Seasonally adjusted nonfarm payroll employment increased in 42 states and the District of Columbia from March to April and decreased in eight states, the Bureau of Labor Statistics (BLS) reported on Friday. Compared with April 2010, employment rose in 46 states plus D.C. and declined by very small amounts in Kansas (-300), New Mexico (-400), New Jersey (-6,300 or -0.2%) and New York (-28,500 or -0.3%). An analysis by AGC found that construction employment rose in April in 22 states plus D.C., decreased in 27 states and held steady in Wyoming. Over the year, construction employment climbed in 19 states plus D.C. (the largest number of locations with 12-month gains since February 2008), dropped in 30 states and was level in Massachusetts. The largest 12-month percentage increases were in Oklahoma (4.8%, 3,200 jobs), Texas (4.1%, 23,200 jobs), Tennessee (3.1%, 3,300 jobs), Wyoming (3.1%, 700 jobs) and Maine (2.5%, 400 jobs). The steepest losses were in Minnesota (-14.1%, -12,900 jobs), Nevada (-11.6%, -7,100 jobs), Wisconsin (-11.3%, -11,000 jobs) and Colorado (-11.2%, -4,400 jobs). To avoid disclosing data about industries with few employers, BLS combines mining and logging with construction in D.C., Tennessee and five other states. Nationally, construction employment inched up 5,000 (0.1%) in April but fell 42,000 (0.8%) year-over-year, BLS reported on May 6.
In another sign that construction job losses may be stabilizing, the number of mass layoff events (layoffs involving 50 or more employees in a month) in construction edged down from 163 in April 2010 to 161 in April 2011 (-1%), not seasonally adjusted., BLS reported on Friday The number of employees involved in such events who filed initial claims for unemployment insurance rose from 11,947 to 12,121 (1%).
New construction starts were virtually unchanged from March to April but down 9% year-to-date for the first four months of 2011 compared with the same period in 2010, McGraw-Hill Construction (MHC) reported on Wednesday, based on data it collected. “Nonresidential building slipped back [-2%] after its elevated March pace, while nonbuilding construction (public works and electric utilities) continued to retreat [-3%]. In contrast, residential building in April registered a moderate gain [1%], helped by upward movement for multifamily housing.” Year-to-date declines totaled -5% for nonbuilding, -7% for nonresidential building and -15% for residential building.
The Architecture Billings Index (ABI), which measures the fraction of a sample of 700 architecture firms that had higher billings than a month earlier less the fraction with lower billings, fell to 47.6, “a precipitous decrease from a reading of 50.5 the previous month,” the American Institute of Architects reported on Wednesday. The April reading was the first time the index dropped below the breakeven 50 level since October and was the lowest mark since July. Based on three-month averages, the subindex for firms with a predominantly multifamily residential practice rose 1.5 points to 53.9, a four-month high; the commercial/industrial-practice index fell 2.4 points to 49.9, a 10-month low; the institutional-practice index slipped 0.7 points to 45.9, an 11-month low; and the mixed-practice index sank 2.5 points to 45.2, a seven-month low. These indicators are negative for future nonresidential construction, although the correlation between the indexes and construction spending has yet to be determined in the post-recession economy.
Housing starts in April tumbled 11% at a seasonally adjusted annual rate and 24% compared with year-ago levels, the Census Bureau reported on Tuesday. Single-family starts dropped 5.1% and 30%. Multifamily starts sagged 24% for the month but increased 6.6% year-over-year. Building permits fell 4.0% for the month and 13% year-over-year. Single-family permits slid 1.8% and 19%, respectively. Multifamily permits slumped 8.8% for the month but rose 4.4% year-over-year.
Industrial production (IP) in manufacturing fell 0.4% in April, the first decline in 10 months, but was 4.6% above the April 2010 level, the Federal Reserve reported on Tuesday. IP for construction supplies slipped 0.1%; the Fed noted, “This index has risen 3.0% since April 2010 but remains well below its pre-recession peak.” Capacity utilization in manufacturing slipped to 74.4% of capacity after increasing for nine months; the average over 1972-2010 was 79.0%. Together, high capacity utilization and steady growth in IP can indicate demand for factory construction.
Prices for materials used in construction have shown divergent trends recently. Futures prices for crude oil and copper have fluctuated in a range 10-15% below their peaks earlier this year. Steel and aluminum scrap prices have also declined, by smaller percentages. In contrast, “It is necessary to announce a price increase of 8% on our aluminum and aluminum accessories products,” effective June 1, Oldcastle Building Envelope informed customers on May 16. The New Mexico Department of Transportation notified contacts on Wednesday that its asphalt rack price index for June would be $657, $27 higher than in May and the fourth consecutive monthly increase but only $2 higher than in June 2010.
“Our research suggests that between January 1, 2011 and April 1, 2011 the national average increase in construction cost was” 0.5% and 0.9% over the past year, consulting firm Rider Levett Bucknall reported on Tuesday. The cost index “tracks the true bid cost of construction, which includes, in addition to costs of labor and materials, general contractor and subcontractor overhead costs and fees (profit). The index also includes applicable sales/use taxes that standard construction contracts attract.” Among 11 cities surveyed, quarterly increases ranged from 0.2% in Boston and Washington to 0.9% in Honolulu.
- Industry Priorities
- Education
- News
- Connect
- Benefits
- Events
- Shop