January 8, 2010
U.S. construction industry job decline continues
Construction employment declined in 324 out of 337 U.S. metropolitan areas over the past year as spending on construction projects dropped by over $137 billion in November to a 6-year low of $900 billion, according to the Associated General Contractors of America.
“Private non-residential construction is in freefall, with every category except private power construction down sharply compared to a year ago,” said Ken Simonson, the association’s chief economist.
“Those cuts are causing layoffs in virtually every part of the country for tens of thousands of skilled construction workers.”
Simonson noted new Census Bureau figures show developer-financed construction suffered the largest decline in spending between November 2008 and November 2009.
He added that private lodging investments were down 46 percent; retail, warehouse and farm spending were down 41 percent and private office construction investments were down 39 percent.
A recovery in homebuilding may spark some improvement in retail construction later this year, and higher education and hospital construction may come back in the second half of 2010, the economist suggested.
Simonson noted that public construction benefited from federal stimulus funds, with a year-over-year increase of 2.7 percent. He predicted, however, those gains will continue to be tempered by sharp cutbacks in projects funded directly by states, local governments and school systems.
Simonson said the declines in investments were leading to sweeping industry layoffs. El Centro, Calif., lost a larger percentage of its construction work force (36 percent) from November 2008 to November 2009 than any other metropolitan area according to the latest Bureau of Labor Statistics figures.
The agency includes mining and logging with construction in most metro areas to prevent disclosure about industries with few employees, Simonson noted.
Other areas experiencing sharp declines in construction employment during the year include Kokomo, Ind. (31 percent); Wenatchee-East Wenatchee, Wash. and Reno, Nev. (both 28 percent); and St. George, Utah and Grand Junction, Colo. (both 27 percent).
Of the six metropolitan areas with an increase in construction employment during the past 12 months, only two areas had gains of more than 100 jobs: Harrisburg-Carlisle, Pa. (1,500 jobs, 12 percent gain) and Tulsa, Okla. (700 jobs, 3 percent gain.)
Four metro areas had gains of 100 jobs each in construction: Anderson, Ind. (6 percent); Columbus, Ind. (5 percent); Bismarck, N.D. (3 percent) and Fargo, N.D., including nearby areas in Minnesota (1 percent).
DCN News Services
|MOST POPULAR STORIES|
|TODAY’S TOP CONSTRUCTION PROJECTS|
These projects have been selected from 527 projects with a total value of $1,552,331,732 that Reed Construction Data Building Reports reported on Friday.
$120,000,000 Oakville ON Tenders
$48,225,000 Etobicoke ON Prebid
$40,000,000 Ottawa ON Negotiated
- CCA96th: Unlocking Canada's Potential
- VIDEO: LiUNA Local 183 Training Centre introduces new programs
- Wins delivered on infrastructure front: Rizzardo
- Behind the Velodrome’s Veil
- Ontario’s prompt payment bill needs work but supported
- Southwest L-evation
- Post-bid clarifications make feds liable for bid repair
- Panama Construction Fact for Today
- Ritchie Bros. hold first Canadian auction of 2014
- Skilled labour needs changing in Saskatchewan
- Quebec’s construction momentum ebbs after 15 years of expansion
- VIDEO: Canadian Construction Association conference Panama preview
- Concerns raised about P3 approach for Saskatchewan schools
- Journal of Commerce Preview for the week of March 10th, 2014
- Wood Design Awards
- Lone bidder prepares P3 proposal for Alberta schools
- Outgoing chair reflects on time at the helm of the CCA
- School board asks for traditional procurement
- Site Services in Vancouver
- Looking to improve contract awards
- Environmental verdict riles Taseko
- Prentice to mediate First Nations agreements
- CAWIC funded to create action plan to attract women
- More video surveillance used on construction sites
- Modular workforce housing meets Alberta Building Code standard
- Manitoba outlines infrastructure plan
- BC Hydro posts RFQ for Site C project