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
| Apr 5, 2013
'My BIM journey' – 6 lessons from a BIM/VDC expert
Gensler's Jared Krieger offers important tips and advice for managing complex BIM/VDC-driven projects.
| Apr 5, 2013
Commercial greenhouse will top new Whole Foods store in Brooklyn
Whole Foods and partner Gotham Greens will create a 20,000-sf greenhouse atop one of the retailer's Brooklyn supermarkets. Expected to open this fall, the facility will supply produce to nine Whole Foods stores in metro New York City.
| Apr 5, 2013
Projected cost for Apple's Campus 2 balloons to $5 billion
Campus 2, Apple Inc.'s proposed ring-shaped office facility in Cupertino, Calif., could cost $5 billion to build, according to a report by Bloomberg.
| Apr 5, 2013
Extreme LEGO: Wondrous micro city built out of 200,000 blocks
Master LEGO builder Mike Doyle unveils his latest creation, an out-of-this-world micro city that celebrates peaceful alien contact.
| Apr 3, 2013
AIA CES class: Sealant repairs that last – hybrid sealants for building restoration
It is hard to talk about restoration without talking about sustainability. This two-hour interactive online course discusses the role that restoration can and does play in the arena of sustainability, and specifically the role that sealants play in sustainable design and repair.
| Apr 3, 2013
Construction spending up 20% since 2011, growth will continue, says Gilbane report
The monthly rate of construction spending is up 20% in 24 months and increased in 18 of the last 24 months, which is a good leading indicator for new construction work in Q3-Q4 2013, according to Gilbane's latest Market Conditions in Construction report.
| Apr 3, 2013
5 award-winning modular buildings
The Modular Building Institute recently revealed the winners of its annual Awards of Distinction contest. There were 42 winners in all across six categories. Here are five projects that caught our eye.
| Apr 2, 2013
6 lobby design tips
If you do hotels, schools, student unions, office buildings, performing arts centers, transportation facilities, or any structure with a lobby, here are six principles from healthcare lobby design that make for happier users—and more satisfied owners.
| Apr 2, 2013
Green building consultant explores the truth about green building performance in new book
A new book from leading sustainability, green building author and expert Jerry Yudelson challenges assumptions about the value of sustainable design and environmentally-friendly buildings.