a recently released analysis by the Associated General Contractors of America of government employment data. Association officials said that the sector’s recovery was being undermined by increases in materials prices, delays in receiving key construction supplies and labor shortages.   “Today’s numbers show that construction has yet to fully recover from the effects of the pandemic in most parts of the country,” said Ken Simonson, the association’s chief … Read more

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Materials Price Increases, Supply Chain Cause Contractor Concerns

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The cost of goods and services used in construction accelerated further in April as more items logged double-digit increases over the past year, according to an analysis by the Associated General Contractors of America of government data. Meanwhile, nonresidential contractors struggled with delays in receiving materials and intensifying competition that limited their ability to pass on higher costs. Association officials urged the Biden administration to quickly roll back tariffs and quotas on imported construction materials that are adding to costs and availability problems.   “Today’s producer price index report — bad though it is — actually understates the severity of … Read more

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Construction Employment in March Remains Below March 2020 Levels, Says AGC

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Construction employment in March remained below March 2020 levels in 35 states despite a sizzling homebuilding market and a strong recovery from severe winter weather, according to an analysis by the Associated General Contractors of America of government employment data. Association officials cautioned, however, that a host of challenges, including continued project cancellations, rising materials prices and supply chain uncertainties are making business conditions for contractors difficult.   “Nonresidential contractors are coping with a depleted list of projects, extreme cost increases and unprecedented supply-chain problems,” said Ken Simonson, the association’s chief economist. “These headwinds are likely to keep industry employment … Read more

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Construction Employment Rebounds in March, Rising Costs + More Threaten Outlook Says AGC

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Construction employment climbed by 110,000 in March as the industry recovered from severe winter weather that pushed employment down by 56,000 in February, according to a recent analysis by the Associated General Contractors of America of government data. Association officials said they were encouraged by the recent job gains and the potential for new infrastructure investments. But they cautioned that rising prices and erratic delivery schedules for key construction materials — as documented in their recent Construction Inflation Alert – and continued project cancellations could undermine the sector’s recovery. “The rebound in March is certainly good news, but contractors face … Read more

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