1. Private Construction Struggles in Second Quarter.
- Author
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Zevin, Alisa
- Subjects
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LUMBER , *PRICE indexes , *WIND power , *WAGE increases , *WHOLESALE price indexes , *WAGES - Abstract
According to an article from ENR: Engineering News-Record, public construction projects are driving growth in the construction industry in the second quarter, while private construction is struggling. Residential and non-residential construction starts have increased, with a focus on single-family homes and institutional sectors like healthcare and education. Non-building starts have also seen significant growth due to the Infrastructure Investment and Jobs Act. Interest rates are expected to decrease in the second half of the year, potentially boosting construction activity. However, the industry is facing a labor shortage and rising wages. Lumber and steel prices have decreased recently. The article provides construction cost indexes and information on the movement of construction materials prices in 2024. The Bureau of Labor Statistics offers data on monthly and annual percentage changes for various construction materials, while S&P Global Market Intelligence provides forecasts for structural steel, cement, softwood lumber, and equipment. Publicly funded construction projects are performing better than private ones, according to Richard Branch, chief economist at Dodge Construction Network. The ENR Construction Cost Index and ENR Building Cost Index are calculated using a formula that includes portland cement, structural steel, lumber, and labor, with labor being the largest component. The labor rates in the indexes only change once per year due to annual contracts. [Extracted from the article]
- Published
- 2024