The cost of goods and services used in construction climbed by a record-setting 4.3 percent in May and 24.3 percent over the past 12 months, jeopardizing contractors’ solvency and construction workers’ employment.

Nonresidential construction spending in April declined for the fifth-straight month to a two-year low as demand waned for numerous public and private project categories in the face of lengthening production and delivery times for materials, along with fast-rising prices for many items, according to an analysis of new federal construction spending data by the Associated General Contractors of America.

Construction employment in April remained below the pre-pandemic high set in February 2020 in 36 states and the District of Columbia, despite increases from March to April in 26 states.

Nonresidential construction spending fell to a two-year low in March as contractors struggled with slumping demand for most project types and growing shortages of materials, transport, and workers, according to an analysis of new federal construction spending data by the Associated General Contractors of America.

Construction employment decreased from March 2020 to March 2021 in 203, or 57 percent, of the nation’s metro areas.

Construction employment climbed by 110,000 in March as the industry recovered from severe winter weather that pushed employment down by 56,000 in February, according to an analysis by the Associated General Contractors of America of government data released.

Construction employment in January remained below pre-pandemic levels in all but eight states, according to an analysis by the AGC of America of government employment data released, while more firms have reduced headcount than have added to it in the past year, the association’s recent survey shows.

Another round of steep price increases and supply-chain disruptions are wreaking hardships on contractors, driving up construction costs and slowing projects, according to an analysis by the Associated General Contractors of America of government data released. 

Construction spending in December exhibited sharply varied trends, with downturns from a year earlier in every private category, mixed results for public construction, and double-digit increases in residential construction, according to an analysis by AGC.

Most contractors expect demand for many types of construction to shrink in 2021 even as the pandemic is prompting many owners to delay or cancel already-planned projects, meaning few firms will hire new workers.