News Releases

ABC: Construction Adds 2,000 Jobs in November, up 200,000 Year Over Year

December 8, 09:48 AM 2023 |
238 |
Construction Economics, Employment, News Release 2023

WASHINGTON, Dec. 8—The construction industry added 2,000 jobs on net in November, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has increased by 200,000 jobs, an increase of 2.6%.

Nonresidential construction employment increased by 1,400 positions on net in November, with growth concentrated in one subcategory. Heavy and civil engineering added 3,300 positions, while nonresidential building and nonresidential specialty trade lost 1,100 and 800 jobs, respectively.

The construction unemployment rate rose to 4.8% in November. Unemployment across all industries decreased from 3.9% in October to 3.7% last month.

“U.S. employers once again added jobs at a faster pace than expected in November,” said ABC Chief Economist Anirban Basu. “While construction added only 2,000 jobs for the month, the industry has added jobs at a significantly faster pace than the broader economy over the past year. That’s especially true for the nonresidential sector, in which employment has increased by an impressive 3.2% over the past year. That momentum is largely attributable to megaprojects in the manufacturing sector.

“Faster hiring in the industry has coincided with worsening labor shortages, and that has led to rapid increases in labor costs,” said Basu. “Average hourly earnings for construction employees increased at a faster pace than economywide earnings on both a monthly and yearly basis in November. With nearly half of contractors planning to increase their staffing levels over the six months, according to ABC’s Construction Confidence Index, wage pressures will remain firmly in place through the early parts of 2024.”

ABC: Georgia Is the No. 1 State for Construction

December 4, 16:30 PM 2023 |
400 |
News Release 2023, Politics and Policy

WASHINGTON, Dec. 7—For the first time, Georgia was named the top state for construction in Associated Builders and Contractors’ annual Merit Shop Scorecard. The scorecard, released yearly since 2015, ranks all 50 states and the District of Columbia based on policies and programs that strengthen career pathways in construction, encourage workforce development and advocate for fair and open competition on taxpayer-funded construction projects.

“Commonsense conditions, policies and educational systems are vital in creating quality infrastructure built safely, efficiently and effectively for taxpayers,” said Ben Brubeck, ABC’s vice president of regulatory, labor and state affairs. “More than 88% of the U.S. construction industry has already made the choice not to join a union, and the construction industry is facing a skilled labor shortage of more than half a million people. Anti-competitive policies only impede the vast majority of merit shop contractors from building and working in their own communities and further exacerbate the industry’s labor shortage. Taxpayers are best served by policy and educational priorities that create a level playing field for all contractors to compete.”

Georgia’s construction industry continues to prosper, and it earned the top spot due to the state’s continued dedication to workforce development. This year, 99% of career and technical education students in the state earned a credential and/or continued to a career. Along with inclusive policies that welcome all of the construction industry to compete to build projects in their communities, Georgia’s construction employment continues to grow. Georgia claimed third in the 2022 rankings.

Florida followed Georgia in second in 2023. Since the inception of the rankings, Florida has placed in the top 10 and continues to be a model state for the merit shop, exceling in the preservation of fair and open competition and creating a policy environment for the entire industry to succeed, especially in fostering a pipeline of highly skilled workers.

Among the top five, Arkansas ranked third, Wisconsin ranked fourth and Indiana ranked fifth. Rounding out the top 10 states are Iowa, Kentucky, Alabama, Oklahoma and Mississippi, in order by rank.

Indiana, Iowa and Wisconsin have returned to the top 10 rankings this year. Indiana and Wisconsin have strong workforce development systems, seeing 99% and 92% respectively of the states’ career and technical education students earning a credential and/or continuing to a career. All three states have innovative and proactive approaches to upskilling, leading to a sustained, positive job growth rate in construction.

Notably, Wyoming climbed 10 spots to 20th. The state’s passage of the Fair and Open Competition Act in 2023 now protects local workers against government-mandated project labor agreements on state and local projects, as the Biden administration and union advocates press the use of PLAs on federally assisted projects. In Wyoming, PLAs would shut out 96% of the construction industry from bidding and working on public projects.

Michigan continues to fall in the rankings, dropping from 23rd in 2022 to 31st in 2023. The state’s legislature unfortunately repealed right to work this year, which will take effect in 2024, stripping the right from workers to decide whether or not to join a union as a condition of their employment. Also, local lawmakers codified a prevailing wage executive order into law in 2023, taking effect in 2024. Repeal of the ABC-supported Fair and Open Competition Act is also in sights of the legislature in 2024. This is a trend for the state, as Michigan fell nine spots in 2022.

The bottom five states, in ranking order, included Hawaii, Rhode Island, New York, the District of Columbia and Washington, each receiving poor ratings in creating conditions and policies for merit shop contractors to thrive.

The 2023 Building America: The Merit Shop Scorecard rates state laws, programs, policies and statistics in seven categories: project labor agreements, prevailing wage laws, right-to-work laws, public-private partnerships, workforce development, career and technical education and job growth rate.

ABC: Construction Job Openings Decrease by 4,000 in October, up 25,000 From October 2022

December 5, 11:01 AM 2023 |
674 |
Construction Economics, JOLTS, News Release 2023

WASHINGTON, Dec. 5—The construction industry had 423,000 job openings on the last day of October, according to an Associated Builders and Contractors analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings decreased by 4,000 in October but are up by 25,000 from the same time last year.

“The number of economywide job openings fell to 8.7 million in October, the lowest total since March 2021,” said ABC Chief Economist Anirban Basu. “This is a strong indication that the demand for labor is slowing, although the supply of workers is still far too low to meet that demand. The number of open, unfilled jobs across the economy still exceeds the pre-pandemic level by more than 1.7 million.

“While labor market tightness is easing across all economic segments, worker scarcity remains a pressing issue for the construction industry,” said Basu. “On the last day of October, 5.0% of construction positions were unfilled, which is well above the 3.9% industry job opening rate observed in February 2020. With nearly half of contractors intending to increase their staffing levels over the next six months, according to ABC’s Construction Confidence Index, the lack of available workers will remain a headwind for the construction industry over the next several quarters.”

ABC: Nonresidential Construction Spending Inches Higher in October, Up 20% Over the Past Year

December 1, 10:57 AM 2023 |
2941 |
Construction Economics, Construction Spending, News Release 2023

WASHINGTON, Dec. 1—National nonresidential construction spending increased 0.1% in October, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.1 trillion.

Spending was up on a monthly basis in 8 of the 16 nonresidential subcategories. Private nonresidential spending increased 0.1% in October, while public nonresidential construction spending was up 0.2%.

“Nonresidential construction spending increased for the 17th consecutive month in October and is now up an even 20% over the past year,” said ABC Chief Economist Anirban Basu. “As has been the case, more than 45% of that year-over-year increase is due to surging construction activity in the manufacturing sector, though infrastructure-related categories like highway and street and sewage and waste disposal have also outperformed.

“Spending in the commercial category, which includes construction of distribution and warehouse space, fell sharply in October,” said Basu. “This is likely due to a severe slowdown in the freight industry and slowing warehouse-related construction rather than a sudden decline in retail-related construction. Despite weakness in the commercial category and other headwinds like high interest rates and labor shortages, contractors remain optimistic about their sales over the next six months, according to ABC’s Construction Confidence Index.”

ABC Announces 2024 National Chair, Executive Committee

November 16, 10:41 AM 2023 |
1247 |
News Release 2023, People and Awards

WASHINGTON, Nov. 16—Associated Builders and Contractors today announced that Buddy Henley, president, Henley Construction Co. Inc., Gaithersburg, Maryland, was elected the 2024 ABC national chair at a board of directors meeting held in conjunction with the association’s annual Leadership Institute in Rancho Mirage, California.

“ABC provides the opportunities and tools to be successful in construction, an industry that I chose when I was 16, climbing the ladder until achieving my career dreams as the president of a family-owned contractor,” said Henley. “ABC creates the conditions for us to succeed in the industry. The honor of serving as ABC’s national chair allows me and my leadership team to have a lasting impact on strengthening the merit shop construction industry on so many levels, including delivering on ABC’s strategic goals of establishing our members as the industry leaders in total human health, safety and environment; increasing ABC’s strength in the political arena; expanding workforce development; and growing a diverse and committed membership.”

“The 2024 ABC Executive Committee leads the merit shop construction industry and will add value to the association, this vibrant industry and ABC members’ cultures and bottom lines by helping them develop their people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which they work,” said Michael Bellaman, ABC president and CEO. “Working with exceptional leaders like Buddy, Chair-Elect David Pugh, Secretary ‘Murph’ Murphy and all of our 2024 elected leaders, ABC will continue to be an organization of high trust, high collaboration and effective communication to deliver value to our members, industry and community.”

The members of ABC’s 2024 Executive Committee, who will take office on Jan. 1, 2024, are:

•   Chair of the ABC board of directors: Buddy Henley, president, Henley Construction Co. Inc., Gaithersburg, Maryland
•   Chair-elect: J. David Pugh, partner, Bradley, Birmingham, Alabama
•   Secretary and Northeast region vice chair: Thomas “Murph” Murphy, vice president of Aggregates Division, Power & Construction Group, Scottsville, New York
•   Treasurer: Larry May, CPA, CVA, partner, Carr, Riggs & Ingram, Jackson, Mississippi
•   Immediate past chair: Milton Graugnard, executive vice president, Cajun Industries LLC, Baton Rouge, Louisiana
•   Mid-Atlantic region vice chair: Lorri Grayson, partner and founder, GGA Construction, Middletown, Delaware
•   Mid-America region vice chair: Brett McWilliams, partner, Pride One Construction, Medina, Ohio
•   Southeast region vice chair: Kerrick Whisenant, president, Limestone Building Group LLC, Hartselle, Alabama
•   South Central region vice chair: Brandon Mabile, strategic development manager, Performance Contractors Inc., Baton Rouge, Louisiana
•   Mountain West region vice chair: Steve Grauer, regional vice president, Southwest Region of Hensel Phelps Construction, Phoenix
•   Pacific region vice chair: Greg Schniegenberg, chief operations officer of construction operations, Royal Electric Co., Sacramento, California
•   Midwest region vice chair: Jim Ellis, vice president and COO, Price Electric, Robins, Iowa
•   Chapter presidents’ liaison: G. David Sload, president and CEO, ABC Keystone Chapter
•   ABC national president and CEO: Michael Bellaman

ABC: Construction Input Prices Decrease 1.2% in October, Driven by Lower Energy, Lumber and Steel Prices

November 15, 10:27 AM 2023 |
1878 |
Construction Economics, Materials Prices, News Release 2023

WASHINGTON, Nov. 15—Construction input prices declined 1.2% in October on a monthly basis, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices fell 1.1% for the month.

Construction input prices are 1.1% lower than a year ago, while nonresidential construction input prices are 0.7% lower. Prices fell in 2 of the 3 energy subcategories last month. Crude petroleum input prices were down 2.9%, while unprocessed energy materials were down 0.3%. Natural gas prices rose 10.9% in October. Iron and steel prices fell 2.3%.

“The October construction materials prices report should be cheered by most contractors,” said ABC Chief Economist Anirban Basu. “Yesterday’s Consumer Price Index data and today’s Producer Price Index data indicate that inflation is declining. Not only does that translate into less rapid increases in the price of many key construction inputs, but it also signifies that the Federal Reserve is poised to begin reducing interest rates at some point next year. That will support an improving project financing environment, increasing demand for construction services in the process.

“That does not mean that all risks have disappeared,” said Basu. “Among the reasons for inflation’s retreat is a slowing economy. While financial markets have been laser-focused on good news on the inflation front in recent days, less attention has been invested in the downside risks to the economy, including growing consumer indebtedness, tighter credit conditions, geopolitics and the impact of the federal government’s insatiable appetite to take on more debt.”

ABC Slams OSHA’s Worker Walkaround Rule for Failing to Promote Workplace Health and Safety

November 13, 09:11 AM 2023 |
1401 |
News Release 2023, Policy, Politics and Policy

WASHINGTON, Nov. 14—On Nov. 13, Associated Builders and Contractors filed comments opposing the Occupational Safety and Health Administration’s Worker Walkaround Representative Designation Process proposed rule, which would allow employees to choose a third-party representative, such as an outside union representative or community organizer, to accompany an OSHA safety inspector into nonunion workplaces during site inspections.

“The Biden administration is trying to revive a failed Obama-era initiative, which was bad policy then and is bad policy now,” said Greg Sizemore, ABC vice president of health, safety, environment and workforce development. “This power grab does nothing to promote workplace health and safety, and instead pushes the administration’s ‘all-of-government’ agenda to encourage unions and collective bargaining.

“The potential harm that small construction contractors face here is very high,” said Sizemore. “OSHA can have a bigger impact on jobsite safety by fostering positive partnerships with employers and promoting safety practices that produce results. For example, according to ABC’s 2023 Safety Performance Report, top-performing contractors that participate in ABC’s STEP Safety Management System achieved a 688% improvement in safety performance compared to the U.S. Bureau of Labor Statistics construction industry average in 2022.

“It is especially concerning that the proposed rule fails to provide clarity in a number of key areas,” said Sizemore. “There is no restriction on the number of different third-party representatives who may be present for a single inspection, nor on how many employees may request different representatives. Additionally, the rule fails to provide any safety expertise criteria for the selection of third-party representatives. It also gives no guidance on how OSHA or an inspector should approve these requests or what is ‘reasonably necessary.’

“Unfortunately, this overreach allows anyone and everyone to become an authorized employee representative,” said Sizemore. “By allowing outside union agents access to nonunion employers’ private property, OSHA is injecting itself into labor-management disputes and casting doubt on its status as a neutral enforcer of the law. Not only does the proposed rule negatively impact the rights of employers, but it also ignores the rights of the majority of employees who have not authorized any union to represent them. Likewise, by allowing a nonmajority community organizer to participate in a walkaround, the proposal could distract the OSHA safety inspector from their primary purpose of workplace safety.

“Because the proposed rule has the potential of allowing anyone on the jobsite, construction employers are faced with serious safety concerns,” said Sizemore. “OSHA’s rule poses unnecessary risk to the individual joining the inspection and others on the jobsite if the authorized person is not trained to safely walk a construction jobsite. The rule does not include any requirement that the authorized person be equipped or conduct themselves to the same standards as OSHA safety inspectors. Further, the proposal fails to answer who is legally responsible if the third party gets injured during the inspection or harms someone else.”

ABC Construction Backlog Indicator Falls Sharply for Small Contractors, Increases for Large Contractors in October, Contractors’ Confidence Dips

November 6, 17:00 PM 2023 |
3105 |
Construction Backlog Indicator, Construction Confidence Index, Construction Economics, News Release 2023

WASHINGTON, Nov. 14—Associated Builders and Contractors reported today that its Construction Backlog Indicator declined to 8.4 months in October from 9.0 months in September, according to an ABC member survey conducted from Oct. 19 to Nov. 2. The reading is down 0.4 months from October 2022.

View the full Construction Backlog Indicator and Construction Confidence Index data series.

Backlog now stands at its lowest level since the first quarter of 2022. Declines were concentrated among the smallest contractors, those with less than $30 million in annual revenues. All three other revenue categories experienced an increase in backlog in October.

ABC’s Construction Confidence Index readings for sales, staffing levels and profit margins fell in October. All three readings remain above the threshold of 50, indicating expectations for growth over the next six months.

“While larger contractors continue to disproportionately benefit from a bevy of megaprojects around the nation, many smaller contractors are feeling the sting of weaker economic fundamentals in struggling commercial real estate segments,” said ABC Chief Economist Anirban Basu. “Smaller contractors are often the ones most dependent on developer-driven activity. With developers facing both higher borrowing costs and greater difficulty lining up project financing, backlog among some contractors is beginning to dissipate.

“This is precisely what ABC economists predicted,” said Basu. “The vast majority of contractors could boast healthy backlog, especially those working in the manufacturing/industrial, infrastructure, data center and health care segments. But those tied to the office, shopping center and multifamily markets are likely experiencing difficulty lining up work. This helps explain declines in the readings for ABC’s Construction Confidence Index in all three dimensions: sales, employment and margins. Each of these readings, however, remains above 50, suggesting that, while industry growth is softening, it has yet to enter contractionary territory.”

Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month’s work under contract based on the latest financials available, while CCI measures contractors’ outlook for the next six months. View the methodology for both indicators.

ABC: DOL’s Unlawful Proposed Overtime Rule Will Disrupt Construction Workers’ Workplace Flexibility

November 7, 16:46 PM 2023 |
1123 |
News Release 2023, Policy, Politics and Policy

WASHINGTON, Nov. 8—On Nov. 7, Associated Builders and Contractors submitted comments to the U.S. Department of Labor in response to a proposed rulemaking that would alter overtime regulations under the Fair Labor Standards Act.

“ABC called on the DOL to withdraw the new proposed rule, which is unlawful, inconsistent with historic norms and will specifically harm small businesses,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “ABC has consistently told the DOL that there is no compelling reason for an adjustment to the minimum salary threshold for exemption since it was increased roughly four years ago. Most importantly, the DOL should recognize that the construction industry, as well as multiple other industries, is currently up against increased geopolitical uncertainty, high materials prices, inflationary pressures and workforce shortages. Specifically, ABC estimates that the construction industry needs to hire more than half a million workers in 2023 alone. Regrettably, the DOL’s proposed salary level increase will further complicate the current economic outlook.

“Virtually all of ABC’s members employ some workers who qualify for exempt status and the proposed rule will result in large numbers of employees being reclassified as nonexempt,” said Brubeck. “In fact, 63% of ABC members surveyed in October indicated that they would have to consider reclassifying employees as well as restructuring if the salary level is increased to $55,000 annually. This will have a disruptive effect on the construction industry as a whole, as the rule will greatly restrict employee workplace flexibility in setting schedules and hours and hurt career advancement opportunities for employees. Moreover, because the DOL proposes to automatically increase the salary level every three years, these issues will recur repeatedly.

“Additionally, the rule’s proposed significant increase in the salary threshold fails to account for disparate income levels in different regions of the country. This will be particularly true in rural parts of the country and in areas where the cost of living is significantly lower than average.”

The DOL expects the minimum salary threshold will increase to at least $55,068 (annualized) and projects the minimum salary threshold to be $60,209 (annualized) in the first quarter of 2024—an increase of nearly 70% from the current $35,568 salary level.

ABC Challenges Biden’s Davis-Bacon Rule in Texas District Court

November 7, 09:36 AM 2023 |
2151 |
News Release 2023, Policy, Politics and Policy

WASHINGTON, Nov. 7—Associated Builders and Contractors and its Southeast Texas chapter today announced the filing of a complaint in the U.S. District Court for the Eastern District of Texas, challenging the U.S. Department of Labor’s controversial final rule, Updating the Davis-Bacon and Related Acts Regulations, which applies to federal and federally assisted construction projects funded by taxpayers.

“Far from ‘updating’ the DOL’s enforcement of the Davis-Bacon Act, the final rule returns to failed policies of the 1970s and unlawfully expands coverage of prevailing wage requirements onto new projects and industries and increases its regulatory burden on small construction contractors working on federally funded contracts,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “The DOL’s final rule forces ABC to take legal action to address its numerous illegal provisions and protect its members, the free market and taxpayers from the devastating impacts of this regulation.

“Instead of instituting commonsense reforms to Davis-Bacon regulations to ensure accurate prevailing wage determinations while providing much-needed clarity to the regulated community, the rule makes it much more likely that the DOL will adopt union wage scales as the prevailing wage at a greater frequency than in current practice,” said Brubeck. “The DBA already adopts union wage scales at improbable rates, considering just 11.7% of the construction industry is unionized. The erroneous, arbitrary and capricious changes to the implementation of the Davis-Bacon Act must be challenged to preserve fair and open competition on government construction projects, regardless of labor affiliation.

“The onerous new requirements, reduced competition and artificial inflation of construction costs imposed by this rule will only exacerbate economic headwinds and undermine taxpayer investments in infrastructure,” said Brubeck.

In October, Mario Burgos, chief strategy officer, Prairie Band LLC, Albuquerque, New Mexico, testified to Congress on behalf of ABC, urging lawmakers to rein in the Biden administration’s flawed wage determination process and unclear DBA regulations. Burgos detailed his efforts to comply with a byzantine process to determine prevailing wages on federal construction projects and said the DOL’s recent rulemaking updating Davis-Bacon will only make compliance challenges worse, driving small contractors out of public works projects or even out of business.

In August, ABC pushed back on the DOL’s final rule, calling it “yet another Biden administration handout to organized labor on the backs of taxpayers, small businesses and the free market.”

In May 2022, following a survey of its membership, ABC submitted nearly 70 pages of comments on the DOL’s proposed rule––and its more than 50 significant changes––urging the DOL to withdraw the proposal.

Learn more at abc.org/davisbacon.

ABC’s Construction Executive Wins National Honors for Magazine Redesign

November 1, 12:25 PM 2023 |
300 |
News Release 2023, People and Awards

WASHINGTON, Nov. 6—Associated Builders and Contractors’ Construction Executive, the magazine of the business of construction, won a 2023 Ozzie Award for best B2B print magazine redesign. This award is part of the prestigious Folio: Ozzie and Eddie Awards competition, which honors design and editorial excellence in the publishing industry.

CE debuted the redesign—created in partnership with THOR Design Studio—with its January-February 2023 issue in celebration of the publication’s 20th anniversary.

“Our first and most important goal in redesigning CE was to give our readers a better magazine—with content that looks great and reads well,” said Christopher Durso, editor-in-chief of CE. “The print redesign introduced a bold and stylish look and feel that complements the magazine’s robust content. This award from our fellow publications professionals suggests we hit the mark, and that’s a high honor.”

Soon, a redesigned constructionexec.com will launch, along with a strengthened presence on social media, further establishing CE as the best source for multiplatform content about the business of construction.

About CE: Published nine times a year, CE reaches more than 55,000 commercial, industrial and institutional contractors and construction-related business owners and has won more than 20 editorial awards. With departments focused on safety, workforce development, technology, project management and more, CE features articles that address industry trends, spotlight innovative and interesting projects and offer insightful forecasting and analysis. First published in 2003, CE also produces the CE This Week newsletter as well as a website, constructionexec.com, that is regularly updated with original content and professional education webinars.

Subscribe to the free print and digital editions of the magazine and CE This Week and follow the magazine on Facebook, X, LinkedIn and Instagram.

Nonresidential Construction Employment Increased in October, Industry Wage Growth Outpaces Economywide Average, Says ABC

November 3, 09:48 AM 2023 |
2083 |
Construction Economics, Employment, News Release 2023

WASHINGTON, Nov. 3—The construction industry added 23,000 jobs on net in October, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has increased by 219,000 jobs, an increase of 2.8%.

Nonresidential construction employment increased by 8,400 positions on net, with growth in all three subcategories. Nonresidential specialty trade added 4,200 positions, while nonresidential building and heavy and civil engineering added 2,600 and 1,600 jobs, respectively.

The construction unemployment rate increased to 4.0% in October. Unemployment across all industries increased from 3.8% in September to 3.9% last month.

“The construction industry added jobs for the seventh consecutive month in October,” said ABC Chief Economist Anirban Basu. “Over the past year, hiring has been concentrated in the nonresidential segment, with especially strong employment growth in the nonresidential building category. This is in large part due to the unprecedented surge in manufacturing megaprojects.

“While contractors’ demand for labor remains robust, the rising cost of labor, pushed upward by worker shortages, remains a pressing issue for the industry,” said Basu. “Average hourly earnings for construction workers increased at over twice the rate of economywide wages in October and have risen significantly faster over the past 12 months. With over half of contractors intending to increase their staffing levels over the next six months and fewer than 7% intending to downsize, according to ABC’s Construction Confidence Index, labor shortages should continue to push wages higher over the next few quarters.”

ABC: All State Construction Unemployment Rates Remain Under 10% in September, Led by Maryland at 0.4%

October 27, 09:08 AM 2023 |
806 |
News Release 2023, State Unemployment

WASHINGTON, Nov. 2—The not seasonally adjusted national construction unemployment rate was 0.4% higher in September 2023 from the previous year, up from 3.4% to 3.8%. According to a state-by-state analysis of U.S. Bureau of Labor Statistics data released today by Associated Builders and Contractors, 16 states had lower unemployment rates over the same period, five were unchanged and 29 states were higher. All states posted an unemployment rate lower than 8.5%, marking the sixth consecutive month that all state rates were below 10%.

National NSA payroll construction employment was 217,000 higher than in September 2022. Starting in February 2022 through September 2023, seasonally adjusted construction employment exceeded its pre-pandemic peak of 7.6 million.

In October 2021, residential construction employment moved above its pre-pandemic peak, while nonresidential construction employment only did so in February 2023. The September 2023 seasonally adjusted residential payroll construction employment was 351,000 above its pre-pandemic peak, while nonresidential payroll construction employment was 52,000 above its pre-pandemic peak.

In September 2023, 27 states had lower construction unemployment rates compared to September 2019 (pre-pandemic), four states’ rates were unchanged and 19 states had higher rates.

“Despite high interest rates, both construction activity and employment have been unexpectedly healthy. Nonresidential construction activity and employment are rising, as federal funding and tax incentives for manufacturers, along with funding for state and local infrastructure projects, encourage new construction,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC.

Recent Month-to-Month Fluctuations

National and state unemployment rates are best evaluated on a year-over-year basis because these industry-specific rates are not seasonally adjusted. However, due to the shifting effects on the economy from high interest rates, COVID-19 infection rates and treatment improvements, energy price fluctuations and other national and international developments, month-to-month comparisons offer insight into the variable economic environment impact from these factors on construction employment.

In September, 23 states had lower estimated construction unemployment rates than in August, 21 states had higher rates and six had the same rate.

The Top Five States

The five states with the lowest estimated NSA construction unemployment rates September 2023 were:

Maryland, 0.4%
Utah, 1.2%
North Dakota, 1.4%
Maine and Tennessee (tie), 1.8%

Maryland posted its lowest September NSA estimated construction unemployment rate on record. Utah matched last year’s lowest September rate on record. North Dakota and Maine both had their second lowest September construction unemployment rate on record behind last year’s 1.1% and 1.6% rates, respectively. Tennessee notched its lowest September construction unemployment rate on record.

The Bottom Five States

The five states with the highest September 2023 estimated NSA construction unemployment rates were:

Illinois and Nevada (tie), 6.3%
Connecticut and New Jersey (tie), 7%
Alaska, 8.3%

Click here to view graphs of overall unemployment rates (Tab 1) and construction unemployment rates (Tab 2) showing the impact of the COVID-19 pandemic, including a graphing tool that creates a chart for multiple states. To better understand the basis for calculating unemployment rates and what they measure, check out the Background on State Construction Unemployment Rates.

Construction Job Openings Increased by 56,000 in September, Says ABC

November 1, 11:41 AM 2023 |
1162 |
Construction Economics, JOLTS, News Release 2023

WASHINGTON, Nov. 1—The construction industry had 431,000 job openings on the last day of September, according to an Associated Builders and Contractors analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings increased by 56,000 last month but are down by 35,000 from the same time last year.

“The number of open, unfilled construction positions surged in September and currently stands at the highest level since December 2022,” said ABC Chief Economist Anirban Basu. “This mirrors an increase in economywide job openings which, at 9.6 million, remains about 37% higher than at the start of the COVID-19 pandemic.

“There are, however, some signs of labor market improvement for contractors,” said Basu. “The rate at which construction workers are quitting their jobs has normalized, with just 1.8% leaving their employers in September. While that’s a welcome development, labor shortages remain a pressing issue for the industry. Contractors laid off or discharged just 1.9% of workers in September, down from 2.2% in August and 2.5% in September 2022. With a majority of contractors planning to increase their staffing levels over the next six months, according to ABC’s Construction Confidence Index, labor shortages will remain a pressing issue heading into 2024.”

ABC: Nonresidential Construction Spending Increases For the 16th Straight Month in September

November 1, 11:11 AM 2023 |
1148 |
Construction Economics, Construction Spending, News Release 2023

WASHINGTON, Nov. 1—National nonresidential construction spending increased 0.3% in September, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.1 trillion.

Spending was down on a monthly basis in 9 of the 16 nonresidential subcategories. Private nonresidential spending increased 0.1%, while public nonresidential construction spending was up 0.5% in September.

“Nonresidential construction spending increased for the 16th straight month in September,” said ABC Chief Economist Anirban Basu. “While some private categories, including power, commercial and amusement and recreation saw healthy month-over-month increases, publicly financed construction accounted for more than 72% of September’s rise. Given increased federal infrastructure spending and exorbitant financing costs for private construction, that dynamic should remain firmly in place over the coming months.”

“Despite a small decrease in spending in September, manufacturing construction remains the nonresidential sector’s outperformer,” said Basu. “Spending in the category is up 62% over the past year and accounts for nearly 43% of the year-over-year increase in nonresidential construction put in place. With several industrial megaprojects ongoing, spending in the manufacturing segment will remain elevated for several quarters.”

ABC: IRS Must Provide Clarity, Withdraw Anti-Competitive Labor Policies from Inflation Reduction Act’s Clean Energy Construction Tax Credit Rules

October 31, 10:16 AM 2023 |
1441 |
News Release 2023, Policy, Politics and Policy

WASHINGTON, Oct. 31—Associated Builders and Contractors submitted comments to the U.S. Treasury Department’s Internal Revenue Service in response to a proposed rule implementing controversial labor policies through changes to the federal tax code by the ABC-opposed Inflation Reduction Act. ABC called on the IRS to provide further clarity and withdraw anti-competitive aspects of the proposal that would increase costs, reduce competition and delay construction of clean energy projects eligible for more than $270 billion in federal tax incentives from the IRA.

“If the Biden administration is truly committed to the Inflation Reduction Act’s stated goal of promoting construction of critical clean energy infrastructure, Treasury and the IRS must significantly revise the proposed rule to clarify prevailing wage and apprenticeship requirements and eliminate unnecessarily burdensome provisions that depart from the letter of the law,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “Otherwise, increased costs and widespread delays on clean energy construction projects are inevitable as developers and contractors struggle to understand and comply with cumbersome and unclear regulations.”

“While inflationary prevailing wage regulations and government-registered apprenticeship mandates that limit small business and workforce participation are unfortunately required by the Inflation Reduction Act, the agencies can still take important steps to provide clarity and lessen burdens for taxpayers and contractors. Among many other recommended changes to the proposed rule outlined in ABC’s comments, IRS must ensure clear prevailing wage classifications are readily available to contractors seeking to pay appropriate wages and establish apprenticeship requirements and exceptions that align with actual industry practice.”

The Treasury’s Notice of Proposed Rulemaking, Increased Credit or Deduction Amounts for Satisfying Certain Prevailing Wage and Apprenticeship Requirements, proposes regulations clarifying the applicability of tax credits for the construction of private clean energy projects funded by the IRA––including solar, wind, hydrogen, carbon sequestration, electric vehicle charging stations and more––conditioned on compliance with controversial prevailing wage and government-registered apprenticeship requirements. Effective Jan. 30, project developers who satisfy these regulations are eligible for a 500% increase in tax credits compared to baseline tax credits offered to developers under previous regulations.

“Additionally, the agencies must fully withdraw provisions of the proposed rule that incentivize project labor agreements that restrict competition and unfairly favor unions. Project labor agreements often prevent contractors from utilizing their established workforce,” said Brubeck. “Given that less than 12% of the U.S. construction industry is unionized and the construction industry is facing a skilled labor shortage of more than 500,000 people in 2023, these policies must be removed to ensure that the vast majority of the workforce is able to work on projects receiving IRA tax credits through fair and open competition.”

According to a survey of ABC contractor members published Oct. 24, 98% of respondents stated that controversial prevailing wage and government-registered apprenticeship policies imposed by the Inflation Reduction Act will make them less likely to bid on clean energy projects.

ABC also led a coalition of a dozen construction and business associations in comments urging the IRS to provide regulatory clarity and to abandon its illegal and coercive scheme to push clean energy project developers into requiring PLAs.

ABC previously submitted comments on Nov. 4, 2022, to Treasury in response to its request for comments on future initial guidance implementing these tax credits. ABC outlined concerns with the IRA’s unprecedented expansion of inflationary prevailing wage and apprenticeship requirements and the lack of clear guidance from Treasury as a result of it failing to issue regulations through a traditional notice-and-comment rulemaking.

ABC issued a Nov. 29, 2022, statement on the IRS/Treasury’s inadequate initial guidance.

Following extensive feedback from ABC and industry stakeholders on the November 2022 guidance, this summer the Biden administration announced a formal rulemaking on the matter.

Stakeholders can review ABC and government resources on the IRA tax credits for clean energy projects at abc.org/ira.

ABC: NLRB Joint Employer Final Rule Will Harm Small Businesses

October 26, 10:53 AM 2023 |
939 |
News Release 2023, Policy, Politics and Policy

WASHINGTON, Oct. 26—Associated Builders and Contractors today released the following statement on the National Labor Relations Board’s joint employer final rule. The final rule rescinds and replaces the ABC-supported 2020 NLRB joint employer final rule, which provided clear criteria for companies to apply when determining their joint employer status.

“Unfortunately, the Biden NLRB decided to dramatically expand joint-employer liability under the National Labor Relations Act, which will disrupt existing contractor and subcontractor relationships throughout the construction industry,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “As a result of the confusion and policy whiplash caused by this overbroad standard, contractors may be vulnerable to increased liability and risk, making them less likely to hire subcontractors, most of which are small businesses. This will ultimately cause needless delays and cost inflation on taxpayer-supported infrastructure projects. ABC will explore all options to push back on this harmful final rule, including possible litigation.”

According to the U.S. Census Bureau, the construction industry has one of the highest concentrations of small businesses and construction companies that employ fewer than 100 construction professionals comprise 99% of construction firms in the United States.

On Dec. 7, 2022, ABC submitted comments to the NLRB urging the Board to withdraw the new proposed rule.

ABC Convention 2024 Returns to Orlando

October 4, 17:28 PM 2023 |
544 |
News Release 2023, People and Awards

WASHINGTON, Oct. 25—Associated Builders and Contractors today released the details of ABC Convention 2024, which will take place March 13-15 at the Gaylord Palms in Kissimmee, Florida, for the second consecutive year. ABC’s annual convention celebrates the best of the best in merit shop construction, honoring the member companies and individuals who lead the industry in representing the association’s core values.

“ABC Convention 2024 brings together contractors and industry professionals from across the country to learn how to advance their businesses and improve their bottom lines,” said Michael Bellaman, ABC president and CEO. “Construction professionals nationwide and in the Orlando area are invited to join us to gain valuable industry insights, hear from engaging keynote presenters, participate in business-building networking and experience merit shop celebrations only found at ABC’s annual convention.”

In addition to educational sessions and keynotes, ABC Convention 2024, “Celebrating Success. Building Tomorrow,” includes these annual events:

The 35th annual National Craft Championships celebrate lifelong learning in the merit shop construction industry, with students from chapter and member training programs across the country competing for national recognition in about a dozen construction crafts in individual and team competitions.
The 34th National Excellence in Construction® Awards honor the most outstanding construction projects and member contractors of the year for their remarkable achievements in leadership, safety, innovation and inclusion, diversity and merit.
The Construction Workforce Awards feature the Craft Instructor of the Year, Craft Professional of the Year and Young Professional of the Year. These individuals play critical roles in shaping the future of the construction industry by highlighting construction as a meaningful, lifelong career, emphasizing safe work practices and expanding education opportunities.
The Construction Management Competition is the event of the year for future construction management professionals, featuring teams of college and university students testing their skills in project management, estimating, safety, quality control and presentation skills. ABC will also name the Student Chapter of the Year chosen from members of the ABC National Student Chapter Network, which connects local ABC chapters to colleges and universities with construction management programs to build the talent pipeline and mentor future leaders of the construction industry.

For more information on ABC Convention 2024, visit abcconvention.abc.org.

Survey: 98% of ABC Contractors Say Biden’s Inflation Reduction Act Labor Mandates Limit Competition on Clean Energy Construction

October 24, 16:07 PM 2023 |
1469 |
News Release 2023, Policy, Politics and Policy

WASHINGTON, Oct. 24—According to an October 2023 survey of ABC contractor members published today, 98% of respondents stated that controversial prevailing wage and government-registered apprenticeship policies imposed by the Inflation Reduction Act will make them less likely to bid on clean energy projects. The survey gauged ABC members’ responses to a proposed rule issued by the Internal Revenue Service on Aug. 29 that would implement these requirements.

“The concerns expressed by the overwhelming majority of respondents indicate that the proposed rule fails to provide much-needed regulatory certainty and will ultimately cause unnecessary cost increases and delays to America’s clean energy projects,” said ABC Vice President of Regulatory, Labor and State Affairs Ben Brubeck. “Stakeholders seeking enhanced IRA tax incentives conditioned on meeting controversial prevailing wage and government-registered apprenticeship programs are sending a clear message that more clarity is required for the IRA to deliver on promised benefits.

“These survey results confirm that ABC members will be much more likely to participate in clean energy construction if there is clarity in these policies,” said Brubeck. “ABC members expressed a wide range of concerns, from a shortage of government-registered apprenticeship programs and participants in this competitive labor market to opaque prevailing wage regulations that will increase compliance burdens and discourage competition from small businesses. The IRS must provide additional information and promote policies that encourage competition as implementation of the IRA moves forward.”

According to the survey:

96% of respondents agreed the IRA’s mandates would decrease competition among contractors on clean energy projects.
98% of respondents indicated that the proposed rule’s incentives for union-favoring project labor agreements would make them less likely to bid on these IRA projects.
85% of respondents stated that the necessary GRAPs for IRA projects had not been established in their geographic area, and 90% do not believe sufficient apprentices are available to meet the IRA’s labor hour requirements.
98% of respondents agreed that complying with union work rules where collectively bargained union wage rates prevail would increase the burden of complying with IRA prevailing wage requirements.

Small businesses, which represent the vast majority of construction firms, were deeply concerned with the proposed rule’s requirements. Of respondents that self-identified as small businesses under the Small Business Administration’s size standards, 97% said they would be less likely to bid on IRA projects due to the proposed rule’s requirements, 98% expressed concerns regarding unclear union work rules for prevailing wage classifications and 89% said sufficient apprentices to meet IRA GRAP requirements are unlikely to be available.

“ABC members work on a wide array of projects eligible for enhanced IRA tax incentives, including solar and wind energy, electric vehicle charging stations, carbon capture and more,” said Brubeck. “Unfortunately, many ABC contractors will be needlessly disincentivized from bidding on these projects because of the Biden administration’s lack of regulatory clarity in implementing the IRA and its schemes pushing clean energy developers to mandate anti-competitive and inflationary project labor agreements, which increase costs by 12% to 20% and reduce competition from more than 88% of the U.S. construction industry workforce.”

ABC will be submitting comments to the IRS by Oct. 30 in response to the proposed rule, as well as assisting contractor members in providing comments.

The Inflation Reduction Act was signed into law on Aug. 16, 2022, and provides over $270 billion in tax incentives for the construction of solar, wind, hydrogen, carbon sequestration, electric vehicle charging stations and other clean energy projects.

However, this is conditioned on requirements that project contractors meet prevailing wage and apprenticeship requirements. Developers/taxpayers must ensure that contractors pay all construction workers prevailing wages and benefits set by the U.S. Department of Labor via the Davis-Bacon Act. Developers must also ensure that contractors utilize apprentices enrolled in government-registered apprenticeship programs for certain percentages of all construction hours worked on a project (12.5% of all work hours in 2023 and 15% of all work hours in 2024 and thereafter), among other requirements.

ABC issued a statement on the August 2023 proposed rule expressing concerns with its lack of clarity and urging the IRS to make critical improvements prior to finalization.

Previously, ABC commented on the IRS’s November 2022 guidance on the IRA, which established that GRAP and prevailing wage requirements would take effect on Jan. 30, 2023. ABC’s comments called for regulatory clarity and raised concerns with the anti-competitive impacts of GRAP and prevailing wage requirements on clean energy projects.

For more information on the proposed rule and other IRA requirements, visit abc.org/ira.

ABC: New Davis-Bacon Rule Will Devastate Small Construction Contractors Working on Federal Contracts

October 19, 11:06 AM 2023 |
2110 |
News Release 2023, Politics and Policy

WASHINGTON, Oct. 19—Testifying on behalf of Associated Builders and Contractors before the U.S. House Committee on Small Business today, Mario Burgos, chief strategy officer, Prairie Band LLC, Albuquerque, New Mexico, urged lawmakers to rein in the Biden administration’s inscrutable and burdensome wage determination practices under the Davis-Bacon and Related Acts. Burgos detailed his efforts to comply with a byzantine process to determine prevailing wages on federal construction projects and said the U.S. Department of Labor’s recent rulemaking updating Davis-Bacon will only make compliance challenges worse, driving small contractors out of public works projects or even out of business.

Speaking at the hearing “Burdensome Regulations: Examining the Effects of DOL Rulemaking on America’s Job Creators,” Burgos narrated the DOL’s investigation of his award-winning family business, Burgos Group, which resulted in the withholding of nearly $1 million in federal payments owed to the 17-year-old firm and a settlement costing the company hundreds of thousands of dollars plus legal fees. Ultimately, this action and the overly burdensome regulatory environment facing Burgos and his company were contributing factors to its sale to Prairie Band LLC.

”Unfortunately, the number of rapidly changing and ever-increasing federal and state regulatory requirements affecting the construction industry led us to conclude that the most prudent action would be to exit the business,” Burgos testified. “The recent DOL updates to regulations implementing the Davis-Bacon and Related Acts is just the latest example of additional burdens and barriers erected, which make it more difficult for small businesses to participate in the economic investments of the bipartisan Infrastructure Investment and Jobs Act or to support our nation’s defense missions.”

In its investigation, the DOL determined that, although Burgos Group paid its employees prevailing wages on a federal project under the Arizona Laborers’ Agreement posted on the DOL’s website, they were instead subject to the unpublished prevailing wage scheme of IBEW Local Union 570, which had “claimed the work.” Burgos was never notified of the electrical union’s claim, which affected the job classifications of 84 workers, resulting in a settlement with the DOL under which Burgos Group admitted no fault or wrongdoing. “I do not believe that anyone at the DOL acted maliciously,” said Burgos. “Quite to the contrary, I believe that the subjective nature of the existing regulations created ambiguity, which puts a presumption of guilt on businesses and makes the enforcement and compliant responsibilities of DOL personnel more difficult.

“For decades, the DOL Office of Inspector General and Government Accountability Office have pointed to flaws in the DOL’s wage determination process, yet the DOL’s final rule does little to fix this problem,” said Burgos. “In fact, the new rule makes it worse by rescinding pro-taxpayer and commonsense policies that were enacted more than 40 years ago because they were not reliably producing a timely or local prevailing wage, as required by statute.

“My experience shows how difficult it can be to comply with DBA regulations when the correct wage determination is not easily determined,” said Burgos. “The revisions of the DBA, which will go into effect Oct. 23, 2023, further compound this problem. The DOL needs to publish union collective bargaining agreements publicly, or not apply this standard. Small businesses are hurt with cloak-and-dagger regulations.”

Burgos called on Congress to reduce the administrative and paperwork burden of complying with Davis-Bacon prevailing wage rules and eliminate the subjective nature of DBA compliance.

More information on the recent Davis-Bacon rulemaking is available at abc.org/davisbacon

[Editor's note: the hearing video begins at 17:16.]

ABC 2023 Tech Report Details Framework for Successful Construction Tech Adoption

October 4, 15:58 PM 2023 |
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Construction Technology, News Release 2023

WASHINGTON, Oct. 12—Associated Builders and Contractors today released its third annual construction technology report, which consists of a framework and complementary real-life case studies from ABC contractors that utilize construction technologies to strengthen safety, workflows and profits. These case studies help to explain the foundational steps companies can take toward successful adoption of construction technology.

“By focusing on the people affected by technology change and identifying key stakeholders and drivers throughout the process, companies can develop a robust construction technology framework that can lead to more profits, safer jobs and more work,” said Matt Abeles, ABC vice president of construction technology and innovation. “In the 2023 Tech Report, we see how ABC members’ investment in tech and innovation can be strategically adopted and implemented. The case studies and research highlight construction companies of all sizes and explain how they have successfully transformed their businesses with the proper technology choices, rollout strategies and leadership.”

“The research and case studies in ABC’s 2023 Tech Report answer the question, ‘How do I get started?’ when it comes to implementing construction technology and innovation,” said Jack Hineman, chair of ABC’s Construction Technology and Innovation Committee and vice president of business intelligence at Gaylor Electric, headquartered in Indianapolis. “You’ll get a peek behind the curtain to see not only which technology they are adopting, but also the steps they took throughout the process. There are multiple potential pathways, and it will be up to you to determine the best fit for your company based on your knowledge of the business and people.”

ABC’s framework of construction technology and innovation covers:

Trigger: What is driving the need or request for the new technology?
Assessment: How do you find and evaluate your options?
Decision: What option are you deciding to pursue?
Implementation: How do you put the technology into place?
Adoption: How do you use the technology?
Feedback: What’s the process of requesting, receiving and consuming feedback on the new technology?

Construction technology and innovative practices in the 2023 Tech Report include cybersecurity, virtual reality, equipment and asset management systems, business information modeling, data-driven analytics, technology training, capturing and analyzing spatial data through light detection and ranging scanning, innovation labs and more.

The 2023 ABC Tech Report was published by the ABC National Construction Technology and Innovation Committee and was written by contractors, for contractors. The report is made possible by ABC’s 2023-2024 Tech Alliance members: Arcoro, Autodesk Inc., BuildOps, ConstructConnect, Egnyte, Field Control Analytics, Kojo, KPA, Procore, Sage, Smartapp, SmartBuild, SubHQ, Tenna and Trimble.

ABC creates the conditions for construction companies to innovate, differentiate, attract and educate their top talent, ultimately to win and deliver that work safely, ethically and profitably for the betterment of the communities in which they work. ABC continues to invest in helping our members select high-quality construction technology available to them through its Tech Alliance, Tech Marketplace and Safety Tech Guide. Visit abc.org/techreport to read the digital report.

ABC members will receive the print edition of the 2023 Tech Report with the September-October issue of Construction Executive, the magazine for the business of construction.

ABC: Monthly Construction Input Prices Increase Slightly in September, Led by Higher Energy Prices

October 11, 10:08 AM 2023 |
3218 |
Construction Economics, Materials Prices, News Release 2023

WASHINGTON, Oct. 11—Construction input prices increased 0.2% in September compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data released today. Nonresidential construction input prices increased 0.2% for the month as well.

Overall construction input prices are 0.3% higher than a year ago, while nonresidential construction input prices are 0.6% higher. Prices increased in all three energy subcategories in September. Crude petroleum prices were up 10.1%, along with unprocessed energy materials prices, which rose 7.5% last month. Natural gas prices were up slightly by 0.1% in September.

“Today’s PPI report indicates that while inflationary pressures persist economywide, materials price increases are no longer at the heart of this bout of excess inflation,” said ABC Chief Economist Anirban Basu. “When inflation began to emerge in 2021, supply chains ill-prepared to handle surging demand for goods and services during the early stages of post-pandemic recovery were among the primary culprits. Today, inflation is driven less by supply chain issues and more by structural labor market dynamics and geopolitics. Many contractors continue to indicate that their primary challenge is securing sufficient levels of workers. That will not change anytime soon and could only be countered by a sharp downturn in construction activity.

“At this time, that sharp downturn is not anticipated,” said Basu. “Rather, contractors continue to report healthy backlog, plentiful bidding opportunities and expectations for sales, employment and profit margin growth during the months ahead, according to ABC’s Construction Confidence Index. Over the past year, materials prices have been roughly flat, though certain segments like concrete have continued to experience upward price pressures. Renewed conflict in parts of the world that produce a considerable amount of global energy could put more pressure on contractors during the months ahead, but such things are difficult to predict.”

ABC’s September Construction Backlog Indicator Dips, Yet Contractors Remain Confident

October 5, 13:47 PM 2023 |
3467 |
Construction Backlog Indicator, Construction Confidence Index, Construction Economics, News Release 2023

WASHINGTON, Oct. 10—Associated Builders and Contractors reported today that its Construction Backlog Indicator declined to 9.0 months in September, according to an ABC member survey conducted Sept. 20 to Oct. 4. The reading is equivalent to one year ago.

View the full Construction Backlog Indicator and Construction Confidence Index data series.

Though it declined last month, the South continues to have the lengthiest backlog, which has been the case since October 2021. Over the past year, only the West has experienced increasing backlog.

ABC’s Construction Confidence Index reading for sales and staffing levels edged higher in September. The profit margins reading fell slightly. All three readings remain above the threshold of 50, indicating expectations for growth over the next six months.

“Construction continues to defy the downward gravitational pull of tightening credit conditions,” said ABC Chief Economist Anirban Basu. “Despite high and rising project financing costs, ABC contractor members continue to report lofty backlog, rising employment, expanding sales and stable profit margins.

“That said, industry headwinds grow in force,” said Basu. “Interest rates are still edging higher. Political dysfunction in Washington persists. Rising worker compensation costs and lingering supply chain issues are still frustrating industry performance and profitability. The U.S. economy appears poised to slow further. If the past is any indication, that will eventually catch up to construction in the form of dissipating demand. But economists have talked about recession for more than a year, and the industry still shows substantial forward momentum. It remains to be seen whether that momentum can survive the latest set of challenges.”

Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month’s work under contract based on the latest financials available, while CCI measures contractors’ outlook for the next six months.

ABC: Construction Adds 11,000 Jobs, Nonresidential Employment Contracts Slightly in September

October 6, 09:42 AM 2023 |
1388 |
Construction Economics, Employment, News Release 2023

WASHINGTON, Oct. 6—The construction industry added 11,000 jobs on net in September, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has increased by 217,000 jobs, an uptick of 2.8%.

Nonresidential construction employment decreased by 1,300 positions on net, with contraction in 2 of the 3 subcategories. Nonresidential specialty trade lost 3,300 positions, while nonresidential building lost 200 jobs. Heavy and civil engineering added 2,200 jobs.

The construction unemployment rate decreased slightly to 3.8%, while unemployment across all industries remained unchanged at 3.8% last month.

“Despite declining last month, America’s nonresidential construction segment has still added jobs at a faster rate than the broader economy over the past year,” said ABC Chief Economist Anirban Basu. “While a meaningful share of that hiring relates to infrastructure and large-scale manufacturing projects, several other subsegments, such as data centers and health care, enter the fourth quarter with momentum.

“Hiring would likely be faster if not for ongoing skills and labor shortages,” said Basu. “America desperately needs more people to enter the skilled trades as it seeks to rebuild its supply chains and improve its built environment. Despite efforts by the Federal Reserve to soften economic growth, a majority of contractors expect their sales and staffing to expand over the next six months, according to ABC's Construction Confidence Index. That suggests that the construction labor market is poised to tighten further during the months ahead despite ongoing Federal Reserve efforts to curb inflation, including by further slowing the pace of hiring.”

Construction Job Openings at 350,000 in August, Says ABC

October 3, 11:07 AM 2023 |
1917 |
Construction Economics, JOLTS, News Release 2023

WASHINGTON, Oct. 3—The construction industry had 350,000 job openings on the last day of August, according to an Associated Builders and Contractors analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings decreased by 3,000 last month but are up by 5,000 from the same time last year.

“The number of open, unfilled construction positions declined in August but remains higher than both one year ago and the pre-pandemic level,” said ABC Chief Economist Anirban Basu. “Despite the year-over-year increase, the rate at which construction workers are quitting has slowed dramatically as labor constraints ease in other industries that compete for the same workers. With a majority of contractors looking to expand their staffing levels over the next six months, according to ABC’s Construction Confidence Index, any improvements in the labor supply will help contractors keep project costs under control.”