Construction spending increased 0.1 percent from July to August and 5.3 percent for the first eight months of 2018, with year-to-date growth for most major public and private categories, according to www.agc.org. Association officials said the numbers showed strong demand in construction throughout the U.S., but growth in the construction industry still depends on contractors' ability to find sufficient qualified workers.
"Nearly all categories of construction spending continued to expand through August," says Ken Simonson, chief economist for the Associated General Contractors of America (AGC). "Furthermore, growth is well-balanced among public, private nonresidential and residential projects. But contractors are increasingly worried about a shortage of skilled workers."
Spending year-to-date through the first eight months of 2018 was 7 percent higher compared with the first eight months of 2017 for public construction and 4.8 percent for private construction. Within private construction, residential projects increased 6.5 percent and nonresidential projects increased 2.7 percent.
"In a survey of more than 2,500 firms that our association released recently, respondents overwhelmingly say they plan to add employees in the next 12 months—a strong indicator of ongoing demand for construction," Simonson says. "However, 80 percent of the firms report difficulty filling hourly craft positions. These labor shortages are prompting many firms to increase costs and delay construction schedules."
