Steel Markets
Job Cancellations Hurt Construction Employment in April
Written by Sandy Williams
June 5, 2020
Construction employment declined in nine out of ten metro areas from March to April, during a season when the industry normally sees employment levels climb, said the Associated General Contractors of America in an analysis of new government data.
“Today’s employment report shows how few areas were left unscathed by April’s unprecedented job losses,” said Ken Simonson, the association’s chief economist. “Sadly, our latest survey shows project cancellations are escalating, making further job losses inevitable unless there is funding for widespread new projects.”
Simonson noted that 91 percent of 348 metro areas saw a decline in April and only 20 areas or 6 percent reported increases. Historically, 75 percent of metro areas on average add construction jobs during the March-April period.
The latest survey by AGC shows further job losses are likely due to job cancellations. One-fifth of survey respondents reported a project scheduled to begin in May had been canceled, as did nearly one-quarter (24 percent) of respondents regarding a project scheduled to start in June or later, compared to 16 percent in April.
New York City lost the largest number of construction jobs for the month: 75,900 jobs or 49 percent of the March total. There were also extremely large construction job losses in the Seattle-Bellevue-Everett, Wash. area, 44,200 jobs or 41 percent. Construction employment fell by half or more in three areas: Montgomery County-Bucks County-Chester County, Pa. (-54 percent, -27,200 jobs); Warren-Troy-Farmington Hills, Mich. (-52 percent, -26,100 jobs); and Brockton-Bridgewater-Easton, Mass. (-50 percent, -2,300 jobs).
“It is encouraging to see House Democrats proposing a significant increase in investments for transportation infrastructure,” said Stephen E. Sandherr, the association’s chief executive officer. “With over 40 million people unemployed and construction jobs declining in most metro areas, Congress needs to ensure that new, sustainable investments bring as many people back to work as possible to help improve our aging highway, transit and rail systems.”
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.