TEST Paragraph
Politics & Policy
US House Introduces Resolution Opposing DOL’s New Davis-Bacon Rule
ABC Slams OSHA’s Worker Walkaround Rule for Failing to Promote Workplace Health and Safety
State Off-Year Elections Deliver Losses To GOP Heading Into 2024
Safety
Utilize Software To Achieve Your Safety Goals
OSHA Extends Comment Period on OSHA Walkaround Proposed Rule to Nov. 13
ABC Expresses Serious Concerns to Congress About OSHA Worker Walkaround Rule
Events/Products/Programs
Nearly 350 ABC Leaders Gather in Washington for Annual Legislative Conference
ABC Members Rank Among ENR’s Top 400 Contractors
Trades Day: Industry Outreach Opportunity With Meaning
State/Local News
Ed Capodanno Honored by Delaware State Legislature
Election Update: ABC Staff and Members Elected in 2022
California Targets Workplace Cannabis Testing
Awards
ABC Congratulates 30 Members Awarded DOL’s 2023 HIRE Vets Medallion
ABC Honors 3 New Applicants With the AQC Credential in October
Graham Roofing Earns the AQC Credential in September
Legislation
ABC-Supported Legislation To Overturn the Northern Long-Eared Bat’s Endangered Species Listing Heads to President Biden’s Desk
ABC Advocates for Solutions to Workforce Shortage at U.S. House Committee Roundtable
Smucker Introduces the ABC-Supported Main Street Tax Certainty Act
Regulations
NLRB Extends Effective Date of the Joint Employer Final Rule to Feb. 26, 2024
DOL’s Unlawful Proposed Overtime Rule Will Disrupt Construction Workers’ Workplace Flexibility
ABC’s November Regulatory Roundup—Learn About the Latest Developments Affecting the Construction Industry
Workforce Development
Register Now for ABC’s Construction Inclusion Week Webinar Series
DOL High Road Workforce Development Program Map Snubs Nonunion Programs
LISTEN: How to Design an Effective Technology Adoption Strategy
Despite ongoing concerns regarding labor force availability and rising interest rates, and emerging concerns regarding tariffs and construction materials prices, construction contractors emerged from the first quarter of 2018 with tremendous confidence, according to the ABC Construction Confidence Index (CCI). Each of the three indices—sales, profit margins and staffing levels—increased during the first quarter and remain well above the threshold reading of 50.
· The CCI for sales expectations increased from 67.1 to 72.2 during the first quarter of 2018.
· The CCI for profit margin expectations increased from 60.7 to 63.4.
· The CCI for staffing levels rose from 65.1 to 70.2.
“For now, contractors remain in high demand and generally have significant pricing power relative to prior years,” said ABC Chief Economist Anirban Basu. “This should not come as a surprise. Backlog remains elevated by historic standards, both public and private construction spending continue to increase, and the economy has added jobs for a record-breaking 92 consecutive months, triggering demand for many types of nonresidential construction, whether in the form of office buildings, hotels or data centers.
“That said, the CCI survey was conducted during the first quarter of 2018, when tariffs were being discussed more theoretically, and prior to a recent surge in materials prices,” Basu said. “More recent events suggest that a trade war among the United States and other trading partners, including China and Canada, is becoming more likely. Borrowing costs are also on the rise, with the Federal Reserve continuing to raise both the Fed Funds and discount rates. It is therefore conceivable that we have seen the peak in contractor confidence or that a peak is approaching.
“On the other hand, nearly 60 percent of surveyed firms expect profit margins to expand over the next two quarters, while less than 13 percent anticipate a decrease. Only 6 percent of surveyed contractors anticipate a decrease in sales volume, while nearly 80 percent expect an increase. This is especially remarkable given the inherent lumpiness in construction spending, with contractors often experiencing sharp decreases in construction spending volume as important projects draw to a close. The most recent survey results are consistent with the notion that the marketplace is so active presently that contractors, including subcontractors, are able to flow from project to project. Not coincidentally, just 4 percent of contractors anticipate decreasing staffing levels over the next six months.”
CCI is a diffusion index. Readings above 50 indicate growth, while readings below 50 are unfavorable.