Dates & Figs – September 2023

Enhanced Data Resilience Will Help the Design and Construction Industry Face the Risks That Impact Their Businesses – A new study highlights the importance of data access in the new digital age, provides insights into how to manage the top risks companies face and demonstrates that designers and contractors underestimate the cyber risks they face.

One of the most concerning risk-related findings is the degree to which the design and construction industry underestimates their exposure to cyberattack.

• Fifty-nine percent say that they have experienced a cybersecurity threat in the last two years. General contractors in particular struggle with this, with 70% who have experienced a threat and 30% who have had a ransomware attack since 2021.
• The majority (72%) of architects, engineers and contractors rate themselves as having a moderate or higher degree of preparation for an attack that would cause them to lose access to documents. However, 77% say they cannot go more than five days without access to documents before they experience serious schedule impacts on their projects, and the average duration of a successful ransomware attack is considerably longer than five days, potentially leaving many firms more vulnerable than they realize.

The report contains extensive detailed findings and analysis, and can be downloaded here.

Dodge Momentum Index

The Dodge Momentum Index (DMI), issued by Dodge Construction Network, declined 6.5% in August to 178.0 (2000=100) from the revised July reading of 190.3. Over the month, the commercial component of the DMI fell 1.6%, while the institutional component fell 14.8%. Year over year, the DMI remained 4% higher than in August 2022. The commercial and institutional components were up 3% and 7%, respectively. Watch Associate Director of Forecasting Sarah Martin discuss August’s DMI here.

Architecture Billings Index is a leading economic indicator for non-residential construction activity.

Four in 10 firm leaders currently consider their firms to be understaffed

Billings at architecture firms remained flat in July, with an AIA/Deltek Architecture Billings Index (ABI) score of 50.0 for the month. A score of 50.0 means that the share of firms that reported a decline in their billings in July is equal to the share of firms that reported an increase in their billings for the month. Inquiries into new projects continued to grow, but at a slightly slower pace than in the last two months. However, the value of newly signed design contracts was flat in July, which means that firms saw fewer clients committing to projects than they had in the previous two months.

While billings were flat nationally, firms located in the Midwest continued to report improving business conditions in July, marking the ninth consecutive month of growth for firms located in the region. Firms located in all other regions of the country saw modest declines in billings, most notably at firms located in the South, which had previously seen three months of growth. Business conditions also improved at firms with both commercial/industrial and institutional specializations in July, with firms with a commercial/industrial specialization reporting their strongest billings in more than a year. Billings remained very soft at firms with a multifamily residential specialization, where it has now been a year since they last reported growth.

The Key Role of Construction in Each State’s Economy

AGC has compiled data on the role of construction in the economy and employment in the United States, each state and major metro areas. Click on a state to see the fact sheet for it.

The Best-Paying Cities for Construction Workers

During the first six months of 2023, total construction spending in the United States amounted to $917.4 billion—an inflation-adjusted increase of 16.5% from the same period in 2020, when the onset of the COVID-19 pandemic halted economic activity, disrupted supply chains, and dramatically altered spending patterns. 

This increased spending bodes well for construction employment, which has surpassed pre-COVID levels: as of July 2023, there were over 7.9 million people employed in construction, an all-time high. Demand for construction workers translates to strong wages, especially when considering that few construction occupations require a post-secondary degree, though compensation varies by location. Researchers ranked metros and states according to the cost-of-living adjusted median annual wage for construction workers.