Posted: November 4, 2022 | Cost Trends
The housing market continues to slow down, offsetting a steady rise in commercial and public works activity. The overall effect translates to modest gains for this quarter. Inflation remains high, and though it seems to be waning it is still at a very high level— so caution is recommended. The labor shortage may be holding back the commercial rise, and the lack of qualified professionals does not seem solvable in the near future. Nevertheless, it’s a good time to feel positive about the future for construction, despite some pitfalls we will have to work around.
Posted: September 23, 2022 | Cost Trends
Asphalt is up 12% for the last twelve months, but it now seems to be slowing down. Twelve months ago it was up 6% and six months before that down 6%. Looking at the graph we see that it remains a virtual roller coaster. Economists were seeing crude oil becoming weaker for the rest of this year, and it looks like they may have been right, but with continued geopolitical uncertainty, it's anyone's guess. As before, asphalt will follow the price of oil.
In a comment letter filed on May 17, Associated Builders and Contractors urged President Biden’s U.S. Department of Labor to withdraw an inflationary and flawed proposed rule revising Davis-Bacon Act and Related Acts regulations that apply to federal and federally assisted construction projects funded by taxpayers.
Executive Order 14026 raises the minimum wage paid by those contractors to workers performing work on or in connection with covered federal contracts to $15.00 per hour, beginning January 30, 2022; and beginning January 1, 2023, and annually thereafter, an amount determined by the Secretary of Labor (Secretary). This final rule establishes standards and procedures for implementing and enforcing the minimum wage protections of Executive Order 14026, and is effective on January 30, 2022.
Posted: March 18, 2022 | Cost Trends
Residential construction is strong but waning. Commercial is making a solid comeback and infrastructure is finally on the way up. While residential is steadily losing jobs (but not at a great rate), commercial and heavy construction added 24,000 in December alone, after a strong third and fourth quarter in 2021.