Gilbane Building Company today announces the publication of the Spring 2013 edition of Construction Economics – Market Conditions in Construction. Based on an array of economic data, construction starts, and material cost trends, the data is the most positive the company has seen in recent years.
“We are in a growth period that by all leading indicators seems here to stay. From 2006 to 2010, as work declined, we saw the largest decline of margins in recent history. In 2011 that trend began to reverse slightly” says Ed Zarenski, the report’s author and a 40-year veteran of the construction industry. “I expect the positive growth to continue.”
According to the report, the monthly rate of construction spending is up 20% in 24 months and increased in 18 of the last 24 months, which is a good leading indicator for new construction work in Q3-Q4 2013.
Other highlights include:
- Residential spending will take the lead in 2013, nonresidential spending will lag.
- Public spending will decline. Private spending will lead the charge in 2013.
- As spending continues to increase, even moderate growth in activity will allow contractors to pass along more material costs and increase margins. When activity picks up in all sectors, escalation will begin to advance rapidly.
- Predicted spending growth of 8.2% for Commercial markets, 5.2% for Office and 2.3% for Healthcare.
Construction jobs grew by 150,000 in the last five months. Just to meet the needs of the predicted residential building expansion, the workforce needs to grow by 750,000 jobs in the next two years, faster than the entire construction workforce has ever grown in history.
Future escalation, in order to support labor growth, materials demand and to capture increasing margins, will be higher than normal labor/material cost growth. Lagging regions may take longer to experience high escalation. Residential escalation will be near the upper end of the range.
This free report and its executive summary are available for download at http://www.gilbaneco.com/economic-report.
About Gilbane, Inc.
Gilbane provides a full slate of construction and facilities-related services – from pre-construction planning and integrated consulting capabilities to comprehensive construction management, close-out and facility management services – for clients across various markets. Marking its 140th year in operation and still a privately held, family-run company, Gilbane has more than 60 office locations around the world. To find out what the next 140 years have in store, visit www.gilbaneco.com.
Related Stories
Giants 400 | Oct 24, 2019
Top 125 Retail Architecture Firms for 2019
CallisonRTKL, Gensler, MG2, NELSON, and Stantec top the rankings of the nation's largest retail sector architecture and architecture engineering (AE) firms, as reported in Building Design+Construction's 2019 Giants 300 Report.
Architects | Oct 11, 2019
SMPS report tracks how AEC firms are utilizing marketing technology tools
With thousands of MarTech tools and apps on the market, design and construction firms are struggling to keep up.
Healthcare Facilities | Oct 4, 2019
Heart failure clinics are keeping more patients out of emergency rooms
An example of this building trend recently opened at Beaumont Hospital near Ann Arbor, Mich.
Giants 400 | Oct 3, 2019
Top 30 Convention Center Sector Architecture Firms for 2019
LMN Architects, Gensler, Populous, Fentress Architects, and Moody Nolan top the rankings of the nation's largest convention center sector architecture and architecture engineering (AE) firms, as reported in Building Design+Construction's 2019 Giants 300 Report.
Giants 400 | Oct 3, 2019
Top 110 Cultural Sector Architecture Firms for 2019
Gensler, Populous, DLR Group, Stantec, and Perkins and Will top the rankings of the nation's largest cultural facility sector architecture and architecture engineering (AE) firms, as reported in Building Design+Construction's 2019 Giants 300 Report.
Giants 400 | Oct 3, 2019
2019 Cultural Facility Giants Report: New libraries are all about community
The future of libraries is less about being quiet and more about hands-on learning and face-to-face interactions. This and more cultural sector trends from BD+C's 2019 Giants 300 Report.
Architects | Oct 3, 2019
LEO A DALY wins Architect of the Capitol contract
The firm will help modernize some of the country’s most significant public buildings.
3D Printing | Sep 17, 2019
Additive manufacturing goes mainstream in the industrial sector
More manufacturers now include this production process in their factories.
Multifamily Housing | Sep 12, 2019
Meet the masters of offsite construction
Prescient combines 5D software, clever engineering, and advanced robotics to create prefabricated assemblies for apartment buildings and student housing.
Cultural Facilities | Sep 11, 2019
The Kennedy Center expands for the first time since its 1971 debut
The REACH, with three pavilions on a generous lawn, adds openness and light to this performance space.
