Construction Employment Declines, Severe Weather Compounds Falling Demand for Nonresidential Projects, says AGC

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Construction employment declined by 61,000 in February, while the sector’s unemployment rate soared to 9.6% amid severe winter weather and continuing weakness in new nonresidential projects, according to an analysis by the Associated General Contractors of America of government data. Association officials urged Congress and the Biden administration to focus on new infrastructure funding, address rising materials prices and avoid disruptive measures like the PRO Act to stem further construction job losses. “The steep decline in construction employment in February continues a downward trend in nonresidential activity that began before the disruptions caused by last month’s freezes and power losses,” … Read more

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Private Nonresidential Construction Increases First Time in 7 Months

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Construction spending rallied in January as private nonresidential construction increased for the first time in seven months, according to an analysis of new federal construction spending data by the Associated General Contractors of America. Association officials said that nonresidential construction spending remains below pre-pandemic levels and that rising materials prices and proposed labor law changes threaten the sector’s recovery.   “Despite a modest upturn in January, spending on private nonresidential construction remained at the second-lowest level in more than three years and was 10% below the January 2020 spending rate,” said Ken Simonson, the association’s chief economist. “All 11 of … Read more

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Association Officials Call for Tariff Removal on Key Materials to Provide Immediate Relief for Hard-Hit Contractors

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Price increases—some to record-setting levels—and long delivery delays are causing hardships for construction firms that are also experiencing challenges in completing projects with crews limited by illness or new work site procedures resulting from the pandemic, according to an analysis by the Associated General Contractors of America of government data. Association officials urged the Biden administration to review and rescind a range of trade tariffs in place, including for Canadian lumber, that are contributing to the price increases.   “The extreme price increases, as reflected in today’s producer price index report and other sources, are harming contractors on existing projects … Read more

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National Survey Reveals 70% of Contractors Struggle to Find Qualified Craft Workers

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Seventy percent of construction firms report they are having a hard time filling hourly craft positions that represent the bulk of the construction workforce, according to the results of an industry-wide survey recently released by Autodesk and the Associated General Contractors of America. Association officials said that many firms are changing the way they operate, recruit and compensate, but cautioned that chronic labor shortages could have significant economic impacts absent greater investments in career and technical education. “In the short-term, fewer firms will be able to bid on construction projects if they are concerned they will not have enough workers … Read more

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