Employment falls in April, May but April openings rise; various materials prices increaseEditor’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.Nonfarm payroll employment in May increased by 38,000, seasonally adjusted, from March and by 2,398,000 (1.7%) over 12 months, the Bureau of Labor Statistics (BLS) reported on Friday. The unemployment rate declined to 4.7% from 5.0% in April. Construction employment dropped by 15,000 for the month (to 6,645,000) but increased by 219,000 (3.4%) year-over-year (y/y). The estimated change for April was revised from +5,000 to -1,000. Residential construction employment (residential building and specialty trade contractors) decreased by 4,400 for the month but rose by 127,700 (5.2%) y/y. Nonresidential employment (nonresidential building, specialty trades, and heavy and civil engineering construction) shrank by 10,300 for the month but increased by 91,400 (2.3%) y/y.
Reshaping the Construction Industry
It was noted just the other day in The Guardian that in London, home to many major multinationals and a key player in the European Union, there are 436 planned buildings that will be over 20 stories tall. Eighty-nine are currently under construction and the 233 approved proposed buildings in the pipeline have more than doubled in the last year.In the overall London approval process that is similarly economically driven like Houston, but still at least 10 times tougher, only 3 buildings have been denied approval for construction. There are on-going debates about the clustering of the towers, sight lines to St. Paul’s Cathedral, shadow patterns on nearby buildings, and wind tunnels created by the buildings. However, once a building has been approved, its development is dependent on the financing of the scheme.
June 10, 2016
Business leaders in Houston seem well-positioned to set the tone for how the rest of the nation addresses workforce challenges, experts agree. During a town hall-style event hosted by the Greater Houston Partnership this past week, health care leaders, construction executives and others discussed ways the private sector is taking the lead to ensure that a quality workforce can be cultivated and sustained for decades to come.“Industry is truly leading the initiative,” said Peter Beard, Senior Vice President of Regional Workforce Development at the GHP. He opened a panel discussion by giving specific praise to the construction and petrochemical sectors and said there is a belief that “we share, fundamentally, a workforce.” That’s why addressing the needs of employers and employees will “take a collective effort,” Beard said.
June 09, 2016
Now with 123 Accredited Employers, 47 Project Participants, four Certified Staffing Agencies, seven active projects (as well as three completed projects and more in the pipe) and eight owners who specify C3 participation in their contracts, Construction Career Collaborative is in a hiring mode. If you know of someone who has a passion for people and the well being of the commercial construction industry, please share the job description below with them.C3 Seeks to Fill Key PositionConstruction Career Collaborative (C3), an alliance of owners, contractors and specialty contractors whose purpose is to positively affect the issues facing the craft worker in the commercial construction industry, is seeking an energetic, talented individual with a passion for people.
June 08, 2016
The following article originally appeared in the June 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.When it comes to oil, $50 is not enough. Those were the sentiments of Jesse Thompson, Business Economist for the Federal Reserve Bank of Dallas, Houston Branch. Complimenting that opinion, Dr. Bill Gilmer, Director of the UH Bauer Institute for Regional Forecasting, earlier this month during his bi-annual symposium, noted that a non-volatile $60 price for oil would result in increased activity. The chart above shows the breakeven price, further supporting their claims.
June 08, 2016
The following article was written by Whitney Martin and was originally published on Marekbros.com.Did you know that the USS Lexington, built in 1942, participated in nearly every major operation during WWII AND was BUILT BY WOMEN? Yes, you read that correctly, this 42,000 ton, 910 foot war machine was constructed by women.Women have played major roles in construction for decades. During WWII and the Korean conflict, women had to take the jobs that the men couldn’t take since they were on the front lines. Not only did women build the war machines, they ferried the men to Europe and the Pacific theaters. Many women lost their lives during the wars while doing so. Their model was “Rosie the Riveter” who symbolized the women who played major roles as riveters, sheet metal workers, and steelworkers. They built tanks for the front, built locomotives for the home front and flew major missions around the world.
June 07, 2016
Hi there. The Chamberlin Man here.Afraid of heights? Don't look at these photos!A 12,000 square foot barrel shaped standing-seam aluminum roof constructed of 40-foot custom-made sheet metal panels isn’t the average roofing project. Of course, it proved to be no problem for Chamberlin Roofing and Waterproofing in Austin.The 320-home residential high-rise is called SkyHouse Austin for a reason. Twenty-four stories tall, construction on the tower roof required innovative safety measures and a brave crew to manage the steep grade created by its barrel design.Despite the challenges intrinsic to the design, Chamberlin delivered “our usual;” that is, outstanding workmanship. In this case, the standing seam materials were custom fabricated in Chamberlin’s Austin sheet metal shop. A five-man crew then installed the sheets by meticulously walking them into place, one by one.
June 06, 2016
Spending falls in April but rises year-to-date; Beige Book finds increasing demand, costsEditor’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 spending in April totaled $1.133 trillion at a seasonally adjusted annual rate, down 1.8% from March but up 4.5% year-over-year, the Census Bureau reported on Wednesday. The March level was revised up by an unusually large $18 billion (1.6%). The March-to-April decline may reflect "payback" after a mild winter that enabled contractors to do work that normally wouldn't occur before spring. Combined January-April year-to-date (YTD) spending was 8.7% higher than in the same months of 2015. Public construction dropped 2.8% for the month but climbed 6.1% YTD. The largest public component, highway and street construction, fell 0.4% for the month but increased 13% YTD. The other major public segment, educational construction, fell 2.5% for the month but rose 10% YTD. Private residential spending declined 1.5% in April but increased 9.3% YTD.
June 03, 2016
Educators, industry representatives, family, and friends of the CMEF class of 2016 gathered last Thursday evening to celebrate the achievements of this graduating class of construction craft professionals. The Construction and Maintenance Education Foundation (CMEF) hosted the event for those of us who braved the local thunderstorms at a unique event hall nestled between branches of the Buffalo Bayou on the southeast side of Houston called Brady’s Landing.After a brief introduction by Mike Holland, CMEF Board of Directors Chair and Marek Houston Division President, the evening began with a stirring presentation of the United States Colors by the Deer Park High School JROTC (Army Junior Reserve Officer Training Corps). Following the United States Pledge of Allegiance, the room bowed their heads during an invocation delivered by Rick Rankin, an industry representative from Jacobs.We were then invited to fill our dinner plates at the ample buffet, allowing the CMEF graduates and the National Craft Championship competitors in attendance to precede us.Russell Hamley, ABC/CMEF President, then recognized the sponsors of the evening’s festivities, including the host sponsor CMEF, the training affiliate of Associated Builders and Contractors (ABC) of Greater Houston.
June 02, 2016
The following article was authored by Don Procter and originally published in AWCI's Construction Dimensions magazine.While debate rages about what to do with illegal workers in the United States, Canada has its own set of problems on that front. The country’s largest city, Toronto, has a robust construction economy that has proven to be a magnet for foreigners without legal papers. Estimates put the number of illegals at close to 35 percent in some building trades, according to one source. In the residential sector where most of construction activity is (high-rise residential condominiums are an example), sources say undocumented workers on city construction projects range from 10,000 to more than 20,000.Some of those illegals are working in the wall and ceiling trades. No trade, in fact, is likely immune. But it is difficult to put a finger on precisely how big the issue is because contractors—large, medium and small—are not willing to admit they take on undocumented employees.Richard Boraks, a Toronto-based immigration lawyer who specializes in construction, says if the ranks of undocumented workers are growing in the construction industry, part of the reason is “a total collapse” of immigration programs. Take the Canadian federal government’s Temporary Foreign Worker Program, for example, which offers foreign workers job placements for four years.
June 01, 2016