ConDig (03-Jan-20). US construction spending jumped 4.1% higher in November compared with the same month the year prior on a rise in public and private construction, according to latest Commerce Department figures.

Construction spending totaled $1.324 trillion at a seasonally adjusted annual rate in November, up 0.6% from October and up 4.1% from November 2018.

The rise comes as total public construction spending surged 12.4% compared with a year earlier to $338.6 billion and was up 0.9% from October, while private spending was 1.6% higher from the year-ago period to $985.4 billion and up 04.% on the month prior. Total residential spending was up 2.9% to $543 billion.

Officials at the Associated General Contractors of America (AGC) continued to warn that contractors are failing to keep up with growth in the sector due to labor shortages, noting many firms report they have raised bid prices or proposed longer construction schedules because of labor shortages.

“The single greatest threat to continued growth in the construction industry is the shortage of qualified candidates for firms to hire,” said Stephen E. Sandherr, chief executive officer at AGC.

“That is why Congress and the Trump administration must act quickly to boost investments in career and technical education and allow more people with construction skills to legally enter the country.”

A survey by Autodesk and AGC found that over three quarters of US contractors face difficulties filling hourly craft positions, which has raised construction costs and pushed out project completion times,

Of the nearly 2,000 survey respondents, 80% said they are struggling to find qualified craft workers.