(IND) 2014 looks bright for construction, manufacturing employment

At the end of the year, growth figures in employment for construction and manufacturing were mixed, but the outlook for 2014 was positive.

In December, construction employment fell for the first time since May, by 16,000 jobs, according to the U.S. Bureau of Labor Statistics.

The cold that gripped much of the country was cited as one of the reasons for the decline.

While January and early-February have not fared much better in terms of weather, at the end of 2013 the industry’s unemployment rate reported a drop to 11.4 percent, according to a news release from The Associated General Contractors of America.

“Given the variability of weather, especially in winter, the downturn in December is not cause for alarm,” Ken Simonson, the association’s chief economist, said in the news release. “The data does show how uneven the recovery remains with residential construction doing very well, but the public sector remains weak, and private nonresidential construction is mixed.”

The trends, when comparing the figures from December to the past few years, show positive movement, according to the release.

In December 2010 the unemployment rate for construction workers was 20.7 percent. By December 2012 it was 13.5 percent. It was 11.4 percent in December 2013 ­— the lowest it has been in six years.

Part of the reason for the decline in employment figures may be attributable to workers leaving the construction industry. And the Associated General Contractors of America warned that if demand continues to rise, it could make it difficult for contractors to find skilled workers.

Manufacturing growth improves

On the manufacturing side, industrial production increased slightly, 0.3 percent in December, which was the fifth consecutive monthly gain, according to a news release from The PNC Financial Services Group Inc.

Manufacturing output was up 0.4 percent in December, led by a 1.1 percent increase in production of durable consumer goods, including a big increase in production of motor vehicles.

In Kentucky, exports were up 15 percent above the pre-recession level, according to the fourth quarter 2013 Burgundy Book report published by the Federal Reserve Bank of St. Louis.

Across the Ohio River in Indiana, while exports have declined three quarters in a row, exports are still 21 percent above the prerecession level.

Into the first quarter of 2014, the pace of manufacturing growth is expected to continue.

Manufacturing will expand at roughly the same pace as the overall economy in 2014, PNC Financial Services Group senior economist Gus Faucher, said in a news release.

Continued growth in consumer spending, particularly on big-ticket durable goods including cars and trucks, is leading the acceleration in manufacturing. Those automotive sales are expected to improve but likely at a slower pace compared to last year, Faucher said.

Those manufacturing numbers in 2014 could be buoyed locally by automotive manufacturing growth announced recently by Ford Motor Co.

Source: Louisville Business Journal