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06-24-20 | Economic News

AGC Survey Reveals a Rebound in Construction

Construction Activity Up, Some Firms Are Hiring

Seventeen percent of construction companies surveyed said they plan to add workers over the next four weeks.

The Associated General Contractors of America released the results of a survey they conducted, which indicates, along with data from construction technology firm Procore, that construction activity has returned to pre-coronavirus levels in 34 states and 21% of construction companies are adding workers.

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The association's survey also found that only 8% of construction firms were forced to furlough or lay off workers in June compared to one-in-four firms letting workers go between March and May. The heightened level of activity was revealed from data on workers' hours analyzed by Procore.

"Many of the immediate economic impacts of the coronavirus have passed and, as a result, activity and hiring are up, a bit," said Ken Simonson, the association's chief economist.  "But while the immediate crisis appears to have passed, we are just now beginning to appreciate some of the longer-term impacts of the pandemic on the industry."

Not all of the results are positive as the survey and the new economic data shows 61% of firms having had at least one project halted or canceled because of the pandemic. And one in four firms report that construction materials shortages, caused by lockdowns and trade disruptions, are causing delays on current projects.

This all underscores the need for additional federal recovery measures, association officials noted.

"It is important to remember that construction activity typically increases quite a bit between March 1 and the end of May as the weather improves and more work gets underway," Simonson stated. "Getting to March 1 levels is a sign of progress, but it doesn't mean things are back to normal."

Filed Under: ECONOMICS, CONSTRUCTION, AGC, PROCORE

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