Seasonally adjusted nonfarm payroll employment increased in 38 states and the District of Columbia in April and decreased in 12 states, the Bureau of Labor Statistics (BLS) reported on May 21. Compared to April 2009, employment rose in North Dakota (2%), Alaska and D.C. (1% each), but fell in 48 states. Construction employment rose for the month in 29 states, fell in 18 and was unchanged in three plus D.C. Construction employment rose from year-ago levels in North Dakota (8%, 1,300 jobs); Kansas (6%, 3,800 jobs); Alaska (0.6%, 100 jobs); and Arkansas (0.4%, 300 jobs). Year-over-year employment fell in 46 states plus D.C., with the largest percentage declines in Nevada, -28%; Colorado, -19%; Vermont, -17%; Washington, Idaho and Maine, -16% each. Among 337 metro areas, AGC calculated that construction employment rose compared to April 2009 in 17, held steady in 28, and decreased in 292. The four states and 17 metro areas with increases were the most in more than a year. Five areas recorded double-digit percentage gains: Eau Claire, Wisconsin (24%, 600 jobs); Haverhill-North Andover-Amesbury, straddling the Massachusetts-New Hampshire border (14%, 500 jobs); Bismarck, N.D. (13%, 400 jobs); Bay City, Michigan (11%, 100 jobs); and Hanford-Corcoran, California (11%, 100 jobs). The largest number of jobs was added in Kansas City, Kan. (1,400 jobs, 8%). The metros with the steepest construction job losses were Monroe, Mich., -46%, Flagstaff, Arizona, -32%; Las Vegas-Paradise, -31%; and Napa and El Centro, Cal., -29% each. (Metro data is not seasonally adjusted; data for most metros, D.C. and six states includes logging and mining to avoid disclosure of data for sectors with few firms.)
Plant breakdowns that caused Dow Chemical Co. to declare "force majeure" on May 6 for delivery of methyl methacrylate (MMA), a key ingredient in acrylic-based products, have had varying impacts on construction. The Texas Department of Transportation decided that all retracing projects for highway markings should be suspended but other states reported no shortages of highway paint. Sto Corporation, a leading supplier of stucco and other building coatings, put customers on tight allocations on May 7 but has eased the restrictions in stages. Contractors have not reported shortages of paint other than highway paint.
Selective price increases for construction materials are continuing. The e-newsletter New South Construction Supply reported on Thursday, "Simpson Strong-Tie announced they will increase prices between 6.5% and 12%...for connectors, nails, Strong-Wall, mechanical anchors, and adhesive anchors on July 1....Most other manufacturers of competitive products announced similar increases for July. PNA Construction Technologies announced on May 12 that they will increase prices on all dowel baskets, dowels, Armor Edge, and Diamond Dowels between 5-6% effective June 11. NDS will increase prices between 3 to 10% on their entire product line,...with steel and metal products having the largest increase. Also, prices for all types of construction fasteners, such as nails, screws, expansion bolts, etc. are expected to rise in June and July....Polyethylene sheeting manufacturers have indicated they will increase prices between 4 and 6% in June. Also, prices for many other construction products made from polyethylene resins, such as polyethylene expansion joint and backer rod, have increased appreciably (5 to 10%) over the past 60 days and further increases for these products are expected. [Because of shortages of polymers such as MMA,] manufacturers of construction products made from these polymers have announced they will increase prices between 3 to 7%...in June or July." Thompson Research Group reported on Sunday: "Our May survey of domestic wallboard distributors nationwide (covering an estimated ~600+ locations) shows the 20% May price increase is sticking, another price increase is expected in late summer, and confirms continued improvement in volumes."
"Commercial real estate lending remained depressed through the first quarter of 2010 and loan portfolio credit quality further weakened," the CoStar Advisor e-newsletter reported on Thursday. "However, there were significant variations between lenders, property types and borrowers. Overall, first quarter commercial and multifamily mortgage loan originations were 12% higher than during the same period last year. But they were 26% lower than during the fourth quarter of 2009, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily mortgage originations. The 12% overall increase in commercial/multifamily lending activity during the first quarter was driven by increases in originations for office" (29%) and retail properties (98%), offsetting decreases in loans for multifamily (-5%), industrial (-28%), hotel (-46%), and health care properties (-68%). "'Based on surveys from the Federal Reserve Board and discussions with lenders, there appears to be increasing capital available for commercial mortgages, but only limited demand for new mortgages from commercial and multifamily property investors,' said Jamie Woodwell, MBA's vice president of commercial real estate research."
New single-family home sales rose 15% in April, seasonally adjusted, from an upwardly revised March figure to the highest level in two years, the Census Bureau reported on Wednesday. Inventories of unsold new houses fell to the lowest level since 1968, a favorable sign for construction.
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