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
| Oct 14, 2014
Richard Meier unveils design for his first tower in Taiwan
Taiwan will soon have its first Richard Meier building, a 535-foot apartment tower in Taichung City, the country’s third-largest city.
| Oct 13, 2014
The mindful workplace: How employees can manage stress at the office
I have spent the last several months writing about healthy workplaces. My research lately has focused on stress—how we get stressed and ways to manage it through meditation and other mindful practices, writes HOK's Leigh Stringer.
| Oct 13, 2014
Debunking the 5 myths of health data and sustainable design
The path to more extensive use of health data in green building is blocked by certain myths that have to be debunked before such data can be successfully incorporated into the project delivery process.
Sponsored | | Oct 13, 2014
The problem with being a customer-centric organization
Kristof De Wulf, CEO of InSites Consulting, argues that the effects of customer-centricity typically don’t endure, leading only to temporary improvements in company performance. SPONSORED CONTENT
Sponsored | | Oct 13, 2014
CLT, glulam deliver strength, low profile, and aesthetics for B.C. office building
When he set out to design his company’s new headquarters building on Lakeshore Road in scenic Kelowna, B.C., Tim McLennan of Faction Projects knew quickly that cross-laminated timber was an ideal material.
Sponsored | | Oct 13, 2014
Think you can recognize a metal building from the outside?
It’s getting more and more difficult to spot a metal building these days. What looks like brick, stucco or wood on the outside could actually be a metal building in disguise. SPONSORED CONTENT
Sponsored | | Oct 13, 2014
Liberty Utilities protects installers with Viega MegaPress
Liberty Utilities of New Hampshire wanted a way to keep its installers safe without compromising the quality of their installations, which is why the utility provider decided to start installing Viega MegaPress. SPONSORED CONTENT
| Oct 13, 2014
Department of Agriculture launches Tall Wood Building Competition
The competition invites U.S. developers, institutions, organizations, and design teams willing to undertake an alternative solution approach to designing and building taller wood structures to submit entries for a prize of $2 million.
| Oct 12, 2014
AIA 2030 commitment: Five years on, are we any closer to net-zero?
This year marks the fifth anniversary of the American Institute of Architects’ effort to have architecture firms voluntarily pledge net-zero energy design for all their buildings by 2030.
| Oct 10, 2014
A new memorial by Zaha Hadid in Cambodia departs from the expected
The project sees a departure from Hadid’s well-known use of concrete, fiberglass, and resin. Instead, the primary material will be timber, curved and symmetrical like the Angkor Wat and other Cambodian landmarks.