Is it just us, or do you feel like there are new industry reports coming out every 3 minutes over the past couple of weeks? Last week, we gave you a rundown on Dodge Data & Analytics’ midyear forecast. Below, we highlight the top takeaways to three other recent industry reports.
Commercial and Multifamily Construction Starts
Dodge Data & Analytics is at it again with the industry stats. Six of the top 10 United States metropolitan markets have had an increase in activity during the first half of 2019. The top two markets—New York and Washington D.C.—have had quite a different 2019.
New York’s construction starts have decreased 8% year over year, while D.C.’s starts have increased a whopping 50%. Of the top 20 markets, 13 reported increases. The overall number of construction starts for commercial and multifamily decreased 6% from last year at the same time.
Construction Materials Costs
According to IHS Markit’s PEG Engineering and Construction Cost Index, construction materials and equipment prices increased for the fourth month in a row in August. Construction materials that saw cost increases include ready-mix concrete and fabricated structural steel.
The subcontractor labor index also had an increase. IHS survey respondents again cited shortages of skilled trade workers as a factor in rising labor costs.
Contractor Confidence Levels
Despite materials costs increases and some reported softening in construction starts across the U.S., contractors are remaining optimistic about the upcoming year. According to the Associated Builders and Contractors’ June 2019 Contractor Confidence Index, the level of confidence among nonresidential contractors decreased slightly month over month, but respondents are still confident about the health of the industry and anticipated growth for the next 6 months.
Sixty-seven percent of contractors surveyed expect sales to increase in the next 6 months; 54% of those surveyed expect an increase in profits; and 59% estimate an increase in staffing.
Bonus Round
Can’t get enough industry reports? Here’s one more for you: The Brookings Institution released an analysis last week dissecting the probable causes behind the ever-increasing costs of road construction.
The study also notes that the federal government would likely be in for a shock over how much it will truly cost to fix infrastructure issues across the U.S.
