Skip to main content

News Briefs

Date Posted: September 1 2017

Hot summer for U.S. construction

The regular hiccups that have given pause to upward momentum in the U.S. construction industry have stopped, for now, as the good times have returned in the good ol' summertime.

Dodge Data and Analytics reported on Aug. 21 that the value of new construction starts in July advanced 6 percent from the previous month to a seasonally adjusted annual rate of $728.1 billion. Leading the way was a 26 percent jump by the non-building construction sector, which reflected an improved level for public works.

Dodge's July numbers built on a 4 percent hike in construction activity from May to June. That followed an ever-present up-and-down "sawtooth pattern" of construction activity that has somewhat limited the industry's recovery from the Great Recession.

“July’s increase means the third quarter began on a healthy note, which should help to maintain the up-and-down pattern on a quarterly basis that’s been present for construction starts over the past year,” said Robert A. Murray, chief economist for Dodge Data & Analytics. “Within that up-and-down pattern there remains a modest upward trend, as it appears that construction starts are still in the process of reaching a peak, as opposed to having already reached a peak."

Both Dodge and the Associated General Contractors report that the construction economy would really take off if there was more money devoted to infrastructure. "Public works construction, after sluggish activity earlier in the year, is showing hesitant signs of improvement," Dodge said.

Said Ken Simonson, chief economist for the AGC: "Despite growing private-sector demand, it appears that construction employment in some parts of the country is being brought down by declining public-sector investments. Some of these declines will be offset thanks to recently enacted state infrastructure funding increases, but stagnant federal investments are not helping."

On the state level, construction in Michigan rose by a healthy 5,800 jobs, or 3.7 percent from July 2016 to July 2017, the AGC reported Aug. 17, ranking our state 19th in job gain percentage during that 12-month period. Michigan gained only 100 jobs, or 0.1 percent from June to July 2017, making it one of only 25 states that gained jobs during that period.


Meeting set for labor union women

A meeting of the Coalition of Labor Union Women – C.L.U.W. – is scheduled for 6 p.m. Thursday, Sept. 7 at the United Way, 2305 Platt Rd in Ann Arbor.  The group is being formed in conjunction with the Huron Valley Area Labor Federation. 

Women from all trades are invited. “Come help us build a movement and inspire the next generation,” the group says in its promotional flier.  

For more information, contact Grace Trudell, (313) 244-2268.


Construction jobs still lag vs. other jobs

The U.S. economy has added 8.2 million jobs in the private sector since the Great Recession began in December 2007, but creation of construction and manufacturing jobs continues to lag, the Economic Policy Institute reports.

"These industries are important to workers because they provide good jobs and high wages (that are even better if the workers are unionized)," the EPI reported Aug. 16. "They are also some of the highest paying jobs for people without a bachelor’s degree. In July 2017, there were still 1.9 million fewer workers in construction and manufacturing than at the start of the Great Recession."

Industries such as hospitality, health care, temporary help services, and other professional business services that have gained jobs since the beginning of the recession pay substantially less than construction and manufacturing industries.