FIND A CONTRACTOR BUYER'S GUIDE
BECOME AN INDUSTRY PARTNER
MCAA Logo
MEMBER LOGIN JOIN
NEWS
World of Concrete 2026 Registration Is Open ↗

Construction spending posts monthly and year-over-year increases

Words: Angelo MiscelliConstruction spending increased by 8 percent in March compared to a year earlier and was also up slightly between February and March amid growing demand for many types of construction, as the spending total hit the highest level since October 2007, according to an analysis by the Associated General Contractors of America. Association officials said the growth comes amid strong private-sector demand and new federal investments in surface transportation programs.

“Construction should be a significant contributor to economic growth in the remainder of 2016 and beyond,” said Ken Simonson, the association's chief economist. “Right now the biggest challenge for contractors in many parts of the country is that they are worried about finding enough qualified workers to meet demand.”

Construction spending in March totaled $1.138 trillion at a seasonally adjusted annual rate, 0.3 percent higher than the revised February total and 8.0 percent higher than in March 2015, Simonson said. Private residential spending increased by 1.6 percent for the month and 8.5 percent compared to twelve months earlier. Spending on multifamily residential construction jumped 5.6 percent for the month and 34.6 percent year-over-year, while single-family spending was flat compared to February but rose 13.4 percent compared to March 2015.

Private nonresidential construction spending increased 0.7 percent for the month and 9.3 percent from a year earlier. Simonson observed that all but one segment increased from 12 months before. The largest private nonresidential segment in March was manufacturing construction, which rose 2.2 percent for the month but dropped 2.0 percent year-over-year. The next-largest segment, power (including oil and gas pipelines), lost 1.8 percent for the month but gained 2.0 percent for the year.

Public construction spending dipped 1.9 percent from a month before but is still up 6.7 percent from 12 months earlier. The biggest public segment–highway and street construction–was up 0.4 percent for the month but is up 18.8 percent year-over-year, as new federal surface transportation investments enacted last year began to impact demand, Simonson noted.

Association officials said the new construction spending figures reinforce anecdotal reports that the industry continues to grow amid robust demand for most types of construction services. But officials warned that labor shortages are likely to become even more severe as construction firms continue to expand unless federal, state and local officials act on the measures outlined in the association’s Workforce Development Plan.

“The new spending data, combined with recent employment reports, make it clear that the construction industry is growing faster than the broader U.S. economy,” said Stephen E. Sandherr, the association’s chief executive officer. “But unless firms have enough workers to keep pace with demand, construction schedules are likely to slow as firms are forced to cope with labor shortages.”
 0
Construction Robotics Upgrades to Gold in the 2026 Masonry Alliance Program
December 2025

The Mason Contractors Association of America (MCAA) is delighted to share that Construction Robotics will upgrade their Silver partnership to a Gold partnership in the 2026 Masonry Alliance Program.

Industry News
Read More
MASONRY STRONG Podcast, Episode 34 Recap: Major Ogilvie, CEO at Ogilvie Strategies, LLC
December 2025

On this episode of the MASONRY STRONG Podcast, Major Ogilvie joins the set to talk about his days playing football in college, how his journey started, and how he's seen the masonry industry change over the years.

Justin Stengel
The MASONRY STRONG Podcast
Read More
Building the Future of the Trades: STABILA’s International Social Media Day and Verified Social Channels Are Inspiring the Next Generation
December 2025

In an era when social media often shapes public perception more than traditional media, even the most time-honored trades are finding new ways to connect, educate, and inspire. STABILA, a global name synonymous with precision measurement tools is trusted

Elsa Bueno
MAP Partner
Read More
Brickworks Supply Joins the 2026 Masonry Alliance Program as a Gold Partner
December 2025

The Mason Contractors Association of America (MCAA) is proud to share that Brickworks Supply will join the 2026 Masonry Alliance Program as a Gold Partner.

Industry News
Read More