CONSTRUCTION

Construction Employment

in June Continues To Lag Pre-Pandemic Level in 18 States as Lack of Qualified Workers Holds Down Hiring

By Subcontractors USA News Provider

Construction employment in June continued to trail pre-pandemic levels in more than one-third of the states despite record job openings, according to a new analysis of federal employment data released by the Associated General Contractors of America recently. Association officials called on government officials to allow employers to sponsor more foreign-born workers and support more career and technical education to broaden opportunities for workers to gain construction skills.

“Construction employment has stalled in many states, even though contractors have plenty of projects needing more employees, due to a dearth of qualified workers,” said Ken Simonson, the association’s chief economist. “Only half the states had an increase in construction employment last month.”

Construction employment in June lagged the total in February 2020—the month before the coronavirus pandemic caused huge job losses—in 18 states and the District of Columbia. The biggest gap was in New York (-36,300 jobs, -8.9 percent), followed by Pennsylvania (-9,500 jobs, -3.6 percent) and New Jersey (-8,800 jobs, -5.4 percent). New York had the largest percentage shortfall, followed by North Dakota (-6.4 percent, -1,800 jobs) and Hawaii (-5.8 percent, -2,200 jobs).

June employment topped the February 2020 level in 31 states and matched it in West Virginia. Utah added the most (16,100 jobs, 14.1 percent), followed by Tennessee (15,900 jobs, 12.0 percent) and Washington (11,200 jobs, 5.0 percent). The top percentage gains were in Utah, Idaho (12.9 percent, 7,100 jobs), and Tennessee.

In June, 25 states and the District of Columbia added construction jobs, 23 states lost jobs, and there was no change in Hawaii and West Virginia. Pennsylvania added the most construction jobs over the month (4,400 jobs, 1.7 percent), followed by Massachusetts (3,300 jobs, 1.9 percent) and North Carolina (3,000 jobs, 1.2 percent). Oregon had the largest percentage gain (2.4 percent, 2,800 jobs), followed by Nebraska (2.3 percent, 1,300 jobs) and Arkansas (2.1 percent, 1,100 jobs).

California lost the most construction jobs in June (-6,100 jobs, -0.7 percent), followed by Texas (-3,000 jobs, -0.4 percent) and Florida (-2,400 jobs, -0.4 percent). Connecticut had the largest percentage loss (-2.9 percent, -1,800 jobs), followed by Wyoming (-2.2 percent, -500 jobs) and New Jersey (-1.4 percent, -2,200 jobs).

Association officials said demand for construction remains strong, particularly for infrastructure, manufacturing plants, and power and energy projects. They warned that projects will face increasing delays unless the pool of workers expands.

“The quickest way to ensure a sufficient worker supply is to allow employers to sponsor qualified, foreign-born workers,” said Sandherr, the association’s chief executive officer. “In addition, all levels of government must invest more in career and technical education and training to widen the opportunities for individuals to qualify for rewarding, well-paying construction jobs.”

For more information, visit agc.org.

Source: Associated General Contractors of America

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CONSTRUCTION Construction Input Costs Jump 1.1 Percent From May to June, Adding to Pressure on Contractors Despite Recent Decline in Some Materials Prices

By Subcontractors USA News Provider

The price of materials and services used in nonresidential construction jumped 1.1 percent last month, outpacing the rise in contractors’ bid prices, according to an analysis by the Associated General Contractors of America of government data released recently. Association officials warned that rising materials prices were having an adverse impact on a growing number of construction projects that have suddenly become more expensive.

“Some materials prices have fallen recently but others appear headed for further increases,” said Ken Simonson, the association’s chief economist. “Since these prices were collected, producers of gypsum, concrete and other products have announced or implemented new increases. In addition, the supply chain remains fragile and persistent difficulties filling job openings mean construction costs are likely to remain elevated despite declines in some prices.”

The producer price index for inputs to nonresidential construction--the prices charged by goods producers and service providers such as distributors and transportation firms—jumped 1.1 percent from May to June and 16.8 percent since June 2021. Meanwhile, the index for new nonresidential building construction—a measure of what contractors calculate they would charge to erect five types of nonresidential buildings— climbed by 0.5 percent from May to June and 19.8 percent over 12 months.

A diverse mix of inputs accounted for the increase in the cost index even as prices for several metal and wood products declined, the economist added. The price index for diesel fuel soared 14.1 percent in June and more than doubled over 12 months, rising 111.1 percent since June 2021. The index for asphalt and tar roofing and siding products rose 3.2 percent in June and 22.2 percent over 12 months. The index for plastic construction products rose 1.5 percent for the month and 27.0 percent since June 2021. Insulation materials climbed 1.2 percent in price last month and 16.0 percent year-over-year. The index for concrete products rose 1.7 percent in June and 13.5 percent over 12 months. The index for paving mixtures and blocks increased 2.9 percent in June and 17.9 percent over the past year.

These increases more than offset declines in indexes for metals and lumber. There were one-month decreases in June in the index for copper and brass mill shapes, -1.6 percent; steel mill products, -1.8 percent; aluminum mill shapes, -5.2 percent; and lumber and plywood, -14.7 percent.

Association officials said public officials had a vested interest in taking steps to address rising materials prices, noting those price increases are making it more expensive to build all manner of public infrastructure projects. They urged the Biden administration to remove remaining tariffs on a range of construction materials and for public officials at all levels to take steps to help unclog backed-up supply chains.

“The more materials prices increase, the harder it will be for public officials to build new schools, roads, and other infrastructure,” said Stephen E. Sandherr, the association’s chief executive officer. “Taking steps to address rising materials prices will help construction employers and taxpayers alike.”

For more information, visit agc.org.

Source: Associated General Contractors of America

CONSTRUCTION When It Comes to New Construction, Texas Is One of the Fastest-growing States, Home to Four of the Top 10 US Equipment Rental Markets

By Subcontractors USA News Provider

Quipli, a leading equipment rental software company that caters to independent rental companies throughout the US, recently conducted a research study to find out where the hottest locations are in the US for equipment rentals.

Using keyword search data, Quipli pinpointed the regions with the most local Google searches looking to rent construction equipment – an indicator of where the biggest markets are right now.

Over 35,000 search keywords were included in Quipli's analysis, a robust dataset with significant sample size.

The top market for equipment rental search in the US is Houston, TX.

Miami, Austin, San Antonio, and Las Vegas round out the top 5 equipment rental markets in the US. "Understanding the importance of how local search behavior ties into equipment rentals is essential for rental companies aiming to succeed in their market, especially as the rental industry continues to move online. We hope this study shines light on how important it is for equipment rental companies to focus on their online visibility, as well as reveal overlooked markets for small business owners looking to branch out," said Kyle Clements, founder and CEO of Quipli.

The Results: The Top Equipment The Results: The Top Equipment Rental Markets in the US Rental Markets in the US

Using monthly Google searches for construction equipment rentals, Quipli determined that the following cities are the top 25 hottest markets for online equipment rental in the US right now:

Ranking / City / Monthly Ranking / City / Monthly Equipment Searches Equipment Searches

1) Houston, TX: 3710 2) Miami, FL: 2810 3) Austin, TX: 2130 4) San Antonio, TX: 2080 5) Las Vegas, NV: 1690 6) Dallas, TX: 1480 7) San Diego, CA: 1390 8) Phoenix, AZ: 1370 9) Chicago, IL: 1320 10) Los Angeles, CA: 1300 11) Denver, CO: 1250 12) Portland, OR: 1180 13) Cincinnati, OH: 1020 14) Sacramento, CA: 1010 15) Columbus, OH: 960 16) Seattle, WA: 950 17) Indianapolis, IN: 940 18) Colorado Springs, CO: 930 19) Atlanta, GA: 900 20) Wichita, KS: 870 21) Charlotte, NC: 830 22) Jacksonville, FL: 810 23) Mesa, AZ: 740 24) Omaha, NE: 737 25) Orlando, FL: 734

When it comes to new construction, Texas is one of the fastest-growing states, home to four of the top 10 US equipment rental markets.

If you're starting an equipment rental business or expanding to new locations, these 25 cities are the largest markets to be in.

Methodology Methodology

Using a tool called Keywords Everywhere – a popular browser extension that provides Google Keyword Search Volume Data – Quipli was able to compile a list of over 35,000 keywords related to equipment rentals.

This data was then grouped by city, to get a metric indicating total demand.

How Do People Search for How Do People Search for Equipment Rentals? Equipment Rentals?

Quipli found a series of common keyword variations that people search for when looking for local equipment rental companies. The most common iterations were: The most common iterations were: • [keyword] rental [city state]. Example: forklift rental Denver colorado • [city] [keyword] rental. Example: Denver forklift rental • Rent [keyword] [city]. Example: rent forklift Denver

Using 22 of the most common equipment rental products, Quipli evaluated these iterations for specific products in major US cities with populations of 50,000 or more.

Full the full report, visit www.quipli.com.

Source: Quipli