News Releases

ABC Applauds Court Decision Upending DOL’s Unlawful Overtime Rule

November 15, 2024 |
920 |
News Releases 2024, Policy, Politics and Policy

WASHINGTON, Nov. 15—Associated Builders and Contractors today applauded the decision of the U.S. District Court for the Eastern District of Texas, which set aside the U.S. Department of Labor’s controversial 2024 final rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees. The rule changed overtime regulations under the Fair Labor Standards Act.

The court found that the Biden-Harris Labor Department’s 2024 overtime rule’s July 1, 2024, increase was unlawful as well as the scheduled Jan. 1, 2025, increase. Specifically, DOL’s final rule increased the minimum annual salary level threshold for exemption to $43,888 on July 1, and on Jan. 1 it was scheduled to increase to $58,656. In addition, salary thresholds would have been updated every three years starting on July 1, 2027.

“This decision is the correct one, and an important win for ABC members and the rest of the regulated community,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “It’s also no surprise. In 2017, this court permanently enjoined the DOL’s 2016 overtime rule on similar grounds, writing that the rule increased the minimum salary level threshold for exemption far beyond a level which the DOL is permitted to adopt. The court also found unlawful the automatic indexing provision in the new rule that would have further increased the salary threshold without the notice-and-comment rulemaking required by the Administrative Procedure Act.

“Some ABC members employ workers who would have lost their exempt status as of Jan. 1 because of the 2024 overtime rule’s scheduled increase,” said Brubeck. “This would have disrupted the construction industry, specifically harming small businesses, restricting employee workplace flexibility in setting schedules and hours, and hurting career advancement opportunities.

“The 2024 rule’s radical increase in the salary threshold for exemption would have also further complicated the current economic outlook,” said Brubeck. “Multiple industries, like construction, are grappling with uncertain economic conditions such as high interest rates, supply chain disruptions, materials price inflation and workforce shortages, all of which push operational costs ever higher. Specifically, ABC estimates that the construction industry must hire more than half a million additional workers in 2024 to meet demand. The rule’s triennial automatic indexing provision would have exacerbated its harmful impact on businesses and added to rampant inflation that is already harming the economy as a whole.”

On May 22, ABC joined a coalition of business groups in filing a complaint in the U.S. District Court for the Eastern District of Texas challenging the DOL’s overtime rule.

On Nov. 7, 2023, ABC called on the DOL to withdraw the proposed rulemaking. ABC also signed onto coalition comments criticizing the overtime proposed rule, joining 244 national, state and local organizations representing employers from a wide range of private industries and public, nonprofit and education sectors.

In 2016, the Obama administration issued a final overtime rule that would have doubled the minimum salary level for exemption from $23,660 to $47,476 per year. ABC, along with several other business groups, sued the DOL in federal court and succeeded in blocking the rule from taking effect.

ABC: Energy Prices Drive Construction Materials Costs 0.3% Higher in October

November 14, 2024 |
336 |
Construction Economics, Materials Prices, News Releases 2024

WASHINGTON, Nov. 14—Construction input prices increased 0.3% in October compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices also increased 0.3% for the month.

Prices increased in all three energy subcategories last month. Natural gas prices increased by 29.3%, unprocessed energy materials prices rose 9.9% and crude petroleum prices advanced by 7.3%. Overall construction input prices are 0.2% lower than a year ago, while nonresidential construction input prices are 0.5% lower.

“Higher energy prices drove the increase in construction input prices observed in October,” said ABC Chief Economist Anirban Basu. “While prices for a few other materials, like concrete and copper products, also rose for the month, overall input prices are lower than they were one year ago and have fallen 5% since reaching an all-time high in June 2022.”

“Heading into 2025, it’s unclear if prices will remain so well-behaved,” said Basu. “The next administration’s trade policy increases uncertainty regarding construction materials costs. Beyond the implications of potential tariffs, input prices may rise in the short term if purchasers rush to import materials prior to the implementation of those policies. As of October, contractors expected their profit margins to expand through the first quarter of 2025, according to ABC’s Construction Confidence Index. That portion of the index will bear close watching as trade policy shifts in the coming months.”

ABC’s Construction Backlog Indicator Slips in October, Contractor Confidence Remains Elevated

November 12, 2024 |
1086 |
Construction Backlog Indicator, Construction Confidence Index, Construction Economics, News Releases 2024

WASHINGTON, Nov. 12—Associated Builders and Contractors reported today that its Construction Backlog Indicator fell to 8.4 months in October, according to a survey of its member contractors conducted Oct. 21 to Nov. 4. The reading is unchanged from October 2023.

View the full Construction Backlog Indicator and Construction Confidence Index data series.

Backlog fell in every region except for the Northeast in October, reversing the previous month’s trend in which every region except for the Northeast saw an increase in backlog. Only the Middle States have longer backlog than one year ago.

ABC’s Construction Confidence Index readings for sales and staffing levels improved in October, while the reading for profit margins inched slightly lower. The readings for all three components are above the threshold of 50, indicating expectations for growth over the next six months.

“While backlog declined in October, it remains at a healthy level and has been remarkably stable over the past year," said ABC Chief Economist Anirban Basu. “Like much of the economy, the construction industry remained in some semblance of a holding pattern in October as project owners continue to wait for election outcomes and for interest rates to decline further. Despite this wait-and-see attitude, contractors remain upbeat about the next two quarters. Approximately 53% of ABC members expect their sales to increase over the next six months, while just 22% expect them to decline.”

Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month's work under contract based on the latest financials available, while CCI measures contractors' outlook for the next six months. View the methodology for both indicators.

ABC Congratulates Merit Shop-Friendly Executive Branch and Senate

WASHINGTON, Nov. 6—Associated Builders and Contractors today released the following statement congratulating ABC-endorsed Donald J. Trump on his election as president and the election of a merit shop majority in the U.S. Senate.

“This is an exciting day for our industry,” said ABC President and CEO Michael Bellaman. “ABC is optimistic about the future of America’s construction industry and the opportunities to advance policies that protect free enterprise, reduce regulatory burdens and expand workforce development. With leaders and lawmakers committed to promoting economic growth and supporting the principles of fair and open competition, we are confident that the construction industry will thrive and all workers will be given the opportunity to build America with fewer obstacles.

“ABC looks forward to working with the Trump administration and Congress to advance policies that solve the issues that the construction industry faces, including the skilled labor shortage of more than half a million, widespread regulatory burdens and inflation and tax challenges,” said Bellaman. “We also welcome the opportunity to work with a president who is willing to welcome all of the U.S. construction industry to rebuild America.”

ABC: Almost Half of State Construction Unemployment Rates Down From a Year Ago

November 4, 2024 |
703 |
Construction Economics, News Releases 2024, State Unemployment

WASHINGTON, Nov. 4—The national September 2024 not seasonally adjusted construction unemployment rate was 3.7%, down 0.1% from the previous year, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data released today by Associated Builders and Contractors. The analysis also found that 24 states had lower construction unemployment rates over the same period, four states were unchanged and 22 states were higher.

National NSA payroll construction employment was 230,000 higher than last September. Since February 2022, seasonally adjusted construction employment has exceeded its pre-pandemic peak of 7.6 million. As of September 2024, SA payroll construction employment stood at 8.3 million.

There is some indication of loosening of the construction employment market relative to its pre-pandemic level. As of this September, 21 states had lower construction unemployment rates compared to September 2019, 27 states had higher rates and two states (Kentucky and Wisconsin) were unchanged.

“Construction employment continues to grow, reflecting the overall strength in the economy,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “Construction activity and employment will be aided by lower interest rates as the Federal Reserve eases its monetary stance. Continued federal infrastructure spending will be an added source for construction employment.”

Recent Month-to-Month Fluctuations

In September, nationally, the estimated construction unemployment rate increased 0.5% from August. Only four states had lower estimated construction unemployment rates than in August. Meanwhile, 41 states had higher rates and five posted the same rate. High temperatures throughout the country, particularly in the West, along with significant rain in the Southeast, contributed to the higher construction unemployment rates in much of the country.

The Top Five States

The five states with the lowest estimated NSA construction unemployment rates for September were:

South Dakota, 1.1%
New Hampshire, 1.4%
Oklahoma, 1.5%
Florida and Mississippi (tie), 2.0%

All five states posted their lowest September NSA estimated construction unemployment rate on record. Also, among the states, South Dakota had the second largest year-over-year decline in its rate (down 1.7%) behind Connecticut (down 1.8%).

The Bottom Five States

The five states with the highest September estimated NSA construction unemployment rates were:

Montana, 6.0%
Minnesota, 6.2%
Illinois, 6.4%
New Jersey, 6.9%
Rhode Island, 11.3%

New Jersey had the largest monthly decrease in its NSA estimated construction unemployment rate (down 0.5%) and the third largest year-over-year decline (down 1.5%) among the states.

Click here to view graphs of U.S. and state overall unemployment rates (Tab 1) and construction unemployment rates (Tab 2) showing the impact of the pandemic, including a graphing tool that creates a chart for multiple states. To better understand the basis for calculating unemployment rates and what they measure, check out the Background on State Construction Unemployment Rates.

ABC: September Nonresidential Construction Spending Up by 0.1%, Fueled by Infrastructure Investment

November 1, 2024 |
805 |
Construction Economics, Construction Spending, News Releases 2024

WASHINGTON, Nov. 1—National nonresidential construction spending increased 0.1% in September, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.22 trillion.

Spending was up on a monthly basis in half of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.1%, while public nonresidential construction spending was up 0.4% in September.

“Construction spending inched higher in September, with growth fueled by ongoing infrastructure investment,” said ABC Chief Economist Anirban Basu. “Spending accelerated in several publicly funded segments in September, including highway and street, sewage and waste disposal and water supply. The privately funded nonresidential construction segment didn’t perform as well for the month, with spending in that segment contracting for the second time in the past three months.

“Despite September’s decline, private nonresidential construction spending remains less than 1% below the all-time high established in June,” said Basu. “Given ongoing manufacturing megaprojects and healthy backlog levels, according to ABC’s Construction Backlog Indicator, the nonresidential segment should hold up well as the industry waits for lower borrowing costs and looser lending standards to arrive.”

ABC: Construction Employment Grows in October Despite Hurricane-Skewed Data

November 1, 2024 |
616 |
Construction Economics, Employment, News Releases 2024

WASHINGTON, Nov. 1—The construction industry added 8,000 jobs on net in October, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has grown by 223,000 jobs, an increase of 2.8%.

Nonresidential construction employment increased by 13,500 positions on net, with growth in 2 of the 3 subcategories. Nonresidential specialty trade added the most jobs, increasing by 14,300 positions. Nonresidential building added just 300 jobs, while heavy and civil engineering lost 1,100 jobs last month.

The construction unemployment rate rose to 4.2% in October. Unemployment across all industries remained unchanged at 4.1% in October.

“October’s employment report was severely distorted by Hurricanes Helene and Milton,” said ABC Chief Economist Anirban Basu. “As a result, employers across all industries were estimated to have added just 12,000 jobs, the fewest in any month since the economy lost jobs in December 2020. Importantly, the separate survey that produces the unemployment rate was not affected by the storms and indicates that the jobless rate remained stable at 4.1% in October.

“Despite the underwhelming and heavily distorted economywide data, this jobs report indicates that the construction industry added jobs for the fifth straight month,” said Basu. “Over the past year, the construction sector has added jobs at exactly twice the rate of the broader economy, and growth has been even faster in the nonresidential segment. With contractors on net expecting their staffing levels to increase over the next two quarters, according to ABC’s Construction Confidence Index, it appears likely that industry payrolls will continue to expand through at least the early months of 2025.”

ABC: September Construction Job Openings, Distorted by Storms, Decrease by 40,000

October 29, 2024 |
683 |
Construction Economics, JOLTS, News Releases 2024

WASHINGTON, Oct. 29—The construction industry had 288,000 job openings on the last day of September, according to an Associated Builders and Contractors analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings decreased by 40,000 last month and are down by 134,000 from the same time last year.

“September’s data, which show a precipitous 32% decline in construction industry job openings over the past year, likely overstate the degree that demand for construction workers has slowed,” said ABC Chief Economist Anirban Basu. “Hurricane Helene, which did not dissipate until Sept. 29, temporarily suppressed the number of open construction positions across the Southeast. Because the BLS measures job openings on the final day of the relevant month, the data in this JOLTS release are almost certainly distorted. Approximately 45% of contractors intend to increase their staffing levels over the next six months, according to ABC’s Construction Confidence Index, suggesting that the industrywide demand for labor remains strong.”

ABC’s Construction Backlog Indicator Rebounds in September, Contractor Confidence Improves

October 15, 2024 |
3526 |
Construction Backlog Indicator, Construction Confidence Index, Construction Economics, News Releases 2024

WASHINGTON, Oct. 15—Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 8.6 months in September, according to an ABC member survey conducted Sept. 20 to Oct. 4. The reading is down 0.4 months from September 2023.

View the full Construction Backlog Indicator and Construction Confidence Index data series.

Backlog increased in every region except for the Northeast in September. On a year-over-year basis, however, only the Middle States have longer backlog than one year ago.

ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels improved in September. The readings for all three components are above the threshold of 50, indicating expectations for growth over the next six months.

“Contractor confidence rebounded in September," said ABC Chief Economist Anirban Basu. “While the reading for profit margins briefly dipped below the threshold of 50 in August, indicating net expectations of contraction, contractors are back to expecting modest expansion in their margins as of September. This optimism likely reflects falling interest rates, which will eventually serve as a tailwind for the industry, and the fact that materials prices have actually declined over the past year. Despite the improved outlook in September, contractor confidence is worse and backlog shorter than one year ago, suggesting that the effects of high interest rates continue to weigh on the industry.”

Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month's work under contract based on the latest financials available, while CCI measures contractors' outlook for the next six months. View the methodology for both indicators.

ABC: Construction Input Prices Down 0.9% in September

October 11, 2024 |
949 |
Construction Economics, Materials Prices, News Releases 2024

WASHINGTON, Oct. 11—Construction input prices decreased 0.9% in September compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices also decreased 0.9% for the month.

Prices decreased in two of the three energy subcategories last month. Crude petroleum prices were down by 16.7%, while unprocessed energy materials prices were down 12.6%. Natural gas prices rose 2.4% in September. Overall construction input prices are 1.9% lower than a year ago, while nonresidential construction input prices are 2.1% lower.

“The decline in construction input costs observed in September was almost entirely due to a large decrease in oil prices,” said ABC Chief Economist Anirban Basu. “Certain materials, like gypsum, fabricated structural-metal products, asphalt and lumber exhibited sizable price increases for the month. While domestic freight rates are low by historical standards, elevated global container-shipping rates and emerging supply chain issues could put upward pressure on materials prices in the coming months. This represents a cause for concern for contractors, many of whom expect their profit margins to contract over the next six months, according to ABC’s Construction Confidence Index.”

News Releases

ABC Applauds Court Decision Upending DOL’s Unlawful Overtime Rule

ABC: Energy Prices Drive Construction Materials Costs 0.3% Higher in October

ABC’s Construction Backlog Indicator Slips in October, Contractor Confidence Remains Elevated

ABC Congratulates Merit Shop-Friendly Executive Branch and Senate

ABC: Almost Half of State Construction Unemployment Rates Down From a Year Ago

ABC: September Nonresidential Construction Spending Up by 0.1%, Fueled by Infrastructure Investment

ABC: Construction Employment Grows in October Despite Hurricane-Skewed Data

ABC: September Construction Job Openings, Distorted by Storms, Decrease by 40,000

ABC’s Construction Backlog Indicator Rebounds in September, Contractor Confidence Improves

ABC: Construction Input Prices Down 0.9% in September

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