ACHR News
search
Ask ACHR NEWS AI
cart
facebook twitter instagram linkedin youtube
  • Sign In
  • Subscribe
  • Sign Out
  • My Account
ACHR News
  • NEWS
    • Breaking News
    • New HVAC Products
    • Featured Products
    • Manufacturer Reports
    • HVAC Data
    • Legislation
    • ACHR NEWS Centennial
  • RESIDENTIAL
    • Air Conditioners
    • Furnaces
    • Residential Heat Pumps
    • Ductless
    • Residential IAQ
    • Testing, Monitoring, Tools
    • Components & Accessories
  • COMMERCIAL
    • Air Handlers
    • Rooftop Units
    • Chillers and Cooling Towers
    • Commercial Heat Pumps
    • Boilers and Hydronics
    • VRF/Ductless
    • Commercial IAQ
  • REFRIGERATION
    • Refrigerants
    • Refrigerant Regulations
    • Leak Management
  • CONTRACTOR PRO
    • Geothermal
    • Homeowner Study
    • VRF and VRV Ductless
    • Unitary Trends
  • EDUCATION
    • Training and Education
    • Business Management
    • Service and Maintenance
    • Continuing Education
    • Market Research >
      • HVAC Brand Awareness Report
      • VRV, VRF, VRVZ Report
      • Unitary Trends Report
      • Water Heat Professionals Report
    • Webinars
    • Sponsor Insights
    • eProducts Info
    • White Papers
  • EVENTS
    • HVAC Contractor Forum
    • Industry Events and Webinars
  • MEDIA
    • Videos
    • AHR Expo 2025 Videos
    • Podcasts >
      • ACHR News Podcast
      • HARDI Podcasts
      • AHR Expo Podcasts
      • ACCA Podcasts
    • Interactive Spotlights
    • Quizzes
    • eBooks
    • HVAC Talkback
  • HVAC GROUP
    • ACHR NEWS >
      • Current Issue
      • Digital Edition
      • Subscribe
    • Distribution Trends
    • SNIPS NEWS >
      • Join SNIPS NEWS
    • Engineered Systems News >
      • Join ES News
    • HVACR Directory
    • Contests
    • Newsletters
    • Contact
    • Advertise
    • My Account

Census Bureau Report: Construction Market Spikes

By Angela D. Harris
August 14, 2006
"Construction spending rebounded in June after a tiny drop in May and a small increase in April," said Ken Simonson, chief economist for the Associated General Contractors of America (AGC). Simonson was commenting on an Aug. 1 report from the Census Bureau that showed the value of construction put in place rose at a seasonally adjusted annual rate of 0.3 percent in June, following a drop of less than 0.1 percent in May, and a gain of 0.2 percent in April.

"In all three months, private residential construction dropped sharply, while private nonresidential and public construction spending increased," Simonson observed. "In June, these categories rose 2.7 and 0.8 percent respectively. I expect those trends to continue: falling residential spending, very strong private nonresidential, and somewhat positive public spending."

According to the AGC, manufacturing spending on the nonresidential side surged 8 percent for the month of June and 24 percent for the first half of 2006 as compared to January-June 2005.

Multiretail, which includes shopping centers and malls, added 1.1 percent in June and 52 percent year-to-date. Hotels and resorts jumped 8.7 percent for the month and 39 percent year-to-date. June's transportation facilities were up 1 percent and up 28 percent overall year-to-date. Power plants had a 4.1 percent spurt and 13 percent in the first half. Hospital construction continued to soar, up 1.7 percent for the month. It is so far experiencing a 29 percent increase for the first half of 2006.

On the other side of the coin, new private single-family construction dropped 2.1 percent. Private multi-family construction was up 0.1 percent and the renovations and additions category climbed 1.6 percent for the month, however, it is down 7 percent year-to-date.

"I expect to see more of the same for the rest of the year," Simonson predicted. "As builders work through current backlogs of sold but not-yet-built houses, they will curb new construction sharply. Condo work may tail off even more steeply but rental projects will take up some of the slack. Public construction should be helped initially by higher state budgets in the fiscal year that began in July for most states, but higher materials costs will limit the number of contracts that state and local governments can award."

MORE THAN NUMBERS

As construction trends shift, the industry watches not only the building numbers, but also the workforce. Many trades suffer from the inability to find sufficient qualified help, especially in places so profoundly impacted by Hurricanes Katrina and Rita. In response, the Business Roundtable, Washington, is spearheading the Gulf Coast Workforce Development Initiative. With members such as ABB Inc., Honeywell International Inc., CSX Corp., DuPont, and Johnson Controls Inc., Business Roundtable has committed funding and taken a leadership role in the coordination of training to assist in recruiting workers.

"The Gulf Coast region is a key component of a strong national economy, and Business Roundtable CEO's remain committed to helping this area regain its vitality," said Charles Holliday Jr., chairman and CEO of DuPont.

Combining forces with the government and other entities, Business Roundtable is launching a new campaign within the Gulf Coast Workforce Development Initiative. Project Gulf Rebuild: Education, Advancement, and Training (I'M GREAT) will begin with a pilot project both in Baton Rouge, La., and Jackson, Miss.

Looking for quick answers on air conditioning, heating and refrigeration topics? Try Ask ACHR NEWS, our new smart AI search tool. Ask ACHR NEWS →

"The regional demand for construction labor significantly exceeded supply before the hurricanes," according to Business Roundtable. "This shortfall has grown even more because of the need for workers in the recovery effort. Thousands of additional construction workers will be required to continue the rebuilding effort in the Gulf Coast."

The program consists of free, four-week training courses that will provide an overview of the construction trade and give participants the skills necessary to start a career in construction, according to Business Roundtable. Classes are taught by construction-certified instructors, and safety training is included, satisfying the Occupational Safety and Health Administration's construction industry training program requirements. To be eligible for the program, applicants must be legal U.S. residents, pass a basic literacy assessment, and pass a drug test if required by the state. Upon successful completion of the course, participants will be qualified to work in basic entry-level construction jobs.

I'M GREAT is aiming for 20,000 new construction craft workers for the Gulf Coast region by the end of 2009 and will continue to add additional training courses in various construction specialties as the program progresses. The program will not only continue to expand its course offerings, but it will also expand its locations as it meets with success.

"The need for craft training to provide a trained workforce in the Gulf area has never been greater than it is today," said Don Whyte, president of the National Center for Construction Education and Research. "We want to help rebuild our communities and rebuild the lives of the Gulf Coast residents."

The initiative is beginning an advertising campaign to reach out to residents across the Gulf Coast. There will be a Website, special toll free numbers, and special events to communicate this opportunity. Billboards will also be launched during the campaign encouraging residents to call or go online and find out more about I'M GREAT.

"This project is gaining momentum thanks to a wide and expanding network of participating organizations, and we're already seeing interest from the regions' contractors," said Holliday.

The World Meteorological Organization may have retired the names Katrina and Rita from the official storm names list, but Business Roundtable and its partners don't show signs of retiring anytime soon.

Contact Ken Simonson at simonsonk@agc.org for more information on construction trends. For more information, go to www.imgreat.org or www.businessroundtable.org.

Publication date: 08/14/2006

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

 

Angela harris 400x400

Angela Harris is the Technology Editor. She can be contacted at 248-786-1254 or angelaharris@achrnews.com. Angela is responsible for What’s New and Technology articles for The NEWS. She obtained her bachelor’s degree in English from Oakland University and has nine years of professional journalism experience.   

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • HVAC-enrollment

    The Trades Are Back: HVACR Programs See Nearly 30% Enrollment Spike

    A new wave of future technicians is entering the pipeline.  
    Training and Education
    By: Matt Jachman
  • 2025 Top 40 Under 40

    2025 Top 40 Under 40 HVACR Professionals List

    The 11th annual Top 40 Under 40 list highlights those...
    HVAC Commercial Market
    By: Hannah Belloli-Oster
  • LG Ductless Mini-Split Systems

    The 9 Types of Heat Pumps

    As the U.S. moves toward electrification, heat pumps are...
    Air Source Heat Pumps
    By: Joanna R. Turpin
Subscription Center
  • Create an Account
  • Start a Subscription
  • Manage My Account
  • Sign Up for Newsletters
  • Visit Customer Service
  • Update Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to The News audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of The News or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Piggy Bank
    Sponsored byWatercress Financial

    Energy Prices, Inflation, and HVAC: What Today’s Homeowners Care About

  • Refrigerated Food
    Sponsored bySolstice Advanced Materials

    R-455A Refrigeration: A Cold Storage Solution for the Future

  • Airex Rooftop Units
    Sponsored byAirex Manufacturing Inc

    Consolidating Roof Penetrations: A Growing Trend in Multifamily HVAC Design

Popular Stories

Outdoor-condensing-units.jpg

EPA Removes R-410A Installation Deadline

Trump-Section-232.jpg

Trump Reduces Section 232 Tariffs on HVAC Equipment to 15%

cooling-habits.jpg

50 Percent of Americans Have Skipped HVAC Maintenance

ACHR NEWS Editor Chris Gray Presenting HVAC Minute 5-18-2026

HVAC Manufacturers Fight Pricing Lawsuits

tim-brooks.jpeg

2026’s Best Distributor Partners With Customers

View The ACHR NEWS
Centennial Anniversary Timeline

The ACHR News Timeline Chart
Submit a Letter
Submit a letter to our editors.

Events

November 6, 2025

Next-Gen Data Center Cooling: HVAC Innovation and Real-World Solutions

On Demand As AI workloads and high-density computing push traditional cooling methods to their limits, the data center industry is accelerating the adoption of next-generation HVAC technologies.

June 9, 2026

Before You Go All In on AI: Set Up Your Business to Actually Win

In this webinar, we'll walk you through exactly what to get in place before you add AI to your business. You'll leave with a clear picture of where you stand today and a practical action plan to set yourself up for real results.

View All Submit An Event

Poll

EPA Decision

Are you happy the EPA decided contractors can continue to install R-410A equipment?
View Results Poll Archive

Products

BNI Mechanical/Electrical Square Foot Costbook, 2026 Edition

BNI Mechanical/Electrical Square Foot Costbook, 2026 Edition

See More Products
A2L Refrigerants - Free Webinar - May 21, 2026

Related Articles

  • Census Bureau to send out business surveys

    See More
  • US home construction market holds steady for February

    See More
  • Report: Home construction surges in November

    See More

Related Products

See More Products
  • Building Information Modeling: Planning and Managing Construction Projects with 4D CAD and Simulations

  • The ACHR News - January 19, 2026

    ACHR NEWS January 19, 2026, Issue

  • 1966.gif

    HVAC Duct Construction Standards - Metal and Flexible

See More Products
×

Sign Up. Stay Informed.

The #1 trusted source for the HVACR industry since 1926

SUBSCRIBE
  • RESOURCES
    • Advertise
    • Contact Us
    • Advisory Board
    • Classifieds
    • Submit a Letter
    • Directories
    • Store
  • ACCOUNT CENTER
    • Create an Account
    • Start a Subscription
    • Manage My Account
    • Sign Up for Newsletters
    • Visit Customer Service
    • Update Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2026. All Rights Reserved BNP Media, Inc. and BNP Media II, LLC.

Design, CMS, Hosting & Web Development :: ePublishing