Construction Industry News

This week, New York Governor Andrew Cuomo released his fiscal year 2022 spending plan, which included $306 billion in funding for infrastructure and construction projects in the state over the next year. Cuomo referred to the sizable plan as the "largest in the nation." Here's the high points of that particular section in the funding package: 

Need a quick recap of what leading associations are reporting in terms of construction stats? We've got you. Read a summary of what three industry organizations are reporting in construction activity from December 2020 below, and click the links at the end of each section for an extended version of each news item. 

WASHINGTON (Jan. 15, 2021)—Construction input prices increased 1.8% in December 2020 compared to the previous month, according to an Associated Builders and Contractors analysis of the United States Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices rose 2.1% for the month.

NEW JERSEY (January 19, 2021)—Total construction starts lost 5% in December, falling to a seasonally adjusted annual rate of $784.3 billion. Nonresidential building starts fell 11% during the month, while nonbuilding starts were 5% lower. Residential starts were essentially flat over the month. Starts were lower in three of the four regions in December; the South Central region was the only one to post an increase.

WASHINGTON (Jan. 20, 2021)—Demand for design services from United States architecture firms took a pointed dip last month, according to a new report from the American Institute of Architects (AIA).

NATIONAL—Last week, President-elect Joe Biden announced a $1.9 trillion stimulus plan—the American Rescue Plan—which aims to sustain United States citizens and businesses until vaccines are widely distributed across the country.

Fluor Corporation announced an updated organizational and reporting structure that better aligns its business with identified growth markets and company strategy.

NATIONAL—Construction employment increased by 51,000 jobs in December, with gains for nonresidential as well as residential contractors, according to an analysis by the Associated General Contractors of America of government data released today.

WASHINGTON (Jan. 4, 2021)—National nonresidential construction spending fell 0.6% in November 2020, according to an Associated Builders and Contractors analysis of data published by the United States Census Bureau. On a seasonally adjusted annualized basis, spending totaled $792.5 billion for the month.

WASHINGTON—More contractors are facing a shortage of building materials as the pandemic continues, according to fourth quarter data from the United States Chamber of Commerce Commercial Construction Index (Index).

SALT LAKE CITY—In December 2020, the Utah Section of the American Society of Civil Engineers (ASCE) today released preliminary findings from its 2020 Report Card for Utah's Infrastructure. Utah civil engineers gave 12 categories of infrastructure an overall grade of a 'C+,' one of the highest grades in the nation, meaning the state's infrastructure is in mediocre condition, but there are some signs of improvement.

Over the weekend, President Trump signed a massive $2.3 trillion coronavirus relief and government funding bill, averting a government shutdown that was due to start on Tuesday if an agreement was not reached beforehand. 

NEW JERSEY (Dec. 16, 2020)—Total construction starts fell 2% in November to a seasonally adjusted annual rate of $797.5 billion following a strong gain in October. Residential starts fell 7% during the month, while nonbuilding starts dropped 14%. Nonresidential building construction starts, however, rose 19% in November. Total construction starts fell in three regions, the South Atlantic, West, and Northeast, but rose in two, the Midwest and South Central.

NATIONAL—This week, the Associated Builders and Contractors of America (ABC), the Equipment Leasing and Finance Foundation (the Foundation), and NTEA, the association for the work truck industry, released three economic outlooks for the United States construction industry in 2021. The forecasts reported mixed predictions about the year ahead. Here's what you need to know: 

LOS ANGELES (Dec. 10, 2020)—AECOM announced the signing of a definitive agreement to sell its civil construction business, which includes the Shimmick Construction business, to affiliates of Oroco Capital. The transaction is expected to close in January 2021 upon the satisfaction of customary closing conditions.

WASHINGTON—More contractors are facing a shortage of building materials as the pandemic continues, according to new fourth quarter data from the United States Chamber of Commerce Commercial Construction Index. This quarter, 41% of contractors say less availability of building products and materials is a severe consequence of the pandemic, up from just 15% saying the same in Q3.

MONTREAL (Dec. 03, 2020)—WSP Global Inc. announced that it has entered into an arrangement agreement providing for the acquisition of all of the issued and outstanding shares of Enterra Holdings Ltd., the holding company of Golder Associates.

NEW JERSEY (December 7, 2020)—The Dodge Momentum Index fell 2.6% in November to 123.3 from the revised October reading of 126.5. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year.

NEW YORK, New York/SEATTLE, Washington (November 30, 2020)—Abbott Construction announced that it has merged with STO Building Group to become a member of the STO family of companies.

WASHINGTON (Dec. 3, 2020)—Like most of the economy, construction, and therefore construction employment, was hit hard by the spread of COVID-19 and measures to limit the pandemic.