News Releases

ABC: Trump Administration Fails To Rescind Biden’s Anti-Merit Labor Mandate

June 12, 2025 |
2234 |
News Releases 2025, PLAs, Politics and Policy

WASHINGTON, June 12—Associated Builders and Contractors today responded to the announcement from the Office of Management and Budget that President Donald Trump’s administration will continue to enforce former President Joe Biden’s anti-competitive policy mandating project labor agreements on federal construction projects of $35 million or more.

“This decision cannot be reconciled with the president’s philosophies of merit, fairness and nondiscrimination because it inhibits fair and open competition and prioritizes special interests over taxpayers and workers,” said Michael Bellaman, ABC president and CEO. “Today’s memorandum doubles down on an unfair, wasteful, anti-competitive, Biden-era policy that inflates costs and delays critical construction projects, including those important to the defense of our country.

“It is unfortunate that this guidance states that maintaining Biden’s PLA mandate final rule is necessary because the Trump administration ‘supports the use of PLAs when those agreements are practicable and cost-effective,’” said Bellaman. “To be clear, this policy is not needed to allow the use of PLAs on federal construction. At no point, under any administration, have federal contractors ever been prevented from voluntarily entering into a PLA when such an agreement makes sense for their workforce. Fair and open competition works because it not only preserves worker choice but also gives contractors the freedom to choose to enter or not enter into a PLA. At the end of the day, it is based on merit and nondiscrimination. Every qualified contractor should have the opportunity to build America.

“This policy effectively excludes the 90% of the U.S. construction workforce that does not belong to a union from nearly all large-scale federal construction contracts, regardless of whether PLAs are ‘practicable or cost-effective’ on a given project,” said Bellaman. “The ongoing confusion and legal uncertainty this policy creates will result in unnecessary delays and cost increases to critical national security projects needed to protect our border and rebuild our military, including land ports of entry and military bases.”

ABC has long opposed government-mandated PLAs, which force contractors to sign union agreements in order to win federal work. This policy keeps merit shop contractors from bidding on infrastructure projects in their own communities. While ABC members won 54% of federal construction contracts of $35 million or more by value during fiscal years 2009-2024, today’s guidance prevents many of these experienced and qualified contractors from delivering public works projects safely, on time and on budget.

“ABC will continue to fight the Biden-era illegal and anti-competitive PLA mandate in court and support our federal contractor members in opposing PLA mandates on any project where they are implemented,” said Bellaman. “The administration should rescind this PLA mandate executive order immediately.”

ABC: Tariffed Construction Materials Prices Rise in May

June 12, 2025 |
1884 |
Construction Economics, Materials Prices, News Releases 2025

WASHINGTON, June 12—Construction input prices increased 0.2% in May 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 0.3% for the month.

Overall construction input prices are 1.3% higher than a year ago, while nonresidential construction input prices are 1.6% higher. Prices decreased in 2 of the 3 energy categories last month. Natural gas prices were down 18.7%, while prices for unprocessed energy materials were down 3.5%. Crude petroleum prices increased 1.3% in May.

“Construction materials prices continued to increase at a faster-than-ideal pace in May,” said ABC Chief Economist Anirban Basu. “While input prices are up just 1.3% over the past year, that modest escalation is entirely due to price decreases during the second half of 2024. Costs have increased rapidly since the start of this year, with input prices rising at a 6% annualized rate through the first five months of 2025.

“Accelerating input price escalation is largely due to rapid price increases for tariff-affected goods like iron and steel,” said Basu. “Expect this dynamic to remain over the next few quarters; these data predate tariffs on iron and steel rising from 25% to 50%, which went into effect on June 4. Despite rising input prices, contractors remain relatively optimistic about their profit margins, according to ABC’s Construction Confidence Index. With cooler-than-expected economywide inflation in May, the number of expected rate cuts in 2025 has risen. If those expectations are realized, it would provide the construction industry with a much-needed tailwind.”

ABC: Contractors’ Backlog Falls Sharply in May

June 10, 2025 |
2240 |
Construction Backlog Indicator, Construction Confidence Index, Construction Economics, News Releases 2025

WASHINGTON, June 10—Associated Builders and Contractors reported today that its Construction Backlog Indicator fell to 8.4 months in May, according to an ABC member survey conducted May 20 to June 3. The reading is up 0.1 months since May 2024.

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

While the South maintains the longest backlog of any region, it was the only one to experience a decline in May. Only the Northeast has longer backlog on a year-over-year basis, while the other three regions experienced annual declines.

ABC’s Construction Confidence Index reading for profit margins improved in May, while the readings for sales and staffing levels fell. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.

“The impacts of tariffs are increasingly apparent, with nearly 1 in 4 ABC member contractors reporting tariff-related project cancellations or delays in May,” said ABC Chief Economist Anirban Basu. “While 87% of survey respondents have been notified of tariff-related materials price increases, profit margin expectations actually improved in May.

“Of course, this survey was largely conducted prior to the announcement of the now-implemented 50% steel and aluminum tariffs, and margins will likely come under pressure in the coming months,” said Basu. “Despite this potential headwind, approximately 6 out of 10 contractors expect their sales to increase over the next two quarters, suggesting widespread optimism about the outlook.”

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: Nonresidential Construction Adds 11,300 Jobs in May

June 6, 2025 |
1940 |
Construction Economics, Employment, News Releases 2025

WASHINGTON, June 6—The construction industry added 4,000 jobs on net in May, 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 126,000 jobs, an increase of 1.5%.

Nonresidential construction employment increased by 11,300 positions, with growth in all three subcategories. Nonresidential specialty trade added the most jobs, increasing by 4,500 positions, while heavy and civil engineering and nonresidential building added 3,700 and 3,100 jobs, respectively.

The construction unemployment rate decreased to 3.5% in May. Unemployment across all industries remained unchanged at 4.2%.

“The nonresidential construction segment has now added jobs at over twice the pace of the broader economy during the past 12 months,” said ABC Chief Economist Anirban Basu. “This hiring has been aided by softness in the residential segment, which lost over 7,000 jobs in May, freeing up workers for nonresidential contractors. Even so, the industrywide unemployment rate fell to an exceptionally low 3.5% in May, indicating that the labor supply remains unusually tight.

“Despite healthy nonresidential hiring, the broader industry has added just 25,000 jobs from January to May,” said Basu. “That marks the slowest five-month employment growth since 2020 and provides a clear indication that high interest rates, tight lending standards and policy uncertainty are weighing on industrywide momentum. Of course, contractors remain broadly optimistic in the face of those headwinds, according to ABC’s Construction Confidence Index, with a majority of contractors expecting their staffing levels to increase over the next six months.”

ABC: Construction Job Openings Decreased by 3,000 in April, Down 45% Since December 2023

June 3, 2025 |
2364 |
Construction Economics, JOLTS, News Releases 2025

WASHINGTON, June 3—The construction industry had 248,000 job openings on the last day of April, 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 and are down by 78,000 from the same time last year.

“Construction labor market churn remained unusually slow in April,” said ABC Chief Economist Anirban Basu. “The rates of hires, layoffs and quits are all low by historical standards, and industrywide job openings have fallen 45% since reaching an all-time high in December 2023. Despite stagnant workforce dynamics and emerging weakness in construction spending data, approximately 57% of contractors intend to increase their staffing levels over the next six months, according to ABC’s Construction Confidence Index.”

ABC Extends Strategic Partnership With Fringe Benefit Group To Support Government Contractors

June 3, 2025 |
1995 |
News Releases 2025

WASHINGTON, June 3—Associated Builders and Contractors today announced the renewal of its 12-year strategic partnership with Fringe Benefit Group, a leading provider of benefit solutions for government contractors, staffing companies, restaurants and retail outlets. The new three-year agreement reinforces ABC and FBG’s shared commitment to supporting contractors working in the prevailing wage space and the broader government contracting market.

“For years, FBG has helped ABC members navigate the complexities of prevailing wage compliance while also attracting and retaining skilled workers,” said Michael Bellaman, president and CEO of ABC. “We are proud to renew our strategic partnership and continue to drive progress in the construction industry.”

This latest agreement continues the collaboration between two organizations dedicated to meeting the unique needs of merit shop contractors, powered by FBG’s flagship platform, The Contractors Plan. Based in Austin, Texas, FBG helps ABC members bid more effectively on public projects while complying with government regulations and provides tailored employee benefit solutions that address compliance, cost-efficiency and administrative ease in government-funded construction projects. FBG currently serves over 500 ABC members and brokers.

“We are excited to extend our partnership with ABC and continue serving the contractors who build America,” said Travis West, CEO of Fringe Benefit Group. “Our recent investments in technology, service and products will further simplify benefits administration while ensuring compliance and delivering leading service and support capabilities to ABC members nationwide.”

About Fringe Benefit Group: Fringe Benefit Group has more than 40 years of experience of providing benefit solutions to government contractors, restaurants, retail and staffing companies. Through its products The Contractors Plan and The American Worker, FBG offers benefits from the nation’s leading carriers and delivers a full-service suite of tools that streamline enrollment and plan administration. FBG partners with a nationwide network of brokers and agents and is known for its commitment to service, compliance expertise and technology innovation. Visit fbg.com, contractorsplan.com or theamericanworker.com.

ABC: Nonresidential Construction Spending Dips 0.1% in April

June 2, 2025 |
2249 |
Construction Economics, Construction Spending, News Releases 2025

WASHINGTON, June 2—National nonresidential construction spending decreased 0.1% in April, 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 $1.248 trillion.

Spending was down on a monthly basis in 6 of the 16 nonresidential subcategories. Private nonresidential spending was down 0.5%, while public nonresidential construction spending was up 0.5% in April.

“Construction spending slipped in April as headwinds like trade policy uncertainty, high interest rates and tight lending standards continued to batter industrywide momentum,” said ABC Chief Economist Anirban Basu. “Nearly 22% of contractors reported tariff-related project delays or cancellations in April, and despite changes to certain import tax rates in May, policy uncertainty remains extraordinarily elevated.

“With the exception of data centers and certain public sector segments, the industry has few bright spots at the moment,” said Basu. “Private nonresidential spending has fallen in 3 of the first 4 months of 2025 and is on pace to decline 4% for the year. This is especially concerning given a nearly 10% year-over-year decline in computer/electronic manufacturing construction spending, the segment that bolstered the industry throughout much of 2023 and 2024.”

ABC: Judge Favors Special Interests on Federal Infrastructure, a Loss for Taxpayers and the Nonunion Construction Industry

May 19, 2025 |
3163 |
News Releases 2025, PLAs, Politics and Policy

WASHINGTON, May 19—Associated Builders and Contractors today responded to a May 16 decision from the U.S. District Court of the District of Columbia that grants a preliminary injunction to the North America’s Building Trades Unions that reinstates project labor agreement mandates on certain U.S. Department of Defense and General Service Administration construction contracts over $35 million.

“ABC respectfully disagrees with the court’s reinstatement of illegal and costly project labor agreement mandates on a wide range of federal construction projects critical to America’s national security,” said Kristen Swearingen, ABC vice president of government affairs. “Instead, all government-mandated PLAs should be entirely rescinded by the Trump administration to prioritize efficient use of taxpayer dollars on high-quality, safely built projects over steering contracts to special interests. Rescinding this mandate would build on the administration’s ongoing efforts to reward merit in federal contracting—a significant victory for taxpayers that would reduce federal construction costs by up to $10 billion annually.

“By discriminating against the 89.7% of the industry workforce that is not unionized, PLAs discourage competition by forcing contractors to sign union collective bargaining agreements, hire workers from union halls and apprenticeship programs and accept compulsory union representation on behalf of any members of their existing workforces, and exposes those workers to union wage theft of up to 34% of their compensation unless they join a union and vest in union benefits plans,” said Swearingen.

“Taxpayers lose when responsible, qualified contractors are effectively and unfairly excluded from bidding on contracts to build essential infrastructure,” said Swearingen. “Americans deserve long-lasting construction projects built safely, on time and on budget by the best contractors and workers, regardless of labor affiliation. ABC will continue to fight for fair and open competition that allows the most qualified contractors and workers to bid for federal work on a level playing field.”

This PLA mandate has been widely criticized by the construction industry, taxpayer watchdogs and lawmakers for needlessly inflating construction costs, delaying projects and effectively steering contracts to unionized firms and union labor.

ABC: Construction Materials Prices Tame in April Despite Rising Iron and Steel Costs

May 15, 2025 |
3220 |
Construction Economics, Materials Prices, News Releases 2025

WASHINGTON, May 15—Construction input prices decreased 0.1% in April 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.

Overall construction input prices are 0.1% higher than a year ago, while nonresidential construction input prices are 0.2% higher. Prices decreased in all three energy categories last month. Natural gas prices were down 7.1%, while prices for unprocessed energy materials and crude petroleum were down 5.0% and 4.9%, respectively.

“Construction input prices declined in April, but that was largely due to falling energy prices,” said ABC Chief Economist Anirban Basu. “Materials directly affected by tariffs saw sharp price increases for the month. Steel mill product prices, for instance, rose 5.9%, while copper wire and cable prices increased 5.0%.

“While recent developments have reduced tariff-related uncertainty, the 25% tax on steel and aluminum imports remains in place, and a sudden resumption in imports from China could cause an increase in shipping prices. Despite the upward pressure that these factors will put on input prices, just 1 in 4 contractors expect their profit margins to contract over the next six months, according to ABC’s Construction Confidence Index.”

Despite Tariff Impacts, ABC Contractors’ Backlog and Profit Margin Expectations Improve in April

May 13, 2025 |
4725 |
Construction Backlog Indicator, Construction Confidence Index, Construction Economics, News Releases 2025

WASHINGTON, May 13—Associated Builders and Contractors reported today that its Construction Backlog Indicator rose to a 20-month high of 8.7 months in April, according to an ABC member survey conducted April 22 to May 6. The reading is up 0.3 months since April 2024.

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

Backlog has increased significantly over the past year for contractors with greater than $100 million in annual revenues. While backlog has also risen modestly for the smallest contractors, it is down on an annual basis for those with $30 million to $100 million in annual revenues.

ABC’s Construction Confidence Index reading for profit margins improved in April, while the readings for sales and staffing levels fell, though the outlook for sales is higher than a year ago. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.

“Nearly 22% of contractors had a project delayed or canceled in April due to tariffs, up from 18% in March, while 87% have been notified of tariff-related materials prices increases,” said ABC Chief Economist Anirban Basu. “Contractors remain busy despite these headwinds; backlog rose in April and is now at the highest level since September 2023. While ABC members remain upbeat about the near-term outlook, the share of respondents that expect their sales to decline over the next six months rose to 19% in April, up 6 percentage points since the start of the year.”

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.

News Releases

ABC: Trump Administration Fails To Rescind Biden’s Anti-Merit Labor Mandate

ABC: Tariffed Construction Materials Prices Rise in May

ABC: Contractors’ Backlog Falls Sharply in May

ABC: Nonresidential Construction Adds 11,300 Jobs in May

ABC: Construction Job Openings Decreased by 3,000 in April, Down 45% Since December 2023

ABC Extends Strategic Partnership With Fringe Benefit Group To Support Government Contractors

ABC: Nonresidential Construction Spending Dips 0.1% in April

ABC: Judge Favors Special Interests on Federal Infrastructure, a Loss for Taxpayers and the Nonunion Construction Industry

ABC: Construction Materials Prices Tame in April Despite Rising Iron and Steel Costs

Despite Tariff Impacts, ABC Contractors’ Backlog and Profit Margin Expectations Improve in April

Categories

Archives