September Construction Industry Roundup
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Highlights
Hurricane Ian
Our thoughts are with everyone who has been affected by Hurricane Ian. We’ve assembled some resources to help you, as well as examined the long-term implications of the storm on the industry.
- Hurricane Ian (FEMA)
- IRS announces tax relief for victims of Hurricane Ian in Florida (IRS.gov)
- Assessing the jobsite after a hurricane (Construction Dive)
- Ian’s Aftermath Even Harder to Fix With Supply Chain in Tatters (Bloomberg)
- Profit drove a 30-year boom. Ian smashed it in a day. (Politico)
- Donate to Relief Efforts via The EquipmentShare Foundation
Recession… To Be Or Not To Be?
According to the Bureau of Economic Analysis (BEA), GDP contracted in both the first and second quarters of 2022. Additionally, rising interest rates have impacted borrowing, and inflation continues to stay near record highs. However, as the Federal Reserve Bank of Dallas points out, this does not automatically translate into a recession. The job market continued to grow in September (see our report below) and consumer spending rose in August, according to BEA. In the construction industry, interest rates have impacted single-unit residential construction projects, but commercial construction and multifamily activity has remained strong.
- Armed with steady backlogs, nonresidential construction pros shrug off recession fears (Construction Dive)
- U.S. Apartment Construction on Track to Reach 50-Year High in 2022 (Multi-Housing News)
- ABC’s Contractor Confidence Rebounds; Construction Backlog Indicator Flat in August (ABC.org)
- Resilient US consumers spend slightly more in August (Associated Press)
Economic Overview
According to the Bureau of Labor Statistics (BLS), total nonfarm payroll employment increased by 263,000 in September, and the unemployment rate declined to 3.5 percent. The leisure and hospitality and health care sectors saw the highest gains. Employment in the construction sector increased by 19,000, which BLS reports is in line with average monthly job growth in the sector year to date. Jobs with specialty trade contractors grew as well, up 18,000 in September. At 3.4 percent, the unemployment rate in the construction industry is now below the overall employment rate, and down from 4.5 percent in September 2021. BLS noted in its announcement that Hurricane Ian had no impact on the report, as data had been collected prior to the storm making landfall.
Overview of Selected Materials Costs (August 2022, US Bureau of Labor Statistics PPI)
Trend Watch
Telematics-Driven Insurance: Insurance companies are increasingly using client-supplied telematics data to make better risk assessments and offer discounts. Consumer auto carriers already offer this, with programs such as Progressive’s Snapshot, Geico’s DriveEasy and Allstate’s Drivewise. For construction companies, a tool like this could translate into substantial savings on insurance premiums for adopting and proving certain business practices and sharing telematics data. EquipmentShare’s T3 Dash Cams can help you provide concrete data to your insurance provider and potentially negotiate a lower premium.
Other ARTICLES:
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