Steel Markets

AGC: Construction Employment Still Down in Metro Areas
Written by David Schollaert
April 29, 2021
Despite a homebuilding boom and an improving economy, construction employment fell in 203 metro areas in the 12 months from March 2020 to March 2021, reported the Associated General Contractors of America in their analysis of the latest government data. The 57.0% decrease in jobs over the 12-month period has hampered the industry on top of rising materials prices, supply chain disruptions and project cancellations in many parts of the country.
“Nearly twice as many metros have lost construction jobs as gained them in the past 12 months, even though homebuilding has recovered strongly and the overall economy is in much better shape than it was a year ago,” said AGC’s Chief Economist Ken Simonson. “Nonresidential construction is still at risk of further declines in much of the country.”
As AGC reported: Houston-The Woodlands-Sugar Land, Texas, lost the largest number of construction jobs over the 12-month period (-31,000 jobs, -13 percent); followed by New York City (-24,000 jobs, -15 percent); Midland, Texas (-10,000 jobs, -26 percent); Odessa, Texas (-8,000 jobs, -39 percent); and Nassau County-Suffolk County, N.Y. ( 7,900 jobs, -10 percent). Odessa had the largest percentage decline, followed by Lake Charles, La. (-35 percent, -6,800 jobs); Midland; Longview, Texas (-24 percent, -3,600 jobs) and Greeley, Colo. (-21 percent, -4,100 jobs).
Only 104, or 29 percent, out of 358 metro areas added construction jobs during the past 12 months, while construction employment was stagnant in 51 metro areas. Seattle-Bellevue-Everett, Wash., added the most construction jobs over 12 months (5,300 jobs, 5 percent), followed by Indianapolis-Carmel-Anderson, Ind. (4,300 jobs, 8 percent); Austin-Round-Rock, Texas (4,000 jobs, 6 percent); Sacramento-Roseville-Arden-Arcade, Calif. (3,200 jobs, 5 percent); and Ogden-Clearfield, Utah (3,100 jobs, 15 percent). Sierra Vista-Douglas, Ariz., had the highest percentage increase (35 percent, 900 jobs), followed by Fargo, N.D.-Minn. (24 percent, 1,800 jobs); Cleveland, Tenn. (16 percent, 300 jobs); Niles-Benton Harbor, Mich. (15 percent, 300 jobs) and Ogden-Clearfield.
AGC noted that the impact of the pandemic has not let up on the construction sector as they urged the federal government to ease tariffs on key construction materials, including steel and lumber. Firms are unable to pass along the rapidly rising material costs as concerns of a greater impact on construction projects could be seen due to the uncertainties caused by the COVID-19 health crisis.
“Construction employment is not going to rebound in many parts of the country while firms are struggling to afford the materials they need to complete existing projects,” said AGC’s CEO Stephen Sandherr. “Once federal officials take immediate and effective steps to address both spiking prices and lagging demand, employment levels should rebound in more of the country.”
View the metro employment 12-month data, rankings, top 10, multi-division metros, and map.
By David Schollaert, David@SteelMarketUpdate.com

David Schollaert
Read more from David SchollaertLatest in Steel Markets

Worldsteel: Global steel demand flat, but modest rebound forecast for 2026
The World Steel Association (worldsteel) Short Range Outlook for global steel demand predicts that 2025’s steel demand will clock in at the same level as in 2024. In its October report, the Brussels-based association stated that this year’s steel demand will reach ~1,750 million metric tons (mt). The organization forecasts a 1.3% demand rebound in 2026, pushing […]

CRU: China’s indirect steel exports find new destination markets
The boom in China’s direct steel exports has not stopped this year, even with a rise in protectionist measures globally. The increase is driven by...

Great Lakes iron ore cargoes down in September as Cleveland tonnage slips
Iron ore shipments from US Great Lakes ports fell sharply in September, per the latest from the Lake Carriers’ Association (LCA) of Westlake, Ohio.

HVAC equipment shipments down through August
Although total HVAC shipments fell in August, YTD volumes remain relatively strong. Nearly 15 million units were produced in the first eight months of the year, the fourth-highest rate in our 19-year data history.

Sheet market sources slam tariffs for prolonged demand slump
Tariffs are ultimately to blame for stagnant demand in the hot-rolled coil market, domestic market sources tell SMU.