Construction spending increased 0.1 percent from June to July and 5.2 percent for the first seven months of 2018, with year-to-date growth for most major public and private categories, according to www.agc.org. Association officials said continued growth will depend in part on contractors' ability to find workers.
"It is striking how balanced the growth in construction spending has been so far this year," says Ken Simonson, chief economist for the Associated General Contractors of America (AGC). "Spending totals for the first seven months of 2018 combined nearly match those for the same period of 2017. Contractors are optimistic that demand for projects will continue, but many report that workforce shortages are leading to longer construction schedules and higher costs."
Spending year-to-date through the first seven months of 2018 was 5.4 percent higher compared with the first seven months of 2017 for public construction and 5.2 percent for private construction. Within private construction, residential projects increased 7.7 percent and nonresidential projects increased 2.2 percent.
"In the latest Autodesk-AGC of America Workforce Survey, firms overwhelmingly plan to hire more workers, but 80 percent of firms report difficulty filling hourly craft positions, leading to longer completion times for projects," Simonson says. "This trend could drag down further gains in spending."
AGC officials said their new Workforce Development Plan provides ways federal, state and local officials can work with contractors to provide greater construction career opportunities for students and enable contractors to partner with schools, colleges and workforce training agencies.
"Construction careers offer good wages, tremendous pride in accomplishments and the kind of upward mobility many ambitious workers are seeking," says Stephen E. Sandherr, AGC's CEO. "Public officials can and should do more to encourage students to explore high-paying construction career opportunities."
