With open jobs going unfilled, many construction projects are not being completed, according to the Associated General Contractors of America.
“Most nonresidential contractors report full order books but are having trouble hiring enough workers to keep projects on schedule,” said Ken Simonson, chief economist, in a statement. “Rising interest rates and costs for materials are likely to choke off some projects but there will be plenty of infrastructure, manufacturing plants, and renewable energy projects next year—if contractors can find enough workers to build them.”
Total construction spending in October dropped 0.3 percent, according to AGC, to $1.795 trillion, not adjusted for inflation.
Residential spending was dragged down by a 2.6 percent plunge in single-family homebuilding, which swamped increases of 0.6 percent in multifamily construction and 2.0 percent in residential improvements. The largest nonresidential segment, commercial construction—comprising warehouse, retail, and farm construction—declined 0.4 percent. Among other large nonresidential categories, highway and street construction slid 0.7 percent and manufacturing construction tumbled 3.3 percent. In contrast, power construction climbed 1.5 percent.
Source: AGC
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Rod Sutton
Sutton has served as the editorial lead of Construction Equipment magazine and ConstructionEquipment.com since 2001.
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