{"id":36117,"date":"2017-05-29T10:25:01","date_gmt":"2017-05-29T14:25:01","guid":{"rendered":"https:\/\/www.constructionspecifier.com\/?p=36117"},"modified":"2017-05-31T15:52:47","modified_gmt":"2017-05-31T19:52:47","slug":"private-construction-boosts-spending-and-employment","status":"publish","type":"post","link":"https:\/\/www.constructionspecifier.com\/private-construction-boosts-spending-and-employment\/","title":{"rendered":"Private construction boosts spending and employment"},"content":{"rendered":"<p>There is plenty of reason to be optimistic about the private nonresidential construction industry, according to the first-quarter <a href=\"http:\/\/www.marcumllp.com\/insights_news\/Newsletters\/commercial-construction-index\" target=\"_blank\" rel=\"noopener noreferrer\">Marcum Commercial Construction Index<\/a> for 2017. Most sectors saw increases in construction spending, while the nonresidential construction industry specifically gave a boost to employment statistics.<\/p>\n<figure id=\"attachment_36118\" aria-describedby=\"caption-attachment-36118\" style=\"width: 439px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.constructionspecifier.com\/wp-content\/uploads\/2017\/05\/bigstock-Construction-Site-Atmosphere-95036867.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-36118 \" src=\"https:\/\/www.constructionspecifier.com\/wp-content\/uploads\/2017\/05\/bigstock-Construction-Site-Atmosphere-95036867-300x175.jpg\" alt=\"\" width=\"439\" height=\"256\" srcset=\"https:\/\/www.constructionspecifier.com\/wp-content\/uploads\/2017\/05\/bigstock-Construction-Site-Atmosphere-95036867-300x175.jpg 300w, https:\/\/www.constructionspecifier.com\/wp-content\/uploads\/2017\/05\/bigstock-Construction-Site-Atmosphere-95036867-768x447.jpg 768w, https:\/\/www.constructionspecifier.com\/wp-content\/uploads\/2017\/05\/bigstock-Construction-Site-Atmosphere-95036867-500x291.jpg 500w, https:\/\/www.constructionspecifier.com\/wp-content\/uploads\/2017\/05\/bigstock-Construction-Site-Atmosphere-95036867.jpg 900w\" sizes=\"auto, (max-width: 439px) 100vw, 439px\" \/><\/a><figcaption id=\"caption-attachment-36118\" class=\"wp-caption-text\"><span style=\"font-size: 10pt; font-family: arial, helvetica, sans-serif;\">The Marcum Commercial Construction Index reveals positive results for the first quarter of the year, with strong growth in both spending and employment in the private nonresidential construction sector.<\/span> <br \/><em>Photo \u00a9 BigStockPhoto<\/em><\/figcaption><\/figure>\n<p>\u201cBusiness confidence is in the 97<sup>th<\/sup> percentile, unemployment is near a 10-year low, and the Consumer Confidence Index has not been this high since December 2000,\u201d said Anirban Basu, chief construction economist for Marcum and the report\u2019s author. \u201cThis all bodes well for the U.S. construction sector, which stands to benefit from a combination of consumer and business spending growth.\u201d<\/p>\n<p>Indeed, year-to-year gains were reported in most construction spending areas, led by:<\/p>\n<ul>\n<li>communication (increasing by 18.5 percent to $21.8 billion);<\/li>\n<li>office (increasing by 15.7 percent to $73.3 billion);<\/li>\n<li>commercial (increasing by 10.9 percent);<\/li>\n<li>amusement and recreation (increasing by 9.2 percent);<\/li>\n<li>lodging (increasing by 8.3 percent);<\/li>\n<li>power (increasing by 4.9 percent);<\/li>\n<li>public safety (increasing by 2.5 percent); and<\/li>\n<li>educational (increasing by one percent).<\/li>\n<\/ul>\n<p>Of the eight sectors to decline in March, sewage and waste disposal experienced the most-significant reduction, falling 22.3 percent from last year to $19.2 billion. Overall, public-sector spending saw a 6.5 percent decrease\u2014but private spending jumped 6.4 percent.<\/p>\n<p>\u201cAlthough nonresidential construction spending fell on a monthly basis in March, it remains a largely positive indicator,\u201d said Basu. \u201cFebruary\u2019s nonresidential construction spending value of $717 billion \u2026 is the highest total since the Census Bureau began tracking the indicator.\u201d<\/p>\n<p>Employment numbers echoed this trend, with 3200 of the 5000 new industry jobs recorded since April being in the nonresidential construction sector. In March, 8500 more jobs followed. Overall, unemployment has decreased by 2.1 percent to land at 6.3 percent. However, Basu warns this may not be a purely good thing.<\/p>\n<p>\u201cThe good news is that lower unemployment implies a tighter labor market, which in turn translates into faster wage growth. However, the lower unemployment rate also means that construction firms will have to work harder to fill available job openings and likely pay more for the workers they hire,\u201d said Basu. \u201cThe most-likely scenario is that the U.S. economy will continue to expand in 2017, that jobs will continue to be created, and that interest rates will rise, but not by enough to completely undermine current housing market or commercial construction momentum, or the momentum in the broader economy.\u201d<\/p>\n<p>\u201cIt seems that the industry has overcome a weather-related slow start to the year, and we have some great numbers to show for it. The first quarter of 2017 has already demonstrated nonresidential spending levels at their highest in the history of that metric, and national unemployment is as low as it has been in the past decade,\u201d said Joseph Natarelli, Marcum\u2019s national construction industry group leader and partner-in-charge of its New Haven, Connecticut, office.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There is plenty of reason to be optimistic about the private nonresidential construction industry, according to the first-quarter Marcum Commercial Construction Index for 2017.<\/p>\n","protected":false},"author":1836,"featured_media":36119,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1029],"tags":[2425,3201,3286,3202,1361],"class_list":["post-36117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-construction-spending","tag-marcum-commercial-construction-index","tag-national","tag-nonresidential","tag-report","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - 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