Construction contractors are optimistic about certain private-sector segments and have high hopes for most types of public-sector work, according to survey results the Associated General Contractors of America and Sage released today. Yet they have very low expectations for several private-sector market segments, remain concerned about labor shortages and are worried materials prices will climb amid threats of new tariffs.
Workers Plead with Drivers to Slow Down in New Videos, Construction Officials Call for Tougher Safety and Education Measures as Annual Survey Details Growing Risks to Drivers & Workers from Work Zone Crashes.
Four national trade associations petitioned the White House to make improvements in its implementation of “made in America” requirements for construction products and materials. They noted their members have encountered significant difficulty in navigating the White House Office of Management and Budget’s (OMB) “opaque and unbalanced implementation,” risking delays and cost increases for vital housing, transportation, and water infrastructure projects funded by the Infrastructure Investment & Jobs Act.
Construction contractors have a decidedly mixed outlook for 2024 as firms predict transitions in demand for projects, the types of challenges they will face and the technologies, including artificial intelligence, they will embrace according to survey results the Associated General Contractors of America and Sage released today. Amid these changes, contractors are struggling to cope with significant labor shortages, the impacts of higher interest rates and input costs, and a supply chain that, while better, is still far from normal, according to A Construction Market in Transition: The 2024 Construction Hiring and Business Outlook.
Total construction spending increased by 0.6 percent in October, led by strong gains for manufacturing, power, and education projects as well as single-family homebuilding, according to an analysis of federal spending data the Associated General Contractors of America released today. Association officials noted, however, that spending on other nonresidential segments, including commercial construction and highway and street construction, declined.
“It is apparent that the construction market overall remains healthy,” said Ken Simonson, the association’s chief economist. “But a rotation is occurring among nonresidential segments as manufacturing construction expands while commercial construction slumps and highway and street spending stagnates. On the residential side, single-family construction is picking up, while multifamily is descending from record highs.”
The Associated General Contractors of America filed suit today in federal court to block the Biden Administration’s unlawful effort to expand the reach of a decades-old law that governs wage rates on federally funded construction projects. Association officials noted that the administration lacks the legal authority to expand the law to cover manufacturing facilities miles away from projects, or to retroactively impose the measure on already-executed contracts, among other concerns.
According to a report released in September by Procore Technologies, and the Associated General Contractors of America, 78% of civil and infrastructure construction firms expect their project backlog to increase or remain the same over the next year as new federal infrastructure funding ramps up. The report, Top Civil & Infrastructure Trends: Today's Industry Challenges and Opportunities, found that many firms are worried that labor shortages and productivity challenges could undermine their success with these projects.
Visit https://www.procore.com/ebooks/agc-civil-and-infrastructure-report to get a copy of the report.
Coupled with the massive influx of federal funding is a plethora of new and revised federal regulations from Buy America to Davis Bacon.
The Debt Bill includes provisions supported by the construction industry to expedite the federal permitting process. The Associated General Contractors of America’s chief executive officer, Stephen E. Sandherr, issued the following statement:
“The debt limit deal announced over the weekend includes significant reforms to a federal permitting process that has, until now, been one of the main impediments to progress on many vital infrastructure projects. These reforms will reduce the time it takes to complete environmental reviews without weakening any of the strong protections built into the process.
Total construction spending edged higher in October, as gains in public and private project types outmatched decreases in single- and multifamily residential outlays, according to a new analysis of federal construction spending data the Associated General Contractors of America released today. Officials noted that public sector investments would likely rise in the near future because of the recently-passed infrastructure bill, but cautioned that labor shortages and supply chain problems were posing significant challenges for the industry.