Business conditions at architecture firms continue to improve. As a leading economic indicator of construction activity, the Architecture Billings Index (ABI) reflects the approximate nine- to 12-month lag between architecture billings and construction spending. The American Institute of Architects reported the December ABI score was 52.0, down from the mark of 53.2 in November. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 59.4, down slightly from the 59.6 mark of the previous month. “While it’s not an across the board recovery, we are hearing
Construction employment increased in 139 out of 337 metropolitan areas between December 2011 and December 2012, declined in 131 and was stagnant in 65, according to a new analysis of federal employment data recently released by the Associated General Contractors of America. Association officials noted that growing private-sector demand for new construction projects boosted employment in a slight plurality of metro areas. “Private-sector demand for energy, health care, higher education and residential construction is having a positive impact in a growing number of metro areas,” said Ken Simonson, the association’s chief economist. “Unfortunately, construction employment in almost as many metro
The Equipment Leasing and Finance Association (ELFA), which represents the $725-billion equipment finance sector, recently revealed its Top 10 Equipment Acquisition Trends for 2013. Given that every year U.S. businesses, nonprofits and government agencies spend more than $1.2 trillion in capital goods or fixed business investment (including software), financing more than half of those assets, these trends impact a significant portion of the U.S. economy. Businesses considering acquiring equipment this year will consider numerous end-user benefits while weighing continued uncertainty related to economic conditions and fiscal policies.The Top 10 Equipment Acquisition Trends for are as follows.1. Corporate perceptions of the
Multifamily construction is booming despite the slow economic recovery for commercial and single-family markets, but it is a very different market than it was 10 years ago. Like other segments of construction, the increasing number of firms in multifamily has driven profit margins down. As a result, bidding errors or unanticipated project costs, which were once part of doing business and could be absorbed within the contract price, can now wipe out all profits on a project and even threaten a company’s overall financial strength. Multifamily’s healthy backlog of work has attracted firms from both residential and commercial backgrounds. The
As a small-business CEO observed a window washer at the Atlanta airport one day, she asked what she thought was a straightforward question, “What’s the secret to window washing?” “No secret, ma’am," the window cleaner said, as he continued working. “I just focus on keeping on with my tools and my experience. I keep on going.”The master continued working with repeated, slick motions, his washer remained fixed to the glass, leaving not one smudge. And, true to his word, he kept on going.When the CEO asked what was in the blue water, the cleaning professional smiled and said, “I can’t
We hear a lot about job creation and how critical it is to our nation’s economic health and future. But who are America’s job creators? Are they the nation’s richest individuals? Are they big public companies? Hot start-ups? The answer is: none of the above. New research sponsored by the Small Business Administration: “Accelerating Job Creation in America: The Promise of High-Impact Companies” by Spencer L. Tracy, Jr., shows that almost all net U.S. job creation in recent years came from existing private, high-growth companies.If we are really going to get serious about job creation, policymakers and communities should focus
Construction’s unemployment rate rose in December to 13.5%, from November’s 12.2%, even with an industry gain of 30,000 jobs last month, the Bureau of Labor Statistics reported. The latest monthly BLS employment report, released on Jan. 4, also showed that construction’s jobless rate last month was down from the December 2011 figure of 16.0%. December marked the 27th straight month in which construction posted year-over-year improvement in its unemployment rates.The BLS rates are not adjusted to reflect seasonal swings. In the highly seasonal construction industry, cold-weather months tend to show a drop in the volume of projects in much of
Prices for construction materials inched down in December, closing out a year of relatively subdued changes in both materials costs and bid prices, according to an analysis of new federal figures recently released by the Associated General Contractors of America. Association officials said the price decline was likely to be temporary, noting that the vast majority of contractors predict materials prices will rise in 2013. “Moderate price swings for several materials last year gave contractors some breathing room, but future price spikes could push many firms into the red,” said Ken Simonson, chief economist for the construction trade association. “Contractors
Significantly more construction firms are planning to add new staff than plan to cut staff, while demand for many types of private-sector construction projects should increase this year, according to survey results recently released by the Associated General Contractors of America and Computer Guidance Corp. The survey, conducted as part of “Tentative Signs of a Recovery: The 2013 Construction Industry Hiring and Business Outlook,” provides a generally optimistic outlook for the year even as firms worry about rising costs and declining public-sector demand for construction.“While the outlook for the construction industry appears to be heading in the right direction for
The Conference Board Consumer Confidence Index, which had declined slightly in November, posted another decrease in December. The index now stands at 65.1, down from 71.5 in November. The Expectations Index declined sharply to 66.5 from 80.9. The Present Situation Index increased to 62.8 from 57.4 last month. However, consumers’ assessment of current conditions improved in December. Those stating business conditions are “good” rose to 17.1% from 14.6%, while those stating business conditions are “bad” decreased to 27.3% from 31.2%. Consumers’ appraisal of the labor market was mixed. Those saying jobs are “plentiful” edged down to 10.3% from 11.0%, while
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