News Releases

ABC: Monthly Construction Economic Survey Shows Tariff Impacts Emerge

April 15, 2025 |
3756 |
Construction Backlog Indicator, Construction Confidence Index, Construction Economics, News Releases 2025

WASHINGTON, April 15—Associated Builders and Contractors reported today that its Construction Backlog Indicator rose to 8.5 months in March, according to an ABC member survey conducted March 20 to April 6. The reading is up 0.3 months since March 2024.

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

Backlog increased on a monthly basis for all nonresidential subsegments in March. Over the past year, however, only the infrastructure category has experienced a meaningful increase in backlog.

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

Notably, respondents who completed the survey after the April 2 tariffs announcement were significantly less upbeat—fewer than 26% of those respondents expected their profit margins to expand over the next six months, while more than 40% expected them to contract.

"Backlog increased in March and contractors remained optimistic regarding the future, but this largely reflects contractor activity and sentiment prior to April 2, when the most consequential economic policy in several decades was announced," said ABC Chief Economist Anirban Basu.

"Approximately 80% of ABC contractors surveyed indicate that suppliers have notified them of tariff-related materials price increases, and nearly 20% of contractors surveyed had projects paused or interrupted because of tariffs during March," said Basu. "These tariffs have already materially diminished the outlook for construction activity in 2025. Many businesses are poised to delay or even cancel planned capital investments given the current business environment and daily market convulsions. Conditions will likely deteriorate further if elevated tariff rates remain in place for any meaningful length of time."

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: Tariffs Drive Surge in March Construction Materials Prices

April 11, 2025 |
4930 |
Construction Economics, Materials Prices, News Releases 2025

WASHINGTON, April 11—Construction input prices increased 0.5% in March, 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 0.6% for the month.

Both overall and nonresidential construction input prices are 0.8% higher than one year ago. While crude petroleum prices fell considerably in March, that decline was more than offset by rapidly rising natural gas, steel, copper and lumber prices.

“Construction input prices increased at a rapid pace for the third consecutive month in March and have now risen at a 9.7% annualized rate through the first quarter of 2025,” said ABC Chief Economist Anirban Basu. “The emerging effects of tariffs are glaring in the March data release, with iron and steel, steel mill products and copper wire and cable prices all rising more than 5% for the month. While contractors remain busy for the time being, according to ABC’s Construction Backlog Indicator, this pace of input price escalation, coupled with rising uncertainty, will cause projects to be delayed and canceled if it persists for any meaningful length of time.”

ABC Denounces Special Interests for Suing Trump Administration To Block Fair and Open Competition

WASHINGTON, April 10—Associated Builders and Contractors today voiced its strong opposition to North America’s Building Trades Unions’ filing of a lawsuit against President Donald Trump’s administration, seeking to reinstate project labor agreement mandates on certain U.S. Department of Defense and General Service Administration construction contracts over $35 million.

“NABTU’s misguided decision to file a challenge against the Trump administration’s lawful exemption from anti-competitive, union-favoring project labor agreement requirements on certain federal projects is a reminder that these special interests are fearful of fair and open competition,” said Kristen Swearingen, ABC vice president of government affairs. “Instead, they prefer policies that put a thumb on the scales in their favor at the expense of hardworking taxpayers who suffer the impacts of these inflationary, discriminatory requirements.

“ABC supports the Trump administration’s exemption of projects critical to America’s national security from these rules,” said Swearingen. “We urge the administration to take a step further and fully rescind former President Joe Biden’s Executive Order 14063 implementing PLA mandates. This would erase any basis for NABTU’s lawsuit, allowing all contractors—both union and nonunion—to compete on a level playing field. It would also be a huge win for government efficiency by saving taxpayers up to $10 billion annually.”

The Biden 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.

In an ongoing case, ABC filed suit in federal court to block this policy in March 2024. ABC has also supported federal contractor members in bid protests that resulted in a Jan. 19 decision by the U.S. Court of Federal Claims declaring PLA mandates illegal and removing them from the solicitations the contractors were bidding on. ABC will consider legal options for defending the Trump administration’s PLA mandate exemptions against NABTU’s meritless lawsuit.

ABC: March Construction Employment Up Just 1.8% Year Over Year

April 4, 2025 |
1720 |
Construction Economics, Employment, News Releases 2025

WASHINGTON, April 4—The construction industry added 13,000 jobs on net in March, 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 risen by a mere 143,000 jobs, an increase of 1.8%.

Nonresidential construction employment increased by 22,300 positions on net in March, with growth in 2 of the 3 subsegments. Nonresidential specialty trade added the most jobs, with a monthly increase of 19,300 positions, while heavy and civil engineering added 3,400 jobs. The nonresidential building subsegment lost 400 positions.

The construction unemployment rate decreased to 5.4% in March and is unchanged from one year ago. Unemployment across all industries rose from 4.1% in February to 4.2% last month.

“At first glance, this is a perfectly fine jobs report for the construction industry,” said ABC Chief Economist Anirban Basu. “The details, however, give cause for concern. With downward revisions to the January and February numbers, the industry added just 8,000 jobs per month during the first quarter of 2025. Construction employment is up just 1.8% since March 2024, the slowest year-over-year growth in four years.

“March’s labor market data is a lesser concern in light of the sweeping tariffs announced on April 2,” said Basu. “What amounts to the largest tax hike since 1968 will reduce construction activity due to rising input costs, shaken business confidence and potentially higher-for-longer interest rates. While contractors were sanguine about the outlook as of last month, according to ABC’s Construction Confidence Index, industry expectations are likely to worsen in the coming months.”

Construction Job Openings Still Subdued in February, Says ABC

April 1, 2025 |
1240 |
Construction Economics, JOLTS, News Releases 2025

WASHINGTON, April 1—The construction industry had 264,000 job openings on the last day of February, 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 22,000 last month but are down by 165,000 from the same time last year.

“Construction industry hiring continued to pick up in February, accelerating to the fastest rate since the first half of 2024,” said ABC Chief Economist Anirban Basu. “However, industrywide job openings remain subdued compared to this time last year. Still, there are signs that construction workers retain outsized leverage compared to their employers. Contractors remain reluctant to lay off workers, while construction workers quit their jobs at the fastest pace since last May.

“With contractors optimistic about expanding their staffing levels over the next six months, according to ABC’s Construction Confidence Index, the pace of hiring should continue to accelerate through the middle of 2025.”

ABC: Nonresidential Construction Spending Rises to Highest Level on Record in February

April 1, 2025 |
2878 |
Construction Economics, Construction Spending, News Releases 2025

WASHINGTON, April 1—National nonresidential construction spending increased 0.3% in February, 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 $1.255 trillion.

Spending was up on a monthly basis in 9 of the 16 nonresidential subcategories. Private nonresidential spending increased 0.4%, while public nonresidential construction spending was up 0.2% in February.

“Nonresidential spending rebounded in February, rising to the highest level on record,” said ABC Chief Economist Anirban Basu. “A surge in highway and street spending accounted for more than 40% of the monthly increase, and public sector nonresidential spending is now up more than 6% on a year-over-year basis. Unfortunately, private sector spending has not kept pace and is up just 2.5% since last February, a rate of increase slower than economywide inflation.

“The mix of high interest rates, tight lending standards and unprecedented uncertainty regarding trade policy will continue to weigh on private sector construction in the coming months,” said Basu. “Despite these ongoing headwinds and the expectation that materials prices will rise as tariffs are implemented, contractors remain optimistic about their prospects over the next six months, according to ABC’s Construction Confidence Index.”

ABC Obtains National Recovery Friendly Workplace Certification

March 25, 2025 |
1244 |
News Releases 2025, Workforce and Safety

WASHINGTON, March 25—Associated Builders and Contractors today announced it is the first building and construction association in the United States to achieve certification as a recovery-friendly workplace from the Global Recovery Initiatives Foundation’s National Recovery Friendly Workplace Institute. This rigorous certification recognizes ABC’s commitment to fostering a supportive environment for employees in recovery from substance use disorders as well as their loved ones.

“This immense honor for ABC shows we are leading the construction industry by ensuring those who struggle with addiction have access to treatment and full recovery,” said Greg Sizemore, ABC vice president of health, safety, environment and workforce development. “ABC’s Total Human Health Initiative calls for substance use education and well-being to be integrated into an employer's value proposition for every employee—and, in many cases, their families. We encourage all employers in the construction industry to commit to establishing supportive policies, providing accessible mental health benefits and educating their workers to enhance employee wellness. Construction workers use tools every day, and they need the right tools to address mental health, addiction and suicide prevention, especially since construction is estimated to have one of the highest suicide rates among all industries.”

The certification recognizes ABC’s adherence to four requirements that ensure that individuals with substance use disorders get the same level of early access to treatment and recovery supports as other medical conditions would:

Culture: Promoting a recovery-friendly workplace with supportive policies and leadership.
Hiring, retention and advancement: Supporting fair hiring practices and employee wellness.
Benefits: Providing accessible and equitable resources for recovery and mental health.
Education and awareness: Ensuring staff are informed and trained to support recovery initiatives.

“There are 14 million people in recovery working full time and 23 million with active SUD, many of whom are also working full time, that we hope through this certification will find in their workplace the culture and supports they need to seek and maintain recovery,” wrote Cathie Hartnett, executive director of the Global Recovery Initiatives Foundation, and Dr. Andrea Barthwell, chair of the foundation’s board, in a letter to ABC. “Through this certification, your company is being recognized as a leader in this space, while breaking the stigma of SUD and mental health, positively impacting the bottom line, and improving worker satisfaction and productivity.”

“The building and construction industry has experienced firsthand across companies of all sizes how SUD has impacted their workforce,” said Hartnett. “We applaud ABC for their commitment to creating a workplace program founded in science that includes early access to treatment and the needed support to sustain recovery. We look forward to working with their members to grow the number of recovery friendly workplaces.”

ABC developed its Total Human Health Initiative to help contractors keep workers safe with tools to identify, acknowledge and address preoccupying concerns that everyone experiences in daily life—and save lives.

On Sept. 18, 2024, ABC participated in a roundtable at the White House in Washington, D.C., that convened more than a dozen leading corporations, business groups and government leaders to highlight the importance of recovery-ready and recovery-friendly workplaces and share best practices. At the roundtable, ABC committed to achieve Recovery-Friendly Workplace Certification, incorporate the certification into ABC’s industry-leading STEP Safety Management System^® and encourage its 67 chapters and more than 23,000 members to also become certified.

About the National Recovery Friendly Workplace Institute: The National Recovery Friendly Workplace Institute is an initiative of the Global Recovery Initiatives Foundation, a 501(c)(3) not-for-profit, dedicated to advancing the field of recovery. The Institute certifies national employers through a rigorous certification process, and provides guidance to states looking to establish or expand local-level RFW programs. Learn more about GRI at https://rfwinstitute.org.

ABC: Trump Rescinds Certain Failed Biden Policies on PLAs, Apprenticeships

WASHINGTON, March 17—Associated Builders and Contractors today issued the following statement applauding President Donald Trump’s recent executive order rescinding harmful Biden administration executive actions that needlessly increased costs, restricted competition, exacerbated construction’s labor shortage and delayed taxpayer-funded construction of critical infrastructure, manufacturing and clean energy projects.

“President Trump’s elimination of President Joe Biden’s failed policies is a win for America’s taxpayers and construction industry,” said ABC Vice President of Regulatory, Labor and State Affairs Ben Brubeck. “ABC is particularly pleased about the revocation of an outrageous Biden EO pushing project labor agreements and other union policy priorities on federally assisted construction projects funded by taxpayers.

“ABC has testified before Congress that, when mandated by government, PLAs increase construction costs by 12% to 20%, reduce competition from qualified contractors and their employees, steal money from the paychecks of token nonunion workers permitted on PLA projects and exacerbate the construction industry’s worker shortage,” said Brubeck. “Typical PLA mandates discourage competition from some of the best bidders and 9 out of 10 U.S. construction industry workers by forcing contractors to sign special 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. This 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.

“By revoking these failed Biden policies, President Trump is restoring the ability of all of America’s construction workers to rebuild their communities and providing opportunities for contractors to compete based on merit for taxpayer-funded construction contracts procured by private developers and state and local governments,” said Brubeck. “This commonsense EO will help alleviate red tape, inflation and labor shortages undermining taxpayer investments in infrastructure, manufacturing and clean energy projects that have been scaled back, delayed and canceled.

“Unfortunately, President Biden’s pro-PLA EO 14063 and the related FAR rule mandating PLAs on federal construction projects of $35 million or more remain in effect for certain federal construction projects following a decision by the U.S. Court of Federal Claims that ruled in favor of experienced ABC members,” said Brubeck. “ABC will continue to advocate for a fair and open competition EO and legislation that would save taxpayers $10 billion annually by eliminating all of Biden’s pro-PLA policies and preventing PLA mandates by recipients of federal funding.

“ABC is also pleased with President Trump’s elimination of an ABC-opposed Biden EO pushing government-registered apprenticeships on federal and federally assisted construction projects and the revocation of an EO related to minimum wages for employees working on federal contracts,” said Brubeck. “While ABC supports government-registered apprenticeship programs and offers more than 450 of them through ABC chapters as part of its all-of-the-above approach to meet construction’s workforce needs, apprenticeship mandates undermine the voluntary nature of the system that is already failing to keep up with industry demand for labor.”

President Trump’s March 14 Executive Order 14236, Additional Rescissions of Harmful Executive Orders and Actions, revoked 19 Biden administration EOs and actions, including the following ABC-opposed policies:

Executive Order 14126, Investing in America and Investing in American Workers, signed Sept. 6, 2024. (ABC analysis)
Executive Order 14119, Scaling and Expanding the Use of Registered Apprenticeships in Industries and the Federal Government and Promoting Labor-Management Forums, signed March 6, 2024. (ABC analysis)
Executive Order 14026, Increasing the Minimum Wage for Federal Contractors, signed April 27, 2021. (Read ABC’s Aug. 27, 2021, comments on the proposed rule.)

ABC: Government-Registered Apprenticeship Programs Still Do Not Meet Construction Workforce Needs

WASHINGTON, March 17—At current rates of participation and completion, federal and state government-registered apprenticeship programs, or GRAPs, are still failing to meet the construction industry’s short- and long-term skilled workforce development needs, according to an annual Associated Builders and Contractors analysis of recently released U.S. Department of Labor data.

ABC estimates that, in fiscal year 2024, the construction industry’s federal and state GRAPs had about 290,000 apprentice participants and yielded less than 40,000 completers.*

“Unfortunately, America’s government-registered apprenticeship system isn’t keeping up with construction industry demand for skilled craft professionals, despite encouraging progress by many stakeholders to create new programs, attract new apprentices and graduate journeymen and women at the end of a rigorous four-to-five year apprenticeship program,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “Despite the growth of nonunion GRAPs, this data is further evidence that an all-of-the-above approach to workforce development––in contrast to the Biden administration’s policy that only advanced government-registered apprenticeship programs––is the best way to address the construction industry’s chronic skilled labor shortage.”

On Jan. 24, ABC projected the construction industry workforce shortage to be 439,000 in 2025.

The DOL’s data presents five-year trend lines indicating there has been stronger proportional growth in the number of nonunion GRAPs, apprentice participants and apprentice completers compared to union-affiliated GRAPs since 2019.

In FY 2024, 84% of the construction industry’s GRAPs were nonunion providers. The number of nonunion GRAPs has grown by 25% since 2019, compared to a 7% decrease in union-affiliated GRAPs since FY 2019.
Participants in nonunion GRAPs increased by 43% from FY 2019 to FY 2024, compared to 11% for union programs.
Completers of nonunion GRAPs increased by 31% from FY 2019 to FY 2024, compared to 11% for union programs.
However, in FY 2024, 31% of all construction industry GRAP participants were in nonunion programs.

“With construction unions representing a record-low 10.3% of the workforce, the fact that 69% of all apprenticeship programs participants are in union programs illustrates why the union lobby pushes for registered apprenticeship requirements on taxpayer-funded construction projects and advocates for federal grant money for GRAPs as a whole,” said Brubeck. “Workforce development solutions outside of the GRAP paradigm are a threat to union market share.

“ABC champions government-registered apprenticeships as part of a diverse, all-of-the-above solution to workforce development needs to solve the construction industry’s demand for skilled craft professionals, as well as engineers, estimators and project managers,” said Brubeck. “ABC’s 67 chapters are educating craft, safety and management professionals using innovative and flexible learning models like just-in-time task training, competency-based progression and work-based learning, in addition to more than 450 federal and state GRAPs in more than 20 different occupations across America, in order to develop a safe, skilled and productive workforce. ABC members invested an estimated $1.6 billion in construction industry workforce development to upskill 1.3 million course attendees in 2023, including hundreds of GRAPs administered independently by ABC member companies.”

According to U.S. Bureau of Labor Statistics data, the construction industry had 8.31 million employees as of February 2025, and experienced an unemployment rate between 3.2% and 4.2% during peak construction months in 2024.

According to DOL apprenticeship data, apprentices enrolled in construction industry GRAPs comprise 35.7% of the 679,105 apprentices enrolled in GRAPs across all industries in FY 2024.

Visit abc.org/workforce to learn how ABC is building the people who build America and abc.org/grapmap to find an ABC GRAP.

*Note that six states did not report complete GRAP data to the DOL, so ABC’s figure incorporates rough estimates to account for missing state data in order to paint a more complete picture.

ABC Praises Legislation To Restore Merit to Federal and Federally Assisted Contracting

March 14, 2025 |
1447 |
News Releases 2025

WASHINGTON, March 14—Associated Builders and Contractors today voiced its strong support for the Fair and Open Competition Act (S.1064/H.R. 2126), reintroduced today in the 119th Congress by Sen. Todd Young, R-Ind., and Rep. Clay Higgins, R-La.

The Fair and Open Competition Act combats government-mandated project labor agreement schemes and ensures federal and federally assisted contracts are awarded through a fair and competitive bidding process. Restoring merit-based competition allows all qualified contractors to compete on a level playing field based on merit, experience, quality and safety in order to deliver the best projects at the best cost.

“ABC calls on all members of Congress to co-sponsor and advance the Fair and Open Competition Act to reverse anti-competitive and inflationary Biden administration policies that push project labor agreements on taxpayer-funded infrastructure projects,” said ABC Vice President of Legislative & Political Affairs Kristen Swearingen. “PLA mandates needlessly increase construction costs by 12% to 20% and discriminate against nonunion contractors and workers, who comprise a record-high 89.7% of the U.S. construction industry workforce.”

While the U.S. Court of Federal Claims ruled in favor of ABC members and industry federal contractors that filed bid protests challenging former President Joe Biden’s PLA mandate rule, the Jan. 21, 2025, decision only applied to projects subject to contractor bid protests, leaving all other contracts exposed to Biden’s harmful policy. Congress must act to prevent this Biden-era mandate from obstructing the efficient and economical construction of infrastructure projects.

“FOCA would ensure that the nearly 8 million U.S. construction industry employees who do not belong to a labor union are welcome to build taxpayer-funded infrastructure projects,” said Swearingen. “It protects workers from wage theft, as workers lose an estimated 34% of wages and benefits earned on a PLA project unless they accept unwanted union representation, join a specific union, pay membership dues and meet the union benefits plans’ vesting requirements. FOCA would also foster competition from small federal contractors and local workforces, which are disproportionately harmed by PLA mandates.

“At a time when government efficiency is a priority, eliminating a Biden-era mandate that costs taxpayers $10 billion annually is commonsense,” said Swearingen.

While the Fair and Open Competition Act would prohibit government-mandated PLAs on federal and federally assisted construction projects, this legislation would still allow federal agencies to award contracts to businesses that voluntarily enter a PLA before or after a fair and open competitive bidding process. A total of 25 states have passed measures similar to the Fair and Open Competition Act in order to curb waste and favoritism in the procurement of construction projects and ensure taxpayer dollars are spent responsibly by letting the market determine if a PLA is appropriate. However, a number of states without such protections are requiring wasteful PLAs on federally assisted construction projects as a result of Biden policies pushing PLAs on hundreds of billions of dollars’ worth of federal agency competitive grant programs for infrastructure, clean energy and manufacturing construction projects built by government and private developers.

The bill was introduced with 17 original co-sponsors in the Senate and 91 in the House, the most FOCA has ever received in either chamber.