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Article 1 (Mar 2017): Big Gainers & Losers in Construction Employment (Jan. 2017 YOY)

March 29, 2017
Construction employment showed a mixed pattern geographically in the latest 12 months, increasing in 219 out of 358 metro areas between Jan. 2016 and Jan. 2017, declining in 104 and stagnating in 35, according to a new analysis of federal employment data released today by the Associated General Contractors of America.

Nationally, construction employment increased by 184,000 or 2.8% from Jan. 2016 to Jan. 2017, and the number of metro areas with increases was more than double the number with decreases, the economist pointed out. But some states, such as Texas, had both types of metro areas. Adjacent portions of southern California were among the top job gainers and job losers, he noted. Some areas that depend heavily on oil or gas drilling lost jobs but may be poised for recovery now that drilling-rig counts have risen again, he predicted.

Atlanta-Sandy Springs-Roswell, Ga. (8,600 jobs, 8%) added the most construction jobs during the past year, followed by Dallas-Plano-Irving, Texas (8,300 jobs, 6%); Tampa-St. Petersburg-Clearwater, Fla. (7,700 jobs, 12%); Orlando-Kissimmee-Sanford, Fla. (6,700 jobs, 10%); and Riverside-San Bernardino-Ontario, Calif. (6,200 jobs, 7%). The largest percentage gains occurred in the Grand Forks, N.D.-Minn. metro area (36%, 1,000 jobs) and the Lewiston, Idaho-Wash. area (36%, 400 jobs), followed by Pocatello, Idaho (29%, 400 jobs).

The largest job losses from Jan. 2016 to Jan. 2017 were in Houston-The Woodlands-Sugar Land, Texas (-8,200 jobs, -4%), followed by Pittsburgh, Pa. (-2,700 jobs, -6%); and Los Angeles-Long Beach-Glendale, Calif. (-2,100 jobs, -2%). The largest percentage decreases for the year were in Casper, Wyo. (-22%, -700 jobs); Cleveland, Tenn. (-21%, -400 jobs); and Danville, Ill. (-20%, -100 jobs).

Association officials noted that firms in many parts of the country are either benefitting from growing demand for construction or having a hard time finding enough qualified workers to keep up with demand, while firms in other parts suffer from declining demand. "While construction employment is growing at a healthy clip overall, there are many pockets of decline across the map and even within states or metro areas," said Ken Simonson, the association's chief economist. "These shifts, depending on location, may reflect a shortage of skilled workers available to hire, a lack of funding for infrastructure and other projects, or broader economic trends."

These changes in construction employment directly impacts the electrical market, because according to Electrical Wholesaling data, electrical contractors typically account for 13% of total construction employment and each electrical contractor represents $61,512 in electrical product sales potential. That means the Atlanta metro's YOY construction increase translates to $68.8 million in additional annual electrical sales, while the -4% decrease in the Houston market's construction employment slashed electrical potential there by $65.6 million.

Source: Jim Lucy – EW Update
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