Ken Simonson's blog

Contractors report major difficulty filling craft positions as hiring plans strengthen

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.

Nearly four out of five contractors (79%) are having trouble filling hourly craft professional positions, while 52% report difficulty filling salaried positions, based on 1358 responses to a survey and analysis AGC released on Thursday. Of 21 crafts, respondents reported the most difficulty finding carpenters (reported by 73% of the firms that employ them now), sheet metal installers (65%), concrete workers (63%) and electricians (60%). But even the most available category of hourly workers, traffic control personnel, was reported hard to find by more than one-quarter (26%) of respondents. Among 10 types of salaried professions, the scarcest were project managers and supervisors (55% reported difficulty), followed by estimating professionals (43%) and engineers (34%). To attract and maintain workers, firms say they are increasing base pay rates (56% of firms for hourly workers, 48% for salaried workers), providing incentives or bonuses (23% and 29%, respectively), increasing contributions to benefit plans or improving employee benefits (23% and 23%), and paying more overtime (165 and 4%).    [node:read-more:link]

Employment growth slows as hourly pay, construction spending accelerate

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 173,000 in August, seasonally adjusted, and by 2,919,000 (2.1%) over 12 months, the Bureau of Labor Statistics (BLS) reported today. Construction employment rose by 3,000 for the month (to 6,388,000) and by 41,000 (6,800 per month) over the past six months, far below the monthly average gain of 29,700 in the previous six months. The number of unemployed jobseekers who last worked in construction fell from 678,000 in August 2014 to 525,000 in August 2015, the lowest August total since 2001. The unemployment rate for such workers fell from 7.7% to 6.1%, the lowest August rate since 2007. (Industry unemployment data are not seasonally adjusted and should only be compared year-over-year, not across months.)    [node:read-more:link]

Strong construction spending pushes up GDP; multifamily builders remain optimistic

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.

Gross domestic product, net of inflation (real GDP), grew 3.7% in the second quarter of 2015 (2Q15) at a seasonally adjusted annual rate, rather than the initially estimated 2.3%, the Bureau of Economic Analysis reported on Thursday. Reuters reported, "Investment in nonresidential structures was revised to show it rising at a 3.1% rate, reflecting stronger spending on commercial and healthcare construction. It was previously reported to have contracted at a 1.6% pace. Spending on residential construction was raised to a 7.8% pace from a 6.6% rate."    [node:read-more:link]

States add jobs in July but at slower rate than before; PPIs for construction demand 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.

Seasonally adjusted construction employment rose in 37 states and the District of Columbia from July 2014 to July 2015, declined in 12 states and held steady in Vermont, an AGC analysis of Bureau of Labor Statistics (BLS) data released today showed. The year-over-year gains were widespread but less so than in the previous 12 months, when 47 states and D.C. added construction jobs. California again gained the most construction jobs (48,900 jobs, 7.3%), followed by Florida (26,500, 6.6%), Washington (15,300, 9.6%), Texas (14,500, 2.2%) and Michigan (12,400, 8.7%). Arkansas added the highest percentage of new construction jobs (15%, 6,800), followed by Idaho (14%, 4,900), Nevada (11%, 6,800), Washington and Michigan.    [node:read-more:link]

Employment edges up, unemployment shrinks in July; spending accelerates in June

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 215,000 in July, seasonally adjusted, and by 2,915,000 (2.1%) over 12 months, the Bureau of Labor Statistics (BLS) reported Friday. Construction employment rose by 6,000 for the month (to 6,383,000) and by 36,000 (7,200 per month) over the past five months, far below the monthly average gain of 19,250 from July 2014 to July 2015. The number of unemployed jobseekers who last worked in construction fell from 666,000 in July 2014 to 474,000 in July 2015, the lowest July total since 2001.    [node:read-more:link]

Only half of metros add construction jobs; industry wages rise at fastest rate since 2008

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.

Construction employment, not seasonally adjusted, increased from June 2014 to June 2015 in only half (180) of the 358 metro areas (including divisions of larger metros) for which the BLS provides construction employment data, decreased in 127(28%) and was stagnant in 51, according to an AGC release and map on Wednesday that analyzed BLS data. (BLS combines mining and logging with construction in most metros to avoid disclosing data about industries with few employers.) The number of metros with job increases was the smallest since September 2012.    [node:read-more:link]

Most states add jobs for year but only half do in June; Dodge, AIA, RLB data look rosy

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.

Seasonally adjusted construction employment rose in 39 states and the District of Columbia from June 2014 to June 2015 and declined in 11 states, an AGC analysis of Bureau of Labor Statistics (BLS) data released on Tuesday showed. California again added the most construction jobs (47,000 jobs, 7.0%), followed by Florida (25,200, 6.2%), Texas (18,900, 2.9%), Washington (15,300, 9.7%) and Michigan (14,000, 9.8%). Idaho again added the highest percentage of new construction jobs (13%, 4,600), followed by Nevada (11%, 7,000), Michigan, Arkansas (9.7%, 4,400) and Washington.)    [node:read-more:link]

PPI stays mild overall but inputs vary; nonres starts stall, CMD says; housing starts leap

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 final demand increased 0.5%, not seasonally adjusted (0.4%, seasonally adjusted), in June but declined 0.7% over 12 months, the Bureau of Labor Statistics (BLS) reported today. AGC posted tables and an explanation focusing on construction prices and costs. Final demand includes goods, services and five types of nonresidential buildings that BLS says make up 34% of total construction. The PPI for final demand construction, not seasonally adjusted, rose 0.1% in June and 1.8% over 12 months. The overall PPI for new nonresidential building construction—a measure of the price that contractors say they would charge to build a fixed set of five categories of buildings—climbed 1.7% since June 2014.    [node:read-more:link]

Construction employment stalls in June; raw materials prices slip but product prices 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.

Nonfarm payroll employment increased by 223,000 in June, seasonally adjusted, and by 2,935,000 (2.1%) over 12 months, the Bureau of Labor Statistics (BLS) reported on July 2. Construction employment was flat for the month and rose by 259,000 (4.2%) from a year ago to 6,380,000. Residential construction employment (residential building and specialty trade contractors) slipped by 2,400 for the month but increased by 127,000 (5.5%) over 12 months. Nonresidential employment (building, specialty trades, and heavy and civil engineering construction) increased by 2,700 and 131,800 (3.5%), respectively.    [node:read-more:link]

Construction spending hits 6-1/2 year high in May; metro job gains shrink; ABI moves up

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.

Construction spending in May totaled $1.036 trillion at a seasonally adjusted annual rate, the highest rate since October 2008, the Census Bureau reported today. The level was up 0.8% from the rate in April (which was revised up by a steep 2% or $20 billion) and up 8.2% from May 2014. Private nonresidential spending increased 1.5% for the month and 13% year-over-year, private residential spending rose 0.3% and 7.8%, respectively, and public construction spending gained 0.7% and 2.8%. However, the residential total masks a 13% year-over-year rise in new construction (21% for multifamily and 11% for single-family) and a drop of 3.4% in improvements. A 70% increase in manufacturing construction (led by a doubling of spending for chemical plants and tripling for transportation equipment plants) made this the largest private nonresidential segment. Next came power construction (conventional and renewable power plus oil and gas fields and pipelines), down 22% year-over-year, followed by commercial (new and renovated retail, warehouse and farm), up 11%; and office, up 27%. The two top public segments also had year-over-year gains: highway and street construction, 1.7%; and public educational spending, 3.4%. Census made annual revisions to 2013 and 2014 data. Total spending rose 6.6% in 2013 (instead of 5.6%) and 4.8% in 2014 (instead of 5.5%).    [node:read-more:link]