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
| 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.
| Oct 9, 2014
Regulations, demand will accelerate revenue from zero energy buildings, according to study
A new study by Navigant Research projects that public- and private-sector efforts to lower the carbon footprint of new and renovated commercial and residential structures will boost the annual revenue generated by commercial and residential zero energy buildings over the next 20 years by 122.5%, to $1.4 trillion.
| Oct 9, 2014
More recession-postponed design projects are being resurrected, says AIA
About three quarters of the estimated 700 firms that serve as panelists on AIA’s Architectural Billings Index (ABI) had delayed or canceled major design projects in response to recessionary pressures. Nearly one-third of those firms now say they have since restarted stalled projects.