In its first-quarter index of Construction Confidence, the Associated Builders and Contractors (ABC) found that 55% of contractors expected their sales to increase over the following six months, and only 19% thought their sales would decline in that period.
They might need to recalibrate their exuberance, in light of the trade group’s latest analysis of data published by the U.S. Census Bureau, which ABC released today. It estimates that national nonresidential construction spending in May, at $784.5 billion, was down 7.1% from the same month a year ago, and off 0.7% from spending levels in April 2021.
On a year-over-year basis, spending for every nonresidential category that ABC tracks, except sewage and waste disposal, was negative. Spending on public safety projects—which surged during the early months of the pandemic—showed the greatest decline in May, 39.6%, and lodging also took a big hit (off 23.3% to $22.6 billion). On the other hand, spending in May on healthcare construction, nearly $47 billion, was down only marginally, by 1.5%, compared to the same month a year ago.
WORKER SHORTAGES AND MATERIAL PRICING REMAIN PROJECT ROADBLOCKS
Construction spending for public safety and lodging projects showed the steepest declines in May compared to the same month a year ago.
A red-hot data center market hasn’t spelled more office construction, notes Anirban Basu, ABC’s Chief Economist. Basu also points out that while some private construction segments are struggling under the dislocating impacts of the pandemic, public nonresidential construction actually has declined more rapidly than the private sector over the past year.
Basu sees some hope for the future. Public construction spending should benefit from improvements in state and local governments’ financial conditions. But he tempers his predictions because of still-high construction materials prices and “deeply problematic” worker shortages. Basu expressed some concern, too, about the disproportionate amount of spending moving toward residential construction, which accounted for 41% of the pre-pandemic total and 49% in May.
Related Stories
| Aug 12, 2016
Top 100 Office Construction Firms
Turner Construction Co., Structure Tone, and Gilbane Building Co. top Building Design+Construction’s annual ranking of the nation’s largest office sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
| Aug 11, 2016
RETAIL GIANTS: Retailers and developers mix it up to stay relevant with shoppers
Retail is becoming closely aligned with entertainment, and malls that can be repositioned as lifestyle centers will have enhanced value.
| Aug 10, 2016
Top 80 Retail Construction Firms
VCC, PCL Construction Enterprises, and The Whiting-Turner Contracting Co. top Building Design+Construction’s annual ranking of the nation’s largest retail sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
| Aug 10, 2016
DATA CENTER GIANTS: Information overload is pushing the limits of mission-critical facilities
Streamlined design and delivery approaches for individual business enterprises and co-location facilities are being born out of the necessity to bring new capacity online as quickly as possible.
Data Centers | Aug 10, 2016
Top 40 Data Center Construction Firms
The Whiting-Turner Contracting Co., Holder Construction Co., and DPR Construction top Building Design+Construction’s annual ranking of the nation’s largest data center sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
Contractors | Aug 10, 2016
Dodge launches new app to simplify pros' search for suitable projects to bid and work on
The product, called PlanRoom, could be particularly useful in sharing data and communications among AEC teams.
| Aug 10, 2016
UNIVERSITY GIANTS: Facing money woes, the nation's colleges double down on innovative ideas
Budget constraints are compelling some public institutions to pursue alternative methods of financing their major building projects.
| Aug 9, 2016
Top 100 University Construction Firms
Turner Construction Co., The Whiting-Turner Contracting Co, and Skanska USA top Building Design+Construction’s annual ranking of the nation’s largest university sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
Building Team | Aug 4, 2016
Thought leaders from architecture, engineering and construction to meet at 2016 Bluebeam eXtreme Conference
Bluebeam users inspire technological change through shared insights and training at three-day event.
| Aug 4, 2016
MULTIFAMILY BUILDING GIANTS: Rental complexes focus on affordability, accessibility, and specialty amenities
To address the affordability problem and attract tenants, owners and developers are experimenting with smaller and smaller units, amenity-rich environments, and “co-living” concepts.
