National Association Reports Construction Firms Add 44K Jobs in October, Struggle with Supply Chain Challenges

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The construction industry added 44,000 jobs between September and October as nonresidential construction firms posted back-to-back increases for the first time since January, according to an analysis of government date by the Associated General Contractors of America. Association officials said the employment gains were welcome news but cautioned that employment levels remain well-below pre-pandemic totals as firms struggle with supply chain problems, labor shortages and federal inaction on infrastructure funding. “It is encouraging to see continuing job growth in nonresidential construction but the industry remains far behind the overall economy in recovering all of the job losses from the pandemic,” … Read more

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Construction Officials Renew Push for Immediate Removal of Tariffs on Key Construction Materials, Urge Congress and Administration to Take Steps to Repair ‘Every Level’ of Supply Chain

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The prices contractors pay for construction materials far outstripped the prices contractors charge in the 12 months ending in September, despite a recent decline in a few materials prices, while delivery problems intensified, according to an analysis by the Associated General Contractors of America of government data. Association officials urged Washington officials to end tariffs on key construction materials and take steps to help unknot snarled supply points. “Construction materials costs remain out of control despite a decline in some inputs last month,” said Ken Simonson, the association’s chief economist. “Meanwhile, supply bottlenecks continue to worsen.” The producer price index … Read more

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Nonresidential Construction Sector Posts 1st Job Gain Since March

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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

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Association Reports Prices for Key Construction Materials Increase, Contractors Struggle to Deliver On-Time

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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

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Construction Officials Caution Rising Materials Prices Threaten to Undermine Economic Recovery

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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

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