BreakingNews

July 12, 2018
                   
 
Market News

The US economy added 213,000 jobs in June, exceeding economists' expectations for new hiring for the month. Following the brisk pace of expansion in May, July's numbers reflected the continued optimism of business owners, although wage increases remained at 2.7% year over year during the month. Wages for construction workers rose 2.9%. The July jobs report was especially good news in light of concerns that the tight workforce could begin limiting growth. Census Bureau reported in June that the number of job openings exceeded the number of unemployed persons for the first time in 20 years. The long-term picture still indicates that an expansion in the number of workers will be needed to maintain the hiring trend of the past 4 years.
 
Job growth in June pushed the 6-month average up to 211,000 per month, a significant increase over the average of 179,000 jobs per month during the first six months of 2017. The hiring burst is one of the factors behind forecasts of much higher GDP growth in the second quarter of 2018. Economists have upped the GDP forecast to 4% or higher (Wells Fargo predicts 4.7% growth), even as estimates of GDP in the first quarter slipped to 2.0%.

Brisk hiring in June pushed the 6-mo average to 211,000 new jobs.

Project News  

Groundbreaking was held July 12 for the $5.5 million Heights at Thorn Hill, a flex office being developed by Elmhurst and built by Burchick Construction. A. Martini & Co. is starting construction on a $2.7 million renovation of PNC Firstside Center's cafeteria. Rycon is building a new 24,600 sq. ft. medical office for WVU Medicine in Waynesburg. Facility Support Services was awarded the $1.2 million renovation at UPMC Hampton Fields.

Bidding has slowed to a crawl, which is not unusual for mid-July. Two interesting divergent trends are continuing. Bids in the public construction market remain highly competitive. In the wake of last month's bids on Peters Township High School, Woodland Hills took bids last week on an addition and alterations to Dickson Intermediate School and the numbers were well under the published budget and on top of one another. (See the results at the Builders Exchange site.) On the other hand, bidding on large private projects (especially those that won't start until 2019) are coming in higher, with fewer bidders. This trend seems to reflect concerns from specialty contractors about available labor and productivity in the coming 6-18 months. The higher numbers also reflect increases across most material categories. The combination of anticipated tariffs and pent-up profits has pushed construction material costs up at twice the rate of overall inflation.


Source: Bureau of Labor Statistics

To keep up to date with the market check out  BuildingPittsburgh .  
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People News

Meyer, Unkovic & Scott has added two new partners to the firm. Jo-Anne M. Mineweaser, previously with Tucker Arensberg, joins the firm's Employee Benefits practice, and Marcy E. Hamilton, previously with Buchanan, Ingersoll & Rooney, joins the firm's Real Estate & Lending practice.
Coming Events

MBA Young Constructors Sporting Clay Shoot, July 20

The MBA YC wioll host its 5th annual Sporting Clay Shoot on July 20. Breakfast/registration at 8:00. Shotgun start at 11:00. Lunch at 2:00 PM. Click for more information or click to register.

 

 

 

Tall Timber Group is the publisher of BreakingGround and DEVELOPINGPittsburgh magazines and the Pittsburgh Homebuilding Report, and is a consultant for contractors and designers serving the construction and real estate market. For more information about our services, contact Jeff Burd or call:


Tall Timber Group
506B McKnight Park Dr.
Pittsburgh, Pennsylvania 15237
412-366-1857

www.talltimbergroup.com

 


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