Construction spending increased for the third straight month in October as private activity strengthened while public spending shrank, AGC reported today in an analysis of new Census Bureau data.  AGC officials cautioned that further declines in public sector activity may soon swamp gains in homebuilding and private nonresidential investment.

Washington Business Journal named the Associated General Contractors of America to its "Top of the List: Trade Associations" for 2011. AGC is one of only three construction industry related trade associations on the journal's Top 50 list, and the only general contractors association on the list.

Construction employment rose in half the states and decreased in half in October and during the past year, closely matching the stable national employment picture, according to an analysis by the Associated General Contractors of America of Labor Department data.  The even split between gains and losses reflects the accelerating improvement in apartment and private nonresidential construction, offset by a declining public market and stalled single-family sector.

Nov. 21,  President Obama signed into law the 3 Percent Withholding Repeal and Job Creation Act.  The law permanently repeals the requirement that federal, state, and large local governments begin withholding 3 percent of each payment of $10,000 or more to a contractor after Jan. 1, 2013.  Today’s bill signing is the culmination of a five-year effort by AGC, chapters, members and industry stakeholders to repeal the 2006 provision.

Thirty-four construction professionals received a first-ever new national accreditation in the use of Building Information Modeling (BIM), a process that relies on computer-generated models to better manage construction projects. The professional accreditation, which is being offered by AGC, is the first assessment-based credential to recognize construction professionals on their ability to use the process.

AGC's chief executive officer , Stephen E. Sanderr, issued the following statement in response to last night's House vote (by a margin of 422 to 0) to repeal the 3 percent tax withholding mandate: "The repeal of the 3 percent tax withholding mandate will provide a much-needed boost for construction employers across the country.  The fact contractors won’t be forced into providing billions in interest-free loans to the federal government beginning in 2013 is welcome news for a hard hit industry and its struggling workers."

The amount contractors pay for a range of key construction materials dropped slightly (-0.6 percent) in October but climbed 6.9 percent from the year-earlier level, according to an analysis of producer price index figures released today by AGC. Meanwhile, the price contractors charge for new nonresidential building construction edged up only 3.3 to 4.3 percent over 12 months, depending on building type.

In response to the Senate vote (by a margin of 95 to 0) to repeal the 3 percent tax withholding mandate, AGC's chief executive officer, Stephen E. Sandherr issued the following statement: "An overwhelming bipartisan majority of Senators understand that repealing the 3 percent tax withholding mandate is essential to boosting economic growth. With construction activity down by $400 billion and the industry's unemployment rate at 13.7 percent, the last thing construction employers need is to be forced into giving interest-free loans to the federal government. That is why today's Senate vote comes as welcome news for construction firms, workers and taxpayers alike. As our members made clear in a recently released survey, many firms will be better able to offer positions to the veterans this legislation also supports without the enormous cost of this measure looming."

Monday evening, the U.S. Senate  voted 94 to 1 to proceed to consideration of H.R. 674, a bill to repeal the 3 percent income tax withholding law, with a final vote on passage due by Wednesday. Senator Jay Rockefeller (D-WV) was the single vote against proceeding.

The construction industry lost 20,000 jobs between September and October as the segment’s unemployment rate hit 13.7 percent, according to an analysis of new federal employment data released today by AGC. Association officials said the employment drop reflects continued declines in public sector investments. They added that construction employment could benefit from increased transportation investment and other pro-growth measures designed to boost private sector demand.