Gilbane Building Co. has released the Fall 2012 edition of Construction Economics -- Market Conditions in Construction. Based on an array of economic data, construction starts, and material cost trends, this free report indicates an increase in construction spending over last year but cautions of an expected downturn again in early 2013. The Architectural Billings Index (ABI), which predicts activity 9-12 months out, indicates increasing spending nearly through the end of the year before another slowdown.
"Jobs continue to be the difficulty in this construction recovery. They are at a near standstill, while spending continues a slow climb," says Ed Zarenski, the report's author and a 40-year veteran of the construction industry. "A nugget of good news, though, is that climb may mean productivity is increasing. Spending is up only 2.5% since the beginning of the year, but up 6% from a year ago. Supported by positive growth trends, contractors may be able to recover a bit of lost margins."
According to the report, the construction industry has seen a small but continued growth in contractor's margins that started a very slow return to positive in 2011. Material price increases and labor cost growth will still contribute to escalation. Contractors' building costs "charged" in 2012 are above labor and material cost increases, signaling a continued movement towards recovery of more normalized margins.
Among the topics covered in this comprehensive report are:
- Construction Starts, Spending, & Costs
- Material Price Movement
- Trends and Costs for Structural Steel, Recycling Steel, & Copper
- Architectural Billings Index
- Current Inflation Forecast
- ENR Index -- BCI History
This free report is available for download at http://info.gilbaneco.com/construction-economics. +
Related Stories
Urban Planning | Feb 14, 2022
5 steps to remake suburbs into green communities where people want to live, work, and play
Stantec's John Bachmann offers proven tactic for retrofitting communities for success in the post-COVID era.
Urban Planning | Feb 11, 2022
6 ways to breathe life into mixed-use spaces
To activate mixed-use spaces and realize their fullest potential, project teams should aim to create a sense of community and pay homage to the local history.
Senior Living Design | Feb 11, 2022
Design for senior living: A chat with Rocky Berg, AIA
Rob Cassidy, Editor of MULTIFAMILY Design + Construction, chats with Rocky Berg, AIA, Principal with Dallas architecture firm three, about how to design senior living communities to meet the needs of the owner, seniors, their families, and staff.
Architects | Feb 11, 2022
How computer simulations of vision loss create more empathetic buildings for the visually impaired
Here is a look at four challenges identified from our research and how the design responds accordingly.
Healthcare Facilities | Feb 10, 2022
Respite for the weary healthcare worker
The pandemic has shined a light on the severe occupational stress facing healthcare workers. Creating restorative hospital environments can ease their feelings of anxiety and burnout while improving their ability to care for patients.
Architects | Feb 8, 2022
Perkins Eastman and BLT Architects merge
Expanding services in hospitality, education, and mixed-use sectors to better serve clients.
Architects | Feb 3, 2022
SmithGroup elevates Mark Adams to lead workplace practice
In his new role, Adams leads the firm’s practice devoted to the design of corporate and commercial facilities.
Architects | Feb 2, 2022
Steven L. Pliam joins LEO A DALY as Design Technology Leader
Pliam will oversee the deployment and use of technologies such as computational design, parametric design, digital practice, reality capture, visualization, virtual/augmented reality, GIS and AI/Machine Learning.
Architects | Jan 31, 2022
Heatherwick Studio proposes new public waterfront site for Seoul
Heatherwick Studio was recently selected as part of the team by the Seoul Metropolitan Government to create a new sports and cultural district for the city.
Retail Centers | Jan 31, 2022
Amazon Style: Amazon’s latest innovative physical shopping experience
In January, Amazon unveiled plans to build a physical fashion store concept, dubbed Amazon Style, in Los Angeles. The e-commerce giant says the store will offer “together the best of shopping on Amazon–great prices, selection, and convenience–with an all new shopping experience built to inspire.”
