Nonresidential Construction Spending Continues Decline Amid Supply Chain, Labor Challenges

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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

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Analysis Reports Construction Employment Slips by 20K in May, Supply-Chain Problems Plague Nonresidential Contractors

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Construction employment declined for the third time in the past four months in May as nonresidential contractors coped with lengthening and unpredictable delivery times that limited their ability to start or complete projects, according to an analysis by the Associated General Contractors of America of government data. Association officials added that many contractors report they are having a hard time finding qualified workers to hire as some people remain reluctant to return to work while their children are learning from home, or they are collecting elevated unemployment supplements. “Steadily worsening production and delivery delays have exceeded even the record cost … Read more

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Contractor Confidence up Despite Slow Recovery, Finds Marcum Commercial Construction Index

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The Marcum Commercial Construction Index for the first quarter of 2021 reports that the industry has yet to reach the broader economy’s pace of recovery despite elevated contractor confidence. The construction industry has added 917,000 jobs since May 2020, equivalent to roughly 82% of the jobs lost during the initial months of the pandemic. The index is produced by Marcum LLP’s national Construction Services group. “Despite the malaise characterizing a number of commercial real estate segments, contractor confidence increased steadily during the first quarter of 2021,” wrote Anirban Basu, author of the report and Marcum’s chief construction economist. “According to … Read more

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Construction Adds 110K Jobs in March, ABC Says Here Comes Tsunami of Growth

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The construction industry added 110,000 jobs in March, according to an Associated Builders and Contractors analysis of data released by the U.S. Bureau of Labor Statistics. The industry has added 931,000 jobs since April 2020, recovering 83.6% of the jobs lost during earlier stages of the COVID-19 pandemic. The construction unemployment rate fell to 8.6% in March from 9.6% in February, but it is still 1.7 percentage points higher than in March 2020. Unemployment across all industries declined from 6.2% in February to 6.0% in March. A significant percentage of the job growth was registered in nonresidential construction, which added … 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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