The construction industry gained 22,000 jobs between August and September as nonresidential construction firms added employees for the first time in six months, according to an analysis by the Associated General Contractors of America of government data. Association officials said nonresidential construction has been affected by the widespread supply chain problems, which are causing owners already uncertain about future demand for commercial space to delay or even cancel some projects. “While it is refreshing to see job gains in both residential and nonresidential construction, nonresidential building and infrastructure employment remains far below its pre-pandemic peak,” said Ken Simonson, the association’s … Read more
Association Reports Prices for Key Construction Materials Increase, Contractors Struggle to Deliver On-Time
The prices contractors pay for construction materials continued to increase in August, while many firms report struggles to get those materials delivered on time, according to an analysis by the Associated General Contractors of America of government data. Association officials urged Washington officials to take steps to help address the challenges impacting the entire supply chain and driving the price escalations. “July was the seventh-straight month of double-digit price increases for construction inputs,” said Ken Simonson, the association’s chief economist. “Adding to the challenge, contractors are struggling to pass along even a fraction of these added costs onto their clients.” … Read more
Construction Officials Caution Rising Materials Prices Threaten to Undermine Economic Recovery
Unprecedented price increases for a wide range of goods and services used in construction pushed up contractors’ costs by a devastating 26.3% from June 2020 to June 2021, according to an analysis by the Associated General Contractors of America of government data. Association officials cautioned that rising materials prices are making it difficult for many construction firms to benefit from the re-opening of the economy, undermining the sector’s ability to add new, high-paying jobs. “Contractors have been pummeled in the past year by cost increases, supply shortages and transport bottlenecks,” said Ken Simonson, the association’s chief economist. “Meanwhile, falling demand … Read more
Association Officials Report Construction Employment Declines by 7,000 in June
Construction employment declined by 7,000 between May and June as the industry still employs 238,000 fewer people than before the pandemic, according to an analysis by the Associated General Contractors of America of government data. Association officials said that job losses in the nonresidential construction sector offset modest monthly gains in residential construction as many firms struggle with worker shortages, supply chain disruptions and rising materials prices. “It is hard for the industry to expand when it can’t find qualified workers, key building materials are scarce and the prices for them keep climbing,” said Stephen E. Sandherr, the association’s CEO. … Read more
Nonresidential Construction Spending Continues Decline Amid Supply Chain, Labor Challenges
Overall construction spending declined in May compared to the prior month, driven by continued drops in nonresidential construction activity as firms struggle with supply chain disruptions, rising materials prices and labor shortages, according to an analysis of new federal construction spending data by the Associated General Contractors of America. Officials with the association called on the Biden administration to remove tariffs on key construction materials, allow unemployment supplements that are keeping people out of the workforce to expire and take steps to address supply chain backups. “Many construction firms would likely be even busier if only they could find … Read more