Construction employment increased in 248 out of 358 metro areas between January 2017 and January 2018, declined in 68 and stagnated in 42, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials said that future construction job gains could be undermined, however, as new tariffs force contractors to pay more for steel and aluminum products and dampen demand for new construction.
"The new tariffs are already leading to increases in what many contractors are paying for steel and aluminum products," said Ken Simonson, the association's chief economist. "Most contractors will be unable to pass along these increased costs, leaving less money to invest, ironically, in steel construction equipment as well as personnel."
Riverside-San Bernardino-Ontario, Calif. added the most construction jobs during the past year (10,600 jobs, 12%), followed by Phoenix-Mesa-Scottsdale, Ariz. (9,900 jobs, 9%); Houston-The Woodlands-Sugar Land, Texas (9,200 jobs, 4%); Los Angeles-Long Beach-Glendale, Calif. (9,000 jobs, 7%) and Sacramento--Roseville--Arden-
The largest job losses from January 2017 to January 2018 were in Baton Rouge, La. (-6,600 jobs, -13%), followed by St. Louis, Mo.-Ill. (-3,300 jobs, -5%); Montgomery County-Bucks County-Chester County, Pa. (-2,600 jobs, -5%); Columbia, S.C. (-2,500 jobs, -12%) and Camden, N.J. (-1,700 jobs, -8%). The largest percentage decreases for the year were in Auburn-Opelika, Ala. (-32%, -1,200 jobs) followed by Monroe, Mich. (-16%, -300 jobs); Baton Rouge and Columbia, S.C.
Association officials said that a better way to support the domestic steel and aluminum industrie s is to increase funding for needed infrastructure improvements. They cautioned that the tariffs announcement by the President last week would not only increase the cost of many construction projects, but it could prompt retaliatory measures from other countries that hurt U.S. manufacturers and shippers, impacting demand for new factories and transportation facilities.
"Boosting demand for their products is a much better way to strengthen the domestic steel and aluminum industries," said Stephen E. Sandherr, the association's chief executive officer. "And the best way to boost demand is to finally begin making the investments needed to improve the nation's aging and over-burdened infrastructure."
View the metro employment data by rank and state. View metro employment map.
Related Stories
Hotel Facilities | Apr 24, 2024
The U.S. hotel construction market sees record highs in the first quarter of 2024
As seen in the Q1 2024 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), at the end of the first quarter, there are 6,065 projects with 702,990 rooms in the pipeline. This new all-time high represents a 9% year-over-year (YOY) increase in projects and a 7% YOY increase in rooms compared to last year.
Construction Costs | Apr 18, 2024
New download: BD+C's April 2024 Market Intelligence Report
Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.
Market Data | Apr 16, 2024
The average U.S. contractor has 8.2 months worth of construction work in the pipeline, as of March 2024
Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 8.2 months in March from 8.1 months in February, according to an ABC member survey conducted March 20 to April 3. The reading is down 0.5 months from March 2023.
K-12 Schools | Apr 10, 2024
Surprise, surprise: Students excel in modernized K-12 school buildings
Too many of the nation’s school districts are having to make it work with less-than-ideal educational facilities. But at what cost to student performance and staff satisfaction?
Multifamily Housing | Apr 9, 2024
March reports record gains in multifamily rent growth in 20 months
Asking rents for multifamily units increased $8 during the month to $1,721; year-over-year growth grew 30 basis points to 0.9 percent—a normal seasonal growth pattern according to Yardi Matrix.
Retail Centers | Apr 4, 2024
Retail design trends: Consumers are looking for wellness in where they shop
Consumers are making lifestyle choices with wellness in mind, which ignites in them a feeling of purpose and a sense of motivation. That’s the conclusion that the architecture and design firm MG2 draws from a survey of 1,182 U.S. adult consumers the firm conducted last December about retail design and what consumers want in healthier shopping experiences.
Market Data | Apr 1, 2024
Nonresidential construction spending dips 1.0% in February, reaches $1.179 trillion
National nonresidential construction spending declined 1.0% in February, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.179 trillion.
Market Data | Mar 26, 2024
Architecture firm billings see modest easing in February
Architecture firm billings continued to decline in February, with an AIA/Deltek Architecture Billings Index (ABI) score of 49.5 for the month. However, February’s score marks the most modest easing in billings since July 2023 and suggests that the recent slowdown may be receding.
K-12 Schools | Mar 18, 2024
New study shows connections between K-12 school modernizations, improved test scores, graduation rates
Conducted by Drexel University in conjunction with Perkins Eastman, the research study reveals K-12 school modernizations significantly impact key educational indicators, including test scores, graduation rates, and enrollment over time.
MFPRO+ News | Mar 16, 2024
Multifamily rents stable heading into spring 2024
National asking multifamily rents posted their first increase in over seven months in February. The average U.S. asking rent rose $1 to $1,713 in February 2024, up 0.6% year-over-year.
