Article written by Kati Viscaino on the Viewpoint blog

Construction projects today produce a mountain of data. From job costs to materials quantities to equipment usage to labor and production stats, data drives how successful a project will be. The most successful projects — and contractors — are able to accurately collect all available data and analytically dig deep into it to better understand projects. But that’s easier said than done.

Ask virtually any project manager, for instance, and they’ll tell you they’re consistently behind — swamped with work and buried in a mountain of paperwork. Their body of work is judged by four words: “on time” and “on budget.” But if getting there means using a mix of manual processes and outdated, non-connected software systems, then they’re not working as efficiently as they could be.

According to data released today by the US Bureau of Labor Statistics, the national construction industry added 7,000 net new jobs in September.

Key Takeaways

• The construction industry added 7,000 net new jobs in September and, on a year-over-year basis, has expanded by 156,000 jobs, an increase of 2.1%.
• The construction unemployment rate stood at 3.2% in September, down 0.9 percentage points from the same time last year. Unemployment across all industries was 3.5% in September, 0.2 percentage points lower than the previous month. This was the lowest recorded rate since December 1969.
• Nonresidential construction employment increased by 3,800 jobs on net in September and is up by 96,300 net jobs during the last 12 months.
• "The ongoing declines in various measures of unemployment are consistent with the notion that the average contractor, including subcontractors, will continue to face enormous difficulty recruiting new employees. Many contractors continue to pay for substantial overtime, translating into flat profit margins or worse in the context of still plentiful bidding opportunities."

Key Takeaways

• Nonresidential construction spending, which totaled $773.8 billion on a seasonally adjusted annual basis for August, declined 0.4% from July but is 0.3% higher than August 2018.
• Private nonresidential spending fell 1% in August and 2.8% on a yearly basis, following declines in July as well. Public nonresidential spending increased 0.4% on a monthly basis and 4.8% for the year.
• “All of this is consistent with a slowing economy, especially as measures such as industrial production and capacity utilization remain stagnant.”

Press Release from Associated Builders and Contractors, Inc.

WASHINGTON, Oct. 1—National nonresidential construction spending declined 0.4% in August, according to an Associated Builders and Contractors analysis of U.S. Census Bureau data published today. On a seasonally adjusted annualized basis, spending totaled $773.8 billion, 0.3% higher than in August 2018.

Article written by Matt Harris on the Viewpoint blog

Viewpoint Teamed with Dodge Data & Analytics to Produce Industry Report on the Digital Transformation of the Construction Industry

As construction work becomes more complex, and as technology continues to transform the way we work, contractors are under increasing pressure to be smarter and more efficient about project delivery. Accomplishing this in a high-risk, low-margin environment means data-driven decision making becomes that much more important for contractors who hope to maintain a competitive edge. The better the business intelligence, the greater that edge, and building intelligence begins with a solid foundation of business data.

Article written by Andy Holtmann on the Viewpoint blog

Contractors that manage multiple construction projects have their hands full corralling people, materials and work across multiple jobsites — each with their own unique sets of contractual and environmental challenges. Since contractors often operate with razor-thin profit margins and unsteady cash flows, having an accurate understanding of job costs is vital to success.

Unfortunately, the construction industry has been slower to embrace modern technologies that streamline job costs, meaning that many contractors today are still using manual processes and outdated solutions to track them. The information they’re gleaning from their projects could be days, weeks, even months old by the time managers have time to analyze the data. And by the time issues are spotted, work could already be past stages where simple corrections can be made, which leads to costly rework.

Key Takeaways

• Nonresidential construction spending, which totaled $776 billion on a seasonally adjusted annual basis for July, declined 0.3% from June and the June estimates were revised upward to $778.5 billion.
• Private nonresidential spending fell 0.8% in July and 2.7% on a yearly basis. Public nonresidential spending increased 0.4% on a monthly basis and 4.3% for the year.
• “Trends in nonresidential construction tend to lag the broader economy by a year to 18 months, which means that today's construction spending numbers reflect in large measure broader economic dynamics characterizing 2018. Last year was a good one for the economy, persuading many to move ahead with projects.”

Press Release from Associated Builders and Contractors, Inc.

According to data released Friday by the US Bureau of Labor Statistics, the national construction industry added 14,000 net new jobs in August.

Key Takeaways

• The construction industry added 14,000 net new jobs in August and, on a year-over-year basis, has expanded by 177,000 jobs, an increase of 2.4%.
• The construction unemployment rate stood at 3.6% in August, up .2 percentage points from the same time last year. Unemployment across all industries stood at 3.7% in August, unchanged from the 2 previous months.
• After losing 2,800 jobs in July, nonresidential construction employment increased by 11,600 new jobs in August. Nonresidential specialty trade contractors added 5,400 jobs last month, and heavy and civil engineering added 4,400 net new jobs.
• "Nonresidential construction continues to add jobs, despite difficulty securing sufficiently trained workers. And with a construction backlog of nearly nine months as of June 2019, data indicates that contractors continue to enjoy substantial demand for their services despite the nearly continuous drumbeat of dismal economic forecasts for 2020 and/or 2021."

According to data released Friday by the US Bureau of Labor Statistics, the national construction industry added 4,000 net new jobs in July.

Key Takeaways

• The construction industry added 4,000 net new jobs in July and, on a year-over-year basis, has expanded by 202,000 jobs, an increase of 2.8%.
• The construction unemployment rate stood at 3.8% in July, up 0.4% from the same time last year. Unemployment across all industries stood at 3.7% in July, unchanged from the previous month.
• Nonresidential construction employment lost 2,800 jobs on net in July but has still expanded by 122,300 jobs over the past 12 months. The bulk of the job loss came from the heavy and civil engineering segment, which lost 4,300 jobs on a monthly basis in July.
• “Despite these recent signs of a slowdown or pause in construction hiring, contractors still say it is very difficult to find qualified workers, and the latest government data on construction job openings showed they set yet another record high in May.”

Key Takeaways

• Nonresidential construction spending, which totaled $773.8 billion on a seasonally adjusted annual basis for June, declined 1.8% from May but is a 2.3% increase over the same time last year.
• Public nonresidential spending fell 3.7% in June, but is up 6.4% year over year, while private nonresidential spending fell 0.3% on a monthly basis and is down 0.4% from June 2018.
• “Like the balance of the U.S. economy, nonresidential construction spending appears to be softening, albeit gradually.”

Press Release from Associated Builders and Contractors, Inc.