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Construction Economic News

Stay up to date on the latest construction economic news and get in-depth analysis and insights from Chief Economist Alex Carrick and Senior Economist Michael Guckes.

Blog Feature

By: Alex Carrick, Chief Economist
May 2nd, 2023

Much of my work-related conversation over the past year-plus has concerned the preponderance of mega-sized construction projects being green-lighted in the United States. A megaproject is defined as a project carrying an estimated value of a billion dollars or more.

Blog Feature

By: Alex Carrick, Chief Economist
April 18th, 2023

The accompanying table records the top 10 project starts in the United States for March 2023.

Blog Feature

By: Alex Carrick, Chief Economist
April 18th, 2023

Clichés are often true and it is the case that a picture can be worth a thousand words.

Blog Feature

By: Alex Carrick, Chief Economist
April 18th, 2023

Continuing Support from Megas and Semi-Megas ConstructConnect announced today that March 2023’s volume of construction starts, excluding residential work, was $47.6 billion, an increase of +45.0% versus February 2023’s figure of $32.8 billion (originally reported as $33.0 billion).

Blog Feature

By: Michael Guckes, Senior Economist
April 18th, 2023

Supply chain data collected by Federal Reserve banks across the United States have all reported quickening supplier delivery times since at least the end of 2022. In some geographies, supply chain performance has been steadily improving since mid-2022, and the pace at which improvement is occurring continues to accelerate rapidly. The greatest supply chain improvement appears to be along the East Coast, according to data collected by the Federal Reserves of New York and Philadelphia.

Blog Feature

By: Michael Guckes, Senior Economist
April 13th, 2023

The March 10, 2023, collapse of Silicon Valley Bank, followed days later by the failure of Signature Bank, sent shockwaves through financial markets. The cause of their failures was similar in that both experienced dramatic deposits growth in the years just prior to the latest surge in inflation and rates.

Blog Feature

By: Alex Carrick, Chief Economist
April 7th, 2023

During March just passed, the DJI 30 index moved +1.9%; the S&P 500, +3.5%; and NASDAQ, +6.7%. The TSX stayed more or less flat, -0.6%. Only the Russell 2000, which reflects equity price movements for the 2,000 smallest publicly traded companies, was hesitant about putting a brighter face on things, backtracking -5.0% (Table 1).

Blog Feature

By: Alex Carrick, Chief Economist
April 5th, 2023

There’s a shorthand way of looking at some of the key implications for the construction industry from the major push underway everywhere to reduce carbon emissions. It’s to consider how fossil fuels are used in production processes currently and what the opportunities are for their replacement by nonpolluting substitutes.

Blog Feature

By: Alex Carrick, Chief Economist
April 3rd, 2023

As a companion piece to ConstructConnect’s recent article on movements in U.S. construction material costs, today’s story will look at what’s been happening in Canada. Similar to America, Canada has seen moderation in prices for some individual construction inputs. On the whole, though, the Canadian easing has perhaps not been as extensive. Table 1 seems to support that assertion.

Blog Feature

By: Alex Carrick, Chief Economist
April 3rd, 2023

In 2021 and continuing into early 2022, construction material costs, with the pandemic in full swing and interest rates effectively zero, shot up on a year-over-year basis like never before (see Graph 1). Contractors were largely caught by surprise and did not feel they could raise their bid prices right away. Individually, they were worried about winning contracts and surviving.