Construction spending up in 9 sectors | Dump Trucks Charlotte NC

Dump Trucks Columbus OH Insight:

The new numbers are in line with the ABC’s Construction Backlog Indicator, which indicates that backlog is stabilizing and that many nonresidential columbus oh dump truck company expect both sales and staffing levels to expand over the next six months.

“It is remarkable that overall nonresidential construction spending has stabilized recently despite the lingering impacts of the COVID-19 pandemic,” said ABC Chief Economist Anirban Basu. 

The sectors that saw an increase in spending compared to last month were:

• Conservation and development (6.3%)
• Highway and street (5.8%)
• Manufacturing (4.7%)
• Public safety (1.5%)
• Health care (1.1%)
• Communication (1.1%)
• Amusement and recreation (0.8%)
• Water supply (0.6%)
• Lodging (0.5%)
• Education (0%)

There are some key caveats, however, he said. For instance, construction spending in the lodging segment is down nearly 23% over the past year, and office construction spending is down on both a monthly and yearly basis. In addition, the future of remote work, business travel and brick-and-mortar retail is still uncertain, he said, so construction spending in a large number of private categories is poised to remain soft for the foreseeable future.

Despite the seemingly good news for contractors, Basu cautioned that the rise in construction spending in January could largely reflect rising materials prices and efforts by columbus oh dump truck company to pass at least some of those increases to purchasers of construction services, Basu said. 

Steel and lumber price increases of up to 25% have caused columbus oh dump truck company to rework the material costs on their jobs in recent weeks. The price gains are having a ripple effect on other materials as well, with costs for drywall, copper, steel studs and even vinyl siding rising.

“It comes as little surprise that many of the columbus oh dump truck company who expect rising sales and staffing levels during the first half of 2021 also anticipate shrinking margin,” he said.