The majority of commercial and industrial contractors are confident about sales growth, profits and staffing levels heading into 2018, according to the latest Associated Builders and Contractors (ABC) Construction Confidence Index (CCI). Despite rising construction labor and materials costs, 55 percent of contractors expect their profit margins to expand in the first half of 2018.
Investment in equipment and software is expected to grow 3.6 percent in 2017, according to the Q3 update to the 2017 Equipment Leasing & Finance U.S. Economic Outlook released by the Equipment Leasing & Finance Foundation.
Construction and extraction ranked in the top five sectors with the most job growth, with a 9.25 percent increase from 2012 to 2015, according to an analysis by Abodo of employment opportunities in the top-five fastest growing industries in the 25 most populous U.S. cities.
New construction starts in June decreased 7 percent from the previous month to a seasonally adjusted annual rate of $595.1 billion, according to Dodge Data & Analytics. Nonresidential building registered moderate growth in June after sliding back in April and May. Through the first six months of 2016, total construction starts on an unadjusted basis were $318.1 billion, down 11 percent from the same period a year ago.
Construction backlog among the nation’s largest contractors now stands above 12 months, a record for Associated Builders and Contractors’ (ABC) Construction Backlog Indicator (CBI). The biggest firms with the greatest capacity to attract talent have been able to accept work that others have to turn away due to a market that has stabilized at a comfortable level. However, the industry still faces a skilled worker shortage.
Craft brewing has grown immensely in recent years. A study conducted by the Brewers Association found the number of operating U.S. breweries increased 15 percent in 2015, setting a record total of 4,269 facilities. This growth is especially evident in the southern United States, where the association reports the fastest growth. Not only is the craft brewing industry booming, but the industries that provide supporting products and services—including construction—are growing as well.
Real gross domestic product (GDP) expanded only 0.5 percent (seasonally adjusted annual rate) during 2016’s first quarter, according to an analysis of Bureau of Economic Analysis data released today by Associated Builders and Contractors (ABC). This disappointing figure follows a 1.4 percent annualized rate of economic output expansion during the fourth quarter of 2015.
Look deeper into what’s spurring the bustling church building sector to uncover trends and advancements that are disrupting the status quo and prompting exciting growth. But the growth isn’t in this specialized sector alone; it’s also in other construction markets such as medical, education and retail.
Corporations operating on a global scale are on the cusp of major transformation. During the next decade, smart assets will continue to enter facilities, offices, factories and homes in numbers never seen before, creating new user experiences and improved efficiencies at the same time.
Associated Builders and Contractors’ (ABC) Construction Confidence Index (CCI) indicates contractor confidence will continue to edge higher. The diffusion index measures forward-looking construction industry expectations in sales, profit margins and staffing levels with readings higher than 50, indicating growth.
The U.S. construction industry added 45,000 jobs in April, according to the May 8 Bureau of Labor Statistics preliminary estimate. March’s estimate was revised downward from -1,000 to -9,000 net new jobs. Nonresidential construction employment increased by 12,400 jobs in April, with nonresidential specialty trade contractors leading the way with 20,200 new jobs. Nonresidential building employment plummeted for the month, losing 7,800 jobs. The residential sector bounced back in April, adding 23,600 jobs.
Investment in equipment and software is expected to grow 6 percent in 2015, driven by a steadily improving economy, according to the Annual 2015 Equipment Leasing & Finance U.S. Economic Outlook released by the Equipment Leasing & Finance Foundation.