The Blog

Associated Builders and Contractors reported that its Construction Backlog Indicator fell to 8.4 months in October, according to a survey of its member contractors conducted Oct. 21 to Nov. 4. The reading is unchanged from October 2023.

View the full Construction Backlog Indicator and Construction Confidence Index data series.

Backlog fell in every region except for the Northeast in October, reversing the previous month’s trend in which every region except for the Northeast saw an increase in backlog. Only the Middle States have longer backlog than one year ago.

ABC’s Construction Confidence Index readings for sales and staffing levels improved in October, while the reading for profit margins inched slightly lower. The readings for all three components are above the threshold of 50, indicating expectations for growth over the next six months.

“While backlog declined in October, it remains at a healthy level and has been remarkably stable over the past year," said ABC Chief Economist Anirban Basu. “Like much of the economy, the construction industry remained in some semblance of a holding pattern in October as project owners continue to wait for election outcomes and for interest rates to decline further. Despite this wait-and-see attitude, contractors remain upbeat about the next two quarters. Approximately 53% of ABC members expect their sales to increase over the next six months, while just 22% expect them to decline.”

ABC: Almost Half of State Construction Unemployment Rates Down From a Year Ago

WASHINGTON, Nov. 4—The national September 2024 not seasonally adjusted construction unemployment rate was 3.7%, down 0.1% from the previous year, according to Associated Builders and Contractors’ state-by-state analysis of U.S. Bureau of Labor Statistics data. The analysis also found that 24 states had lower construction unemployment rates over the same period, four states were unchanged and 22 states were higher. 

National NSA payroll construction employment was 230,000 higher than last September. Since February 2022, seasonally adjusted construction employment has exceeded its pre-pandemic peak of 7.6 million. As of September 2024, SA payroll construction employment stood at 8.3 million.

There is some indication of loosening of the construction employment market relative to its pre-pandemic level. As of this September, 21 states had lower construction unemployment rates compared to September 2019, 27 states had higher rates and two states (Kentucky and Wisconsin) were unchanged.

“Construction employment continues to grow, reflecting the overall strength in the economy,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “Construction activity and employment will be aided by lower interest rates as the Federal Reserve eases its monetary stance. Continued federal infrastructure spending will be an added source for construction employment.”

Recent Month-to-Month Fluctuations

In September, nationally, the estimated construction unemployment rate increased 0.5% from August. Only four states had lower estimated construction unemployment rates than in August. Meanwhile, 41 states had higher rates and five posted the same rate. High temperatures throughout the country, particularly in the West, along with significant rain in the Southeast, contributed to the higher construction unemployment rates in much of the country.

The Top Five States

The five states with the lowest estimated NSA construction unemployment rates for September were:

1. South Dakota, 1.1%
2. New Hampshire, 1.4%
3. Oklahoma, 1.5%
4. Florida and Mississippi (tie), 2.0%

All five states posted their lowest September NSA estimated construction unemployment rate on record. Also, among the states, South Dakota had the second largest year-over-year decline in its rate (down 1.7%) behind Connecticut (down 1.8%).

The Bottom Five States

The five states with the highest September estimated NSA construction unemployment rates were:

46. Montana, 6.0%
47. Minnesota, 6.2%
48. Illinois, 6.4%
49. New Jersey, 6.9%
50. Rhode Island, 11.3%

New Jersey had the largest monthly decrease in its NSA estimated construction unemployment rate (down 0.5%) and the third largest year-over-year decline (down 1.5%) among the states.

Click here to view graphs of U.S. and state overall unemployment rates (Tab 1) and construction unemployment rates (Tab 2) showing the impact of the pandemic, including a graphing tool that creates a chart for multiple states. To better understand the basis for calculating unemployment rates and what they measure, check out the Background on State Construction Unemployment Rates.

National nonresidential construction spending increased 0.1% in September, according to an Associated Builders and Contractors analysis of U.S. Census Bureau data. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.22 trillion.

Spending was up on a monthly basis in half of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.1%, while public nonresidential construction spending was up 0.4% in September.

“Construction spending inched higher in September, with growth fueled by ongoing infrastructure investment,” said ABC Chief Economist Anirban Basu. “Spending accelerated in several publicly funded segments in September, including highway and street, sewage and waste disposal and water supply. The privately funded nonresidential construction segment didn’t perform as well for the month, with spending in that segment contracting for the second time in the past three months.

“Despite September’s decline, private nonresidential construction spending remains less than 1% below the all-time high established in June,” said Basu. “Given ongoing manufacturing megaprojects and healthy backlog levels, according to ABC’s Construction Backlog Indicator, the nonresidential segment should hold up well as the industry waits for lower borrowing costs and looser lending standards to arrive.”

The construction industry added 8,000 jobs on net in October, according to an Associated Builders and Contractors analysis U.S. Bureau of Labor Statistics data. On a year-over-year basis, industry employment has grown by 223,000 jobs, an increase of 2.8%.  

Nonresidential construction employment increased by 13,500 positions on net, with growth in 2 of the 3 subcategories. Nonresidential specialty trade added the most jobs, increasing by 14,300 positions. Nonresidential building added just 300 jobs, while heavy and civil engineering lost 1,100 jobs last month.

The construction unemployment rate rose to 4.2% in October. Unemployment across all industries remained unchanged at 4.1% in October.

“October’s employment report was severely distorted by Hurricanes Helene and Milton,” said ABC Chief Economist Anirban Basu. “As a result, employers across all industries were estimated to have added just 12,000 jobs, the fewest in any month since the economy lost jobs in December 2020. Importantly, the separate survey that produces the unemployment rate was not affected by the storms and indicates that the jobless rate remained stable at 4.1% in October.

“Despite the underwhelming and heavily distorted economywide data, this jobs report indicates that the construction industry added jobs for the fifth straight month,” said Basu. “Over the past year, the construction sector has added jobs at exactly twice the rate of the broader economy, and growth has been even faster in the nonresidential segment. With contractors on net expecting their staffing levels to increase over the next two quarters, according to ABC’s Construction Confidence Index, it appears likely that industry payrolls will continue to expand through at least the early months of 2025.”

By Joe Camilo, Tocco Building Systems

This month, ABC MA and the Gould Construction Institute get to celebrate the fruits of years of hard work, when we hold the ribbon-cutting for the new GCI training facility in Billerica.

The event will be combined with our annual Craft Championships apprentice competition on Saturday, November 16^th beginning at 9 a.m.  There will be a luncheon at 12:30, followed by the ribbon cutting at 1:00 with a video message from Governor Maura Healey.  The apprentice craft competition winners will be announced after lunch.  Our winners will go on to the national championships, to be held at the annual ABC convention in Las Vegas from February 25-27.

A dedicated facility will open up a number of opportunities for Gould and its students.  For example, we can now schedule apprenticeship training year-round and offer daytime programs as well as evening.  GCI can also offer a summer semester to allow students a chance to fast track their educational hours and will facilitate and enhanced curriculum with hands-on learning with shop space and virtual simulators.

The facility will also allow GCI to offer workforce programs to attract much-needed talent to the trades, such as exploratory trade/apprenticeship programs, middle school summer camp programs and career fairs.  It can also host the pre-apprenticeship programs our 501(c)3 partner Building Mass Careers uses competitive grant funding to conduct.

Having our own brick-and-mortar facility will also increase brand awareness.  It will be identified with GCI/ABC signage and provide both public relations opportunities and the chance to host state and local officials and showcase merit shop training programs.

Perhaps Gould Construction Institute President Julie DeStefano put it best.  “This facility becoming a reality makes us excited for the future of GCI and what it will be able to offer ABC members.”

We hope you’ll join us on November 16^th to celebrate this important milestone. 

Construction input prices decreased 0.9% in September compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices also decreased 0.9% for the month.

Prices decreased in two of the three energy subcategories last month. Crude petroleum prices were down by 16.7%, while unprocessed energy materials prices were down 12.6%. Natural gas prices rose 2.4% in September. Overall construction input prices are 1.9% lower than a year ago, while nonresidential construction input prices are 2.1% lower.

“The decline in construction input costs observed in September was almost entirely due to a large decrease in oil prices,” said ABC Chief Economist Anirban Basu. “Certain materials, like gypsum, fabricated structural-metal products, asphalt and lumber exhibited sizable price increases for the month. While domestic freight rates are low by historical standards, elevated global container-shipping rates and emerging supply chain issues could put upward pressure on materials prices in the coming months. This represents a cause for concern for contractors, many of whom expect their profit margins to contract over the next six months, according to ABC’s Construction Confidence Index.”

Associated Builders and Contractors reported that its Construction Backlog Indicator increased to 8.6 months in September, according to an ABC member survey conducted Sept. 20 to Oct. 4. The reading is down 0.4 months from September 2023.

View the full Construction Backlog Indicator and Construction Confidence Index data series.

Backlog increased in every region except for the Northeast in September. On a year-over-year basis, however, only the Middle States have longer backlog than one year ago.

ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels improved in September. The readings for all three components are above the threshold of 50, indicating expectations for growth over the next six months.

“Contractor confidence rebounded in September," said ABC Chief Economist Anirban Basu. “While the reading for profit margins briefly dipped below the threshold of 50 in August, indicating net expectations of contraction, contractors are back to expecting modest expansion in their margins as of September. This optimism likely reflects falling interest rates, which will eventually serve as a tailwind for the industry, and the fact that materials prices have actually declined over the past year. Despite the improved outlook in September, contractor confidence is worse and backlog shorter than one year ago, suggesting that the effects of high interest rates continue to weigh on the industry.”

Washington – Associated Builders and Contractors has released its fourth annual construction technology report, which focuses on the impacts of artificial intelligence in the construction industry. The report includes a case study and thought leadership from ABC’s Tech Alliance to showcase how ABC is working to strengthen members’ understanding of AI.

“ABC contractor members and the overall contracting community want more information on AI and how it can help them improve safety, quality and profitability, and win more work,” said Matt Abeles, ABC vice president of construction technology and innovation. “The ABC AI Tech Report highlights examples and insights from industry leaders invested in AI’s commitment to supporting the construction industry.”

“The interest in AI and machine learning is vast, which is why any contractor would find value in reading this report,” said Patrick Irwin, chair of ABC’s Construction Technology and Innovation Committee and chief operating officer at Leonard S. Fiore Inc. “For contractors and the construction industry in general, there is so much for us to learn relative to AI and ML so that we understand how to prepare, the possible uses and the overall implications. These tools can be used to move our businesses and the industry forward, and this report can give us all an opportunity to begin or continue our AI journey.”

The ABC AI Tech Report includes an AI Resource Guide that summarizes the basics of AI, a real-life case study from ABC contractor member Hensel Phelps and insights from Tech Alliance members and Dodge Construction Network.

The ABC AI Tech Report was published by the ABC National Construction Technology and Innovation Committee and was written for contractors by a cross-collaboration of partners, contractors and industry leaders. The report is made possible by ABC’s 2024-2025 Tech Alliance members: Arcoro, Autodesk Inc., BuildOps, Document Crunch, Egnyte, Field Control Analytics, Kojo, KPA, Procore, Sage, Smartapp, SmartBuild, SubHQ, Stack and Trimble.

Visit www.abc.org/Technology/Tech-Report to view the report.

The construction industry added 25,000 jobs on net in September, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. On a year-over-year basis, industry employment is up by 238,000 jobs, an increase of 3.0%. 

Nonresidential construction employment increased by 17,900 positions on net, with growth in 2 of the 3 subcategories. Nonresidential specialty trade added the most jobs, increasing by 17,000 positions. Heavy and civil engineering added 3,800 jobs while nonresidential building lost 2,900 positions.

The construction unemployment rate increased to 3.7% in September. Unemployment across all industries decreased from 4.2% in August to 4.1% last month.

“The construction industry added jobs for the fifth consecutive month despite labor shortages,” said ABC Chief Economist Anirban Basu. “The industry unemployment rate rose to 3.7% in September, but that’s still lower than in any month on record before the second half of 2018 and half a percentage point below the economywide unemployment rate. Hiring should persist in the coming months, with contractors expecting to increase their staffing levels over the next six months, according to ABC’s Construction Confidence Index.

“Beyond the construction industry, this jobs report blew past expectations,” said Basu. “U.S. employers added 254,000 jobs for the month, the most since March, and employment estimates for the previous two months were revised upward by a total of 72,000 jobs. While the ongoing strength of the labor market and consumer spending indicates that the economy has weathered high interest rates better than anyone thought possible, the combination of rising household debt levels and economic uncertainty surrounding geopolitics and the looming election will potentially weigh on growth in the coming months.”

By Joe Camilo, Tocco Building Systems

October is Careers in Construction Month, and rarely has it been more consequential.  According to our Chapter’s national parent organization, the construction industry needs to attract half-a-million new workers in the coming year to meet demand.  Addressing that need is a huge job, but we at ABC MA are trying to do our part.

As part of our workforce development efforts we have launched Building Mass Careers, a 501(c)3 charitable organization that is using grant funds to conduct pre-apprenticeship programs for diverse cohorts of individuals interested in construction.

Just last month, the Gould Construction Institute (GCI), ABC MA’s educational affiliate, opened its first-ever bricks and mortar facility in Billerica, MA.  Windover Construction worked with a number of fellow ABC-MA contactors to build out six classrooms at the facility with state-of-the-art shop and equipment space for hands-on practical education.  Watch for information on the formal ribbon cutting ceremony. 

As Gould President Julie DeStefano said, “Having our own facility gives us the flexibility to do things like offer year-round apprenticeship training and expand daytime training programs.”

While the new GCI facility is a symbol of a changing construction industry, some priorities remain the same.  None is more enduring than the responsibility we have to make sure all our employees return home safely to their families every evening.  To that end, the Chapter’s 2024 STEP (Safety Training Evaluation Process) Awards were given out late last month.  Congratulations to the 37 ABC MA companies who were honored for going above and beyond to ensure the safety of their employees.

Every day, we in the construction industry face formidable challenges.  I urge you to take a moment to look into the services ABC MA provides to make those challenges just a little more manageable.