Each Monday, we'll let you know what's coming in the week ahead, including important residential and commercial report releases, as well as our own feature articles.
Housing starts data — Oct. 20
The Commerce Department will release housing starts data for September on Tuesday, Oct. 20. Last month, the department reported housing starts fell 3.0% between July and August, as both single-family and multifamily starts slipped. On a positive note, building permits — a predictor of future housing starts — rose 3.5% in August.
The number of August starts put a slight damper on industry expert hopes for a rapid rally, but the significant bump in building permits offered a positive sign for a strengthening market in the coming months.
Will September's numbers continue to disappoint economists? Or will the fall season come with an unexpected influx of housing starts?
Construction legal cases feature article — Oct. 20
Safety has always been an issue for the construction industry. According to the Bureau of Labor Statistics, construction laborers have the 10th most dangerous job in America. Recently, there has been more focus on job site safety and stricter penalties for those who contribute to an unsafe work environment.
Nearly every week, new reports emerge about construction owners and contractors facing stiff penalties and jail time for breaking the law and putting workers in danger or participating in corrupt practices.
Earlier this year, the owner and the project manager of a California construction company were sentenced to two years in prison for what Cal/OSHA called the "preventable death" of a day laborer who was buried alive in 2012 when a concrete retaining wall collapsed on him. After that, a California building official said he had never heard of a jail sentence for construction owners as a result of a fatal construction accident.
Are punishments becoming more strict for construction professionals who break the law? Or has there just been heightened attention on these cases? Check back on Tuesday, Oct. 20 to find out what legal professionals told Construction Dive about the recent wave of major construction sentences.
AGC state employment data — Oct. 20
On Tuesday, Oct. 20, the Associated General Contractors of America will release its monthly state-by-state construction employment report. After millions of workers left the trade during the recession, the industry has continued to struggle with finding qualified laborers to staff the long-awaited boom in construction projects. A nationwide survey of 1,358 contractors — conducted by the AGC during July and August — found that 86% are struggling to fill hourly craft jobs or salaried professional positions.
Last month, the AGC reported that construction employment increased in 25 states between July and August, and fell in 24 states and the District of Columbia. Iowa saw the largest percentage bump in employment, while New Mexico saw the most significant percentage decrease.
Will the AGC's next report offer a more positive sign for the industry? Or have contractors seen no relief from the severe lack of qualified labor?
AIA billings index — Oct. 21
The American Institute of Architects will announce its monthly Architecture Billings Index results on Wednesday, Oct. 21. The ABI is an indicator of commercial construction activity, and a number below 50 on the index indicates a decrease in design services.
Last month, the AIA reported a drop in the ABI from 54.7 to 49.1 between July and August — its second consecutive monthly decline. After the September report, AIA Chief Economist Kermit Baker Baker called the slip a "temporary step backwards" in a several-year period of sustained growth, but said labor shortages and material costs were holding back stronger billings growth.
Construction experts will look to the ABI as an indicator of commercial building activity to come in the next year.
Building codes resulting from Hurricane Sandy devastation feature article — Oct. 22
Later this week marks the third anniversary of Hurricane Sandy. As a result of the storm's devastation, cities have taken precautions to avoid similar structural damage in the future. New York City, especially, has altered its building codes as a result of the storm. The trick with these new codes is to ensure they don't curb new development.
What new building codes have emerged after the storm? And how is the construction industry reacting three years after the devastation? Check back on Thursday, Oct. 22 for Construction Dive's feature article addressing the issue.
Existing home sales — Oct. 22
The National Association of Realtors will release its September existing home sales data on Thursday, Oct. 22. Last month, the NAR reported existing home sales fell 4.8% in August — the first decline after three months of growth. On the positive side, first-time homebuyer share rose in August by 4%.
The NAR attributed the dip in existing home sales to affordability and limited housing starts exacerbating the ongoing problem of low inventory.
Existing sales represent the largest segment of the home sale market, and Thursday's results will present an important indicator of the current state of the residential industry.
