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Associated Builders and Contractors

Construction Input Prices Up 3% in March, 24% Year Over Year

by Shield Wall Media Staff

Construction input prices rose 2.9% in March, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices expanded 2.8% for the month.

Construction input prices are up 24.4% from a year ago and 39.1% from February 2020, the month before the COVID-19 pandemic began to affect the economy, while nonresidential construction input prices are 25.0% and 39.2% higher, respectively. Natural gas prices are up more than 200% since the start of the pandemic, while crude petroleum prices are up more than 100% over that span.

“Consumers are right to complain about inflation, which has been north of 8% during the past year,” said ABC Chief Economist Anirban Basu. “But America’s contractors have experienced materials price inflation nearly three times that during the same period. For now, there are few signs of relief. Many prices rose on a monthly basis in March, reflecting ongoing upward price momentum, including iron and steel (1.4%), key roofing materials (1.6%) and nonferrous wire and cable (4.4%). 

“For contractors, this is not where the inflation narrative ends,” said Basu. “Despite recent growth in the nation’s labor force participation rate, contractors continue to contend with shortages of skilled construction workers. Supply chain setbacks related to the spread of another omicron variant along with the Russia-Ukraine war will also affect equipment availability. The latest ABC Construction Confidence Index survey indicates that approximately 3 in 4 contractors have suffered an interruption in delivering construction services in recent months. These challenges will persist.

“There is one more significant consideration for contractors,” said Basu. “With inflation running hot, the Federal Reserve will have to work even harder to slow the economy to trim price pressures and expectations. Recession risks are accordingly rising, and while that is unlikely to affect the level of contractor activity in the near term, that could eventually set the stage for a period when demand for construction services declines.”

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ABC, AFSP Announce Partnership to Address Suicide Prevention

by Shield Wall Media Staff

Associated Builders and Contractors and the American Foundation for Suicide Prevention have announced a collaborative partnership to address mental health and suicide prevention throughout the U.S. construction industry.

The goals of the partnership are to improve the mental health of construction workers through effective suicide prevention education, intervention and postvention strategies; to encourage, equip and empower mental health champions in the workforce; and to introduce collaboration between ABC and AFSP chapters nationwide.

“Safety includes total human health—emotional, social, mental, intellectual, financial, occupational and spiritual wellness—and we must continue to raise the bar for safety for the construction workforce of more than 7.5 million,” said Greg Sizemore, ABC vice president of health, safety, environment and workforce development. “Our people are our greatest asset, and this partnership will take our total human health and safety practices to the next level. Going forward, this is the greatest opportunity to leverage and advance world-class safety for our people, both physically and mentally.”

“Studies show that 1 in 5 Americans will experience a mental health condition this year, and 50% will experience one in their lifetime. This has an impact on workplaces, too, and that is why a partnership with ABC is so important,” said Bob Gebbia, CEO of AFSP. “We commend ABC leadership for the commitment they are giving to the construction workforce and are pleased to help support their efforts with educational programs.”

Specifically, the partnership between ABC and AFSP will:

• Develop and disseminate education resources on mental health and suicide prevention in workplaces and leverage opportunities to engage workers.

• Support suicide prevention and postvention education in the construction workplace at all levels of the organizations’ chapters and members.

• Participate in key events where worker safety and health, as well as safety and health practitioners’ and other professionals’ development are addressed.

• Promote and facilitate the transfer of relevant mental health and suicide prevention and postvention research and findings to practitioners and to the construction workforce.

• Share opportunities with ABC and AFSP chapters on supportive programs and events.