Nonresidential Construction Employment Falls in May

June 4, 2010 | www.abc.org
Nonresidential Construction Employment Falls in May

"A combination of factors, including still tight credit and high commercial vacancy rates, conspired to reverse what had been growing construction employment momentum." —ABC Chief Economist Anirban Basu

Employment in the nation’s nonresidential construction industry fell by 4,200 jobs in May after an across-the-board jobs gain the previous month, according to June 4 employment report by the U.S. Labor Department. Since May 2009, the nonresidential building construction sector has lost 55,400 jobs, or 7.5 percent, and the employment stands at 684,300. (See Analysis below)

Hardest hit was the nonresidential specialty trade sector where employment fell by 16,500 jobs for the month and 251,700, or 11.3 percent, since May 2009. The heavy and civil engineering construction sector lost 7,400 jobs in May and 53,200, or 6.2 percent, since the same time last year.
Residential construction employment slipped by 3,300 jobs last month and has lost 66,400 jobs, or 10.3 percent, since May 2009. The construction industry as a whole lost 35,000 jobs in May – the first monthly job loss since February. Over the past twelve months, the industry lost 529,000 jobs, or 8.6 percent of total employment. The national unemployment rate for the construction industry in May is 20.1 percent.
Overall, total employment for all industries was up by 431,000 jobs in May, with temporary Census workers accounting for 411,000 of those jobs. Private sector employment gained 41,000 jobs for the month. On a year-over-year basis, total employment is down 585,000, or 0.4 percent, and the nation’s unemployment rate in May stands at 9.7.
Analysis
“At first glance, today's jobs report could be viewed as very positive. However, nothing could be more disappointing,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Almost all of the jobs added are temporary federal government positions, and for the construction industry as a whole, last month represented a setback.
“Undoubtedly, a combination of factors, including still tight credit and high commercial vacancy rates, conspired to reverse what had been growing construction employment momentum,” said Basu. “In addition, the lower unemployment rate for the industry tells us that more people have given up trying to find construction jobs."
“Meanwhile, the financial markets are responding badly to today's employment release. The data indicates that the nation’s economic recovery remains fragile and has not yet become self sustaining,” Basu said. “It will be interesting to see if job growth numbers turn negative again later this year once Census Bureau hiring begins to trail off.”

Maryland General Assembly

I took a brief hiatus from blogging over the holidays and enjoyed a short vacation. Now with the new year upon us, I intend to reinvigorate this blog and hopefully turn itself into something more useful for those in the construction industry. I am also working on a construction law website which I intend to roll out later this year.

The Maryland General Assembly is now in session, as of yesterday. I am going to track and comment on some bills which have been introduced in the House or Senate which might affect the construction and real estate industries. This might not be inclusive as things change frequently.

SB 23- Relating to Green Energy
Senator Mooney
ENERGY COMPANIES – NET ENERGY METERING – CREDIT TRANSFERS
Authorizing specified not–for–profit customers to transfer all renewable energy generation credits from net energy metering to specified properties; and requiring the Public Service Commission to adopt specified regulations.
EFFECTIVE OCTOBER 1, 2010
PUC, § 7-306(a) and (i) - amended and § 7-306(i) - added
Assigned to: Finance

SB 50-Relating to Green Energy
Senator Mooney
ELECTRIC COMPANIES – NET ENERGY METERING
Repealing a limitation on the period of time that a specified eligible customer–generator may accrue specified generation credit; repealing a limitation on the time that a specified electric company is required to carry forward a generation credit or a negative kilowatt–hour reading; requiring a specified electric company to carry forward a specified generation credit until specified events occur; etc.
EFFECTIVE OCTOBER 1, 2010
PUC, § 7-306 - amended
Assigned to: Finance

SB 103- Landscape Architects
STATE BOARD OF EXAMINERS OF LANDSCAPE ARCHITECTS – SUNSET EXTENSION AND PROGRAM EVALUATION
Continuing the State Board of Examiners of Landscape Architects in accordance with the provisions of the Maryland Program Evaluation Act (sunset law) by extending to July 1, 2024 the termination provisions relating to specified statutory and regulatory authority of the Board; requiring that an evaluation of the Board and the statutes and regulations that relate to the Board be performed on or before July 1, 2023; and requiring the Board to submit a specified report on or before October 1, 2011.

HB 29
Delegate Braveboy
REAL PROPERTY – CONDOMINIUMS AND HOMEOWNERS ASSOCIATIONS – PRIORITY OF LIENS
Establishing that, in a foreclosure sale of a condominium unit or a lot in a homeowners association, a portion of a contract lien consisting of not more than 6 months of specified unpaid assessments, including attorney’s fees or specified costs, has priority over the claim of the holder of a first mortgage or deed of trust recorded against the unit or lot after October 1, 2010 under specified circumstances; establishing that a lot owner in a homeowners association is liable for specified assessments and charges; etc.
EFFECTIVE OCTOBER 1, 2010
RP, § 11-110(d) -

HB 42
Delegate Conaway
REAL ESTATE APPRAISERS – KNOWLEDGE OF VALUE OF REAL ESTATE – PROHIBITED
Prohibiting specified real estate appraisers from providing real estate appraisal services under specified circumstances in which the specified real estate appraisers know the asking price or the selling price of the real estate being appraised; providing that a person who violates the Act is guilty of a misdemeanor; and establishing penalties.
EFFECTIVE OCTOBER 1, 2010
BOP, § 16-705.2 - added and § 16-706 - amended
Assigned to: Economic Matters

HB 64
Delegate McConkey
REAL PROPERTY – RESIDENTIAL MORTGAGES AND DEEDS OF TRUST – FORECLOSURE SALES
Creating a rebuttable presumption that a foreclosure sale of specified residential real property is invalid if the sale begins more than 30 minutes after the scheduled time for the sale.
EFFECTIVE OCTOBER 1, 2010
RP, § 7-105 - amended
Assigned to: Environmental Matters

HB 80
Chair, Economic Matters Committee (By Request – Departmental – Labor, Licensing and Regulation)
STATE BOARD FOR PROFESSIONAL ENGINEERS
Requiring the State Board of Professional Engineers to adopt regulations to require a demonstration of continuing professional competency for a licensee as a condition of renewal of a license subject to specified exceptions; authorizing the Board to issue a retired status license to specified individuals; prohibiting the holder of a retired status license from practicing professional engineering; authorizing the holder of a retired status license to use a specified designation; etc.
EFFECTIVE JULY 1, 2010
BOP, § 14-314 - amended and § 14-316 - added
Assigned to: Economic Matters

HB 84
Chair, Economic Matters Committee (By Request – Departmental – Labor, Licensing and Regulation)
STATE BOARD OF HEATING, VENTILATION, AIR–CONDITIONING, AND REFRIGERATION CONTRACTORS – MEMBERSHIP
Increasing the number of members of the State Board of Heating, Ventilation, Air–Conditioning, and Refrigeration Contractors to include two additional contractor members; and requiring that the two additional Board members be appointed without regard to geographic region or location in the State.
EFFECTIVE JULY 1, 2010
BR, § 9A-202 - amended
Assigned to: Economic Matters

It's still early and surely there are more to come.

Click the link above to go to the MGA website. If you have any questions, let me know.

Is the housing market recovering?

Is the housing market recovering? For Toll Brothers, Inc. a regional construction company, it seems to be. "We have definitely progressed from one year ago,” said Toll Brothers CEO Robert Toll." It's fourth quarter results have jumped approximately 42%. The positive sentiment amplifies that of Reston-based Comstock Homebuilding Cos. Inc. (NASDAQ: CHCI) which returned to profitability during the third quarter and said the homebuilding industry is on the mend.

Will the rest of the construction industry follow? Probably, but it's too soon to tell how quickly.

Click on the title link to read the article in the Baltimore Business Journal.