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
Multifamily Housing | Nov 9, 2023
Multifamily project completions forecast to slow starting 2026
Yardi Matrix has released its Q4 2023 Multifamily Supply Forecast, emphasizing a short-term spike and plateau of new construction.
Contractors | Nov 1, 2023
Nonresidential construction spending increases for the 16th straight month, in September 2023
National nonresidential construction spending increased 0.3% in September, 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 $1.1 trillion.
Market Data | Oct 23, 2023
New data finds that the majority of renters are cost-burdened
The most recent data derived from the 2022 Census American Community Survey reveals that the proportion of American renters facing housing cost burdens has reached its highest point since 2012, undoing the progress made in the ten years leading up to the pandemic.
Contractors | Oct 19, 2023
Crane Index indicates slowing private-sector construction
Private-sector construction in major North American cities is slowing, according to the latest RLB Crane Index. The number of tower cranes in use declined 10% since the first quarter of 2023. The index, compiled by consulting firm Rider Levett Bucknall (RLB), found that only two of 14 cities—Boston and Toronto—saw increased crane counts.
Market Data | Oct 2, 2023
Nonresidential construction spending rises 0.4% in August 2023, led by manufacturing and public works sectors
National nonresidential construction spending increased 0.4% in August, 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 $1.09 trillion.
Giants 400 | Sep 28, 2023
Top 100 University Building Construction Firms for 2023
Turner Construction, Whiting-Turner Contracting Co., STO Building Group, Suffolk Construction, and Skanska USA top BD+C's ranking of the nation's largest university sector contractors and construction management firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking includes revenue for all university/college-related buildings except student residence halls, sports/recreation facilities, laboratories, S+T-related buildings, parking facilities, and performing arts centers (revenue for those buildings are reported in their respective Giants 400 ranking).
Construction Costs | Sep 28, 2023
U.S. construction market moves toward building material price stabilization
The newly released Quarterly Construction Cost Insights Report for Q3 2023 from Gordian reveals material costs remain high compared to prior years, but there is a move towards price stabilization for building and construction materials after years of significant fluctuations. In this report, top industry experts from Gordian, as well as from Gilbane, McCarthy Building Companies, and DPR Construction weigh in on the overall trends seen for construction material costs, and offer innovative solutions to navigate this terrain.
Data Centers | Sep 21, 2023
North American data center construction rises 25% to record high in first half of 2023, driven by growth of artificial intelligence
CBRE’s latest North American Data Center Trends Report found there is 2,287.6 megawatts (MW) of data center supply currently under construction in primary markets, reaching a new all-time high with more than 70% already preleased.
Contractors | Sep 12, 2023
The average U.S. contractor has 9.2 months worth of construction work in the pipeline, as of August 2023
Associated Builders and Contractors' Construction Backlog Indicator declined to 9.2 months in August, down 0.1 month, according to an ABC member survey conducted from Aug. 21 to Sept. 6. The reading is 0.5 months above the August 2022 level.
Contractors | Sep 11, 2023
Construction industry skills shortage is contributing to project delays
Relatively few candidates looking for work in the construction industry have the necessary skills to do the job well, according to a survey of construction industry managers by the Associated General Contractors of America (AGC) and Autodesk.
