Tag Archive for 'construction industry'

Page 2 of 292

ABC Reports: Construction Materials Prices Flat in July

CEU2“The weakening of economies in Europe, Japan and elsewhere has reduced demand for construction materials on a global basis.” —ABC Chief Economist Anirban Basu.

ppi_8 15 14Overall, construction materials prices inched higher in July and are up 2 percent year over year, according to the Aug. 15 producer price index (PPI) release by the U.S. Department of Labor. Nonresidential construction materials prices were flat for the month and are just 1.4 percent higher than at the same time one year ago.

“The weakening of economies in Europe, Japan and elsewhere has reduced demand for construction materials on a global basis, helping to offset the impact of geopolitical strife in commodity-rich areas,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Oil and other commodity prices have actually been falling in recent days as additional bad economic news emerges from Germany, France, Italy and other major economies.”

Crude energy materials prices fell 6.3 percent in July and are 1.7 percent lower than one year ago. Natural gas prices fell by 5.7 percent in July and have now fallen in four of the past five months on a monthly basis. On a year-over-year basis, natural gas prices have expanded by more than 10 percent for each month of 2014. Overall, the nation’s final demand prices, as measured by the PPI, expanded by 0.1 percent in July and are up 1.7 percent year over year.

“While the harsh winter helped to lift energy prices during the initial quarter of 2014, a cool and pleasant summer has helped to usher them in the opposite direction,” said Basu. “From a monetary policy perspective, the 1.7 percent year-over-year gain in overall final demand prices bodes well for those who would prefer to see the Federal Reserve continue its soft-on-inflation policymaking. During previous months, final demand price gains were in the range of 2 percent on a year-over-year basis. The July data will help to assuage inflation-related fears.”

The following materials prices increased in July.

· Softwood lumber prices expanded 3.4 percent and are 9.5 percent higher than one year ago.

· Prices for plumbing fixtures expanded 0.9 percent in July and are up 2.8 percent on a year-over-year basis.

· Concrete products prices expanded 0.4 percent in July and are up 3.6 percent on a yearly basis.

· Steel mill products prices rose 0.1 percent for the month and are 3.9 percent higher than one year ago.

· Fabricated structural metal product prices grew 0.2 for the month and have expanded 1.3 percent on a year-over-year basis.

· Nonferrous wire and cable prices grew 0.6 percent on a monthly basis, but are down 0.8 percent from July 2013.

Five of the 11 key construction inputs did not experience price increases for the month.

· Prices for prepared asphalt, tar roofing, and siding declined 4.2 percent for the month and are down 9.1 percent on a year-ago basis.

· Iron and steel prices remained flat in July and are up 3.2 percent from the same time last year.

· Natural gas prices shed 5.7 percent in June but are 16.4 percent higher than one year ago.

· Crude petroleum prices fell 8 percent in July on both a monthly and a yearly basis.

· Crude energy materials prices fell 6.3 percent in July and are 1.7 percent lower year over year.

To view the previous PPI report, click HERE

ABC Reports:Construction Employment Regains Momentum While Construction Spending Falters

CEU2“Gains in momentum for the U.S. economy mean that nonresidential construction is poised for better times ahead.”—ABC Chief Economist Anirban Basu.

According to the Bureau of Labor Statistics Aug. 1 preliminary employment report, the U.S. construction industry added 22,000 jobs in July with nonresidential construction contributing 6,600 of those jobs—including 2,500 jobs in the heavy and civil engineering segment— which represents a significant improvement from the 100 nonresidential construction jobs added the previous month.

In the U.S. Census Bureau report analyzing construction spending for June, nonresidential construction spending fell for the month after posting significant gains the two prior months, but remains 4.6 percent higher from a year ago. Spending for June totaled $588.8 billion on a seasonally adjusted, annualized basis, a 2.8 percent drop from the upwardly revised $605.6 billion in nonresidential construction spending from the previous report.

Nonresidential Construction Employment Regains Momentum in July

“Economic news continues to improve as the U.S. economy has now added more than 200,000 jobs a month for six consecutive months, the first winning streak of this type since 1997,” said Associated Builders and Contractors Chief Economist Anirban Basu. “While nonresidential construction’s cycle tends to lag that of the overall economy by roughly a year, gains in momentum for the U.S. economy mean that nonresidential construction is poised for better times ahead. While the 6,600 nonresidential jobs added last month may hardly seem Earth-shattering, it’s important to note that the U.S. economy only expanded by around 1 percent during the first six months of the year. The renewal of economic momentum remains in its infancy, but this momentum will gradually translate into an acceleration of nonresidential employment creation.”

The national construction unemployment rate fell to 7.5 percent on a non-seasonally adjusted basis in July. “July’s construction unemployment rate represents the lowest figure since November 2007, the month before the recession began,” said Basu. “The rate of unemployment is even lower in certain rapidly expanding states, including North Dakota, Texas and Louisiana, which are wrestling with too few construction workers, not too many.”

According to the Bureau of Labor Statistics’ household survey, the national unemployment rate inched up a tenth of a point in July to 6.2 percent. That should not be viewed as bad news, however, as the labor market expanded by 329,000 people and labor force participation crept up to 62.9 percent.

“Historically, July is not a good month for labor force growth,” said Basu. “But the most recent July is associated with the most solid labor force expansion observed since 1996.”

“Before nonresidential construction stakeholders become too excited, it should be noted that the recovery of the U.S. labor market is not unfettered good news,” Basu concluded. “Growing evidence of emerging wage pressures is likely to translate into higher interest rates, if not now, then at some point. That would likely temper at least some of the industry momentum presently building.”

Individual sectors saw the following changes:

Nonresidential building construction employment fell by 400 jobs for the month, but is up by 21,100 jobs, or 3.1 percent, since July 2013.

Residential building construction employment rose by 6,100 jobs in July and is up by 54,400 jobs, or 8.9 percent, on an annual basis.

Nonresidential specialty trade contractors added 7,000 jobs for the month and employment in that category is up by 40,800 jobs, or 1.9 percent, from the same time one year ago.

Residential specialty trade contractors gained 6,900 jobs in July and have added 61,200 jobs, or 3.9 percent, since July 2013.

The heavy and civil engineering construction segment gained 2,500 jobs in July and job totals are up by 33,800, or 3.8 percent, on a year-over-year basis.

Employment_8 1To view the previous employment report, click here.

Nonresidential Construction Spending Growth Falters in June

“The monthly decline in spending should not be cause for significant alarm,” said Associated Builders and Contractors Chief Economist Anirban Basu. “The impact of a brutal winter continues to manifest itself in the data. A considerable volume of construction was postponed during the year’s initial months with some of that construction taking place in April and May, artificially boosting activity during those months. Accordingly, June doesn’t look particularly good from a month-over-month perspective, but from a year-over-year perspective, the growth in spending looks perfectly adequate. Stakeholders should not have anticipated an upbeat June number in any case after national nonresidential construction employment expanded by just 100 people that month.”

“With job growth accelerating, consumer outlays expanding, industrial production rising and energy production surging, the outlook for nonresidential construction remains good,” said Basu. “The next few months should be associated with improving performance, if not on a monthly basis, then on a year-over-year one.”

Five of 16 nonresidential construction subsectors posted increases in spending in June on a monthly basis.

Office-related construction spending grew by 0.4 percent in June and is up 20.7 percent from the same time one year ago.

Religious spending grew 0.7 percent for the month and is up 4.3 percent from the same time last year.

Sewage and waste disposal-related construction spending gained 0.3 percent for the month and has grown 7.8 percent on a 12-month basis.

Conservation and development-related construction spending expanded by 13.5 percent for the month and is up 47.6 percent on a yearly basis.

Health care-related construction spending grew 2.5 percent for the month, but is down 5.6 percent on an annual basis.

Spending in 11 nonresidential construction subsectors declined in June.

Manufacturing-related spending fell 0.4 percent on a monthly basis, but is up 8.4 percent from the same time last year.

Education-related construction spending fell 4 percent for the month and is down 6 percent on a year-over-year basis.

Commercial construction spending fell 1.4 percent in June but is up 9.7 percent on a year-over-year basis.

Lodging construction spending is down 3 percent on a monthly basis but is up 19 percent on a year-over-year basis.

Spending in the water supply category fell 4.5 percent on both monthly and yearly bases.

Construction spending in the transportation category fell 0.6 percent on a monthly basis but has expanded by 6 percent on an annual basis.

Amusement and recreation-related construction spending fell 1.1 percent on a monthly basis but is up 9.2 percent from the same time last year.

Highway and street-related construction spending fell 10.4 percent in June and is down 8.5 percent compared to the same time last year.

Communication construction spending fell 4.9 percent for the month and is down 12.9 percent from the same time last year.

Public safety-related construction spending fell 2.4 percent on a monthly basis and has declined 5.1 percent on a year-over-year basis.

Power construction spending fell 3.3 percent for the month, but is 19 percent higher than at the same time one year ago.

spending_8 1To view the previous employment report, click here

North Country Heavy Equipment Virtual Auction August 14 @ 10AM

VIRTUALLOGO

HEAVY EQUIPMENT VIRTUAL AUCTION THURSDAY, AUGUST 14TH @10AM EASTERN
ABSOLUTE LOTS
FROM
PIKE INDUSTRIES INC. 
AND
THE REDI MIX COMPANY

ONLINE BIDDING PROVIDED BY:
EQUIPMENT FACTS LOGO copy 3

CHECK OUT OUR WEBSITE FOR MORE INFORMATION! 
www.http://northcountry-auctions.com/

NEW.1 4
1999 Advance Mixer - 1 of 2!
 
1987 Kenworth C510 Bin Truck
 
1995 Mack CH613
3 2
IMG_0074
20140724_120431
IMG_0083
1995 Cat 312
Cat 426C Backhoe
Cat 330
EXCESS INVENTORY BLOWOUT!    
AUCTIONEER  L. SPELLMAN  NH LIC. # 6034          

LOGO FBContact us at: info@northcountry-auctions.com
Phone: 1-603-539-5322

PAST AUCTIONS HEADER copy
clouds2footer.jpg

DOT Update on Status of Highway Trust Fund

Unknown

The Secretary of Transportation

Washington, DC 20590

August 5, 2014

Dear Colleague:

As you will recall, on July 1, I notified you of the precarious state of the Highway Trust Fund and the Department’s plan for managing the resources available to transit agencies through the Mass Transit Account if the shortfall continued into the fall.

As a result of the short-term fix for the Highway Trust Fund that Congress passed on July 31, I am writing to let you know that we will not need to implement these cash management procedures at this time.

While I am pleased that Congress took action to avoid the immediate insolvency of the Highway Account this summer, I am disappointed that they merely kicked the can down the road again. This is the tenth surface transportation extension-on top of eighteen short term budget measures–in the last 6 years. There is still no long-tem1 certainty. Worse still, this latest band-aid expires right as the next construction season begins, setting up another crisis next spring. So in the coming months, the Department will again be required to prepare cash management procedures in anticipation of repeating the same Highway Trust Fund insolvency crisis.

Americans deserve a multi-year transportation bill that provides the certainty that businesses and communities deserve, creates jobs, and makes necessary policy updates to lay the foundation for lasting economic growth. As the Senate demonstrated with its bipartisan vote on July 29, there is no reason Congress cannot act on a long-term solution this year. Our transportation infrastructure is too essential to suffer continued neglect, and I hope that Congress uses this opportunity productively. I urge you to stand with me in calling on Congress to commit itself to a sound, bipartisan, and long-term solution that will ensure the stability of the surface transportation system of our Nation for the next several years.

Sincerely,

Anthony R. Foxx

Wells Fargo Reports: Construction Spending Disappoints in June

Wells_Fargo_Securities_logoConstruction spending fell an unexpected 1.8 percent in June, but the previous month’s data was upwardly revised. Single-family outlays posted its second-straight negative reading. Nonresidential was also weak 

Single-Family Adding to Negative Housing Reports

 The often-revised construction spending monthly headline unexpectedly fell 1.8 percent in June, to a $950.2 billion annual pace. The decline was broad-based showing weakness in single-family, nonresidential and public state & local spending. Single-family outlays fell 1.4 percent on the month and add to the rising number of housing reports that are pointing to a weaker-than-anticipated housing recovery.

Power Outlays Still Weak

 Private nonresidential spending fell 1.6 percent with power still showing weakness following the production tax credit.

 Although the overall decline is disappointing, the monthly figures for multifamily and structure outlays were better than the BEA’s conservative estimate. This means that based on today’s report, we do not expect construction to detract from second quarter real GDP in future revisions.

12 3 4