Signals and Signposts

The current and future economy, trends in design and construction, political influence – sometimes we have something to say about topics which may be signs of things to come.

 

PPI, other cost measures show little change; housing starts tumble but permits soar

Editor’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.

The producer price index (PPI) for finished goods dropped 0.3%, not seasonally adjusted (-0.7%, seasonally adjusted), in April and 0.6% over 12 months, the Bureau of Labor Statistics (BLS) reported on Wednesday. The PPI for inputs to construction—a weighted average of the cost of all materials used in construction plus items consumed by contractors such as diesel fuel—slipped 0.1% for the month and inched up just 0.4% year-over-year. Inputs for residential construction were flat for the month and increased 1.4% in price over the year Read more » about AGC's Data DIGest: May 06 – May 17, 2013

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Construction jobs, spending shrink in latest month but rise for year; metros vary widely

Editor’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.

View construction employment figures by state and rank.

Nonfarm payroll employment increased by 165,000, seasonally adjusted, in April and 2,077,000 (1.6%) over 12 months, the Bureau of Labor Statistics reported today. The March gain, initially reported as a weak 88,000, was revised up to 138,000. The unemployment rate was 7.1%, not seasonally adjusted (7.5%, seasonally adjusted), down from 7.7% a year earlier. Construction employment dipped by 6,000 for the month, following 10 consecutive monthly increases, and totaled 5,790,000, seasonally adjusted, a gain of 154,000 (2.7%) over the past year. Total hours worked in construction increased by 3.0% over 12 months, implying that contractors are lengthening working hours and also hiring new workers. Read more » about AGC's Data DIGest: April 29 – May 03, 2013

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Recently, the United States Judicial Panel on Multidistrict Litigation centralized the six current class action suits to the Eastern District of Pennsylvania for further adjudication.

According to the panel of Judges, “On the basis of the papers filed and the hearing session held, we find that these actions involve common questions of fact, and that centralization under Section 1407 in the Eastern District of Pennsylvania will serve the convenience of the parties and witnesses and promote the just and efficient conduct of this litigation.”

The suits arose after the defendants, USG Corporation; United States Gypsum Company; L&W Supply Corporation; New NGC. Inc.; Spangler Companies, Inc.; CertainTeed Corporation; Georgia-Pacific LLC;  American GypsumCompany LLC; LaFargeNorthAmerica, Inc.; TIN, Inc. d/b/a Temple Inland, Inc.; and PABCO Building Products LLC. Read more » about Domestic Drywall Price Fixing Class Action Suit Update

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Construction has mixed impact on first-quarter GDP; AIA, NABE surveys point to upturn

Editor’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. 

Real (net of inflation) gross domestic product (GDP) increased 2.5% at a seasonally adjusted annual rate in the first quarter of 2013, after growing 0.4% in the prior quarter, the Bureau of Economic Analysis (BEA) reported on Wednesday. Real private investment in nonresidential structures (including wells and mines) slipped 0.3%, after jumping 17% in the fourth quarter. Real residential investment climbed 13%, following a 18% gain. Real government investment in structures shrank for the 10th consecutive quarter, at a 5.6% rate, following a 2.6% decline. The price index for private nonresidential structures posted a 1.5% increase at a seasonally adjusted annual rate, similar to the previous quarter’s 1.4% rise. The price index for residential investment accelerated to 5.2% from 3.0% as strong demand from single- and multifamily builders pushed up prices for homebuilding materials. The price index for government investment rose at a 2.3% rate, up from 1.7%. Read more » about AGC's Data DIGest: April 22 – April 26, 2013

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The team at Software Advice in Austin has just released its 2013 Construction Project Management Software Benchmark Report. The report turned up some interesting information that you should consider when you are looking at your construction management software needs.

The report looks at four categories of users in the sample –  

  • Specialized: Project management software designed specifically for the construction industry.
  • Generic: Software designed to handle general project management needs.
  • Homegrown: Custom software built from the ground up for the survey participant.
  • Manual: No software; projects are managed using email, fax, phone or other manual means.

According to the team, “Our report – based on a survey of 230 construction professionals – surfaces important findings about the role technology plays in construction project management.  For instance, we found that individuals who use construction-specific project management software were 5 times more likely than custom software users to deliver their projects under budget.”   Read more » about Project Management Benchmarking Report Released

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More than half of states add construction jobs in March; Reed, MHC differ on starts

Editor’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.

Click here to view March state employment numbers.

In March, seasonally adjusted nonfarm payroll employment increased from a year earlier in 49 states and the District of Columbia and dipped by 0.1% (5,800 jobs) in Pennsylvania, the Bureau of Labor Statistics (BLS) reported Friday. Seasonally adjusted construction employment climbed in 31 states and the District of Columbia and fell in 19 states. Alaska had the largest percentage increase (11.4%, 1,900 jobs), followed by Hawaii (10.7%, 3,100 jobs), Utah (8.7%, 6,000 jobs) and Louisiana (8.6%, 10,700 jobs), AGC reported. California added the most new construction jobs over the past 12 months (41,000, 7.1%), followed by Texas (39,800, 6.9%). Rhode Island lost the highest percentage (-9.6%, -1,600 jobs), followed by Montana (-8.1%, -1,900 jobs). Read more » about AGC's Data DIGest: April 15 – April 19, 2013

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The Houston/Texas Gulf Coast Chapter of the Society of Industrial and Office Realtors (SIOR) hosted its 30th Annual Commercial Expo at the Westin Galleria Hotel in Houston on April 2.  Construction Citizen had a booth at the event, and I was the moderator of the panel of featured developers.  During the keynote session, I announced that Construction Citizen was holding a drawing for an iPad Mini, and that the winner would be announced the following Thursday with the release of the weekly Construction Citizen email newsletter.

The winner of the iPad mini that we gave away is Karen Gregory, Regional Manager of Economic Development with CenterPoint Energy.  She won a
16 GB black & slate iPad Mini with Wi-Fi.

CenterPoint Energy is the electric power delivery company (commonly known as the “wires and poles” company in our deregulated power world) for the Houston region.  They are deeply involved in the economic development efforts that have led to the highest job growth figures in the nation this year.   Read more » about iPad Mini Winner Discusses SIOR Event [VIDEO]

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Materials costs diverge as bid prices stay flat for building contractors, drop for highways

Editor’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.

Click here to view the March PPI tables and metro employment figures by state and rank.

The producer price index (PPI) for finished goods rose 0.2%, not seasonally adjusted (and fell 0.6%, seasonally adjusted), in March and 1.1% over 12 months, the Bureau of Labor Statistics (BLS) reported today. The PPI for inputs to construction—a weighted average of the cost of all materials used in construction plus items consumed by contractors such as diesel fuel—was unchanged for the month and up 0.9% year-over-year. Indexes for most new nonresidential building construction and subcontractors’ work were similarly flat. The PPIs for new offices, industrial buildings and warehouses were flat in March and rose just 1.0%, 1.1% and 2.3%, respectively, over 12 months. Read more » about AGC's Data DIGest: April 8 – April 12, 2013

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Construction jobs, spending continue gains; outlook varies for factories, offices, apts.

Editor’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 increased by 88,000, seasonally adjusted, in March and 1,910,000 (1.4%) over 12 months, the Bureau of Labor Statistics reported today. The unemployment rate was 7.6%, not seasonally adjusted (and seasonally adjusted), down from 8.4% a year earlier. Construction employment rose for the tenth straight month and totaled 5,802,000, seasonally adjusted, the most since September 2009. Construction employment rose 162,000 (2.9%) from March 2012, while total hours worked in construction increased by 3.9%, implying that contractors are lengthening working hours and also hiring new workers. The unemployment rate for former construction workers dropped from 17.2%, not seasonally adjusted, in March 2012 to 14.7%. Residential construction employment (residential building and specialty trade contractors) rose by 14,800, seasonally adjusted, for the month and 77,800 (3.8%) for the year. Nonresidential employment (building, specialty trades, and heavy and civil engineering construction) climbed by 3,000 and 84,400 (2.3%), respectively.

Construction spending in February totaled $885 billion at a seasonally adjusted annual rate,   Read more » about AGC's Data DIGest: April 1 – April 5, 2013

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Employment picks up in most states but federal cuts loom; rail, factory construction rise

Editor’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.

 Click here to view February state employment tables.

In February, seasonally adjusted nonfarm payroll employment increased from a year earlier in 49 states and the District of Columbia and dipped by 0.3% (800 jobs) in Wyoming, the Bureau of Labor Statistics (BLS) reported today. Seasonally adjusted construction employment climbed in 29 states and D.C., fell in 20 and was unchanged in Delaware. Alaska had the largest percentage increase (13.3%, 2,200 jobs), followed by Hawaii (8.0%, 2,300 jobs) and Texas (7.5%, 43,300 jobs). Texas added the most new construction jobs over the past 12 months, followed by California (35,800, 6.2%). Rhode Island lost the highest percentage (-10.4%, -1,700 jobs), followed by Arkansas (-9.6%, -4,700 jobs). Ohio lost the most jobs (-7,900, -4.3%), followed by Illinois (-7,500, -3.8%). From January to February, seasonally adjusted construction employment rose in 35 states, was static in three, and fell in 12 states and D.C. (BLS combines mining and logging with construction in D.C., Hawaii, Delaware and four other states to avoid disclosing data about industries with few employers). Read more » about AGC's Data DIGest: March 25 - March 29, 2013

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