April 2010
National Construction & A/E Outlook
In late January 2010, data from the government and the private agencies reported the results from December 2009 and the full year of 2009 for a variety of construction-related categories. On the whole, there were few surprises in what the data showed and perhaps some comfort in seeing evidence that the recession, however deep, was running its course along historical norms. The most negative norm at this point in the construction cycle is the high unemployment. In December construction employment turned negative for the year in North Dakota, the final state showing construction employment growth throughout 2009. For the full year all 50 states showed lower employment than in 2008. Architectural unemployment also peaked at year’s end, with 184,600 architects employed compared to 224,500 at the employment peak in July 2008. Read more...
What Does It Cost?
Perhaps the best news on the building products and materials price front is that there is little or no news. The decline in non-residential construction has thus far not been offset by significant increases in residential construction or exports; so dampened demand remains the driving force keeping prices in check. The global recession caused producers to reduce capacity rapidly in late 2008 and early 2009 to bring costs in line with the reduced revenue streams. Slower business conditions also offered manufacturers the opportunity to evaluate and shutter operations that were less efficient, less productive or located in strategically poor positions. Thus it was expected that even modest increases in demand for building products and materials would push prices higher because of the lower overall capacity for production. Read more...
Work-In-Process is provided by Somerset CPAs for our clients and other interested persons upon request. For additional information on the issues discussed, please contact Ken Hedlund, Jay Feller, Steve George, Chris Mayfield or Rebecca Ogle of our Construction & A/E Team. Learn more about our Construction & A/E Team by clicking the photo to the left to watch our video. Since technical information is presented in generalized fashion, no final conclusion on these topics should be made without further review. This document is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties that may be imposed on the taxpayer.
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