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 29, 2012
Construction completed on Las Vegas’ newest performing arts center
The Smith Center will be the first major multi-purpose performance center in the U.S. to earn Silver LEED certification.
| Mar 29, 2012
Apartments provide permanent housing for California homeless
Gonzalez Goodale Architects designed complex to embrace community and engender sense of pride among residents.
| Mar 28, 2012
40 Under 40, the Class of 2012
Chosen from 223 applicants, these 40 young AEC professionals represent the Class of 2012 in Building Design+Construction’s “40 UNDER 40” competition.
| Mar 28, 2012
Milestone reached for LEED-certified buildings?
Total number of major global green buildings now stands at 12,000.
| Mar 28, 2012
Holden Cancer Center opens at University of Iowa Hospitals and Clinics
The new cancer clinic provides a significant increase in patient space from the prior facility, which was located in an adjacent building.
| Mar 28, 2012
Meridian Design Build Begins work on 38 acre redevelopment project
The project includes construction of a new 150,585-sf cross dock facility that will include full service truck maintenance and repair bays, a truck wash, and approximately 20,000-sf of corporate office space.
| Mar 28, 2012
Tsoi/Kobis & Associates developing master plan for UT Southwestern Medical Center
Firm will spearhead strategies for transforming existing in-patient hospital into state-of-the-art ambulatory care facility.
| Mar 28, 2012
Ideas and input drive stories in online community, noraXchange
Community designed to help building and design professionals address challenges they face in their jobs.
| Mar 27, 2012
Bank of America Plaza becomes Atlanta's priciest repo
Repo will help reset market prices for real estate, and the eventual new owner will likely set rental rates at a new or near the bottom and improve the facilities to lure tenants.
| Mar 27, 2012
Skanska hires aviation construction expert Bob Postma
Postma will manage Skanska’s nationwide in-house team of airport construction experts who lead the industry in building and renovating airport facilities and their essential features.