Construction Economics
The construction industry plays a powerful role in sustaining economic growth, in addition to producing structures that add to our productivity and quality of life. The industry provides good-paying jobs for 7.3 million people. Construction also makes a large contribution to the gross domestic product (GDP), totaling $1.16 trillion, or 8.4 percent of GDP, in 2007.
AGC produces a variety of materials and resources for tracking construction economic information to help contractors, owners and the public learn what is happening in regard to construction costs. In 2007, AGC's economic information appeared more than 120 times in print, radio, and television across the country. No other construction association has the depth of knowledge or influence that AGC's economic department has. AGC serves on national panels to identity the role construction plays in the economy, and its representatives have testified before Congress.
Hot Topics
- Cost of Asphalt Rises, Affecting Repaving. The price of the diesel fuel needed to help crush stone from quarries and haul asphalt to road construction sites is also cranking up costs, Mr. Simonson said. New York Times, 6/29/08
- Mixed Signs for Nonresidential Activity. Nonresidential building construction starts jumped 13 percent in the first five months of 2008 from the January-May 2007 total, McGraw-Hill Construction reported on June 20. Nonbuilding construction starts slipped 2 percent year-to-date (YTD). AGC News & Views, 6/26/08
- Builders getting slammed by rising cost of goods, labor. Contractors report many developers have postponed projects because of tighter lending standards, higher construction costs and less demand for space due to a weaker economy. FinancialWeek, 6/9/08
- Oil prices seep into asphalt costs, detour road work. Ken Simonson, chief economist for the Associated General Contractors of America, says the asphalt-price squeeze exacerbates the USA's infrastructure problems and may force Congress and the states to find more money for roads sooner than they would have otherwise. USA Today, 6/6/08
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Beige Book
AGC’s Chief Economist has provided excerpts from the July 23 Beige Book that relate to real estate, construction, and construction materials.
Additional Resources
The Data DIGest is a weekly one page email newsletter covering economic developments, including cost and supply issues, affecting construction.
AGC publishes monthly tables and charts showing the change in producer price indexes for construction materials, segments and finished building types.
AGC's Construction Inflation Alert analyzes economic data, and educates contractors and owners on construction materials and prices.
Staff Contact
Ken Simonson
Chief Economist
Government & Public Affairs Associated General Contractors of America
2300 Wilson Boulevard, Suite 400
Arlington,
VA
22201
USA
Phone: (703) 837-5313
Fax: (703) 837-5407
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