When results are in from the Nov. 2 elections, they are widely predicted to show Republican gains in the House and Senate. Election analysts project that the GOP will win a majority in the House and also pick up Senate seats but not enough to wrest the majority from Democrats. What already was shaping up as a difficult year for the struggling construction industry promises to be even more difficult, as the likelihood of passing strong infrastructure spending measures would be even more remote. Those bills include the delayed reauthorization of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: a
Experts agree it’s going to be a new world once the U.S. emerges from the current economic slump. But what will that look like? GSA's Les Shepherd: 'We do call references.' The past once was a good predictor of the future. No more. Patterns and preferences of all sorts are shifting in economics, housing, infrastructure, culture and demographics. The question when trying to predict the future is which of those patterns are “cyclical recessionary impacts” and which are “underlying seismic shifts” that will continue indefinitely, said James Chung, president of Reach Advisors, Slingerlands, N.Y. Chung and two panels, one featuring
Graphic: Walter Konefal div id="articleExtrasA" div id="articleExtrasB" div id="articleExtras" Despite being recorded during the construction industry's peak season, unemployment in the industry remains at record-high levels. Construction's unemployment rate in September was 17.2%, which was higher than August’s 17% rate and the 17.1% recorded for September 2009, according to the U.S. Bureau of Labor Statistics. The stubbornly high unemployment rate leaves 1.46 million white- and blue-collar construction workers looking for work. Among construction segments, specialty trade contractors lost 20,900 jobs in September. Firms involved in the construction of buildings gained 500 positions, while heavy and civil construction firms lost 200
Construction's unemployment rate edged upward in September, to 17.2% from August's 17.0%, as the industry lost 21,000 jobs last month. Related Links: U.S. Dept. of Labor Bureau of Labor Statistics release The Bureau of Labor Statistics' latest monthly employment report, released on Oct. 8, also showed that construction's unemployment rate last month was slightly worse than the September 2009 rate of 17.1%. Construction's jobless rate this year has generally improved month-to-month since February, before worsening in September. But looking at the numbers from another angle, the industry's 2010 unemployment rates have been higher than the comparable 2009 figures in every
Federal agency procurement officers are breathing a bit easier after a mad dash to obligate their remaining American Recovery and Reinvestment Act dollars by Sept. 30, the deadline for committing many stimulus-act construction dollars. Agencies have seen bids on ARRA-funded projects come in well below initial estimates, opening opportunities to redirect those savings to thousands of additional projects. A White House report, released on Oct. 1, says eight agencies were able to fund more than 3,000 additional projects beyond their original projections. Those agencies include the Depts. of Defense, Interior, Labor, Transportation, Veterans Affairs, the Environmental Protection Agency and the
The Obama administration unveiled a long-term restoration plan on Sept. 28 that calls for a dedicated fund to be set up to pay for long-term recovery and restoration of the Gulf Coast. The restoration plan was written by Navy Secretary Ray Mabus at the request of President Obama. Chief among its recommendations is a call for Congress to dedicate a significant amount of any civil penalties obtained from responsible parties for the Deepwater Horizon oil spill into a Gulf Coast Recovery Fund to go toward the long-term cleanup and restoration of the Gulf. The plan also recommends that Congress authorize
By its nature, the construction industry is an optimistic group. However, by the end of the “summer of recovery,” firms’ rosy view that better times were right around the corner has been tested and found wanting. Major contractors, engineers, subcontractors and construction service firms have concluded that the industry recession will last for the foreseeable future and that they need to be prepared to hold on for as long as it takes. + Image Related Links: Economics: With Margins Cut to the Bone and No Demand, Costs Are Left With Nowhere To Go Cement: New EPA Regs Pose Cost Problems
The recession wasn’t supposed to last this long nor be this deep. Federal stimulus spending was meant to return us to prosperity as opposed to just diverting financial disaster. But taking a few steps back from the precipice may be the best our stimulus money could buy. The trillion-dollar construction market of a few years ago now appears to have been an illusion, and an $800-billion annual market may be the new reality. In the pop of a bubble, a fifth of the construction market may have evaporated, leaving the industry to make drastic adjustments. + Images Related Links: Market:
Recession has not been good for the construction industry, but it’s helping to keep workers’ compensation rates down, say insurance and contractor executives. In the year that ended last June, 28 states filed for rate decreases, while nine filed for increases, says Peter Burton, senior division executive for state relations for the National Council on Compensation Insurance. Related Links: Economics: With Margins Cut to the Bone and No Demand, Costs Are Left With Nowhere To Go Market: More Bad Economic News Dims Industrys Confidence Cement: New EPA Regs Pose Cost Problems Labor: Wage Settlements Are Between A Rock and a
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