Economics Week in Review - Plumbing and Mechanical

Construction Jobs Drop In November; Census, Reed Say Spending Rose In October The drop in industry unemployment, unaccompanied by a rise in construction employment, suggests workers are finding jobs in other industries, retiring, returning to school or training, or leaving the workforce. That may make hiring more difficult when construction demand picks up. by Ken Simonson

Construction Hiring Rises, Openings Stay Scarce, Bid Prices Inch Up The hires rate in construction jumped to 7.3 percent in September from 5.6 percent in August and 5.9 percent in September 2010. by Ken Simonson

Senate Approves 3% Withholding Repeal, Adds Veteran Employment Tax Credit The U.S. Senate Nov. 10 unanimously approved legislation to repeal a federal mandate that government agencies withhold part of their payments to contractors and added an amendment to provide tax credits to companies that hire veterans.

Housing, Commercial Building Starts May Improve Slightly In 2012 However, overall U.S. construction starts for next year will remain essentially flat, according to McGraw-Hill Construction’s 2012 Dodge Construction Outlook.

PPI, Highway Index Show Contractors’ Cost Squeeze; Reed, Census Starts Are Volatile The producer price index for inputs to construction industries — a weighted average of the price of all goods used in every type of construction, plus items consumed by contractors, such as diesel fuel — was flat for September but up 8.1 percent over the September 2010 level. by Ken Simonson

U.S. Plumbing Fixtures, Fittings Demand To Reach $11 Billion Demand for plumbing fixtures and fittings in the United States will rise 7.1% per year to $10.9 billion in 2015, according to a new study by The Freedonia Group.

MHC Says Starts Rise In August; Housing Is Mixed; Retail Remains Weak; Industrial Gains

The pickup for total construction in August was the result of greater activity for each of construction’s three main sectors — nonresidential building [7 percent], residential building [4 percent] and nonbuilding construction [13 percent]. For the first eight months of 2011, total construction on an unadjusted basis was down 6 percent from the same period a year ago.

by Ken Simonson

Construction Stayed Weak In New Beige Book Survey; NAHB Says Multifamily Improved "Reports from the 12 Federal Reserve districts indicated that economic activity continued to expand at a modest pace, though some districts noted mixed or weakening activity," the Fed reported. by Ken Simonson

Housing Starts Down Slightly, Remodeling Activity Continues Climb Nationwide housing starts edged down 1.5 percent to a seasonally adjusted annual rate of 604,000 units in July, while the June BuildFax Remodeling Index reported its highest remodeling numbers in 20 months.

Remodeling Activity Slows Under Economic Uncertainty, Lending Requirements “While the RMI indicates that the home remodeling market softened somewhat in the second quarter, this is still the second highest RMI we’ve been able to report since the third quarter of 2007,” said NAHB Chief Economist David Crowe.

Construction Spending Climbs In June; Metro Areas Divide Between Job Gains, Losses Construction spending totaled $772 billion at a seasonally adjusted annual rate in June, up 0.2 percent from the rate in May but down 4.7 percent from June 2010, the Census Bureau reported Aug. 1. by Ken Simonson

May Marks Remodeling Record High BuildFax reported a record high for remodeling activity in May 2011.

Construction Spending Hits 11-Yr. Low, ARRA Added Jobs Construction spending in May totaled $753 billion at a seasonally adjusted annual rate, the sixth consecutive monthly decrease and the lowest figure since 1999, the Census Bureau reported July 1. by Ken Simonson

Multi-Family Housing Permits Jump in May IHS Global Insight has reported that May housing starts rose 3.5% to a 560,000 annual rate.

Economic Slowdown May Only Be Temporary Although it seems that in recent weeks the market has reflected a new sense of impending doom, manufacturing industry economist, Dr. Chris Kuehl says the slowdown is only temporary and not the start of another breakdown in the economy.

April PPI For Inputs Again Outpaces Finished Building Prices The PPI for inputs to construction industries — a blend of all materials used in every type of construction, plus items consumed by contractors such as diesel fuel — rose 1.4 percent and 7.1 percent, respectively. by Ken Simonson

Remodeling Activity Improving In Many Markets "While credit scarcity and economic uncertainty continue to weigh down remodeling, signs of increasing consumer interest are promising," says NAHB Chief Economist David Crowe.

Construction Adds Jobs In February; More Coming, Manpower Survey Finds Construction employment rose by 33,000, the largest gain in nearly four years, but much of the increase may have represented catch-up from a weather-exacerbated drop of 22,000 jobs in January. by Ken Simonson

Cold, Snowy Weather Drags Down Construction Spending Recent data gathered by IHS Global Insight found that U.S. construction spending fell 2.5% in December 2010.

U.S. Nonresidential Construction Spending To Increase In 2012 Overall nonresidential construction spending is expected to decrease by two percent in 2011, with 2012 seeing an increase of five percent in inflation adjusted terms.

Housing Sector Remains In Critical Condition Entering 2011 According to recent data gathered by IHS Global Insight, U.S. equity markets continue to fluctuate without conviction one way or another.

U.S. Construction Looks Forward To a Flat 2011 According to the Fourth Quarter U.S. Construction Briefing by IHS Global Insight’s Construction Service, U.S. construction spending will be flat in 2011, pushed higher by positive second half gains in the residential and commercial sectors.

Recovery Going Half-Steam Ahead Blue-chip economists cite bank credit, unemployment as biggest obstacles. by Jim Olsztynski

Optimistic Outlook for Housing, But Challenges Remain According to a recent NAHB Construction Forecast Conference Webinar, the housing market is on the road to recovery, being carried forward by low interest rates, pent up household formations, stabilizing prices and budding employment growth.

Few Metro Areas Add Construction Jobs Between February 2009 And 2010 Only 10 out of 337 metropolitan areas added construction jobs between February 2009 and 2010, the Associated General Contractors of America reported, citing data from the U.S. Bureau of Labor Statistics.

Construction Spending Drops To 2002 Levels Construction spending tumbled in February by $11.6 billion, or 1.3 percent, to $846 billion, a low last recorded in 2002, according to an analysis of new federal figures by the Associated General Contractors of America.

More Construction Firms Likely To Perform Stimulus-Funded Work In 2010 An analysis by the Associated General Contractors of America of federal data found that more contractors are likely to perform stimulus-funded work this year as work starts on many of the nontransportation projects funded in the initial package.

Dec. Construction Jobs Fall; Industrial, Office, Apartment Markets Worsen Construction employment fell by 53,500 (-0.9 percent), accounting for more than 60 percent of total losses for December 2009, and by 934,000 (14 percent) for the year. by Ken Simonson

Nov. Construction Spending, Job Losses Were Widespread; Wage Increases Diminish Construction spending fell 0.6 percent in November 2009 to a seasonally adjusted annual rate of $900 billion, down 13 percent from November 2008 and the lowest total in six years. by Ken Simonson

Only Five U.S. Metro Areas Witness Construction Job Growth Only five out of 337 metropolitan areas saw an increase in construction employment between October 2008 and October 2009, according to a new study from the Bureau of Labor Statistics.

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