Landscape Contractor / Design Build Maintain

DEC 2018

LC/DBM provides landscape contractors with Educational, Imaginative and Practical information about their business, their employees, their machines and their projects.

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H O T E L December 2018 15 Nonresidential Spending by Sector $27.2 Lodging Construction $73.3* $69.0 Office Construction $41.4 Health Care Construction $28.0* $21.8 $25.1 Amusment and Recreation Construction $53.7* $42.6 $50.0* Transportation Construction $87.9* $95.3* $90.8 Highway and Street Construction $3.8 $3.0 Religious Institution Construction $89.0 $91.7* $74.5 Commercial Construction Dollars Spent in Billions Dollars Spent in Billions Dollars Spent in Billions Dollars Spent in Billions Dollars Spent in Billions Dollars Spent in Billions 2016 2018 2017 2019 Dollars Spent in Billions Dollars Spent in Billions H O T E L $30.2 $33.3 * 2017 H O T E L 2016 H O T E L 2018 2019 2016 2017 2016 2016 2018 2018 2017 2017 2019 2019 $43.3 $42.6* Dollars Spent in Billions 2016 2017 2018 2019 2016 2018 2017 2019 2016 2018 2017 2019 2017 2018 2016 2019 $96.5* $98.7** $88.7 $93.1 Education Construction *Seasonally adjusted annual rate for last reporting period $69.2 **ConstructConnect.com's forecast $99.3** $31.6** 2018 $74.8** $45.5** $53.9** $26.5** $89.5** $3.2** $2.9* Other Key Indicators Unemployment Rate The U.S. Labor Department reports that the unemployment rate is at 3.7%; the lowest mark in the recovery from the Great Recession, which saw a monthly high of 10.0% in Oc - tober of 2009. Forty-four states and the District of Columbia added construction jobs in the last 12 months according to the Associated General Contractors of America. The Bureau of Labor Statistics puts the industry increase at 330,000 positions with 30,000 of them coming in October - nearly half of those being residential specialty trade workers. Materials Costs The costs to purchase materials used in construction are running 7.9 percent higher than this time last year. In the in - dividual categories, crude petroleum prices are 49.7 percent greater, steel mill products cost 18.2 percent more and iron/ steel products are 13.9 percent higher – the largest year-over- year increases. On the plus side, softwood lumber is down 7.9 percent and natural gas saw a yearly decrease of 2.9 percent. Street-level Outlooks In the largest monthly decrease in almost five years, the latest National As- sociation of Homebuilders/Wells Fargo survey of builder confidence shed eight points to post a score of 60. While still a strong showing, it is the worst month- to-month performance since February 2014. Expectations for sales over the next six months took a 10-point hit, buyer traffic was down eight points and current sales lost seven points. Of the three, only the traffic score, at 45, was below the positive threshold of 50. But the NFIB Small Business Optimism Index posted a recent score of 107.4, which remains near record territory. And the LC/DBM annual survey found that about 71% of our readers saw their business grow in the last year, and more than 72% of them expect expansion over the next one. Rate in Percent 10/15 10/17 10/16 10/18 Q4/17 Q2/18 Q1/18 Q3/18 Rate in Percent Concrete Products Total Inputs to Construction Iron & Steel More companies than not reported better business in each quarter compared to the previous quarter in the last 12 months. 4.1 3.7 70 65 4.8 5.0 72 0.5 -0.3 1.5 -10.3 7.9 3.3 13.9 -7.9 3.0 Houzz Renovation Barometer: U.S. Construction Sector A sampling of the latest Producer Price Index. Above 50 = Positive Score -0.5 1-Month % Change 12-Month % Change Softwood Lumber Nonferrous Wire & Cable 71 2019

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