Dive Brief:
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The latest sign of a strengthening economic recovery came on Wednesday, as the Commerce Department reported construction spending climbed to a six-year high in May.
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Every major construction category, including nonresidential, homebuilding and public government, saw “solid” monthly and year-over-year gains, an analysis by the Associated General Contractors of America said.
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Construction spending in May — $1.036 trillion — grew 0.8% over April and was the strongest since October 2008.
Dive Insight:
A chronic industry pitfall — the shortage of qualified labor — could threaten construction’s continuous climb, AGC officials noted.
Their recommendation: Federal, state and local governments should strengthen their programs to develop a construction work force. The association has recommended that governments expand career and technical education programs, make it easier for private firms to establish regional training programs, and get behind immigration reform.
"Whether [the industry] can continue to grow depends in part on companies being able to find enough skilled workers," AGC Chief Economist Ken Simonson said in a statement.
AGC’s CEO Stephen E. Sandherr added, “We need to rebuild what was once a robust pipeline for attracting and training younger people into high-paying construction careers... It would be a sad irony if firms can't take advantage of growing demand for work because there aren't enough workers."