CONSTRUCTION Oct2021 GineersNow - Delta Variant Slowing Down Construction Recovery

C O V E R
S T O R Y
While the statistics indicate that commercial construction
expenditure remained virtually unchanged in July, the
numbers are “much worse than they seem,” according to
ABC Chief Economist Anirban Basu in a news statement.
When inflation is considered, the number of construction
services provided by commercial contractors in the United
States actually decreased in July, he added.
Data show that public construction expenditure has been
more adversely impacted than private spending. While
nonresidential construction expenditure is down 4% year
over year, public construction investment is down almost
5%. Spending decreased year over year in 11 of the 16
nonresidential classifications. At this time of year, the only
industries that have grown are:
• Commercial (3.4%)
• Sewage and waste management (2.1%)
• Manufacturing (1.9%)
• Power (0.9%)
The following sectors experienced the greatest declines:
• Public safety (-38.5%)
• Lodging (-30%)
• Conservation and development (-21.5%)
The decline is due to various factors, Basu said, including
increased material costs and growing skills shortages.
Every construction company in the country is mainly
dealing with workforce issues. This is primarily because
both manufacturers and suppliers of materials, from timber
to drywall, are experiencing labor shortages — even virus
outbreaks among existing employees — as they try to
increase production.
This is leading to a decrease in construction employment.
Construction employment had been improving before Delta
came, according to Bureau of Labor Statistics statistics.
From 725,800 in December 2020 to 749,500 in March 2021,
the construction workforce grew. Throughout the spring
and early summer, it seemed as if we were returning to prepandemic
times, Meloni Raney said, president and CEO of
TEXO, a trade organization representing construction firms
in North and East Texas.
However, the number of construction employees in Texas
alone has been declining consistently since March, falling
to 724,500 in July, according to Bureau of Labor Statistics
statistics. This is connected to the supply shortfall
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