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
Healthcare Facilities | Feb 21, 2023
Cleveland's Glick Center hospital anchors neighborhood revitalization
The newly opened MetroHealth Glick Center in Cleveland, a replacement acute care hospital for MetroHealth, is the centerpiece of a neighborhood revitalization. The eleven-story structure is located within a ‘hospital-in-a-park’ setting that will provide a bucolic space to the community where public green space is lacking. It will connect patients, visitors, and staff to the emotional and physical benefits of nature.
Multifamily Housing | Feb 21, 2023
Multifamily housing investors favoring properties in the Sun Belt
Multifamily housing investors are gravitating toward Sun Belt markets with strong job and population growth, according to new research from Yardi Matrix. Despite a sharp second-half slowdown, last year’s nationwide $187 billion transaction volume was the second-highest annual total ever.
Multifamily Housing | Feb 21, 2023
New multifamily housing and mixed-use buildings in Portland, Ore., must be ready for electric vehicle charging
The Portland, Ore., City Council recently voted unanimously to require all new residential and mixed-use buildings to be ready for electric vehicle charging. The move amends Portland’s zoning laws to require all new multi-dwelling and mixed-use development of five or more units with onsite parking to provide electric vehicle charging infrastructure.
K-12 Schools | Feb 18, 2023
Atlanta suburb opens $85 million serpentine-shaped high school designed by Perkins&Will
In Ellenwood, Ga., a southeast suburb of Atlanta, Perkins and Will has partnered with Clayton County Public Schools and MEJA Construction to create a $85 million secondary school. Morrow High School, which opened in fall 2022, serves more than 2,200 students in Clayton County, a community with students from over 30 countries.
Museums | Feb 17, 2023
First Americans Museum uses design metaphors of natural elements to honor native worldview
First Americans Museum (FAM) in Oklahoma City honors the 39 tribes in Oklahoma today, reflecting their history through design metaphors of nature’s elements of earth, wind, water, and fire. The design concept includes multiple circles suggested by arcs, reflecting the native tradition of a circular worldview that encompasses the cycle of life, the seasons, and the rotation of the earth.
Architects | Feb 17, 2023
Architect of the Capitol fired by President Biden after strong bipartisan criticism
Architect of the Capitol J. Brett Blanton was let go this week following alleged abuse of authority, misuse of government property, and wasted taxpayer money.
High-rise Construction | Feb 15, 2023
Bjarke Ingels' 'leaning towers' concept wins Qianhai Prisma Towers design competition
A pair of sloped high-rises—a 300-meter residential tower and a 250-meter office tower—highlight the Qianhai Prisma Towers development in Qianhai, Shenzhen, China. BIG recently won the design competition for the project.
Senior Living Design | Feb 15, 2023
Passive House affordable senior housing project opens in Boston
Work on Phase Three C of The Anne M. Lynch Homes at Old Colony, a 55-apartment midrise building in Boston that stands out for its use of Passive House design principles, was recently completed. Designed by The Architectural Team (TAT), the four-story structure was informed throughout by Passive House principles and standards.
Designers | Feb 13, 2023
Hoffmann Architects + Engineers Establishes Diversity Advancement Scholarship Fund
Hoffmann Architects + Engineers, a design firm specializing in the rehabilitation of building exteriors, contributed $25,000 to fund the Hoffmann Diversity Advancement Scholarship, administered through the Connecticut Architecture Foundation. The fund provides scholarships for students from underrepresented racial or ethnic groups who are seeking degrees in architecture or engineering.
Office Buildings | Feb 12, 2023
Smyrna Ready Mix’s new office HQ mimics the patterns in the company’s onsite stone quarry
Designed by EOA Architects to showcase various concrete processes and applications, Smyrna Ready Mix's new office headquarters features vertical layering that mimics the patterns in the company’s stone quarry, located on the opposite end of the campus site. The building’s glass and concrete bands are meant to mirror the quarry’s natural contours and striations.
