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
| May 13, 2014
Steven Holl's sculptural Institute for Contemporary Art set to break ground at VCU
The facility will have two entrances—one facing the city of Richmond, Va., the other toward VCU's campus—to serve as a connection between "town and gown."
| May 13, 2014
Universities embrace creative finance strategies
After Moody’s and other credit ratings agencies tightened their standards a few years ago, universities had to become much more disciplined about their financing mechanisms.
| May 13, 2014
19 industry groups team to promote resilient planning and building materials
The industry associations, with more than 700,000 members generating almost $1 trillion in GDP, have issued a joint statement on resilience, pushing design and building solutions for disaster mitigation.
| May 13, 2014
Libeskind wins competition to design Canadian National Holocaust Monument
A design team featuring Daniel Libeskind and Gail Dexter-Lord has won a competition with its design for the Canadian National Holocaust Monument in Toronto. The monument is set to open in the autumn of 2015.
| May 12, 2014
Defining BIM – What do owners really want?
Given the complexities of the building process, it can be difficult for building owners to effectively communicate what they want and need with BIM. The response to the question usually is, “Give me everything.”
| May 12, 2014
The best of affordable housing: 4 projects honored with 2014 AIA/HUD Secretary Awards [slideshow]
The winners include two dramatic conversions of historic YMCA buildings into modern, affordable multifamily complexes.
| May 11, 2014
8 starter questions to answer when thinking about building
So, are you ready to start building? Completing these eight questions will help you answer that confidently. SPONSORED CONTENT
| May 11, 2014
Final call for entries: 2014 Giants 300 survey
BD+C's 2014 Giants 300 survey forms are due Wednesday, May 21. Survey results will be published in our July 2014 issue. The annual Giants 300 Report ranks the top AEC firms in commercial construction, by revenue.
| May 10, 2014
How your firm can gain an edge on university projects
Top administrators from five major universities describe how they are optimizing value on capital expenditures, financing, and design trends—and how their AEC partners can better serve them and other academic clients.
| May 9, 2014
It's official: Norman Foster-designed Harmon hotel and casino to be razed due to structural issues
Construction of the Las Vegas tower was halted in 2008 after experts discovered faulty steel beams in the structure. Now its owner, MGM, has received permission to demolish the building.
