Employment rises in 64% of metros; spending drops in June but grows year-to-dateEditor’s note: Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.Construction employment, not seasonally adjusted, increased from June 2015 to June 2016 in 228 (64%) of the 358 metro areas (including divisions of larger metros) for which the Bureau of Labor Statistics (BLS) provides construction employment data, decreased in 82 (23%) and was stagnant in 48, according to an AGC release and map on Tuesday. (BLS combines mining and logging with construction in most metros.) The Anaheim-Santa Ana-Irvine, Calif. division again added the most jobs during the past year (12,500 construction jobs, 14%), followed by Denver-Aurora-Lakewood (10,700 construction jobs, 11%) and Phoenix-Mesa-Scottsdale (9,900 construction jobs, 10%).
Reshaping the Construction Industry
A few weeks ago Marek held their 2015-2016 Workforce Development Graduation to recognize the accomplishments of those who had recently completed their in-house Helper, Mechanic, or Foreman training programs. The evening included a catered dinner for the graduates, their families, and their coaches; a keynote speaker; and a detailed introduction of each graduate highlighting what they learned and which of their coaches were the most influential to them in their training.
August 05, 2016
The following article originally appeared in the August newsletter to clients of Kiley Advisors, LLC for the purpose of providing the latest leading indicators and industry issues to those clients. Reprinted with permission.A tale of two market segments. As the second quarter numbers begin to role in, the precipitous drop of Class A general purpose office space construction and the rocketing growth of retail construction become increasingly clear. While the office market is breaking records in the amount of sublease space available (a 20 year high according to CBRE), and experiencing its first quarter of negative absorption in over five years, retail is thriving, with the strongest single quarter absorption since 2007 – nearly 1.5 msf, a record high occupancy rate and over 3 msf under construction, of which 85% is preleased.
August 04, 2016
The debate over whether we will have driverless cars rages on to little or no avail, but likely for naught. Driverless or autonomous cars will be the norm for the future and many semi-driverless cars are on the roads today. Tesla today has a system called “Summon” that allows for some of its cars to drop off its passengers at the front of the building and then go park itself, either in a nearby garage or maybe return home to your own garage and wait until you “summon” it again to pick you up at the office.Why would we be writing about that subject today on a construction website? One, because it is fascinating that the technology is moving so fast and two, because of the impact that autonomous cars and trucks will have on the future of construction of new roadways and parking spaces necessary for office buildings of the future.
August 03, 2016
With each passing day, state and federal governments are getting more serious about rooting out and eliminating worker misclassification, sometimes known as payroll fraud. But much more must be done to end what has been called a "cancer...eating at the heart of our industry."Regular readers of Construction Citizen know that worker misclassification happens when a company pretends its employees are “independent subcontractors” with the intent of skirting payroll taxes and benefits like workers’ compensation insurance and – because of their reduced labor costs – are able to submit lower bids for projects, undercutting ethical contractors.In Professional Roofing Magazine earlier this year, attorney William E. Burnett gave contractors an in-depth look at the problem from all angles.
August 02, 2016
Construction pay rises at fastest rate since 2008, BLS finds; cost reports for July varyEditor’s note: Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.Compensation costs (wages, salaries and benefits, including required employer payments such as unemployment and workers compensation) in private industry in the second quarter of 2016 (Q2) increased 0.6%, seasonally adjusted (and also 0.6% in Q1), and 2.4% over 12 months, the Bureau of Labor Statistics (BLS) reported today. Wages and salaries rose 0.6% in Q2 (vs. 0.7% in Q1) and 2.6% over 12 months. Compensation in construction increased 0.8% in Q2 (vs. 0.5% in Q1) and 2.5% over 12 months, the largest three- and 12-month increases since 2008.
August 01, 2016
Hi there. The Chamberlin Man here.Man alive! During those last few weeks of late spring to early summer, the rain had really been coming down. Widespread flooding had been headline news. Plus, many homes and businesses experienced water infiltration from the top down.Fact of the matter is the incidence of roof failure rises with the rain gauge, too. And a roof failure can be devastating to interior finishes and costly to repair. Not to mention the potential cost of replacing inventory or belongings lost to a wet mess.It’s bad news! So allow me to share a silver lining. While you certainly can’t control how much rain falls from the sky, there are measures within your control to help prevent roof leaks and failures.
July 29, 2016
In the construction industry, productivity and profit are always doing a dance. They are always partners no matter whether your firm is a global giant or a local sub. Whether productivity and profit perform well enough to make it onto the professional stage or just at the local club depends on both productivity and profit doing a well-choreographed performance. If the productivity on the jobsite is good, then your profit is likely better. If your work crews are not performing and productive, then your profits are likely not performing well either.McKinsey & Company recently did a study authored by members of their team titled “Beating the low-productivity trap: How to transform construction operations” that focuses on 30 major UK infrastructure engineering and construction firms over the decade from 2005-2015 to measure their growth and to determine whether they either performed or underperformed in their markets.Even though this study was about infrastructure engineering and construction firms centered in the UK, the points made and the tips offered can apply to every company doing the productivity-profit dance, no matter what your size, should “read and heed.”
July 28, 2016
A construction foreman working at a jobsite next to a children’s hospital created an 8-foot “Waldo” and placed it at various locations on the site for the amusement of the patients.
July 27, 2016
A tough city ordinance in Philadelphia is so strict against employers who commit wage theft, that some have criticized it as “draconian.” Others have applauded the city’s aggressive stance.
July 26, 2016