Building industry rebounds - in some places

The results of an analysis of annual sales growth for private construction companies nationwide might stun some on the Gulf Coast.

The report, from Sageworks, a Raleigh, N.C.-based financial data firm, states revenues in the industry, on average, increased 10.62% in 2012 and 10.19% in 2011. While some local firms certainly are having solid rebounds, others wouldn't be able to duplicate back-to-back years like that.

Plus, manufacturing firms and retailers, by comparison, are down: The manufacturers Sageworks analyzed grew revenues 8.87% in 2012, a drop from 14.66% in 2011. Retail companies, meanwhile, grew revenues 5.88% in 2012, down from 9.87% in 2011.

“Construction companies seem to have bucked the overall trend,” Sageworks analyst Libby Bierman says in a release. “One possible explanation may be due to the fact that the rebound in construction started a bit later than it did in those other sectors. Construction may be earlier in the recovery cycle than some of the other industries, like manufacturing and retail.”

The uptick, however, didn't necessarily translate to hiring. In fact, Sageworks noted that the Associated General Contractors of America says the industry's unemployment rate in late December was 12.2%. A recent AGC survey also found many contractors had already cut staff and delayed hiring because of government uncertainty and the looming fiscal cliff.