Construction Jobs Continue to Rise in Most States
Construction employment increased in 39 states in May 2024, compared to one year prior, and 26 states added construction jobs between April and May this year, according to a new analysis of federal employment data released by the Associated General Contractors (AGC) of America.
AGC officials noted that construction labor shortages remain acute even as demand for construction remains varied by project type. “Although some project types are slowing, there is unrelenting competition for workers for data centers, manufacturing plants, power and infrastructure projects in much of the country,” said Ken Simonson, the association’s chief economist. “The industry’s ‘war for talent’ is driving up labor-related costs faster than in other industries.”
Between May 2023 and May 2024, 39 states added construction jobs, while 10 states and Washington, DC, shed jobs. Employment remained unchanged in New Mexico. Texas added the most construction employees with 35,000 jobs or 4.3%—followed by Florida with 27,700 jobs; California with 17,000 jobs; and Michigan with 15,900 jobs. Alaska had the largest percentage increase over 12 months at 20.4% with 3,400 jobs, followed by Hawaii at 10%, Michigan and Nevada at 8.1% each, and Arkansas at 7.3%.
Maryland lost the most construction jobs during the past 12 months, with 5,000 job losses, followed by Washington state, Pennsylvania and Colorado.
From April to May 2024, industry employment increased in 26 states, declined in 22 states and DC, and was unchanged in Rhode Island and North Dakota. Ohio added the largest number and percentage of jobs over the month at 7,000 jobs or 3%.
A June 2024 AGC report, “Building a Stronger Workforce: Federal Spending on Postsecondary Education and Training” showed the federal government significantly underinvests in workforce development programs needed to expose, and prepare, workers to careers in fields such as construction. The association urged Congress and the Biden administration to boost funding for construction education and training programs.
“It is hard to recruit people into high-paying construction careers when four out of every five federal dollars are being used to urge students to go to college and earn a four-year degree,” said AGC CEO Jeffrey D. Shoaf. “If we want to build the economy of the future, we need to invest in the workforce of today.”
Building Products Spending Expected to Continue to Grow
Building products spending is anticipated to reach $496 billion in 2028, with total growth of 14% during the 2024–2028 forecast period, according to FMI consulting firm’s “2024 Building Products Market Outlook” report released in June.
During that same period, FMI anticipates that residential building products spending will represent 55%, while nonresidential spending will be 45%. Residential building products spending experienced substantial growth through 2023, followed by a slight decline in spending, which is expected through 2025. The residential building products market should see a return to growth in 2026, with the biggest increases in windows and doors, HVAC and plumbing.
The report said that drywall spending is expected to reach $24.5 billion in 2024, of which 57% will be residential and 43% nonresidential. Drywall is anticipated to grow 2.3% in each of the next couple of years, reaching approximately $27 billion in 2028.
The report pointed out that drywall demand is influenced by residential construction. Despite temporary stagnation, the residential construction sectors are expected to recover in 2026, according to FMI, and manufacturers are pursuing capital improvement projects to update, modernize and expand plants.
Business Financing Up 11% Since 2023
The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25) for May showed that new business volume of 25 ELFA member companies was up 11% year-over-year, down 7% month-to-month and up 6% year-to-date.
Because nearly eight out of 10 U.S. businesses—ranging from small businesses to Fortune 100 companies—use at least one form of financing for their equipment acquisitions, equipment finance industry activity is significant for companies across all industries.
The companies’ activities represent a cross-section of the $1 trillion equipment finance sector. The results showed that new business volume was $10.2 billion, up 11% from May 2023, although it was down 7% from April to May 2024. Receivables over 30 days were 2.3%, up from 2% the previous month and up from 2% in the same period in 2023. Charge-offs were 0.4%, unchanged from the previous month and up from 0.3% in the year-earlier period. Credit approvals totaled 75%, unchanged from April.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index in June was 50.2, steady with the May index of 50.7.
“Overall, May MLFI results show solid performance with continued double-digit year-over-year growth in originations and positive year-to-date growth,” said ELFA President and CEO Leigh Lytle. “Credit quality is mixed but within historical norms. The drop in volume from April could be an indication that some businesses are holding off on acquiring equipment until interest rates come down. We’ll be monitoring whether the effect of higher rates over the summer and into the fall will further delay equipment investments, which would be a headwind to economic activity through the second half of the year.”
Dave Lyder, executive vice president and group manager of Ascentium Capital, said they expect to see “solid, yet temperate demand” for equipment financing through 2024.
“Small businesses are getting accustomed to higher-for-longer rates and higher equipment prices due to inflation,” Lyder said. “However, some are pausing any new investments for now.” He encouraged lenders to remain vigilant and lean further into their roles of providing practical advice on financial options to clients. “Small businesses remain very resilient,” he said.
The MLFI-25 is the only near-real-time index that reflects capex, or the volume of commercial equipment financed in the U.S. It is released monthly from Washington, DC, one day before the U.S. Department of Commerce’s durable goods report. This financial indicator complements reports such as the Institute for Supply Management Index, providing a comprehensive view of productive assets in the U.S. economy—equipment produced, acquired and financed. The MLFI-25 consists of two years of business activity data from 25 participating companies.
OSHA Releases Proposed Rule on Heat Injury Prevention
On July 2, the Occupational Safety and Health Administration (OSHA) released the proposed rule “Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings.” The proposed rule would require private and public sector employers to develop an injury and illness prevention plan to control heat hazards in workplaces affected by excessive heat. The proposed standard would apply to all employers conducting outdoor and indoor work in all general industry, construction, maritime and agriculture sectors where OSHA has jurisdiction.
Among other things, the plan would require employers to evaluate heat risks and—when heat increases risks to workers—implement requirements for drinking water, rest breaks and control of indoor heat. It would also require a plan to protect new or returning workers unaccustomed to working in high heat conditions.
OSHA’s proposed rule will be open for a 120-day public comment period after it is officially published in the Federal Register in the near future.
Elements of the proposal include:
- Training requirements for supervisors, heat safety coordinators and employees.
- Developing and implementing a work site heat injury and illness prevention plan (a written plan must be created for employers with more than 10 employees).
- An initial heat trigger with a heat index of 80°F (or equivalent wet bulb globe temperature). Requirements for employers include providing drinking water, break areas for indoor and outdoor work sites, acclimatization of new and returning employees, paid rest breaks if needed to prevent overheating, and regular and effective two-way communication.
- A high heat trigger with a heat index of 90°F (or equivalent wet bulb globe temperature). Requirements for employers include a minimum 15-minute paid rest break at least every two hours, warning signs for excessively high heat areas and more.
- Two different options for acclimatization procedures for new and returning workers.
- Additional recordkeeping requirements.
More information is available at www.osha.gov/heat-exposure/rulemaking.
White Paper Advises on Safety Culture
JLG Industries Inc., the world’s leading designer and manufacturer of access equipment, published in July a free white paper, “10 Tips for Creating a Safety-Focused Work Culture.”
In introducing the white paper, the company stated, “Anyone involved closely with workplace safety has heard presentations, webinars or people talking about the need to develop a ‘culture of safety’ to reap long-term incident reduction benefits.”
In fact, “culture of safety” has become a bit of a buzzword that has been around since the Chernobyl disaster in the 1980s. But what are the building blocks to create this type of positive behavior within teams? And, how can businesses ensure that their efforts focus on real improvements?
The white paper provides tips in 10 areas: storm safety, trip hazards, lone workers, hydration, hearing protection, ergonomics, mental health, heat, wearables and personal protective equipment. It also recommends companies encourage employees to share their concerns with leaders.
“The journey to a true safety culture is a marathon, not a sprint,” the report said. “Safety and health programs don’t fall into the ‘set it and forget it’ category. Not only are new regulations being released all the time, but new employees will join your team. Thus, it’s important to adopt a continuous improvement mindset when it comes to a safety-focused work culture.”
The white paper can be downloaded at bit.ly/safety_white_paper.
Department of Labor Gives Largest Award Ever for Apprenticeship Program
On July 11, the U.S. Department of Labor (DOL) made the largest combined federal investment in Registered Apprenticeships, awarding more than $244 million through two grant programs to help modernize, diversify and expand the Registered Apprenticeship system in growing U.S. industries.
Nearly $195 million will come through the second round of grant funding under the Apprenticeship Building America initiative, which supports public-private partnerships designed to serve a range of industries and individuals. Among the industries are clean energy, advanced manufacturing and supply chain.
The DOL is also awarding $49 million through the second round of the competitive portion of the State Apprenticeship Expansion Formula grants to nine states. These investments and other efforts have resulted in more than 900,000 individuals having the opportunity to start an apprenticeship.
The award “will help to expand, strengthen and diversify programs that aren’t just one-offs—they create a pipeline of workers with in-demand skills, connecting them with good jobs that create real security for workers and their families,” said Acting Secretary of Labor Julie Su.
Sto Breaks Ground on Manufacturing Facility in Mexico
Sto Corp. broke ground on a new manufacturing facility in Mexico in June. The building will be in Muncipio de Dalina, Victoria, Nuevo Leon, just outside Monterrey, Mexico, and is scheduled for completion in June 2025.
Sto Corp., based in Atlanta, is a world leader in claddings, air barriers, coatings and restoration systems. The facility will initially be dedicated to servicing Mexico and Southern Texas, regions that were previously served by Arizona and Atlanta plants. The facility will later expand its operations to accommodate the production of StoCast, a realistic wood and brick facade aesthetic that can be used in a variety of Sto wall systems, ceilings and soffits.
The project will see the recruitment of approximately 25 personnel, spanning across managerial and operational roles. Positioned on a 108,000-square-foot lot with close access to Highway 35, the industrial building will feature Sto finishes and integrate eco-friendly elements, including a rainwater collection system. The system will not only promote sustainability but also enable the tracking of collected rainwater for metric evaluation. For communities reliant on imported water, rainwater harvesting can alleviate pressure on local water sources, thus reducing the need for imported water and helping utilities manage peak demands during summer months.
“Sto’s investment in Mexico marks a significant step forward in our manufacturing ventures,” said Jose Berlingeri, CEO of Sto Corp. “This new facility not only strengthens Sto’s foothold in the region but also our commitment to delivering innovative solutions while embracing sustainability practices that benefit both our business and the communities we serve.”
Indominus, S.A. DE C.V. is the developer and is spearheading the construction, with NewMark overseeing project management. “From a strategic point of view, North America is a very important region for Sto,” said Rainer Hüttenberger, CEO, Sto Management SE. “We are therefore delighted we will be strengthening our presence in Mexico with a production facility.”
SFIA Appoints Don Allen New Executive Director
The Steel Framing Industry Association’s (SFIA) board of directors has appointed Don Allen, PE, SE, LEED AP, a longtime steel framing industry veteran, as the associations new executive director, effective August 1. Allen succeeds Larry Williams, who will retire as executive director.
SFIA represents steel mills, coil coaters, stud and connector manufacturers, component fabricators, Cold-Formed Steel Engineers Institute members, suppliers/distributors, contractors and others.
Allen is a seasoned cold-formed steel (CFS) engineer with association and executive experience. He has been involved in commercial and residential CFS framing since 1990. His CFS framing designs include the LDS Temple in Rome, Italy, and buildings at Ebonyi State University in Abakaliki, Nigeria.
Most recently, Allen was AWCI’s director of technical services, where he championed the association’s safety education programs, helped develop the second edition of AWCl’s EIFS-Doing It Right® program, argued for changes on behalf of contractors at International Code Council action hearings, participated on the AWCI Construction Technology Council and much more.
Prior to AWCI, Allen worked for steel framing manufacturer and SFIA member Super Stud Building Products, serving as director of engineering. During his tenure, he helped design and develop SuperStud’s patented SuperMAXX floor joist system, grow its specialty clip system, implement a new design for its RC1 resilient channel and spearhead its sustainability efforts.
Allen’s career also includes serving as technical director for the Cold-Formed Steel Engineers Institute, Steel Stud Manufacturers Association and Steel Framing Alliance. He has also served on various steel industry education committees and committees on specifications and framing standards.
Larry Williams, SFIA executive director, said the SFIA board is thrilled to welcome Allen to the association. “Because the SFIA has significant potential for growth, Don is the perfect person to lead our members to the next level,” Williams said. “Don has amazing technical understanding, direct experience in association work and the energy to stand up on behalf of member manufacturers, contractors, mills and engineers. The SFIA has achieved much in a short time. I expect even more progress with Don at the helm.”
On his appointment, Allen said, “It’s an honor to join the SFIA, an association I have long admired and respected. I am excited to work and partner with the SFIA staff and leadership team to grow the market for steel framing.”
