Author: agcnews
AGC of America has released an updated Construction Inflation Alert highlighting the impacts of rising materials costs, supply-chain disruptions and labor shortages on the construction industry. The report finds that construction materials costs rose 11.9% year-over-year through September 2026, more than triple the 3.7% increase in consumer prices, while diesel fuel prices surged 115%. The Alert also outlines steps contractors and owners can take to manage these challenges. AGC encourages members to share information about changing market conditions, including supplier notices and cost increases, with Chief Economist Ken Simonson at ken.simonson@agc.org. The Alert will be updated as needed. Read the…
Construction spending falls 1.9% from August to September and 2.7% year-over-year, reaching $2.19 trillion at a seasonally adjusted annual rate, per an AGC of America analysis of new federal data. Surging data center construction—up 8.6% for the month and 90% year-over-year—and private electric power investment are the sole drivers of private nonresidential growth, masking declines across most other residential and nonresidential categories. AGC releases a new Construction Inflation Alert explaining how high tariffs, supply-chain disruptions, and a tight labor market are compounding costs and risk for contractors. The association urges federal policymakers to pass a new highway and transit funding…
Construction employment rises in 180 of 360 metro areas tracked from September 2025 to September 2026, while declining in 118 and holding steady in 62, according to AGC of America’s analysis of new federal data. Demand is concentrated in markets with active data center, power, and manufacturing construction, as rising costs and political uncertainty stall many other project types. AGC urges Washington to reconsider tariff rates contributing to higher construction costs and calls on Congress to pass the overdue highway and transit bill. View the full employment data by metro, rank, and top 10 changes. Read more.
Construction employment increased in 34 states and the District of Columbia from September 2025 to September 2026, though only 25 states added jobs between August and September, according to an analysis of new federal data by AGC of America. Louisiana posted the largest year-over-year gains (18,800 jobs, 13.9%), while Alaska recorded the steepest percentage losses across both the annual and monthly periods. Rising material prices tied to tariffs, along with political uncertainty over the surface transportation reauthorization and ongoing efforts to restrict data center construction, are slowing demand in parts of the country. AGC is urging public officials to pass…
Replacing a gate that has served for more than a century is no small undertaking. At Seattle’s Ballard Locks, Manson Construction Co. took on the challenge of replacing the Large Lock’s center gate, helping preserve a critical piece of Pacific Northwest infrastructure for generations to come. The project, recognized through AGC’s Baldwin Build America Awards, demonstrated the innovation, technical expertise and coordination required to deliver complex marine construction projects while minimizing disruptions to essential operations. Replacing a Century-Old Gate The Ballard Locks connect Puget Sound with Lake Washington, serving as a vital link for maritime traffic and regional water management.…
The producer price index for inputs to new nonresidential construction jumped 11.9% from September 2025 to September 2026, the most in four years, according to an analysis by the Associated General Contractors of America of government data released today. Association officials said construction firms appear to be absorbing most of the cost increases amid relatively soft demand for construction projects except data centers. “Construction firms are being hit by a double whammy of tariff- and war-induced materials cost increases as higher metals and fuel costs permeate an ever-wider range of prices,” said Ken Simonson, the association’s chief economist. “Making matters…
Help Us Promote Responsible Data Center Construction By Featuring Your Successes AGC of America is looking to feature member’s success stories from working on data center projects. The association will post those case studies and lessons-learned documents on its new Data Center Resource Hub as part of our broader efforts to promote responsible data center construction. If you have a success story or resource related to data center construction, please contact AGC of America’s Director of Market Insights, Macrina Wilkins at macrina.wilkins@agc.org.
There’s still time to apply for AGC of America’s 2027 awards programs, with entries due October 31, 2026. Opportunities include the Baldwin Group Build America Awards, Marvin M. Black Partnering Excellence category, AGC in the Community Awards, Culture of CARE Impact Awards, AGC Innovation Awards, and the Bowen Prize for Great Builders. The programs recognize outstanding projects, collaboration, community service, workplace culture, innovation, and individual leadership across the construction industry. The 2027 Safety Awards Season is also open, recognizing companies and professionals that demonstrate an unwavering commitment to safety excellence across the construction industry. AGC is currently accepting applications and…
Construction firms add 11,000 jobs in September and employment rises 1.3% over the past year, outpacing the 0.3% increase in total nonfarm employment. Nonresidential contractors account for all of the monthly gains, while construction wages climb 4.3% and the number of jobseekers with recent construction experience falls 11% from a year ago, highlighting continued difficulty filling positions. AGC of America says sustaining job growth will require both addressing workforce shortages and maintaining construction demand through a new long-term highway and transportation bill and policies that allow responsible data center and other major projects to move forward. Read more.
Construction spending rose 0.9% in August but was still 1.7% below a year earlier, according to AGC’s analysis of new government data. Data center and power projects kept growing, while manufacturing and residential construction stayed below last year’s levels. AGC warned that labor shortages, rising materials costs and interest rates, and a short-term highway funding extension that leaves out key programs could stall any further gains. The association is urging Congress to pass a long-term highway bill soon after Election Day. Read more.