All major categories of construction spending increased in July, and total construction reached the highest level since December 2008, according to a recent analysis by the Associated General Contractors of America. Association officials welcomed the robust spending figures but cautioned that growing demand will put new pressure on an already tight labor market. “It is encouraging to see signs of a broad-based recovery in private construction along with a recovery—at least for now—in public construction investment,” said Ken Simonson, the association's chief economist. “Private nonresidential construction should remain strong through the rest of 2014 and beyond, while residential spending is
The Dodge Momentum Index rose slightly in August, increasing to 118.8 (2000=100) for the month, up 0.2% from the July reading. The improvement in August is on the heels of a 5.7% decline in July, according to McGraw Hill Construction, a division of McGraw Hill Financial. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. The momentum index is now 13.9% higher than one year ago and continues to point to recovery in the sector.The
The Equipment Leasing & Finance Foundation (the Foundation) recently released the September 2014 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $827-billion equipment finance sector. Overall confidence in the equipment finance market is 60.2, an increase from the August index of 58.9. MCI-EFI survey respondent Valerie Hayes Jester, president, Brandywine Capital Associates Inc., said, “We are experiencing stronger demand than in the past several months, which bodes well for a
Construction materials prices were unchanged in August but are 1.7% higher than this time last year, according to a Sept. 16 producer price index (PPI) release by the U.S. Dept. of Labor. Inputs to nonresidential construction, which also remained unchanged in August, are 1% higher than in August of 2013. “In general, nonresidential construction remains stable, despite the recent uptick in demand for inputs in North America,” said Associated Builders and Contractors Chief Economist Anirban Basu. “There are a number of factors at work, including an unexpectedly weak European economy and a surprisingly strong U.S. dollar. While the Euro has
A new study led by the University of Colorado Boulder found that different strategies used by states to reduce power plant emissions—such as setting emissions caps and encouraging renewable energy—are both effective. The study is the first analysis of its kind. The findings are important because the success of the Environmental Protection Agency’s proposed Clean Power Plan depends on the effectiveness of state policies in reducing power plants’ carbon dioxide emissions. The plan would require each state to cut CO2 pollution from power plants by 30% from 2005 levels by the year 2030.“In addition to suggesting that the EPA’s Clean
A Colorado electrical contractor appears to have had a shocking experience in its efforts to collect more than $600,000 due it for electrical work on a lower downtown Denver condominium project. Appropriately, the name of the electrical contractor was Sure-Shock Electric Inc. Not having been paid, Sure-Shock filed a mechanic’s lien describing the entire project, but it served only the required 10-day notice on the owner of seven unsold units. Because there was an arbitration requirement in its contract, Sure-Shock arbitrated the question of how much it was owed and then proceeded to court for a determination of the validity
Construction industry employment reached a five-year high in August as the sector added 20,000 jobs and its unemployment rate fell to 7.7%, the lowest rate for August in seven years, according to a recent analysis by the Associated General Contractors of America and the Associated Builders and Contractors. “Construction employment growth has been accelerating and is broad-based,” said Ken Simonson, AGC’s chief economist. “The increase in the past 12 months was the largest since 2006 and was spread among residential, nonresidential building and heavy construction.”Construction employment totaled 6,068,000 in August, the highest total since May 2009, with a 12-month gain
Nowadays, it seems that almost every business and profession has an LLC after its name. That’s intended to indicate a “limited liability company.” What most people don't seem to realize is that those three letters alone don’t always mean “limited liability.” The idea of a limited liability company is generally good. If properly organized and maintained, limited liability companies have some of the benefits of corporations and some of the benefits of partnerships. There may be income tax advantages; company members have almost unlimited ability to make their own rules governing the activities, and their personal liability to third parties
The Conference Board Consumer Confidence Index, which had increased in July, improved further in August. The Index now stands at 92.4 (1985=100), up from 90.3 in July. The Present Situation Index increased to 94.6 from 87.9, while the Expectations Index edged down to 90.9 from 91.9 in July. Consumers’ appraisal of current conditions continued to improve through August. Those saying business conditions are “good” edged up to 23.9% from 23.3%, while those claiming business conditions are “bad” declined to 21.5% from 22.8%. Consumers’ assessment of the job market was also more positive. Those stating jobs are “plentiful” increased to 18.2%
Construction employment expanded in 223 metro areas, declined in 72 and was stagnant in 44 between July 2013 and July 2014, according to a new analysis of federal employment data recently released by the Associated General Contractors of America. As employment grows, 25% of firms report labor shortages are forcing them to turn down work, according to a new survey conducted by SmartBrief, an industry leader in curated business news and custom content, in partnership with the association.“Many construction firms looking to expand their payrolls are finding a surprisingly tight labor market,” said Ken Simonson, the association's chief economist. “These
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