Gilbane Building Company today announces the publication of the Winter 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.
According to the report, margins are up a slim 1% to 2% year over year for 2012. Once 2013 growth in nonresidential work picks up and both residential and nonresidential are active, the industry may begin to see some labor shortages and productivity losses, which will push up escalation. Also, as it did in 2012, even moderate growth in activity will allow contractors to pass along more material costs and increase margins.
Potential impact of recent events:
- According to the Associated General Contractors (AGC), Hurricane Sandy may not add any economic impact to the construction industry. For the most part, any funds directed to reconstruction will be diverted from some other potential or previously planned construction project and will be spread over a long time span.
- Bond issues considered in the recent elections amount to just over half ($30+ billion) of what was approved in 2008 elections ($60+ billion), signaling a reduction in publicly funded work.
- At the recent McGraw Hill Outlook conference, none of the economists expect the fiscal cliff to happen. However, sequestration or the compromises agreed upon will likely reduce funds available for federal and public projects.
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
Architects | May 19, 2023
Snøhetta architects make a bid to unionize the firm's New York studio
Employees at the New York office of architecture firm Snøhetta have filed a petition with the National Labor Relations Board (NLRB) to unionize the studio. Snøhetta employees’ action marks the third time architects at a private-sector architecture studio in the U.S. took that step.
Healthcare Facilities | May 19, 2023
A new behavioral health facility in California targets net zero energy
Shortly before Mental Health Awareness Month in May, development and construction firm Skanska announced the topping out of California’s first behavioral health facility—and the largest in the nation—to target net zero energy. Located in Redwood City, San Mateo County, Calif., the 77,610-sf Cordilleras Health System Replacement Project is slated for completion in late 2024.
Government Buildings | May 18, 2023
GSA launches first biennial construction award program
Today, the U.S. General Services Administration (GSA) announced the new biennial GSA Construction Award program, which is seeking submissions this summer. The program was created to honor outstanding achievements in construction, with a focus on quality and craftsmanship, collaboration and team dynamics, sustainability, innovation, and technology. The first Construction Awards ceremony will take place in 2024.
K-12 Schools | May 17, 2023
Designing K-12 schools for students and safety
While bullying, mental health, and other acts of violence are all too common in schools today, designers have shown that smart and subtle preventive steps can make a big difference. Clark Nexsen’s Becky Brady shares how prevention and taking action at the design level can create safe and engaging learning environments.
Affordable Housing | May 17, 2023
Affordable housing advocates push for community-owned homes over investment properties
Panelists participating in a recent webinar hosted by the Urban Institute discussed various actions that could help alleviate the nation’s affordable housing crisis. Among the possible remedies: inclusionary zoning policies, various reforms to increase local affordable housing stock, and fees on new development to offset the impact on public infrastructure.
University Buildings | May 17, 2023
New UC Irvine health sciences building supports aim to become national model for integrative health
The new College of Health Sciences Building and Nursing & Health Sciences Hall at the University of California Irvine supports the institution’s goal of becoming a national model for integrative health. The new 211,660-sf facility houses nursing, medical doctorate, pharmacy, philosophy, and public health programs in a single building.
Sponsored | Building Enclosure Systems | May 16, 2023
4 steps to a better building enclosure
Dividing the outside environment from the interior, the building enclosure is one of the most important parts of the structure. The enclosure not only defines the building’s aesthetic, but also protects occupants from the elements and facilitates a comfortable, controlled climate. With dozens of components comprising the exterior assemblies, from foundation to cladding to roof, figuring out which concerns to address first can be daunting.
Multifamily Housing | May 16, 2023
Legislators aim to make office-to-housing conversions easier
Lawmakers around the country are looking for ways to spur conversions of office space to residential use.cSuch projects come with challenges such as inadequate plumbing, not enough exterior-facing windows, and footprints that don’t easily lend themselves to residential use. These conditions raise the cost for developers.
Headquarters | May 16, 2023
Workplace HQ for party clothing company Shinesty celebrates its bold, whimsical products
The new Denver headquarters for Shinesty, a party clothing company, was designed to match the brand’s fun image with an iconic array of colors, textures, and prints curated by the design agency, Maximalist. Shinesty’s mission, to challenge the world to live more freely and “take itself less seriously,” is embodied throughout the office interior.
Office Buildings | May 15, 2023
Sixteen-story office tower will use 40% less energy than an average NYC office building
This month marks the completion of a new 16-story office tower that is being promoted as New York City’s most sustainable office structure. That boast is backed by an innovative HVAC system that features geothermal wells, dedicated outdoor air system (DOAS) units, radiant heating and cooling, and a sophisticated control system to ensure that the elements work optimally together.