The demand for skilled labor is a growing challenge for the construction industry. Last fall, the Associated General Contractors of America reported that 74% of firms across the country had difficulties finding qualified skilled labor. That, coupled with a rapidly aging workforce, presents significant risks for contactors. The Centers for Medicare and Medicaid Services reports that more than 10,000 people per day will turn 65 over the next 19 years. The construction industry has seen a dramatic 54% increase in employment by individuals within this demographic since 1985; therefore, the industry is anticipating a significant number of workers will head
Construction materials prices expanded 0.5% in March and are up 1.1% from March of last year, according to the U.S. Dept. of Labor’s April 11 producer price index release. Nonresidential construction materials prices are up 0.4% for the month and are 1% higher than the same time one year ago. “Despite the increase in materials prices, this report does not signal a period of much higher inflation,” said Associated Builders and Contractors Chief Economist Anirban Basu. “While it is true that there were significant increases in overall monthly inflation for both the broader economy and for construction, only a handful
The U.S. construction industry gained 19,000 jobs in March and the construction unemployment rate fell to 11.3% (non-seasonally adjusted), according to the April 4 employment report by the U.S. Dept. of Labor (DOL). Nonresidential construction segments added 6,700 jobs in March, a marked improvement from the 2,800 jobs (revised) added in February. The improvement led the construction unemployment rate to fall from 12.8% in February 2014 and 14.7% in March 2013. The residential sector continued to build momentum, adding 9,100 jobs for the month. Heavy and civil engineering added 3,200 jobs in March and has added 22,100 jobs in the
The U.S. Census Bureau says that nonresidential construction spending increased 0.6% in February and has risen 6.1% since February 2013. The gains follow nonresidential construction spending declines in both January and December. Spending for the month totaled $580.5 billion on a seasonally adjusted, annualized basis. “February’s construction spending data is difficult to interpret, as was the case in December and January, because of the lengthy and harsh winter,” said Associated Builders and Contractors Chief Economist Anirban Basu. “The conventional wisdom is that this year’s winter weather has suppressed spending and that will make the spring recovery even stronger than it
The founder and CEO of Salt Lake City’s Bodell Construction Co., James Huggard Bodell, died February 13 in Sandy, Utah, at age 90. James founded Bodell Construction Co. with his four sons in 1972. Bodell Construction has built more than $1 billion in industrial and commercial projects throughout the western United States and Hawaii. Landmark projects include expansion of the Salt Palace Convention Center; renovation of the Joseph Smith Memorial Building; projects for the University of Utah, Utah State University and BYU Hawaii, as well as several power and industrial projects.James was a decorated veteran of World War II in
Colorado has more jobs than ever before, but recovery from the Great Recession continues to elude some areas of the state.Those are some of the findings included in a recent report from Colorado State University’s Regional Economics Institute (REI). The report notes the economy in the northern Front Range has seen the most job activity, while the Colorado Springs and Grand Junction areas continue to lag. “Although the state economy overall has performed better than the nation since the end of the recession, many Colorado communities, businesses and individuals are still struggling with the aftermath,” said Martin Shields, who directs
After starting out the year on a positive note, there was another minor increase in the Architecture Billings Index (ABI) last month. As a leading economic indicator of construction activity, the ABI reflects the approximate nine- to 12-month lead time between architecture billings and construction spending. The American Institute of Architects reported the February ABI score was 50.7, up slightly from a mark of 50.4 in January. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 56.8, down from the reading of 58.5 the previous month.“The
The city of Denver opened in mid-March its first compressed natural gas fueling station. The station has 70 CNG pumps that will be utilized by city vehicles. Photo courtesy of City of Denver The citys new CNG fueling station cost $2.5 million to build. CNG is a cleaner-burning fuel that generates less carbon monoxide, nitrogen oxide and greenhouse gas emissions compared to regular diesel. Denver has already purchased 19 CNG vehicles and is anticipating having 40 vehicles, or about 40% of its trash and recycling fleet, running on CNG before the end of 2014, the city says.In addition to the
There are currently about 15,000 apartment units but only 300 condominium units under construction in metropolitan Denver. Why? The answer is simple: Homeowners association lawsuits.For several decades there has been a cottage industry composed of lawyers, engineers, architects and homeowner association management companies who have collaborated in bringing lawsuits against condominium developers, design professionals and contractors claiming defects in design and construction. Some of those lawsuits have been meritorious, some borderline and others without foundation.The result of these lawsuits has been to discourage developers, design professionals and contractors from doing any new condominium projects, despite what many believe to be
Construction materials prices expanded 0.7% in February and are up 0.6% over the past year, according to the March 14 producer price index release by the U.S. Dept. of Labor. More specifically, nonresidential construction materials prices are up 0.7% for the month and are 0.4% higher than the same time one year ago. “February marks the second consecutive month in which construction materials prices expanded briskly,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Construction materials prices experienced a remarkable lack of volatility during the last three quarters of 2013; however, that trend appears to be firmly behind us.”Overall,
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