2017 Construction Spending Trends Upwards
Recently, the U.S. Census Bureau released their 2017 Construction Spending Monthly Report for September. This report is helpful for budgeting for 2018 and establishing underlying trends that may impact the construction industry both short-term and long-term. Below are key takeaways that you should consider.
What You Need to Know: September 2017 Construction Spending
- During the first 9 months of 2017, construction spending amounted to a $38 billion increase compared to the same period in 2016 (a 4.3% increase from $879.6 billion to $917.0 billion.)
- The private construction industry experienced a $28.5 million increase for the month of September compared to the same period in 2016 (a 3.1% increase from $914,271 million to $942,729 million.)
- The public construction industry experienced a $4.5 million decrease for the month of September compared to the same period in 2016 (a 1.6% decrease from $281,370 million to $276,815 million.)
- Residential construction experienced an impressive increase of $45 million for the month of September compared to the same period in 2016 (a 9.5% increase from $476,373 million to $521,445 million)
What Does this Mean for 2018?
We expect to see a continued increase in overall construction spending leading well into 2018 as the southeastern and southwestern United States continue rebuilding efforts after devastation caused from one of the most catastrophic Hurricane seasons on record.
Additionally, the Bureau of Labor Statistics October Report confirmed many of the themes you have heard throughout 2017 regarding the war for talent within the construction industry. This is evident by a 1.2% decrease in construction unemployment rates from October 2016 to October 2017. Expect to see construction firms continue to invest in HR, talent management and recruiting solutions as they seek to find qualified workers.
Throughout the major construction verticals, job growth during the month of October breaks down as follows:
- The construction industry as a whole added approximately 11,000 net new jobs
- Non-Residential / Residential Building Construction added 3,900 net new jobs
- Heavy and Civil Engineering Construction experienced a 3,000 job decline
- Specialty Trade Contractors added an impressive 10,400 net new jobs
Are You Prepared to Compete in 2018?
As you can see, all signs point to a positive business climate in 2018. You should be excited about your firm’s prospects for continuing positive growth. However, you may have cause for concern if your firm has not adopted an agile recruiting and employee management process. Click on the link below to learn more.