“Interpreting these data is often challenging,” said ABC Chief Economist Anirban Basu. “One could take these figures at face value and conclude that construction is thriving and driving demand for workers higher. Indeed, ABC’s Construction Confidence Indicator shows that the average contractor expects rising revenues and employment over the next six months.

“But June’s construction spending report indicates that overall residential and nonresidential construction spending continues to decline,” said Basu. “Accordingly, one might look for other explanations for rising construction job openings, including demographic considerations.

“Many contractors view a structural shortfall of skilled labor as their primary challenge because many highly experienced, productive workers are retiring,” said Basu. “It is conceivable that these workers are being replaced with less skilled and productive workers, thereby requiring a few workers to be replaced by many.

“Alternatively, the data may not be capturing all that transpires,” said Basu. “It may be that certain people who had been working in construction were doing so without proper documentation. At least some of these workers are no longer available at jobsites, inducing faster hiring and expanding job openings as contractors work to replace them.”

SEE ALSO: OUT OF OFFICE: WHEN INTERNAL WORKFORCE RELOCATION IS APPROPRIATE FOR CONSTRUCTION PROJECTS

The post Construction Job Openings Increase By 14,000 in June, Up 36% Year Over Year first appeared on Construction Executive.

“Keith Sonderling is uniquely qualified to serve as secretary of labor, with the experience, credentials and proven record of leadership needed to head the department,” said Kristen Swearingen, ABC vice president of government affairs. “As deputy secretary, Sonderling has advanced policies that strengthen the American workforce, expand workforce development opportunities and address harmful Biden-era regulations that restrict worker freedom. His leadership has helped restore a regulatory environment that empowers workers and job creators.”

Earlier this month, the ABC-led Coalition for a Democratic Workplace sent a letter signed by 53 employer organizations urging the Senate HELP Committee to quickly advance Keith Sonderling’s nomination.

ABC encourages the full Senate to swiftly confirm Sonderling so he can continue advancing policies that promote economic growth, protect worker choice and ensure employers have the tools they need to recruit, train and retain the next generation of skilled craft professionals.

SEE ALSO: ARBITRATION NATION: OPPOSING THE FLCA

The post ABC Urges U.S. Senate to Confirm Sonderling as Labor Secretary first appeared on Construction Executive.

Overall construction input prices are 7.6% higher than one year ago, while nonresidential construction input prices are 7.4% higher. Prices decreased in 2 of the 3 energy subcategories last month. Crude petroleum prices declined 12.1%, and unprocessed energy materials fell 8.1%. Natural gas prices were up 16.6% in June.

“Aggregate construction input prices receded in June due to the steep decline in oil prices that occurred throughout the month,” said ABC Chief Economist Anirban Basu. “Despite that decline, however, ongoing materials price escalation is likely over the coming months. The conflict in Iran has resumed, triggering a roughly 15% rebound in oil prices, and tariff-affected commodities like iron, steel and copper continue to experience steep price increases.

“While contractors remain optimistic about their margins, according to ABC’s Construction Confidence Index, higher input costs will likely weigh on profitability during the second half of 2026,” said Basu.

SEE ALSO: UNDERSTANDING THE TOTAL COST OF OWNERSHIP IN CONSTRUCTION FLEETS

The post Construction Materials Costs Fall With Oil Prices in June first appeared on Construction Executive.

View ABC’s Construction Backlog Indicator and Construction Confidence Index for June. View the full Construction Backlog Indicator and Construction Confidence Index data series.

Only the Middle States region experienced backlog growth on a monthly basis in June. In the Northeast region, backlog contracted sharply in June and is down by over a month from a year ago. 

ABC’s Construction Confidence Index readings for sales and staffing levels increased in June, while the reading for profit margins inched lower. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.

“While backlog declined in June, it’s still longer than any point from September 2023 to April 2026,” said ABC Chief Economist Anirban Basu. “This strength is the result of continued booming data center construction. The 13% of ABC members under contract to work on data centers have significantly higher backlog (11.0 months) than the 87% that are not (8.5 months). This trend is noticeable headwind for smaller contractors—just 8% of contractors with less than $100 million in annual revenues have data center work under contract, well below the 41% share of contractors with greater than $100 million in annual revenues.  

“The effect of rising input prices may be weighing on contractor profitability,” said Basu. “Contractor confidence regarding profit margins fell to a seven-month low in June, though expectations remain above the prevailing level from the second half of 2025.”

SEE ALSO: HOW CONTRACTORS ARE SHIFTING HEADCOUNT BUDGETS TO AGENT BUDGETS

The post ABC’s Construction Backlog Indicator Slips, Contractors Remain Confident in June first appeared on Construction Executive.

Spending was up on a monthly basis in 11 of the 16 nonresidential subcategories. Private nonresidential spending was down 0.3%, while public nonresidential construction spending was up 0.4% in May.

“Private nonresidential construction spending shrank for the seventh consecutive month in May and is now down 6.6% on a year-over-year basis,” said ABC Chief Economist Anirban Basu. “This weakness is largely due to the ongoing decline in manufacturing-related construction spending as CHIPS Act-supported projects wind down, yet overall there are few sources of momentum in the segment.

“Yes, the amusement and recreation category continues to grow at a healthy pace, and the religious category has rebounded meaningfully over the past year,” said Basu. “But those modestly sized segments are far too small to carry the broader nonresidential market, especially given the weakness in larger categories. For instance, warehouse construction spending, which appeared to stabilize at the start of 2026, has now fallen for three consecutive months and is down 8.5% year over year, while the general office category remains in a state of freefall, down 11.9% since May 2025.

“For now, momentum remains largely concentrated in the data center segment,” said Basu. “As seen in ABC’s most recent Construction Backlog Indicator release, those fortunate enough to have data center work have significantly longer backlogs (11.6 months) than those that do not (8.6 months).”

SEE ALSO: NONRESIDENTIAL CONSTRUCTION RETAINS HIRING MOMENTUM IN JUNE JOBS REPORT

The post Private Nonresidential Construction Spending Slides Again in May first appeared on Construction Executive.

Nonresidential construction employment increased by 19,900 positions, with gains in all three subcategories. Nonresidential specialty traded added the most jobs, increasing by 14,100 net positions. Nonresidential building and heavy and civil engineering added 3,200 and 2,600 jobs, respectively, in June.

The construction unemployment rate was 4.7% in June. Unemployment across all industries dropped to 4.2% and is 0.1 percentage point higher than one year ago.

“Today’s jobs report was full of positive signs for the nonresidential side of the industry,” said ABC Chief Economist Anirban Basu. “The nonresidential segment continued to add jobs in June and has grown several times faster than the economywide average over the past 12 months.

“At the same time, the supply of labor appears adequate to fuel ongoing hiring,” said Basu. “The industry’s unemployment rate rose to 4.7%, higher than in any June since 2021, and that slack took some pressure off of wage escalation. Average hourly earnings for nonmanagerial construction workers rose at the slowest pace since last September. With ABC contractors signaling ongoing hiring intentions, according to ABC’s Construction Confidence Index, it appears likely that the industry will continue to expand its employment base over the coming months.”

SEE ALSO: ABC APPLAUDS PRESIDENT TRUMP’S NOMINATION OF KEITH SONDERLING AS LABOR SECRETARY

The post Nonresidential Construction Retains Hiring Momentum in June Jobs Report first appeared on Construction Executive.

“Keith Sonderling is uniquely qualified to serve as secretary of labor, with the experience, credentials and proven record of leadership needed to lead the department,” said Kristen Swearingen, ABC vice president of government affairs. “As deputy secretary, Sonderling has advanced policies that strengthen the American workforce, expand workforce development opportunities and address harmful Biden-era regulations that restrict worker freedom. ABC is proud to support Sonderling’s nomination.”

SEE ALSO: ABC SUPPORTS TRUMP ADMINSTRATION’S CRITICAL IMPROVEMENTS TO APPRENTICESHIP PROGRAMS

The post ABC Applauds President Trump’s Nomination of Keith Sonderling as Labor Secretary first appeared on Construction Executive.

“ABC appreciates the DOL’s decision to drop its defense of part of these regulations,” said Swearingen. “In a victory for the construction industry, taxpayers and the rule of law, yesterday’s order recognizes the illegality of former President Joe Biden’s efforts to expand Davis-Bacon requirements beyond the scope Congress set out.

“However, there is much more to be done. This decision leaves in place the vast majority of the costly and burdensome Davis-Bacon regulations promulgated under the Biden administration. The misguided and unnecessary 2023 final rule continues to unlawfully distort the accuracy of prevailing wage surveys, discourage small business participation in federal contracting and unnecessarily increase costs for taxpayers.

“ABC urges the DOL to swiftly rescind the 2023 final rule, which would be a major step towards cutting red tape and improving the federal government’s delivery of critical construction projects, and to instead pursue commonsense reforms to prevailing wage regulations. ABC continues to pursue litigation seeking to overturn this unlawful and onerous rule entirely.”

This decision blocks the expansion of prevailing wage regulations to cover manufacturing facilities miles away from projects and delivery truck drivers spending any amount of time on a jobsite, and the ability of the government to retroactively impose the measure on already-executed contracts. The decision has no impact on other aspects of the 2023 final rule, which remain in effect.

The decision is the result of a lawsuit filed by the Associated General Contractors of America in November 2023.

The 1931 Davis-Bacon Act and related regulations require contractors and subcontractors that perform work on federal and federally funded construction projects to pay a government-determined prevailing wage and benefit rate.

SEE ALSO: DOUBLING DOWN ON DAVIS-BACON

The post DOL’s Retreat on Davis-Bacon Expansion Welcome, But Full Repeal Is Needed first appeared on Construction Executive.

View ABC’s Construction Backlog Indicator and Construction Confidence Index for May. View the full Construction Backlog Indicator and Construction Confidence Index data series.

Backlog for the month increased in every region except for the South. Despite the monthly movement, the South remains the region with the longest backlog and the largest year-over-year increase in backlog.

ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels fell in May. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.

“Backlog rose to a nearly three-year high in May,” said ABC Chief Economist Anirban Basu. “This increase largely reflects the massive data center investments taking place across the nation, as the 14% of ABC members under contract to work on data centers continue to have much higher backlog (11.6 months) than those that are not (8.6 months). The way this boom is disproportionately benefiting larger contractors helps to explain why contractor confidence slipped in May even as backlog continued to climb.”

Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month’s work under contract based on the latest financials available, while CCI measures contractors’ outlook for the next six months. View the methodology for both indicators.

Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.

Associated Builders and Contractors is a national construction industry trade association established in 1950 with 67 chapters and 24,000 members. Founded on the merit shop philosophy, ABC helps members offer a robust employee value proposition, develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work. Visit us at abc.org.

SEE ALSO: CONSTRUCTION MATERIALS PRICES SURGE 2.6% IN MAY, UP NEARLY 10% YEAR OVER YEAR

The post ABC’s Construction Backlog Surges in May, Contractor Confidence Slips first appeared on Construction Executive.

“Setting a dangerous precedent, House Democrats and a few unprincipled Republicans today voted to pass the Faster Labor Contracts Act,” said ABC President and CEO Michael Bellaman. “The FLCA imposes arbitrary and unrealistic deadlines on employers to finalize negotiations with newly elected unions or face ‘binding interest arbitration of first contracts.’ In practice, this means, for the first time in American history, a federal government bureaucrat will appoint an individual to dictate exactly what is included in a contract between two private negotiating parties.

“The consequences of this misguided bill include destroying voluntary agreement and good-faith labor-management negotiations and could expand to disputes over wages, benefits and working conditions to include social or political issues unrelated to the day-to-day needs of workers and employers,” said Bellaman. “ABC supports legislation that upholds the intent of the National Labor Relations Act and protects freedom of association. Unfortunately, the FLCA would undermine the bargaining process and counter the freedoms the NLRA was designed to protect.”

Key provisions of the FLCA:

• Within 10 days of receiving a request to collectively bargain with a newly recognized union, the parties must begin bargaining. If the employer and union do not reach an agreement on a first contract within 90 days of the beginning of bargaining—regardless of whether they are negotiating in good faith, and for any reason at all—the parties must participate in mediation. This would be an unprecedented expansion of federal government authority into the private sector.
• If mediation is also unsuccessful within mere weeks, a three-person arbitration panel chosen by the parties will be required to settle the dispute by a majority vote and the decision will be binding. If the parties fail to identify individuals to join the arbitration panel within two weeks, an arbitrator chosen by federal government bureaucrats will impose a collective bargaining agreement on the workers, employer and union.

In order of signing the discharge petition, the Republican supporters who voted for the bill are: Reps. Mike Lawler, N.Y., Max Miller, Ohio, Rob Bresnahan, Pa., Brian Fitzpatrick, Pa., Don Bacon, Neb., Riley Moore, W.Va., and Nick LaLota, N.Y. They were joined by Republican representatives Mike Carey, Ohio, Andrew Garbarino, N.Y., Carlos Gimenez, Fla., John Joyce, Ohio, Nicholas Langworthy, N.Y., Nicole Malliotakis N.Y., Michael Rulli, Ohio, Maria Elvira Salazar, Fla., Christopher Smith, N.J., Pete Stauber, Minn., Mike Turner, Ohio, Jefferson Van Drew, N.J., and Derrick Van Orden, Wis., in the final vote.

“The FLCA fortifies the role of government bureaucrats in private workplace matters and applies a one-size-fits-all contract process on business, workers and unions,” said Bellaman. “The Trump administration and U.S. Senate must reject this egregious legislation. ABC calls on them to instead stand with workers, entrepreneurs and small businesses.”

Visit protectingamericanworkers.org to learn more.

SEE ALSO: ABC OPPOSES EGREGIOUS FASTER LABOR CONTRACTS ACT

The post House-Passed Faster Labor Contracts Act Is a Disgrace to Free Enterprise first appeared on Construction Executive.