Construction Industry News

Washington, D.C. (Nov. 14, 2019)—The Equipment Leasing & Finance Foundation has released the November 2019 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector. Overall, confidence in the equipment finance market is 54.9, an increase from the October index of 51.4.

Dodge predicts construction starts will decline 4% in 2020 to $776 billion. The most notable drops by sector are residential (forecasted to decrease by 6% from 2019) and nonresidential buildings and nonbuilding construction (both forecasted to drop 3%).

EIGHTY FOUR, Pa. (Nov. 14, 2019) — 84 Lumber Company announced the company has entered into a new 7-year $310 million Senior Secured Term Loan B Facility and 5-year $400 million Asset Based Revolving Credit Facility. The proceeds will be used to refinance the $307.5 million outstanding Term Loan B and $400 million ABL Revolver.

WASHINGTON (Nov. 13, 2019) – The United States Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has released a comprehensive Technical Assistance Guide (TAG) for the construction industry. The guide will assist contractors meet their legal requirements and responsibilities for equal employment opportunity by preventing violations before they occur.

Last week, the United States Department of Transportation awarded a $25 million grant to the Port of Alaska through the department’s Better Utilizing Investment to Leverage Development (BUILD) program.

A 2-year investigation by the Associated Press found that at least 1,680 dams across the United States pose risks to the residents in the areas surrounding them. The AP reviewed federal data and identified a number of dams that are rated in poor or unsatisfactory condition.

Tutor Perini released its third quarter results last week, announcing record quarterly operating cash of $222.9 million. Skanska reported an operating profit of $221.6 million (2.15 billion Swedish kronor) in the third quarter 2019. The profit is an increase of 324% from Q3 2018 and significantly surpassed analysts’ expectations. Total revenue for Q3 was 44.5 billion Swedish kronor, up 8% from 2018. 

New York, New York (Nov. 7, 2019)—The Dodge Momentum Index increased 6.9% in October to 152.6 (2000=100) from the revised September reading of 142.7. 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. October’s increase was due entirely to a recovery in institutional planning projects, which had stepped back over the previous few months. Institutional planning moved 22.8% higher in the month while commercial planning lost 0.5%.

Scottsdale, Arizona (Nov. 6, 2019)—Restoration Builders Inc. has announced the signing of an asset purchase agreement for the acquisition of Roofscapes Exteriors LLC, headquartered in Tulsa, Oklahoma.

Columbus, Ohio (Oct. 27, 2019)—Public transportation agencies across Ohio will soon benefit from millions of dollars to help with operations and improve mobility throughout the state.

Nearly $70 million will come from the state general revenue fund. These funds were approved by the Ohio General Assembly in the most recent 2-year state transportation budget. This money is not generated by the state motor fuel tax.

Washington, D.C. (Nov. 5, 2019)—The American Institute of Architects (AIA) issued a statement today following the decision by President Trump to officially withdraw from the Paris climate accord.

Washington, D.C. (AP) (Nov. 5, 2019)—The United States trade deficit fell in September to the lowest level in 5 months, as imports dropped more sharply than exports and America ran a rare surplus in petroleum.

The Commerce Department said Tuesday that the September gap between what America buys from abroad and what it sells shrank by 4.7% to $52.5 billion. That was down from the August deficit of $55 billion and was the smallest imbalance since April.

London, England (Nov. 4, 2019)—Global construction and real estate industry deals for September 2019 totaled $21.7 billion, according to GlobalData’s deals database.

The value marked a decrease of 5.7% over the previous month and a rise of 44.2% when compared with the last 12-month average of $15.06 billion. In terms of number of deals, the sector saw a drop of 4.4% over the last 12-month average with 194 deals against the average of 203 deals. In value terms, North America led the activity with deals worth $9.63 billion.

Irving, Texas (Oct. 31, 2019)—Fluor Corporation has announced financial results for its third quarter ended Sept. 30, 2019. Third quarter results were a net loss from continuing operations attributable to Fluor of $782 million, or $5.57 per diluted share, compared to net earnings of $69 million, or $0.49 per diluted share, one year ago. 

Miami, Florida (Nov. 1, 2019)—Brightline, soon to be Virgin Trains, has been selected as the “Project of the Year” by the Urban Land Institute Southeast Florida/Caribbean (ULI) as part of its 2019 Vision Awards. The award recognized Brightline for advancing the future of mobility and transit-oriented development in South Florida. One of five finalists, Brightline was awarded the honor during a ceremony Oct. 30, 2019, in Miami, Florida. 

Dodge Data & Analytics released its 2020 Construction Outlook last week, which called for a slowing economy but no full-blown recession—and construction business owners everywhere breathed a sigh of relief. The outlook referenced the ongoing skilled labor shortage and trade wars as two of the main drivers behind a slight downturn in construction starts.

After a $555 million net loss in Q2 2019, Fluor Corporation’s earnings didn’t have good news to report in Q3 either. The contractor (No. 2 on ENR’s 2019 Top 400) reported a net loss of $782 million in Q3.

In the midst of a growing labor shortage, companies are looking to creative ways to get work done. For many, that also means taking a hard look at what the future of work will look like for employees across all industries.

Birmingham, Alabama (Nov. 5, 2019)—Construction Business Owner, the leading business magazine for contractors, is pleased to announce a free webinar presented in partnership with Procore.

Chicago, Illinois (Oct. 31, 2019)—Dodge Data & Analytics has released its 2020 Dodge Construction Outlook, a tool for construction industry forecasting and business planning. The report predicts that total United States construction starts will slip to $776 billion in 2020, a decline of 4% from the 2019 estimated level of activity.