Archive

Posts Tagged ‘construction news’

October Shows Increase In Construction Spending

December 6, 2010 1 comment

Associated General Contractors of America reports construction spending up 0.7 percent in October. Rise was driven by power projects and public construction.  Still waiting on a significant private sector increase.

Total construction spending increased by 0.7 percent in October, driven largely by growing demand for power projects and public construction, the Associated General Contractors of America noted today in an analysis of new Census Bureau data. The new data, however, indicated continued weakness in many construction categories, including private nonresidential and single family construction, association officials observed.

Full Press Release: AGC of America

Advertisements
Categories: News

U.S. Economic Recovery Looks To Texas As Leader

December 1, 2010 1 comment

The Brookings Institution Metropolitan Policy Program reports Texas is one of the leaders in economic recovery.

Four Texas metropolitan areas — Houston, Austin, Dallas and San Antonio — dominate the top 15 U.S. cities in a global study to determine the level of cities’ recovery from the recession.

The Brookings Institution Metropolitan Policy Program report ranks 150 cities: 50 in the United States, 50 in Europe and 50 in the rest of the world. Austin was the highest-ranked U.S. city and No. 26 in the world. Dallas ranks as the No. 4 U.S. city and No. 39 in the world. San Antonio ranks No. 11 in the U.S. and No. 51 in the world.

Houston is ranked No. 15 in the U.S. and No. 61 in the world, according to the report, Global MetroMonitor, which received assistance from the London School of Economics and Political Science.

San Antonio, Houston and Dallas rose in global rankings during the past two years from their pre-recession rankings. Austin stayed about the same, ranking No. 25 among the 150 metro areas before the recession.

The report found that income and job growth in metro areas exceed those of their nations as a whole, which means large cities are leading the global recovery from the 2007-09 recession.

The cities recovering the fastest are outside the United States. Twenty-nine of the 30 best-recovering cities are outside the U.S., with only Austin making that group.

Metro areas in Asia, Latin America and the Middle East are making the strongest recoveries. The top five, in order, are: Istanbul, Turkey; Shenzhen, China; Lima, Peru; Singapore; and Shanghai, China.

Read More: Chron.com – Texas Dominates Economic Recovery Rankings

Categories: News

29 States See Construction Employment Expansion From September to Novemeber

November 29, 2010 1 comment

Associated General Contractors of America Reports:

Construction employment expanded in 29 states between September and October, while fewer people are working in construction compared to last year in 39 states, the Associated General Contractors of America reported in an analysis of state employment data released today by the Labor Department. The new figures continue a nearly year-long trend of ups and downs in construction employment as the industry performs stimulus-funded work yet grapples with broad market uncertainty.

Read Full Article: ForConstructionPros.Com

Categories: Construction, News

“Slow Progress” Is ABC 2011 Construction Industry Prediction

November 15, 2010 1 comment

Associated Builders and Contractors (ABC) released its 2011 economic forecast for the U.S. commercial and industrial construction industry.  The verdict not so good…”slow progress.”

“The period of rapid improvement in spending levels did not begin in 2010, and will not happen in 2011,” said ABC Chief Economist Anirban Basu.

“ABC’s forecast of nonresidential construction spending for next year suggests that total spending will be 0.1 percent less than 2010 levels. Privately financed construction levels are projected to decline 0.2 percent while publicly financed construction levels are projected to be virtually flat. The bottom line is the nonresidential construction recession is largely over, but 2011 will be associated with grudgingly slow progress,” said Basu.

“To the extent that there has been recovery in nonresidential construction, it has been concentrated in segments closely tied to federal funding and the stimulus package passed in February 2009 in the midst of the recession,” Basu said. “For example, five nonresidential construction categories monitored by the U.S. Census Bureau have experienced rising spending levels from the same time last year, including conservation and development, water supply, sewage and waste disposal, and highway and street, and transportation.

“In contrast, 11 nonresidential construction sectors have experienced year-over-year declines in spending, a reflection of the lack of available capital to finance growth and investment,” said Basu. “The deepest downturns registered in construction were related to lodging, manufacturing, office and commercial. ABC expects that the lack of access to capital will continue to deter economic progress in 2011, and is forecasting 1.7 percent GDP growth next year despite ongoing federal stimulus funding and the expectation of a more expansive monetary policy.

Year-to-Date Performance: 2009 – 2010 and ABC’s 2011 Forecast

Indicator 2009 2010 2011* % Change2010-2011
Construction Put in Place – (millions, seasonally adjusted annual rate)U.S. Census Bureau 
Total Nonresidential
Lodging $25,474 $11,653 $10,814 -7.2%
Office $52,717 $36,225 $34,413 -5.0%
Commercial $55,042 $41,112 $38,645 -6.0%
Health care $45,111 $40,038 $40,338 0.7%
Educational $102,907 $87,650 $85,897 -2.0%
Power $89,405 $79,568 $83,944 5.5%
Manufacturing $58,513 $39,025 $34,342 -12.0%
Total All Industries $654,207 $557,867 $557,242 -0.1%
Private Nonresidential
Lodging $25,350 $11,051 $10,256 -7.2%
Office $37,904 $22,858 $21,716 -5.0%
Commercial $51,286 $38,393 $36,089 -6.0%
Health care $35,651 $29,843 $31,000 3.9%
Educational $16,800 $13,275 $14,500 9.2%
Power $77,622 $66,542 $71,025 6.7%
Manufacturing $57,976 $38,313 $33,715 -12.0%
Total All Industries $347,759 $259,214 $258,716 -0.2%
Public  Nonresidential
Office $14,813 $13,366 $12,698 -5.0%
Commercial $3,756 $2,719 $2,556 -6.0%
Health care $9,460 $10,195 $9,338 -8.4%
Educational $86,107 $74,375 $71,397 -4.0%
Power $11,783 $13,026 $12,919 -0.8%
Total All Industries $306,448 $298,653 $298,526 0.0%
Construction Employment (thousands, not seasonally adjusted)U.S. Department of Labor 
Nonresidential 726.2 676.2 677.2 0.2%
Residential 639.6 579.8 726.9 25.4%
Producer Price Index U.S Department of Labor 
Inputs to Construction Industries – Index Value 188.6 196.2 203.3 3.6%
Gross Domestic Product (2005 billions of dollars) U.S Department of Commerce 
Real GDP 12,880.6 13,353.4 13,587.1 1.75%

*= Data predictions by ABC Chief Economist 

…and the 2011 outlook?

The national recession that began in December 2007 ended in June 2009.  Nonresidential construction typically lags the overall performance of the U.S. economy by 12 to 24 months. Even as the broader U.S. economy entered a period of substantial decline in 2008, nonresidential construction volumes continued to expand and grew 9 percent that year. Eventually, the weakness of the overall U.S. economy, coupled with a deep financial crisis and accompanying credit crunch, wreaked havoc on all sectors of nonresidential construction. According to U.S. Census Bureau data, nonresidential construction spending declined 9 percent in 2009 and ABC projects that spending will fall 14.7 percent this year.

The good news is the period of deep decline in U.S. nonresidential construction spending is over. The bad news is this appears to represent stagnation, with overall construction volumes mired at or near bottom-of-the-cycle levels. In other words, by remaining near 2010 levels, 2011 construction spending is positioned to be nearly a quarter less than 2008 totals.

Viewed from another perspective, the expectations for 2011 represent a stark contrast from what occurred in 2010.  As a year, 2010 was a period of widely variable performance between construction segments as sectors powered by the availability of federal stimulus funds experienced growth, and privately financed activities buckled under the weight of depleted capital availability and excess supply. Next year, the variable in performance between segments will be far diminished, at least in terms of percentage changes in spending volumes.

Read Full Article From Associated Builders and Contracors here.


 
 
 

 

 

 

Categories: Construction, News

Construction Industry Unemployment Still Up Despite Addition Of 5,000 Jobs

November 9, 2010 23 comments

The Associated General Contractors of America released some puzzling math in the construction industry employment numbers.

Even as the number of people working in construction increased by 5,000 between September and October 2010, the industry’s unemployment rate rose to 17.3 percent, according to an analysis of federal employment figures released today by the Associated General Contractors of America. Temporary government investments boosted commercial construction employment, offsetting further job losses in residential construction, association officials noted.

“Despite significant help from programs like the BRAC and the stimulus, construction employment continues to lag behind much of the private sector,” said Stephen E. Sandherr, the association’s chief executive officer. “It is yet another indicator that the economy has a long way to grow before demand for new office buildings, retail centers and manufacturing facilities returns.”

Association officials noted that construction employment lagged behind other sectors of the economy. For example, while total private employment rose by 1.1 million during the past 12 months, the construction industry lost 122,000 jobs. Meanwhile, the industry’s unemployment rate is nearly double the unadjusted national rate of nine percent.

Full Press Release From: AGC of America

Categories: Construction, News

Construction Employment Approaches 14-Year Low

October 13, 2010 Leave a comment

Construction employment approaches 14-year low, with another 21,000 jobs lost in September and unemployment rate climbing to 17.2 percent.

The number of people working in construction is approaching a 14-year low now that the industry lost 21,000 jobs in September, while construction unemployment is at a September high of 17.2 percent, according to an analysis of federal employment figures released today by the Associated General Contractors of America. The construction industry continues to suffer from declining investments in construction and broad uncertainty about the future of many federal infrastructure programs and tax rates, association officials noted.

“It has taken less than four years to erase a decade’s worth of job gains as the industry suffers from declining private, state and local construction demand,” said Ken Simonson, the association’s chief economist. “No other sector of the economy has suffered as much for as long as construction.”

Full Press Release: AGC of America

Categories: Construction, News

New Construction Starts Up 7% In July

August 23, 2010 Leave a comment

 Beginning of an up swing?

The value of new construction starts in July advanced 7% to a seasonally adjusted annual rate of $411.2 billion, according to McGraw-Hill Construction, a division of The McGraw-Hill Companies.  Nonresidential building continued to see improvement after extremely depressed activity earlier in the year, and nonbuilding construction bounced back following its June slide.  Both sectors in July were lifted by the start of several massive projects.  Meanwhile, residential building lost momentum in July, as the housing recovery paused for an additional month.  For the January-July period of 2010, total construction starts on an unadjusted basis came in at $238.0 billion, down 4% compared to a year ago.

The July statistics produced a reading of 87 for the Dodge Index (2000=100), up from a revised 81 for June.  “The pace of contracting over the past year has essentially stabilized at a low level, and July showed activity moving back up towards the middle of its recent range, following June’s weak performance,” stated Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction.  “Nonresidential building seems to be leveling off after the substantial declines witnessed over the past year, and in a few cases projects that were deferred are now reaching groundbreaking.  Still, given the negatives of tight bank lending, sluggish employment, and the diminished fiscal position of states and localities, a sustained recovery for nonresidential building remains several quarters away, at least.  The public works sector continues to show generally healthy activity, supported by financing from ongoing federal programs as well as stimulus funds.  The housing sector right now is in the midst of a pause from the earlier improvement shown during the latter half of 2009 through the first quarter of 2010.  In effect, the volume of total construction starts appears to be in the process of ‘turning the corner,’ after the steep decline reported in 2009, but the turn is assuming an extended U-shaped pattern.”

Read More: Forecasts & Trends McGraw Hill Construction

Categories: Construction, News