The cost of construction materials is showing signs of accelerating after moderating in January, according to an analysis of producer price index figures and recent market information released today by AGC. Ongoing price increases underscore the urgency of funding public construction projects promptly, AGC officials said.

The House Transportation and Infrastructure (T&I) Committee began consideration of H.R. 7, the American Infrastructure and Infrastructure Act of 2012. Over 100 amendments will be considered. The committee began action at 9:00 a.m. and is still meeting on the legislation.  The committee markup was notable for the partisan bickering between the majority and minority over the drafting of the bill. No Democrats have cosponsored the bill.The bill authorizes approximately $260 billion over five years to fund federal highway, transit and safety programs, maintaining current funding levels. The bill, which can be read here, would make significant reforms in the environmental review and approval process and give states more flexibility in the use of the funds. Some of the bill highlights include: Consolidates or eliminates nearly 70 federal programsEliminates mandates that states spend highway funding on non-highway activitiesAllows states to set their own transportation prioritiesDelegates more project approval authority to statesCondenses deadlines for federal agency project approvalsAccelerates the approval process for projects in an existing right-of-wayEncourages states to partner with the private sector to finance and build projectsStreamlines the project delivery process and reduces regulatory burdens for rail projectsContains no earmarksExpands the Transportation Innovative Financing and Investment Act (TIFIA) program to $1 billion per year from its current $122 million annual levelProvides $2 billion in funding for states to capitalize State Infrastructure BanksAllows states to toll new capacity on existing interstates The bill makes a significant change in the Highway Trust Fund by eliminating the Mass Transit Account and replacing it with a new “Alternative Transportation Account” that would fund the transit program, Congestion Mitigation and Air Quality Improvement (CMAQ) program, research programs and Appalachian and Puerto Rican highway programs. While the T&I Committee bill does not spell out how this is to be funded, the Ways and Means Committee today revealed its portion of the legislation that is necessary to fund the entire bill. The Ways and Means bill redirects the 2.86 cents per gallon of the federal gasoline and diesel fuel taxes, currently going to the Mass Transit Account, to the Highway Account of the Highway Trust Fund, including any FY 2012 taxes that have already been collected and credited to the Mass Transit Account. The new “Alternative Transportation Account” would be supported by a transfer of $40 billion from the general fund.  There is no indication yet how the $40 billion transfer will be offset.The House Natural Resources Committee met yesterday and passed three energy bills to be incorporated into the transportation bill. Two of the bills would require the Interior Department to expand leasing opportunities in parts of the Arctic National Wildlife Refuge and in the Gulf of Mexico; a third calls for promotion of shale oil production on public lands. The Ways and Means Committee bill calls for the revenue from this expanded leasing to be directed to the Highway Trust Fund.  These bills provide less than $10 billion in new trust fund revenue, far short of the $60 billion needed to fund a 5 year bill.Also today, the Senate Banking Committee which has jurisdiction in the Senate for federal transit programs, approved its portion of the Senate legislation authorizing $8.36 billion for fiscal 2012 and 2013. The only committee remaining to take action in the Senate is the Finance Committee which must provide the revenue to support MAP-21. It is expected to take up the bill next week.While both the House and Senate Committees are currently working to get the transportation reauthorization bills to their respective floors, the work to pass a bill into law is far from over.   Getting a highway and transit authorization bill passed in Congress and signed into law prior to March 31, 2012, will not be easy.   It is vital that AGC members engage business associates (suppliers, subcontractors, insurance, bonding, financial services, etc.), labor organizations and other non-construction businesses in this effort. Please join AGC’s campaign to Make Transportation JOB #1, and help continue to build momentum for passage of a reauthorization bill.For more information, please contact Brian Deery at (703) 837-5319 ordeeryb@agc.org, or Sean O’Neill at (202) 547-8892 or oneills@agc.org.

The construction industry added 21,000 jobs in January, as a second consecutive month of unseasonably mild winter weather helped the industry raise employment to a two-year high, according to an analysis of new federal employment data released today by AGC.  Association officials cautioned that the gains remain fragile amid declining public sector investments in construction and infrastructure.

Construction employment increased in 148 out of 337 metropolitan areas between December 2010 and December 2011, decreased in 128 and stayed level in 61, according to a new analysis of federal employment data released today by AGC.  The construction employment increases were likely fueled by a 4.3 percent increase in total construction spending between December 2010 and December 2011, driven largely by growing private sector demand, AGC officials noted.

AGC’s chief executive officer, Stephen E. Sandherr, issued the following statement today in reaction to newly-proposed surface transportation legislation released by House Transportation and Infrastructure Committee Chairman John Mica: "Chairman Mica has done tremendous work pulling together legislation that provides the kind of comprehensive reforms needed to restore Americans’ faith in the federal highway and transit program. In particular, the legislation will significantly accelerate transportation improvements across the country by cutting the needless red tape and regulatory redundancies that have forced projects to languish for years awaiting federal approval to move forward. In addition, the legislation’s commitment to maintaining current funding levels, despite the current budgetary environment, reflects a fundamental appreciation for the broader economic benefits of investing in transportation infrastructure.

Construction employment rose in 28 states and the District of Columbia between December 2010 and December 2011, the largest number of states with year-over-year employment gains since November 2007, according to an analysis by AGC of America of Labor Department data. In contrast, 24 states plus D.C. lost jobs between November and December 2011, while 23 states added construction jobs for the month.

Significantly fewer construction firms are planning to make layoffs in 2012 than at any point in the past few years according to survey results released today by AGC and Computer Guidance Corporation. The survey, conducted as part of the 2012 Construction Industry Hiring and Business Outlook, shows many firms expect key private sector market segments to expand this year even as the overall outlook remains mixed.

Five years after states first started shedding construction jobs, construction employment remains below peak levels in all fifty states and the District of Columbia according to a new analysis released today by AGC. Given the continued weakness in construction employment, AGC is launching a new effort to encourage Congress to pass years-late legislation to fund highway, bridge and transit construction work.

The amount contractors pay for a range of key construction materials edged down 0.2 percent in December but climbed 5.3 percent from a year earlier, according to an analysis of producer price index figures released today by AGC. Meanwhile, the amount contractors charge to construct projects remained largely flat for the month and is up only between 3.3 and 4.7 percent for the year, cutting into contractor earnings and adding to the challenges the hard-hit industry is facing, AGC officials said.

Construction employment increased in December by 17,000 driven by gains in nonresidential construction employment, according to an analysis of new federal employment data released today by AGC.