Labor shortages are highlighted in a new survey released by the Associated General Contractors of America and Autodesk. In a survey of more than 25,000 respondents, 80 percent of firms report they cannot find enough hourly craft workers to fill the positions that make up the bulk of the construction industry. The problem is widespread […]
Sales of both new and existing homes declined in July as higher prices impacted affordability for buyers. Existing home sales fell for the fourth consecutive month in July, dipping 0.7 percent to a seasonally adjusted annual rate of 5.34 million. Sales are 1.5 percent below a year ago, said the National Association of Realtors. Sales […]
Architecture billings growth slowed in July, according to the American Institute of Architects. The AIA Architecture Billings Index slipped to 50.7 from 51.3 in June. A score over 50 indicates billing growth, but on a regional basis only the South registered growing demand with an index reading of 55.2. Regional averages in the remainder of […]
SMU was at the Atlanta Airport Marriott Gateway hotel so we could get a lay of the land and see how disruptive their renovations are going to be to guests attending the 8th SMU Steel Summit Conference next week. The only negative noticed during our overnight stay was some minor construction noise, which was not […]
Editor’s note: The following was contributed by analysts at the CRU Group. The Turkish-U.S. political relationship has soured sharply in the past week. U.S. President Donald Trump tweeted relations were “not so good” on Friday, Aug. 10, and doubled tariffs on U.S. imports of Turkish steel. Turkish President Erdogan responded with anger, suggesting the country […]
Forty-five states and the District of Columbia added construction jobs between July 2017 and July 2018, while 29 states and D.C. added construction jobs between June and July, according to an analysis by the Associated General Contractors of America of Labor Department data. Association officials cautioned that continued job gains may depend on swiftly implementing […]
Housing data was mostly flat in July with housing starts up just 0.9 percent to a seasonally adjusted annual rate of 1,168,000 units. Data from HUD and Commerce show single-family housing starts increasing 0.9 percent and multifamily housing 3.1 percent. Regionally, housing starts fared better in the Midwest and South, increasing 11.6 percent and 10.4 […]
North Star BlueScope may receive funding for an expansion that will add 600,000 to 900,000 metric tons of annual capacity to the Delta, Ohio, facility. Australian parent company BlueScope has initiated a comprehensive study to determine the feasibility of a $500 million to $700 million investment that would include a possible third electric arc furnace […]
An incident at the D4 blast furnace at Great Lakes Works on Friday, Aug. 10, sent 15 Songer Services contract employees to the hospital. Spokesperson Amanda Malkowski says the incident “was not an ‘explosion,’ as many have been reporting.” The furnace was down for scheduled maintenance at the time, so there is no impact to […]
Steel pricing is the product of a complex interplay between supply and demand, along with other factors such as ferrous scrap prices, imports and government trade actions. Steel Market Update canvasses steel executives twice each month with its market trends questionnaire to take the pulse of the industry. The current prevailing view shows supplies tightening, […]
Construction costs have squeezed contractor profits as prices for construction material and services have climbed steeply during the past year. The producer price index for the construction industry was relatively steady in July, but jumped 8.1 percent from July 2017, said the Associated General Contractors of America in an analysis of new Labor Department data. […]
Caterpillar says it will raise prices due to U.S. tariff measures despite expecting a stronger profit outlook for the year. The major exporter of construction, mining and energy-related equipment estimates recently imposed tariffs will cost the company $100 million to $200 million in the second half of 2018—about 3 percent of its full-year profits. Strong […]
Nonresidential construction projects continued to enter the pipeline in July, according to Dodge Data & Analytics. The Dodge Momentum Index, a measure of nonresidential building projects in planning, rose 1.4 percent in July to a reading of 169.8 from a revised June reading of 167.3 Commercial project planning led the rise with a gain of […]
The U.S. economy created 157,000 net jobs in July on a seasonally adjusted basis, down from 248,000 in June, according to Bureau of Labor Statistics (BLS) data released on Friday. This decline was partly mitigated by revisions to May and June, which improved by 24,000 and 4,000, respectively. Conditions remain very positive in the U.S. […]
In June 2018, 12,751,000 people were employed in manufacturing and 7,242,000 in construction. Construction employment has grown by 4.4 percent in the last 12 months, while jobs in manufacturing have increased by 2.6 percent. In the last three months, however, manufacturing employment has gained almost twice the number of jobs as construction, according to Steel […]
Construction employment totaled 7,242,000 in July, the highest level since May 2008 and a gain of 4.4 percent over the past 12 months, said a new analysis of government data by the Associated General Contractors of America. The industry added 19,000 jobs in July and 303,000 jobs over the past year, reaching a 10-year high, […]
Stelco is enjoying an unaccustomed perspective, the view from the catbird’s seat in the North American steel market. The once-troubled Canadian steelmaker reported operating income of $161 million on sales of $711 million (Canadian dollars) for the second quarter as steel shipping volumes increased by 49 percent over the prior-year quarter. Sales were up 67 […]
Construction is on a roll with expenditures in June at an all-time high, according to Steel Market Update’s latest analysis of Commerce Department data. In the Aug. 1 data release, which reported expenditures through June, the growth of total construction on a rolling 12-month basis year over year increased from 2.1 percent in January to […]
ArcelorMittal NAFTA posted sales of $5.4 billion for the second quarter of 2018, a jump of 12.7 percent from the first quarter. Steel shipments increased by 4.4 percent to 5.8 million metric tons. Improved results were driven by strong market demand and higher shipment volumes. NAFTA segment EBITDA rose 19.6 percent year-over-year. NAFTA segment crude […]
The Institute for Supply Management’s Manufacturing ISM Report on Business expanded for the 111th month in July. The PMI registered a solid 58.1, although decreasing 2.1 points from the June reading of 60.1 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally […]
June construction spending declined 1.1 percent after an upwardly revised record level in May, according to government data analyzed by the Associated General Contractors of America. However, the first half of 2018 was marked by widespread gains in public and private investment spurred by recent tax and regulatory reform. “There appears to be plenty of […]
Construction employment increased in 272 (76 percent) out of 358 metro areas between June 2017 and June 2018, declined in 44 (12 percent) and was unchanged in 42, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials noted that, for now at least, the […]
China’s share of global steel production is setting a new high each month. Global steel production was down by 1.1 percent in June, but May’s production hit an all-time high and June was the second highest month ever, according to the latest Steel Market Update analysis of World Steel Association data. In three months through […]
Reliance Steel & Aluminum, North America’s largest service center organization, set a new company record with net sales of $2.99 billion for the second quarter of 2018. Sales grew by 20.8 percent from a year ago and 8.4 percent from the previous quarter. Net income totaled $230.8 million, up 124.1 percent from Q2 2017 and […]
Sales of new single-family houses slipped 5.3 percent from May to June to a seasonally adjusted annual rate of 631,000, according to the latest report by the U.S. Census Bureau and Department of Housing and Urban Development. The decline was accompanied by a downwardly revised estimate of 666,000 for May. The June SAAR was at […]
Steel prices held the top spot on the IHS Markit PEG Engineering and Construction Cost Index for July. The survey of procurement executives showed construction costs have increased for 21 consecutive months, with July’s reading up 1.4 points from June to register 68.0. Prices for materials and equipment grew in eight of the 12 categories […]
Trading in steel futures shows many companies betting that prices will decline as the year-end approaches, following the normal seasonal pattern. But current market conditions, under the influence of unprecedented government trade action, are anything but normal, leaving steel executives deeply divided over what to expect. Steel Market Update canvassed the market this week, asking […]
The ferrous scrap market is showing small signs of weakness looking ahead to August, report Steel Market Update sources, who say prices on obsolete grades such as shredded and heavy melt are likely to decline anywhere from $5 to $20 per ton next month, while pricing of busheling and bundles will remain unchanged. Demand for […]
A housing shortage is impacting existing home sales and pushing prices to a new high, reported the National Association of Realtors. The June data from NAR shows existing home sales decreased 0.6 percent in June, falling for the third month in a row and the fifth time this year. Sales were at a seasonally adjusted […]
While manufacturers generally reported favorable business conditions all over the United States, companies in all the Federal Reserve Districts pointed to Trump administration tariffs as cause for concern, according to the Fed’s July 18 Beige Book report. Economic activity continued to expand across the United States, with 10 of the 12 Federal Reserve Districts reporting […]