Construction materials costs dropped in November, aided by a plunge in diesel prices along with smaller decreases in a variety of other inputs, according to an analysis of new federal figures recently released by the Associated General Contractors of America. Association officials noted that some of the price declines may be related to the fact that the threat of the fiscal cliff is already having an impact on demand for construction and related materials. “The recent price decreases are very welcome after years of price spikes that contractors could not pass on in a weak construction market,” said Ken Simonson,
All major segments of construction spending increased in October, bringing total spending to a 37-month high at an annualized rate of $872 billion, according to an analysis of new federal data recently released by the Associated General Contractors of America. Association officials warned, however, that the “fiscal cliff” imperils future improvement in both public and private spending.“Widespread gains in spending in October, along with hefty upward revisions to estimates for the previous two months, show that construction has finally come out of its long slump,” said Ken Simonson, the association’s chief economist. “Although all major spending categories are far below
The Conference Board’s Consumer Confidence Index, which increased in October, posted a moderate increase in November. The index now stands at 73.7 (1985=100), up from 73.1 in October. The Present Situation Index was virtually unchanged at 56.6 versus 56.7 last month. The Expectations Index rose to 85.1 from 84.0 last month. Consumers’ appraisal of current conditions was relatively unchanged in November. Those saying business conditions are “good” declined to 14.4% from 16.5%, while those saying business conditions are “bad” deceased to 31.5% from 33.0%.Consumers’ assessment of the labor market improved. Those claiming jobs are “plentiful” increased to 11.2% from 10.4%,
Throughout the recent presidential campaign, several topics were discussed ad nauseam. In debates, interviews, campaign ads and stump speeches, the economy, taxes, job creation, national security and the national deficit got a lot of attention. But it has become clear that unless we have a catastrophic failure of another piece of infrastructure, there is little likelihood that our imperiled roads and bridges will receive the attention they deserve. And without a political push, federal funding will not be provided to correct decades of neglect. The U.S. has 4,000 dams in danger of bursting and flooding cities and towns. Our clean
Construction employment declined in 28 states from October 2011 to October 2012 even as 31 states and Washington, D.C. added jobs during the past month, according to a recent analysis by the Associated General Contractors of America of Labor Department data. Association officials noted that residential construction gains were being undermined by the broader business uncertainty being caused by the threat of the looming fiscal cliff. “The industry remains stuck in neutral, with a close balance each month between the number of states that add or lose construction jobs,” said Ken Simonson, the association’s chief economist. “Despite a strong pickup in
Construction contractors face a continuing cost squeeze, even though a key price index for construction materials dipped in October and showed only a moderate increase over the past year, according to an analysis of federal figures recently released by the Associated General Contractors of America. Association officials warned that recent and announced price increases may threaten the survival of some contractors. “Although several materials retreated in price last month, prices in the past year have still outpaced the tiny increases in contractors’ bids,” said Ken Simonson, chief economist for the construction trade association. “In addition, some of the price drops
The Dodge Momentum Index slipped another 0.6% over the month of October, according to McGraw-Hill Construction, a division of The McGraw-Hill Cos. 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 October Momentum Index retreated to 93.3 (2000 = 100), the third consecutive monthly decline following the most recent peak of 96.0 in July. After bottoming out in mid-2011, the Momentum Index had shown a hesitant upward trend through July, with monthly gains outweighing
The value of new construction starts retreated 14% in October to a seasonally adjusted annual rate of $434.9 billion, according to McGraw-Hill Construction, a division of The McGraw-Hill Cos. Much of the decline was due to a sharp pullback by the electric power and gas plant category after a robust September. If this volatile project type is excluded from the month-to-month comparisons, total construction starts in October would register a 3% gain. Greater activity was reported in October for the public works sector while both nonresidential building and housing settled back. Through the first 10 months of 2012, total construction
The U.S. green building market continues to accelerate, according to McGraw-Hill Construction’s recently released “2013 Dodge Construction Green Outlook” report. The value of green building has seen growth from $10 billion in 2005 to $78 billion in 2011. In 2012, the total market — non-residential and residential — is expected to be worth $85 billion, and by 2013, overall new green building is projected to rise to between $98 billion and $106 billion. By 2016, this number is expected to reach $204 billion to $248 billion, according to McGraw-Hill Construction, which is also the owner and publisher of ENR Mountain
According to a new study by McGraw-Hill Construction, publisher of ENR Mountain States, both K-12 and universities plan to continue investments in green schools, citing financial and social benefits. The “New & Retrofit Green Schools” study shows social benefits such as improved health and productivity, are critical drivers for the education sector and equally as important as financial drivers. “Over 75% of respondents consider improving indoor air quality and enhancing health and well-being as key drivers, which is nearly the same percentage that cite financial benefits, such as lower operating costs and reduced energy use,” said Harvey Bernstein, vice president, Industry
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