Marcum Releases Q1 2023 Report

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The Marcum Commercial Construction Index for the first quarter of 2023 reports that the construction industry retains momentum despite still-elevated inflation and ongoing labor shortages.  Despite that momentum, the combination of high interest rates and tightening credit conditions, along with a dour economic outlook, means that construction activity could slow in the latter part of 2023. Manufacturing-related construction continued to outpace the nonresidential segment. Residential construction volumes faded during the first quarter, though some parts of the segment have fared better than others. The industry continued to add workers at a faster pace than the broader economy during the first quarter. Labor … Read more

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Construction Industry Remains Constrained, Marcum Index Shows

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The Marcum Commercial Construction Index for the third quarter of 2022 reports that the construction industry remains constrained by labor shortages and elevated materials prices, but now also faces a rapidly deteriorating economic outlook and severely elevated borrowing costs. While some construction segments retain momentum, there are signs that broader economic weakness have begun to drag on the industry. The index is produced by Marcum’s National Construction Services group. Labor shortages remain the most pressing issue for the construction industry. “The number of unfilled construction jobs increased to 422,000 in September, the most in any month since at least 2000 … Read more

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Weakened Economy, Higher Borrowing Costs Effect Construction Industry, Reports Marcum Survey

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The Marcum Commercial Construction Index for the second quarter of 2022 reports that the construction industry continues to face rising costs and shortages of both labor and materials, but now also must contend with a weakening economy and elevated borrowing costs.   Notably, the residential sector has weakened significantly, while the outlook remains dicey for the nonresidential sector. The index is produced by Marcum’s National Construction Services group. As of March, construction employment surpassed pre-pandemic levels, but the industry continues to grapple with unprecedented labor shortages. Despite a somewhat bleak outlook, the Marcum index points to one segment that remains an outperformer. Spending … Read more

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First Quarter Marcum Construction Index Reports Increasing Costs, Labor & Material Shortages, Rising Interest Rates

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The Marcum Commercial Construction Index for the first quarter of 2022 reports that the construction industry faces increasing costs and shortages of both labor and materials, as well as rising interest rates. The residential sector has maintained its momentum while weakness continues to characterize the nonresidential sector. “While overall contractor confidence has dipped a bit recently, many contractors continue to expect growth in sales, employment and even profit margins over the next six months,” said Anirban Basu, Marcum’s chief construction economist and author of the report. “Despite rising costs of capital, demand for construction services remains elevated. Many contractors report … Read more

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Inflation + Labor Shortages Weigh Down Construction Industry in 3rd Quarter, Finds Marcum Index

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The Marcum Commercial Construction Index for the third quarter of 2021 reports that the construction industry’s recovery slowed during the summer in the face of labor shortages and rising material prices. Nonresidential construction spending remains 10.7% below January 2020 levels, but is 1.3 lower than it was one year ago. The index is produced by Marcum’s National Construction Services group. “The nonresidential construction segment added 33,000 net new jobs in October 2021 and supports 46,500 more jobs than it did in October 2020,” said Anirban Basu, Marcum’s chief construction economist and author of the report. “But a majority of that … Read more

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