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
| Mar 20, 2014
D.C. breaks ground on $2B mega waterfront development [slideshow]
When complete, the Wharf will feature approximately 3 million sf of new residential, office, hotel, retail, cultural, and public uses, including waterfront parks, promenades, piers, and docks.
| Mar 19, 2014
How to develop a healthcare capital project using a 'true north charter'
Because healthcare projects take years to implement, developing a true north charter is essential for keeping the entire team on track and moving in the right direction.
| Mar 18, 2014
How your AEC firm can win more healthcare projects
Cutthroat competition and the vagaries of the Affordable Healthcare Act are making capital planning a more daunting task than ever. Our experts provide inside advice on how AEC firms can secure more work from hospital systems.
| Mar 17, 2014
Coin toss decides who gets $4.4 million construction contract
When two builders submitted identical bids for the Gretna (La.) Police Headquarters, the city council decided to choose the winner through a coin toss.
| Mar 17, 2014
Rem Koolhaas explains China's plans for its 'ghost cities'
China's goal, according to Koolhaas, is to de-incentivize migration into already overcrowded cities.
| Mar 13, 2014
Austria's tallest tower shimmers with striking 'folded façade' [slideshow]
The 58-story DC Tower 1 is the first of two high-rises designed by Dominique Perrault Architecture for Vienna's skyline.
| Mar 12, 2014
London grows up: 236 tall buildings to be added to skyline in coming decade, says think tank
The vast majority of high-rise projects in the works are residential towers, which could help tackle the city's housing crisis, according to a new report by New London Architecture.
| Mar 12, 2014
14 new ideas for doors and door hardware
From a high-tech classroom lockdown system to an impact-resistant wide-stile door line, BD+C editors present a collection of door and door hardware innovations.
| Mar 10, 2014
Field tested: Caterpillar’s Cat B15 rugged smartphone
The B15 is billed by Cat as “the most progressive, durable and rugged device available on the market today.”
| Mar 10, 2014
5 rugged mobile devices geared for construction pros
BD+C readers share their most trusted smartphone and tablet cases. The editors select some of their faves, too.
