CONSTRUCTION Oct2021 GineersNow - Delta Variant Slowing Down Construction Recovery
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C O V E RS T O R YWhile the statistics indicate that commercial constructionexpenditure remained virtually unchanged in July, thenumbers are “much worse than they seem,” according toABC Chief Economist Anirban Basu in a news statement.When inflation is considered, the number of constructionservices provided by commercial contractors in the UnitedStates actually decreased in July, he added.Data show that public construction expenditure has beenmore adversely impacted than private spending. Whilenonresidential construction expenditure is down 4% yearover year, public construction investment is down almost5%. Spending decreased year over year in 11 of the 16nonresidential classifications. At this time of year, the onlyindustries 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, includingincreased material costs and growing skills shortages.Every construction company in the country is mainlydealing with workforce issues. This is primarily becauseboth manufacturers and suppliers of materials, from timberto drywall, are experiencing labor shortages — even virusoutbreaks among existing employees — as they try toincrease production.This is leading to a decrease in construction employment.Construction employment had been improving before Deltacame, 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 springand early summer, it seemed as if we were returning to prepandemictimes, Meloni Raney said, president and CEO ofTEXO, a trade organization representing construction firmsin North and East Texas.However, the number of construction employees in Texasalone has been declining consistently since March, fallingto 724,500 in July, according to Bureau of Labor Statisticsstatistics. This is connected to the supply shortfall28
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