Construction Officials Say New Infrastructure Investments, Tariff Relief for Key Construction Materials are Needed to Help Contractors Cope with Continued Economic Impacts of the Pandemic
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. Officials with the association said project cancellations and widespread supply chain problems are hindering the industry’s recovery.
“Every major category of private nonresidential projects has declined over the past year, while public construction spending is also deteriorating rapidly,” said Ken Simonson, the association’s chief economist. “Unfortunately, the widespread and growing backlogs for key materials and shortages of trucking and rail services to deliver goods mean that even projects that are underway are likely to take longer to complete.”