Steel Markets
AGC: More Construction Job Losses Ahead
Written by Sandy Williams
April 20, 2020
Construction employment decreased in 20 states and the District of Columbia from February to March, held steady in six states and increased in 24 states, according to an analysis of new government data by the Associated General Contractors of America.
During the 12 months ending in March, construction employment declined in only seven states and D.C., remained steady in two states, and increased in 41 states. The data is based on employment as of March 12, before most states or owners began curtailing construction, noted AGC.
“While construction employment declined in many parts of the country last month, far more states, local governments and project owners have halted construction in the five weeks since the government collected this data,” said AGC Chief Economist Ken Simonson. “Our two latest surveys show a steep rise in cancellations of scheduled projects, which is leading to furloughs and terminations for both jobsite and office workers.”
In the association’s latest online survey, conducted April 6-9, 53 percent of the 830 respondents reported that a project owner had ordered a halt or cancellation to a current or upcoming project. The share of respondents reporting cancellations jumped to 19 percent from 7 percent a week earlier, suggesting that the volume of work will shrink rapidly once current projects finish. Another impediment to construction—listed by 27 percent of respondents—comes from state and local officials who have ordered construction shutdowns.
The survey also found that 40 percent of respondents had furloughed or terminated workers by April 9, an increase from 31 percent just a week earlier. While 36 percent of firms reported furloughs or terminations of jobsite workers, layoffs also affected office and other workers at 18 percent of firms.
Job losses are likely to accelerate in many states due to coronavirus impacts, said AGC officials . Several states have canceled or significantly delayed planned highway projects because the pandemic has resulted in dramatic declines in gas tax revenues. AGC urges Congress and the Trump administration to provide funding to cover the lost revenue to protect existing jobs and make sure roads are repaired at a time when traffic is relatively light. They also urged Washington officials to invest more funds in the now-depleted Paycheck Protection Program and other forms of infrastructure.
“There is a historic opportunity to repair aging roads and other types of infrastructure,” said Stephen E. Sandherr, the association’s CEO. “Without more funding from Washington, government officials will not have the resources necessary to improve the nation’s infrastructure and protect tens of thousands of construction jobs.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Steel market participants mull the impact of US/Mexico S232 negotiations
Steel market participants learned that negotiations between the US and Mexico include discussions about Section 232 tariffs on steel and aluminum despite President Trump’s June 3 proclamation increasing the tariffs from 25% to 50% for all steel and aluminum imports—except for those from the UK.
ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.
Tariffs, ample domestic supply cause importers to shift or cancel HR import orders
Subdued demand is causing importers to cancel hot-rolled (HR) coil orders and renegotiate the terms of shipments currently enroute to the US, importers say. An executive for a large overseas mill said customers might find it difficult to justify making imports buys after US President Donald Trump doubled the 25% Section 232 tariff on imported steel […]
CRU Insight: A 50% S232 tariff will raise US steel prices and shift trade flows
This CRU Insight examines how the increase in Section 232 tariffs on steel to challenging levels will lead to significatively higher prices for end consumers in the US market.
Steel market shakes tariffs off amid weak demand
Service centers and distributors contend that weak demand is to blame for the flattening of domestic steel spot prices, as reflected in Nucor Steel’s weekly Consumer Spot Price (CSP) notice. On Monday, the Charlotte, North Carolina-headquartered steel producer left prices unchanged from the previous week. Nucor has maintained prices of plate produced in Brandenburg since March 28.