Construction Spending Shows Year-Over-Year Gains in September, Dip in Nonresidential

Words: Dan KamysConstruction spending in September reached a new seven-year high and climbed at the fastest rate since early 2006, according to an analysis by the Associated General Contractors of America. However, total spending on nonresidential construction declined by 0.1 percent between August and September as growing workforce shortages likely impacted the amount firms were able to perform for the month. "Overall demand for construction continues to grow at a very robust rate," said Ken Simonson, the association's chief economist. "It appears, however, that many firms performing private nonresidential work could not find enough qualified workers in September to keep pace with growing demand." Construction spending in September totaled $1.094 trillion at a seasonally adjusted annual rate, 0.6 percent higher than the August total and 14.1 percent higher than in September 2014, Simonson said. He noted that the total was the highest since March 2008 and the year-over-year growth rate was the strongest since January 2006, indicating a faster pace of construction spending overall. Private residential spending increased 1.9 percent for the month and 17.1 percent over 12 months. Simonson noted that demand for multifamily residential construction grew at a particularly robust rate, 4.9 percent for the month and 26.7 percent year-over-year. Public construction spending rose 0.7 percent from a month before and 9.4 percent from 12 months earlier. Notably, demand for educational facilities grew by 2.4 percent for the month and 10.5 percent for the year. However, private nonresidential spending fell by 0.7 percent from August even as it remains 14.9 percent higher than a year earlier. The construction economist noted that while spending on sectors such as lodging, manufacturing and offices experienced significant year-over-year growth, most categories saw a decline in spending between August and September as firms struggled to replace retiring workers amid growing labor market tightness. There were only 479,000 unemployed construction workers in September, the smallest September total in 15 years, Simonson remarked, citing data from the Bureau of Labor Statistics. Eighty-six percent of firms responding to a recent association survey reported they are having a hard time finding qualified workers to fill available positions, association officials noted. As a result, many firms are likely struggling to find enough staff to keep pace with the growing demand for construction services, prompting the slight drop in monthly construction spending in the private nonresidential sector, the officials added. "Demand may be starting to outstrip the industry's capacity given the severe and growing shortages of available, qualified workers," said Stephen E. Sandherr, the association's chief executive officer, who urged elected and appointed officials to act on measures outlined in the association's Workforce Development Plandesigned to make it easier to prepare, recruit and train new workers. ###
Brick Remains Top Choice Among Architects & Homeowners, Glen-Gery Survey Reveals

In advance of National Architecture Day on November 1, 2024, Glen-Gery, a premier brick manufacturer that is part of Brickworks North America, released “Trends in Design and Renovation: A Comparative Study Among Homeowners and Architects,” a national surv

By: Stacey Bollinger
Read More
Strengthening the Foundation: Recruitment Strategies for Masonry Companies Amid Employee Shortages

In today’s construction landscape, masonry companies are facing an increasingly pressing challenge: the shortage of skilled labor. This shortage is not just a minor inconvenience but a significant hurdle that threatens the industry's growth and sustainabi

By: Tiffany Tillema
About: Featured
Read More
CITYPARK’s New Soccer Stadium in St. Louis Features Unique Masonry to Achieve Modern, Sleek Design

Completed in Fall ahead of the 2023 Major League Soccer season, CITYPARK St. Louis is a state-of-the-art, soccer-specific stadium in the heart of St. Louis, Missouri. The new stadium features geometric lines and unique masonry, creating a contemporary yet

By: John Cicciarelli
Read More
MASONRY STRONG Podcast Episode 2: Dick Dentinger

On this episode of the MASONRY STRONG Podcast, MCAA Chairman, Dick Dentinger, explains how he got started in the industry and how important he views networking, as well as the association as a whole. Experiencing the MCAA Mid-Year Meetings Attending the

By: Justin Stengel
About: Featured
Read More