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
| Sep 19, 2012
HGA Architects & Engineers moves offices in San Francisco
HGA’s San Francisco office has grown by nearly 25% in the past two years, adding shared expertise to the 120-person California practice, which includes the Sacramento and Los Angeles offices.
| Sep 19, 2012
Sasaki opens office in Shanghai
Office supports firm’s present and future work in China, throughout Asia.
| Sep 18, 2012
MBMA partners with ORNL for whole building energy efficiency study
The results are intended to advance energy efficiency solutions for new and retrofit applications.
| Sep 18, 2012
MKK opens office in North Dakota
MKK is currently working on seven projects in North Dakota, including a hotel, restaurant, truck stop, office building, and apartment complex.
| Sep 18, 2012
Firestone Building Products launches new website
Deep product information and innovative customer support tools are highlights.
| Sep 13, 2012
Leo A Daly Company promotes Kraskiewicz to senior vice president
Kraskiewicz, who most recently served as chief operations officer for the Leo A Daly division, will guide brand management, business development, operations and financial performance for 18 offices worldwide.
| Sep 13, 2012
Acentech adds audiovisual expertise to Trevose, Penn. office
Artese focuses on advising, overseeing, and maintaining the client’s vision for the project from the initial kick-off meeting to the final commissioning of the completed systems.
| Sep 13, 2012
Margulies Perruzzi Architects completes office design for Pioneer Investments
MPA updated the office design and additional support space consisting of five floors at Pioneer’s Boston office located at 60 State Street.
| Sep 12, 2012
Harvesting new ways to eliminate waste at the USDA
After installing 20 high-speed, energy-efficient hand dryers in restrooms throughout the USDA headquarters; the USDA reports seeing an immediate 50% reduction in the use of paper towels.
| Sep 11, 2012
RTKL appoints Lance Hosey as Chief Sustainability Officer and Senior Vice President
Author and authority on green design to spearhead RTKL Performance-driven DesignSM initiative.
