Construction’s unemployment rate rose slightly in October to 17.3% from September’s 17.2%, but the good news was that it was better than October 2009’s 18.7% rate. The Bureau of Labor Statistics’ latest monthly employment report, released on Nov. 5, also shows that construction posted an increase in jobs for the month, though the gain was only 5,000. October marks only the second month so far this year that the industry’s unemployment rate improved from 2009’s levels. BLS says that, in October, non-residential specialty trade contractors added 7,300 jobs and heavy-civil construction’s workforce rose by 4,800. On the negative side, the
The construction market has yet to see signs of recovery from the current recession, but the recovery may be coming next year if factors such as employment and bank lending fall into place, according to a forecast released by McGraw-Hill Construction. Photo: Bruce Buckley For ENR If construction employment shows growth, banks loosen credit, and state and local governments get a handle on budget difficulties, next year could see an increase of 8% in new starts. Robert Murray, MHC’s vice president of economic affairs, foresees an 8% increase in total construction starts to $445.5 billion in 2011. Much of that
Republicans’ newly won majority in the House will result in new committee leaders in the chamber. Construction industry officials say that under those new chairmen, House panels will be focused on curbing spending and holding oversight hearings on the Obama administration’s implementation of federal laws and programs like the American Recovery and Reinvestment Act. Although the Republican Steering Committee has not yet announced its roster of committee chairman, several current ranking members are expected to take the helm of their panels. For example, Rep. Jerry Lewis (R-Calif.), is expected to assume the chairmanship of the Appropriations Committee. Lewis previously chaired
Engineering firm CEOs put on their optimistic faces at an annual invite-only industry conference in New York City on Oct. 21. Amid market uncertainty, a record turnout of more than 300 executives gathered to give their take on sector conditions; some see growth ahead, others see new missions for firms in helping clients through the recession. + Image Design firms project a median of 3% growth in 2010 and better the following year, says EFCG Inc., the industry financial and acquisitions consultant that sponsored the meeting. The numbers are based on a survey of 210 large and small firms with
Chart: Walter Konefal for ENR New construction starts in September were down 7% from the previous month and 3% from the cumulative first three quarters of last year, according to McGraw-Hill Construction. “The monthly pattern shows construction starts stabilizing at a low level but not reaching the point where renewed expansion is taking hold,” says Robert Murray, MHC’s chief economist. “A sustained upturn for overall construction remains several quarters away,” he says. The lift to public works from stimulus spending is subsiding, vacancy rates for commercial properties remain high, the tough fiscal climate for states makes it difficult for institutional
Single-family housing fared far worse than expected this year but could rebound in the coming years, according to the National Association of Home Builders. During NAHB’s Construction Forecast Conference on Oct. 27, chief economist David Crowe estimated that 2010 will close with an 8% increase in single-family home construction starts to 479,000 units. That is a major adjustment from NAHB’s May forecast, which predicted a 25% increase this year. Multifamily housing has fared better than expected: Although its May analysis called for an 18% drop in starts, NAHB now forecasts a 12% rise for the year to 125,000 units. Crowe
The construction market has yet to see signs of recovery from the current recession, but it’s coming next year, according to a forecast released by McGraw-Hill Construction. Photo: Bruce Buckley for ENR Robert Murray says the recovery has been delayed by a stalled economy, but should change next year. Robert Murray, vice president of economic affairs, foresees an 8% increase in total construction starts to $445.5 billion in 2011. Much of that prediction is based on the single-family housing market finally seeing substantial growth with starts rising 27% to $126.7 billion. Similarly, multifamily housing starts are predicted to rise 24%
What’s ahead for TIGER grants? With its latest round of Transportation Investment Generating Economic Recovery grant awards, announced on Oct. 20, the U.S. Dept. of Transportation brought good news to state and local agencies that won funds for 75 projects. But DOT disappointed dozens of other agencies whose proposals failed to make the cut. Photo: Courtesey Ned Ahrens, King County Department of Transportation Replacement for Seattle’s 81-year-old South Park Bridge won a $34-million TIGER grant. There is support in Congress to continue the discretionary TIGER grants, which are aimed at projects that will have major national or regional benefits. But
Voters around the U.S. will decide the fate of $4.8 billion in construction bond proposals on Nov. 2. The largest share of that total, nearly $3 billion, comes from local bond measures in Texas. There is more at stake than state and local bond proposals to fund infrastructure: Several policy questions on ballots could affect the construction climate in several key states. + Image Ten of the nation’s 12 statewide bond issues, totaling $1.3 billion, appear to be construction-related. The $1.9-billion volume for all statewide bond measures is down sharply from the $18.4 billion proposed in the 2008 elections, according
In its latest analysis of global capacity expansion, issued on Oct. 15, Bank of America Merrill Lynch says industry is “likely past the bottom in 2010,” but that economic recovery in 2011 “remains relatively muted.” The report notes that the positive capacity projections in the federal government and global metals and mining sectors “continue to surprise” and that the outlook in industral production is “better than expected.” But its analysis expects “little change” in global oil and gas sector capacity expectations despite oil pricing at steady levels through 2010. Furthermore, the analysts say U.S. power generation may also remain “dormant,”
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