This month, the federal government revamped a key price indicator to include construction costs for the first time. The changes make contractors’ contributions to accurate price information even more important.

Prices for materials used in construction and for nonresidential building construction both increased more than overall prices for "final demand" in January, according to a new analysis of retooled federal data on producer prices released today by AGC of America. As a result, margins remain very tight for most construction firms even as private-sector demand for construction continues to grow.

Construction employment jumped by the largest monthly amount in nearly seven years in January, bringing industry employment to the highest level since July 2009, according to an analysis of new government data by AGC.

Construction employment expanded in 192 metro areas, declined in 84 and was stagnant in 63 between December 2012 and December 2013, according to a new analysis of federal employment data released today by AGC of America. Association officials said that even with so many metro areas adding jobs for the year, only 20 metro areas topped previous construction employment peaks for the month.

Total construction spending edged up 0.1 percent in December and rose by a modest 4.8 percent for all of 2013, as a robust market for apartments and single-family houses outweighed downturns in private nonresidential and public projects, according to an analysis of new Census Bureau data by AGC of America.  Association officials added that swift Congressional action on vital highway and water infrastructure measures would give a needed boost to public-sector demand.

The chief executive officer of the Associated General Contractors of America, Stephen E. Sandherr, issued the following statement in reaction to President Obama's State of the Union address: "It is encouraging that the president identified getting swift passage of both new long-term surface transportation and Water Resources Development bills as among his top priorities for the year.  We expect Congress will heed his call for action on these two critical pieces of legislation and will work aggressively to help ensure their swift passage.  We also expect that the administration's FY 2015 budget proposal will reflect the president's priorities and provide additional details about how to address chronic revenue shortfalls that once again threaten the viability of the Highway Trust Fund.

Construction firms added jobs in 34 states over the past 12 months, but construction employment declined in 32 states and the District of Columbia between November and December as many parts of the country coped with weather, according to an analysis released today by AGC of America of Labor Department data. Association officials noted that while weather in parts of the country likely contributed to many of the declines, they urged Washington officials to take steps to ensure continued growth for the industry and the economy.

Many firms plan to start hiring again and most contractors predict demand will either grow or remain stable in virtually every market segment this year according to survey results released today by the Associated General Contractors of America. The survey, conducted as part of Optimism Returns: The 2014 Construction Industry Hiring and Business Outlook, provides a generally upbeat outlook for the year even as firms worry about growing worker shortages, rising costs and the impact of new regulations and federal budget cutting.

Construction employment declined by 16,000 in December but the industry unemployment rate fell to 11.4 percent, according to an analysis of new government data by AGC of America.  Association officials noted that the new employment data was likely impacted by cold weather, but also reflects underlying weakness in the construction sector.

Many contractors will find more projects to bid on in 2014 than they have in the past five years. Judging by recent producer price indexes, they should be spared most materials price shocks. However, labor availability will become an increasing concern.