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Construction input prices rise 0.3% in October, led by increased energy costs

2024-11-14T14:19:00-05:00

A new report by the Associated Builders and Contractors (ABC), analyzing the U.S. Bureau of Labor Statistics’ Producer Price Index data has revealed that construction input prices increased 0.3% in October. Nonresidential construction input prices also increased 0.3% for the month.

Last month, prices in all three energy subcategories increased. Natural gas prices increased by 29.3%, unprocessed energy materials prices rose 9.9%, and crude petroleum prices went up by 7.3%. Overall, construction input prices are 0.2% lower than they were a year ago, and nonresidential construction input prices are 0.5% lower.

Chart credit: Associated Builders and Contractors

“Higher energy prices drove the increase in construction input prices observed in October,” said ABC Chief Economist Anirban Basu. “While prices for a few other materials, like concrete and copper products, also rose for the month, overall input prices are lower than they were one year ago and have fallen 5% since reaching an all-t...

September nonresidential construction spending bumped by 0.1%, led by infrastructure investments

2024-11-01T15:04:00-04:00

Nationwide nonresidential construction spending increased by 0.1% in the month of September, according to an Associated Builders and Contractors (ABC) analysis of recent U.S. Census Bureau data. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.22 trillion.

September's pending went up in half of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.1%, while public nonresidential construction spending was up 0.4% in September.

Table credit: Associated Builders and Contractors

“Construction spending inched higher in September, with growth fueled by ongoing infrastructure investment,” ABC Chief Economist Anirban Basu said. “Spending accelerated in several publicly funded segments in September, including highway and street, sewage and waste disposal and water supply. The privately funded nonresidential construction segment didn’t perform as well for the month, with spending in that segment contracting for the second time in the past...

Construction Input Prices drop 0.9% in September

2024-10-11T14:34:00-04:00

A new analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data from the Associated Builders and Contractors (ABC) has show construction input to have decreased by 0.9% for the month of September. Nonresidential construction input prices also decreased 0.9% for the month.

Prices of concrete products were up 0.3% and steel miil products went down 1.3%. Gypsum products also rose 0.6% in September. Overall construction input prices are now 1.9% lower than a year ago, while nonresidential construction input prices are 2.1% lower.

Chart credit: Associated Builders and Contractors

"The decline in construction input costs observed in September was almost entirely due to a large decrease in oil prices," ABC Chief Economist Anirban Basu said. 'Certain materials, like gypsum, fabricated structural-metal products, asphalt and lumber exhibited sizable price increases for the month."

Chart credit: Associated Builders and Contractors

"While domestic freight rates are low by historical ...

Nonresidential construction spending jumps 0.1% for August

2024-10-01T13:54:00-04:00

The latest Associated Builders and Contractors (ABC) analysis of U.S. Census Bureau data on nonresidential construction spending has shown a slight 0.1% increase for the month of August.

On a seasonally adjusted annualized basis, nonresidential spending totaled $1.22 trillion. Private nonresidential spending decreased 0.1%, while public nonresidential construction spending was up by 0.3%.

"Nonresidential construction spending inched higher in August, and that’s almost entirely due to ongoing infrastructure investments," said ABC Chief Economist Anirban Basu.

Table credit: Associated Builders and Contractors

"Public spending accounted for all of the nonresidential segment’s monthly increase and has risen nearly 8% over the past year, significantly outpacing privately financed nonresidential construction activity," Basu's statement continued. "As a result of ongoing weakness in certain private subsegments, ABC’s Construction Backlog Indicator has fallen by a full month over the past y...

Construction input prices tick up by 0.1% in August

2024-09-13T10:45:00-04:00

Construction input prices increased slightly by 0.1% in August, according to a recent Associated Builders and Contractors (ABC) analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data.

Nonresidential construction input prices increased 0.2% for the month. Overall construction input prices are now 0.7% lower than they were a year ago, while nonresidential construction input prices are down by 0.9%.

Chart credit: Associated Builders and Contractors

“Construction input prices are now down almost a full percentage point over the past year,” ABC Chief Economist Anirban Basu said. “This is a welcome development for contractors, a plurality of whom now expect their profit margins to contract over the next six months, according to ABC’s Construction Confidence Index. Moderating materials price escalation, along with easing labor constraints and the near certainty that the Federal Reserve will begin lowering interest rates at its next meeting, should provide some relief to con...

Nonresidential construction spending drops 0.2% in July

2024-09-03T14:51:00-04:00

Nonresidential construction spending for July fell slightly by 0.2%, according to the latest Associated Builders and Contractors analysis of U.S. Census Bureau data published today.

On a seasonally adjusted annualized basis, nonresidential spending is now worth a total of $1.21 trillion. Private nonresidential spending decreased by 0.4%, while public nonresidential construction spending was up 0.2% in July.

Table credit: Associated Builders and Contractors

"Nonresidential construction spending declined for the second consecutive month in July but remains just 0.4% below the all-time high established in May," stated ABC Chief Economist Anirban Basu. "While Hurricane Beryl, which interrupted construction activity along the Gulf Coast in early July, contributed to the month’s weak construction spending data, the cumulative effect of high interest rates likely bears more blame. This is particularly true for nonresidential spending in the private sector, which fell 0.4% for the month and ...

Construction input prices up again by 0.4% in July

2024-08-14T15:17:00-04:00

Nationwide, construction input prices increased by 0.4% in July, according to a new analysis of the U.S. Bureau of Labor Statistics Producer Price Index by Associated Builders and Contractors (ABC). Nonresidential construction input prices also increased 0.4% for the month. Overall, construction input prices are 1.1% higher than they were a year ago, and nonresidential construction input prices are another 0.8% higher.

This ends a two-month streak of consecutive declines following six straight months of increases to begin 2024. "Despite the monthly uptick, which was largely driven by higher petroleum and natural gas prices, input prices are up just 1.1% year over year," ABC Chief Economist Anirban Basu stated.

Chart credit: Associated Builders and Contractors

"The lack of materials price escalation over the past 12 months is a welcome development for contractors, just 34% of whom expect their profit margins to expand over the next six months, according to ABC’s Construction Confidenc...

Nonresidential construction spending falls for third consecutive month

2024-08-02T13:29:00-04:00

Nonresidential construction spending dipped 0.2% nationwide in June, according to the latest Associated Builders and Contractors analysis of data published by the U.S. Census Bureau.

On a seasonally adjusted annualized basis, nonresidential spending totaled $1.21 trillion, with nonresidential construction expanding 5.3% from a year ago. Spending decreased on a monthly basis in 7 of the 16 nonresidential subcategories. Private nonresidential spending fell 0.1% in June, while public nonresidential construction spending was down 0.4%.

Table credit: Associated Builders and Contractors

“A new trend in nonresidential construction is emerging, and it’s not a good thing,” said ABC Chief Economist Anirban Basu. “Despite a bevy of megaprojects in certain parts of the nation, overall nonresidential construction spending appears to have entered a period of stagnation. The flattening of momentum has been apparent for the better part of a year, but the impact of higher interest rates, tighter cr...

Construction input prices fall 0.3% in June

2024-07-15T15:28:00-04:00

Construction input prices fell by 0.3% in June, according to the latest Associated Builders and Contractors (ABC) analysis of the U.S. Bureau of Labor Statistics' Producer Price Index. For the month, Nonresidential construction input prices declined by 0.4%. Overall construction input prices are 1.1% higher than year-ago levels, while nonresidential construction input prices are 0.7% higher.

Prices for lumber and wood products remain unchanged, while the cost of softwood lumber decreased by 0.5%, and concrete products went up by 0.4%. This is the second consecutive month of overall input price declines following a spate of consecutive increases that were recorded beginning last December.

Chart credit: Associated Builders and Contractors

“Construction materials prices dipped in June, perhaps a reflection of declining project starts in a number of construction segments and an associated dip in demand,” said ABC Chief Economist Anirban Basu. “For instance, input prices fell in the mu...

Nonresidential construction spending declines 0.1% in May

2024-07-03T14:36:00-04:00

Spending on nonresidential construction nationwide fell 0.1% in May, according to a newly released Associated Builders and Contractors analysis of U.S. Census Bureau data on the industry.

On a seasonally adjusted annualized basis, nonresidential spending now totals $1.21 trillion. Spending declined on a monthly basis in 9 of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.3%, while spending on public nonresidential construction was up 0.4% in May.

Table credit: Associated Builders and Contractors

“Nonresidential construction spending has fallen for two consecutive months yet remains just 0.2% below the all-time high achieved in March 2024,” states ABC Chief Economist Anirban Basu. “Much of that progress is attributable to ongoing infrastructure investments, which spurred a sizable 0.4% increase in publicly funded nonresidential spending in May.”

Table credit: Associated Builders and Contractors

“Private nonresidential spending has lagged and, after fa...

Construction input prices decline in May for the first time since December

2024-06-25T11:16:00-04:00

New analytic reporting on U.S. Bureau of Labor Statistics Producer Price Index data for May from the Associated Builders and Contractors (ABC) has documented an overall 0.9% decrease in construction input prices.

For the month, nonresidential construction input prices fell by 0.8%. Overall construction and nonresidential construction input prices are 2.1% and 2.2% higher, respectively, than a year ago. The cost of concrete decreased slightly by 0.1%, while the cost of steel products rose by 0.5%. Gypsum product prices went up by 0.4%, and decreases were also recorded in 2 of the 3 energy subcategories.

Chart credit: Associated Builders and Contractors

"For contractors, this data provides excellent news along two fronts," said ABC Chief Economist Anirban Basu. "First, construction input prices fell for the first time since December and, despite rising somewhat sharply over the first four months of 2024, are up just 2.1% year over year. Second, the Producer Price Index’s economywide m...

Nonresidential construction spending dips 0.3% in April

2024-06-04T17:12:00-04:00

In a new analysis of U.S. Census Bureau data by the Associated Builders and Contractors, national nonresidential construction spending decreased 0.3% in April to a seasonally adjusted total of $1.20 trillion. It follows March's slight increase of 0.2%.

Spending fell on a monthly basis in 10 of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.3%, and public nonresidential construction spending was down 0.2% in April.

Table credit: Associated Builders and Contractors

“Nonresidential construction spending fell for the second consecutive month in April but remains just 0.3% below the all-time high established in February,” said ABC’s Chief Economist Anirban Basu. “An unprecedented increase in manufacturing construction spending has pushed overall nonresidential activity 31.9% higher over the past two years. Ongoing investment in industrial facilities as well as significant infrastructure-related outlays will keep nonresidential spending elevated despite th...

Construction input prices rise another 0.5% in April

2024-05-14T14:37:00-04:00

The latest analysis of U.S. Bureau of Labor Statistics Producer Price Index data for April from the Associated Builders and Contractors (ABC) shows a 0.5% increase in construction input prices.

For the month, nonresidential construction input prices increased by 0.6%. Overall construction and nonresidential construction input prices are 2.3% and 2.2% higher, respectively than a year ago. The cost for concrete and steel mill products decreased slightly at 0.2% and 2.7% each over April, while prices increased in 2 of the 3 energy subcategories for the month overall.

Chart credit: Associated Builders and Contractors

“Construction input prices jumped half a percentage point higher in April and have increased 3.5% over the first four months of the year,” ABC’s Chief Economist Anirban Basu stated. “While iron, steel, asphalt and gypsum product prices fell in April, oil and copper prices surged, driving the monthly increase. Rising input prices will put pressure on profits at a time when ne...

Nonresidential construction spending ticks up slightly following February decline

2024-05-01T15:40:00-04:00

An analysis of U.S. Census Bureau data from the Associated Builders and Contractors (ABC) has shown nonresidential construction spending to have increased moderately by 0.2% in March. It follows February's decline of 1.0%. On a seasonally adjusted annualized basis, nonresidential spending now totals $1.19 trillion.

Spending was up in 10 of the 16 nonresidential subcategories on a monthly basis. Private nonresidential spending increased 0.2%, while public nonresidential construction spending expanded by 0.8%. The market for residential construction, conversely, was shown to have decreased by 0.7% over February.

"Nonresidential construction spending rebounded in March, ending a streak of two straight monthly declines," ABC's Chief Economist Anirban Basu said. "The increase was entirely due to increased public construction spending; private sector nonresidential spending dipped slightly lower in March. Despite wavering over the first three months of 2024, nonresidential spending is now...

Construction input prices climb 0.4% in March

2024-04-12T11:42:00-04:00

A new analysis of the latest U.S. Bureau of Labor Statistics Producer Price Index data from the Associated Builders and Contractors (ABC) has shown an increase in the cost of construction input prices of 0.4% for March.

In the month, nonresidential construction input prices increased by 0.4%. Both overall and nonresidential construction input prices are 1.7% higher than they were a year ago.

The overall increase came despite declines in the cost of energy inputs, with natural gas prices down 37%, unprocessed energy materials down 6.9%, and crude petroleum down 0.8%.

Chart credit: Associated Builders and Contractors

“There has been growing evidence of resurfacing inflationary pressures in the nation’s nonresidential construction segment during the past two months,” said ABC Chief Economist Anirban Basu. “Were it not for declines in energy prices, the headline figure for construction input price dynamics would have been meaningfully higher. A new set of supply chain issues is emerging,...

Nonresidential construction spending declines 1.0% for February, according to new ABC analysis

2024-04-03T12:53:00-04:00

Spending on nonresidential construction declined 1.0% in February to a seasonally adjusted total of $1.179 trillion, according to an Associated Builders and Contractors (ABC) analysis of data published this week by the U.S. Census Bureau.

The figures showed a decrease in spending for 15 of the 16 nonresidential subcategories on a monthly basis. Private nonresidential spending fell 0.9%, while public nonresidential construction spending was down 1.2% in February.

“Virtually every nonresidential construction segment experienced a decline in spending in February,” said ABC Chief Economist Anirban Basu. “In certain instances, the monthly decline was sharp, including health care (-2.2%), commercial (-1.9%) and water supply (-1.8%). The optimist will likely shrug off both the January and February nonresidential construction spending declines as merely reflecting winter weather. The pessimist will proclaim this release a wake-up call to contractors and an indication that higher interest r...

Construction input prices climb 1.4% in February

2024-03-15T17:21:00-04:00

In the month, nonresidential construction input prices increased by 1.3%. Overall construction input prices are 1.5% higher than they were a year ago, while nonresidential construction input prices are a total of 1.8% higher.

The prices for softwood lumber (1.7%), concrete (0.3%), construction sand/gravel (1.0%), and insulation materials (2.1%) all rose, while a drop of 0.3% was recorded for fabricated structural steel metal products.

Chart credit: Associated Builders and Contractors

“For the last several weeks, inflation data have been coming in hotter than anticipated,” said ABC Chief Economist Anirban Basu. “This was also true for the February construction input price data, which indicated that upward price pressures are reemerging after a period of calm. Month...

Construction input prices rise 1% for January following December drop

2024-02-23T13:59:00-05:00

The value of construction input prices increased by 1% for the month of January when compared to December’s totals, according to an Associated Builders and Contractors (ABC) analysis of the latest U.S. Bureau of Labor Statistics Producer Price Index data.

For the month, nonresidential construction input prices increased 0.9%. Overall construction input prices are now 0.4% higher than they were a year ago, with nonresidential construction materials prices another 0.7% higher.

Steel mill product input prices were up 5.4%, while construction sand, gravel, and crushed stone rose 3.3%, softwood lumber 1.1%, and concrete products 0.8%. The price of gypsum products declined by 1.3%.

Chart credit: Associated Builders and Contractors

“Construction materials prices surged in January, ending a streak of three consecutive monthly declines,” ABC's Chief Economist Anirban Basu commented on the findings. “While this represents the largest monthly increase since August 2023, input prices are essenti...

New AI resource guide details tech solutions for building contractors

2024-02-15T20:36:00-05:00

The industry group Associated Builders and Contractors (ABC) has just published a new guide to AI resources for contractors working closely with architects on building projects across the U.S.

“The possibilities of AI technology may sound endless, but we must first educate ourselves on the basics, and this resource is a starting point to understand AI and its potential impact on the construction industry,” said ABC Director of Construction Technology and Innovation Patrick Scarpati, who authored the guide. “The industry has immense opportunities to evaluate how we can better deliver projects, and we can lean on AI in achieving essential goals like upskilling, workforce development, knowledge transfer, supply chain optimization, enhanced safety design and planning and much more.”

Among the tools ABC says are supposed to make the building trade more efficient, safer, and productive are Autodesk’s new Construction IQ risk analysis software, the Hypar building modeling program that let...

Construction input prices drop again for December, driven by declines in all sectors

2024-01-16T14:43:00-05:00

The latest Associated Builders and Contractors (ABC) construction input price analysis for the month of December has registered a 0.6% decrease over November’s trend-reversing totals. Nonresidential construction input prices were down another 0.4%, with the commercial and multifamily sectors declining by 0.2% and 0.5%, respectively.

Overall construction input prices are now 1.2% higher than a year ago, and nonresidential construction input prices are another 1.6% higher. The price of softwood lumber has notably fallen by 14.6% in a 12-month span, joined by a substantial decline in the price of natural gas, which was down some 60.5% in the same time period.

Chart credit: Associated Builders and Contractors

“Construction input prices fell sharply in December,” ABC’s Chief Economist, Anirban Basu, said in a news release. “While plunging oil prices are the primary factor behind the sharp decline, most input prices were tame in 2023’s final month. That serves as a fitting end to a year du...

Nonresidential construction dipped slightly in November, reversing 17 months of growth

2024-01-04T13:55:00-05:00

Spending on nonresidential construction dropped by 0.1% in November in a reversal of a 17-month growth period for the sector, according to an analysis of new U.S. Census Bureau data from the industry group Associated Builders and Contractors (ABC).

The total amount of spending in the sector was $1.143 trillion. Spending on a monthly basis was down in 11 of the 16 nonresidential subcategories. Private nonresidential spending increased by 0.2%, while public nonresidential construction spending fell 0.6% for the month.

“Nonresidential construction spending dipped in November due to a 0.6% decline in public-sector activity,” said ABC’s Chief Economist Anirban Basu. “Despite the monthly setback, spending is up an impressive 18.1% over the past year, with the gains evenly distributed between the public and private sectors, and currently sits just below the all-time high established in October.”

Table credit: Associated Builders and Contractors

Although the numbers indicate a mild downturn,...

October sees construction costs decline

2023-11-16T17:28:00-05:00

A new Associated Builders and Contractors (ABC) analysis of statistics provided by the U.S. Bureau of Labor Statistics Producer Price Index data has shown a slight decline in construction input prices of 1.2% for the month of October.

Per ABC’s analysis, Construction input prices are 1.1% lower than a year ago, while nonresidential construction input prices are recorded as being another 0.7% lower. Prices fell in 2 of the 3 energy subcategories last month, propelled by a drop in crude petroleum input prices of 2.9%. Unprocessed energy materials were also recorded to be down 0.3%, while natural gas prices rose 10.9% in October. Iron and steel prices also fell by 2.3% on the month overall.

Only inputs to Industrial projects and multifamily housing construction was shown to have risen year-over-year, according to the ABC.

“The October construction materials prices report should be cheered by most contractors,” ABC Chief Economist Anirban Basu said of the report. “Yesterday’s Consume...

Construction input prices marginally increased from last month, remaining 41% above pre-pandemic levels

2023-10-16T11:50:00-04:00

Construction input prices remain marginally higher than one year ago, according to an analysis of U.S. Bureau of Labor Statics Producer Price Index data conducted by the Associated Builders and Contractors (ABC). Overall construction input prices are 0.3% higher than a year ago, while nonresidential construction prices are 0.6% higher.

According to the ABC analysis, overall input prices have increased 0.2% over the past month, driven by a 10.1% increase in the price of crude petroleum, a 7.5% increase in unprocessed energy materials, and a 0.1% increase in natural gas prices. Among the inputs that decreased in value over the past month were steel mill products (down 3.7%), softwood lumber (down 1.7%), and iron and steel (down 2.4%).

Meanwhile, the inputs that have driven the 0.3% overall increase over the past year are brick and structural clay tile (up 6.4%), concrete products (up 9.1%), and construction machinery and equipment (up 6.1%). Price reductions that have helped counter s...

‘No sign of a construction recession in the near term,’ says ABC Chief Economist

2023-09-21T11:51:00-04:00

The Associated Builders and Contractors’ Chief Economist Anirban Basu has struck an optimistic note about the near-term health of the construction industry. The assessment comes as ABC releases its latest Construction Backlog Indicator, which found that backlogs declined to 9.2 months in August from 9.3 months in July. The figure remains 0.5 months above the August 2022 level.

“There’s no sign of a construction recession in the near term,” Basu said. “If anything, contractors are more upbeat, as policy and technology shifts along with economic transformation, are creating substantial demand for improvements and growth in America’s built environment.”

Construction Backlog Indicator. Image credit: Associated Builders and Contractors

ABC’s latest figures also suggest a divide in resilience between contractors with more than $100 million in annual revenues and smaller contractors. Backlogs among contractors with revenues over $100 million increased by 3.2 months from July, while backlogs...

Hike in fuel costs drives first increase in construction input prices in six months

2023-09-18T08:00:00-04:00

Construction input prices ticked up 1.5% in August, the first increase in six months, due to a surge in energy costs, according to a new Associated Builders and Contractors’ analysis of U.S. Bureau of Labor Statistics Producer Price Index data released Thursday.

These readings come as a shock as the flattening of costs suggested that inflation was cooling. According to a separate analysis from the Associated General Contractors of America, a major increase in diesel fuel costs in August drove the overall increase in materials prices. The producer price index jumped 34.6% last month, which is the largest one-month hike since 1990. In addition, other construction materials such as concrete and switchgear also experienced price increases.

Associated Builders and Contractors (ABC) chief economist Anirban Basu expects future readings to demonstrate excess inflation as labor costs continue to rise, aggressive spending continues, oil-producing nations limit output, and global supply chains reorganize.

Nonresidential construction spending shows marginal growth in ABC analysis

2023-09-05T14:56:00-04:00

National nonresidential construction spending saw a modest rise of 0.1% in July, according to a new analysis by the Associated Builders and Contractors (ABC) of U.S. Census Bureau data. When adjusted for seasonality on an annualized basis, nonresidential spending stood at $1.08 trillion, marking a 16.5% increase from the previous year.

The report found that of the 16 nonresidential subcategories, eight recorded an uptick in spending on a month-over-month basis. Private nonresidential spending showed an increase of 0.5%, while public nonresidential construction spending saw a decline of 0.4%.

“After today’s jobs report, which indicated that nonresidential construction added an outsized number of jobs in August, one would have expected a strong construction spending growth number as well,” said ABC Chief Economist Anirban Basu in a statement. “Alas, the economic data, just like the economy, continue to be full of surprises. In July, nonresidential construction spending barely expanded...

Demand for construction workers remains high as overall U.S. labor demand dips

2023-09-01T17:47:00-04:00

The nationwide demand for labor is dulling, but construction still faces a shortage of workers. Construction counted 363,000 job openings at the end of July, according to the Bureau of Labor Statistics, a decrease of 23,000 jobs from June.

As noted by the chief economist for Associated Builders and Contractors (ABC), Anirban Basu, job openings, across all industries, are at the lowest level since March 2021, and the rate at which workers are quitting their jobs has returned to the pre-pandemic norm. The demand for construction workers, however, still remains high. Last month's 363,000 job openings are still 10,000 more than the amount during the same period last year.

The recent dip in labor demand has been attributed to continued inflation and higher interest rates. According to Construction Dive, ABC members have indicated that they will still increase hiring efforts and are unlikely to lay off workers. Money entering the construction industry through legislation aiming to spur major projects is straining the pool of labor as contractors are competing for the same skilled workers.

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March saw the highest rate of construction layoffs since the start of the pandemic

2023-05-04T17:49:00-04:00

The number of open jobs in construction dropped by 73,000 to 341,000 in March, the second lowest since mid-2021, according to an Associated Builders and Contractors’ analysis of new Bureau of Labor Statistics data. The openings represent jobs for which employers are actively recruiting.

This figure reflects a 17% decrease in job openings from March 2022. The quantity of open jobs has been volatile so far this year as January saw a 50% dip followed by a sharp rebound in February. According to the Associated Builders and Contractors (ABC), 3.7% of construction workers were laid off or discharged in March, which is the highest rate since the start of the pandemic.

Previously on Archinect: Construction job openings in February rebound after sharp dip in January

ABC attributes the fall in job openings to fragility in the single-family homebuilding sector. While this is cause for alarm, only a little over 9% of ABC members, which mainly work in the nonresidential sector, expect their staffing levels to fall over the next six months. It is expected this landscape will remain the same over the next few months as inflated interest rates are set to rise again.

Construction job openings in February rebound after sharp dip in January

2023-04-05T17:04:00-04:00

After a “simply shocking” January where half of construction’s job openings vanished, the number of positions for which contractors are actively recruiting increased by 129,000 in February, according to analysis of Bureau of Labor Statistics data by Associated Builders and Contractors.

January witnessed a 50% drop of construction job openings from the month before, with 248,000 unfilled jobs available that month. This figure was 148,000 jobs below the same time last year. A sharp rebound in February saw 412,000 job openings, which led the likes of ABC Chief Economist Anirban Basu to designate January as a “statistical aberration”. However, this number is still down 9,000 compared to the year prior.

Basu said that demand for construction workers remains high even with the threat of a recession, the slow implementation of the United States’ infrastructure rebuilding program, higher interest rates, and financing concerns. He goes on to say that the rise in job openings indicates that nonresidential construction firms are expecting growth as they anticipate increases in sales, employment, and profit margins. Despite high demand, Construction Dive noted a report by the Associated General Contractors of America that many employers lack the staffing to bid on projects.

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Nonresidential construction spending rises by nearly 1% in November, driven by boosts in manufacturing and conservation projects

2023-01-06T12:46:00-05:00

According to a recent analysis of U.S. Census Bureau data by the Associated Builders and Contractors (ABC), national nonresidential construction spending rose 0.9% in November. On a seasonally adjusted annualized basis, spending in this sector totaled $930.1 billion for the month.

Across the 16 nonresidential subcategories, nine saw increases in spending over the month. Subcategories that experienced dips in spending in November include: commercial, health care, communication, highway and street, amusement and recreation, public safety, and water supply. While spending in these areas fell, each except communication saw growth over 12 months. Notable growth came in the manufacturing and conservation and development subcategories, which led the group with 6.4% and 14.6% increases, respectively. Additionally, private nonresidential spending was up 1.7%, while public nonresidential spending fell 0.1% in November.

Image courtesy of Associated Builders and Contractors

“The average nonresi...