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
Museums | Sep 8, 2017
CAF announces plans for 20,000-sf Chicago Architecture Center to be built on East Wacker Drive
The Adrian Smith + Gordon Gill-designed space will open in summer 2018.
Architects | Sep 6, 2017
Fake architect caught in ‘Operation Vandelay Industries’ sentenced to 2 1/3 to 7 years in prison
The fake architect must also pay a $115,000 restitution.
Architects | Sep 6, 2017
Top 110 university architecture firms
Perkins+Will, Gensler, and CannonDesign top BD+C’s ranking of the nation’s largest university sector architecture and AE firms, as reported in the 2017 Giants 300 Report.
Contractors | Sep 6, 2017
Following the money: G702 progress payment certifications
There is no single method of calculating progress payments, but the most common formula is the percentage of completion applied to the total contract price, less a retainage which is held by the owner until final acceptance of the project.
Multifamily Housing | Sep 5, 2017
Free WiFi, meeting rooms most popular business services amenities in multifamily developments
Complimentary, building-wide WiFi is more or less a given for marketing purposes in the multifamily arena.
Architects | Sep 1, 2017
5 reasons why AEC firms need to focus on employer branding
Not to be confused with the branding of your firm overall, your employer brand is defined by your reputation as a workplace.
Healthcare Facilities | Sep 1, 2017
Caring for caregivers
Many healthcare organizations are increasingly focused on designing amenities, policies, and workplaces to better support their clinicians, health providers, and administrators.
Architects | Aug 31, 2017
How Instagram is changing the design industry
The digital and physical worlds are colliding. How will social media platforms influence the way we design spaces?
Mixed-Use | Aug 30, 2017
A 50-acre waterfront redevelopment gets under way in Tampa
Nine architects, three interior designers, and nine contractors are involved in this $3 billion project.
AEC Tech | Aug 25, 2017
Software cornucopia: Jacksonville Jaguars’ new practice facility showcases the power of computational design
The project team employed Revit, Rhino, Grasshopper, Kangaroo, and a host of other software applications to design and build this uber-complex sports and entertainment facility.
