October 12, 2022

September Construction Industry Roundup

September News
Articles
Industry Trends

Highlights

Hurricane Ian

Our thoughts are with everyone who has been affected by Hurricane Ian. We’ve assembled some resources to help you, as well as examined the long-term implications of the storm on the industry.

Recession… To Be Or Not To Be?

According to the Bureau of Economic Analysis (BEA), GDP contracted in both the first and second quarters of 2022.  Additionally, rising interest rates have impacted borrowing, and inflation continues to stay near record highs. However, as the Federal Reserve Bank of Dallas points out, this does not automatically translate into a recession. The job market continued to grow in September (see our report below) and consumer spending rose in August, according to BEA. In the construction industry, interest rates have impacted single-unit residential construction projects, but commercial construction and multifamily activity has remained strong. 

Economic Overview 

According to the Bureau of Labor Statistics (BLS), total nonfarm payroll employment increased by 263,000 in September, and the unemployment rate declined to 3.5 percent. The leisure and hospitality and health care sectors saw the highest gains. Employment in the construction sector increased by 19,000, which BLS reports is in line with average monthly job growth in the sector year to date. Jobs with specialty trade contractors grew as well, up 18,000 in September. At 3.4 percent, the unemployment rate in the construction industry is now below the overall employment rate, and down from 4.5 percent in September 2021. BLS noted in its announcement that Hurricane Ian had no impact on the report, as data had been collected prior to the storm making landfall.

Overview of Selected Materials Costs (August 2022, US Bureau of Labor Statistics PPI)

 

Trend Watch

Telematics-Driven Insurance: Insurance companies are increasingly using client-supplied telematics data to make better risk assessments and offer discounts. Consumer auto carriers already offer this, with programs such as Progressive’s Snapshot, Geico’s DriveEasy and Allstate’s Drivewise. For construction companies, a tool like this could translate into substantial savings on insurance premiums for adopting and proving certain business practices and sharing telematics data. EquipmentShare’s T3 Dash Cams can help you provide concrete data to your insurance provider and potentially negotiate a lower premium.  

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