December 20, 2018
Associate Builders and Contractors (ABC) Chief Economist Anirban Basu forecasts another strong year for construction sector performance, yet warns about inflationary pressures according to a 2019 economic outlook recently published in Construction Executive magazine. Job growth, high backlog, and healthy infrastructure investment all spell good news for the industry. However, historically low unemployment has created a construction workforce shortage of an estimated 500,000 positions, which is leading to increased compensation costs. "U.S. economic performance has been brilliant of late. Sure, there has been a considerable volume of negativity regarding the proprietary of tariffs, shifting immigration policy, etc., but the headline statistics make it clear that domestic economic performance is solid," said Basu. "Nowhere is this more evident than the U.S. labor market. As of July, there were a record-setting 6.94 million job openings in the United States, and construction unemployment reached a low of 3.6 percent in October." Click here to read more.