Leopardo Companies, Inc. released its 2015 Construction Economics Report and Outlook, an essential guide to help business leaders, healthcare administrators, and government decision-makers understand the factors that impact construction costs.
This year’s report shows that different factors have opposing effects on construction costs. Low oil prices greatly reduce the cost of construction, and some material costs have come down over the past year.
But these factors reducing cost are more than offset by the strong increase in labor costs, brought on by a shortage of skilled workers as more than 25% of Illinois construction workers left the industry over the past five years. The overall effect is that construction costs are rising as development volume increases in Chicago and across Illinois.
“Organizations that are considering new construction and renovation projects need to understand the factors in the economy and in the construction industry that may affect the timing and cost of their projects,” said Leopardo President Rick Mattioda. “Our annual Construction Economics Report and Outlook offers a wealth of useful information to help people make informed decisions when building.”
To create the report, Leopardo analyzed economic and construction industry data from universally respected sources, and utilized that data as well as the experience of the firm’s principals to forecast the direction of construction costs over the next year.
The report provides current and recent costs relating to:
• Construction materials, including steel, wood, concrete, asphalt, aluminum, copper and paint
• Oil, electricity and other energy sources
• Union and general wage increases for construction workers and specialty contractors
• Average markup of contractor and subcontractor bids
Also included in the report is economic data such as the Producer Price Index, the Consumer Price Index, employment projections for Illinois, and construction spending by industry.
The report concludes with a snapshot of construction volume and trends by property type, including office, warehouse, hotel, multifamily residential, healthcare, educational, entertainment, and public-sector properties.
Related Stories
Mass Timber | Sep 26, 2024
5 lessons in water mitigation for mass timber projects
Sustainability leaders from Skanska, RDH, and Polygon share five tips for successful water mitigation in mass timber construction.
Laboratories | Sep 26, 2024
BSL conversions: A cost-efficient method to support high-containment research
Some institutions are creating flexible lab spaces that can operate at a BSL-2 and modulate up to a BSL-3 when the need arises. Here are key aspects to consider when accommodating a rapid modulation between BSL-2 and BSL-3 space.
AEC Tech | Sep 25, 2024
Construction industry report shows increased use of robotics on jobsites
Nearly two-thirds of contractors surveyed, who cited use of robotics on jobsites, are either using monitoring and/or service/labor robotics.
MFPRO+ News | Sep 24, 2024
Major Massachusetts housing law aims to build or save 65,000 multifamily and single-family homes
Massachusetts Gov. Maura Healey recently signed far-reaching legislation to boost housing production and address the high cost of housing in the Bay State. The Affordable Homes Act aims to build or save 65,000 homes through $5.1 billion in spending and 49 policy initiatives.
AEC Tech | Sep 24, 2024
Generative AI can bolster innovation in construction industry
Jeff Danley, Associate Technology and Innovation Consultant at Burns & McDonnell, suggests several solutions generative AI could have within the construction industry.
Mixed-Use | Sep 19, 2024
A Toronto development will transform a 32-acre shopping center site into a mixed-use urban neighborhood
Toronto developers Mattamy Homes and QuadReal Property Group have launched The Clove, the first phase in the Cloverdale, a $6 billion multi-tower development. The project will transform Cloverdale Mall, a 32-acre shopping center in Toronto, into a mixed-use urban neighborhood.
3D Printing | Sep 17, 2024
Alquist 3D and Walmart complete one of the nation’s largest free-standing, 3D-printed commercial structures
Walmart has completed one of the largest free-standing, 3D-printed commercial structures in the US. Alquist 3D printed the almost 8,000-sf, 20-foot-high addition to a Walmart store in Athens, Tenn. The expansion, which will be used for online pickup and delivery, is the first time Walmart has applied 3D printing technology at this scale.
Retail Centers | Sep 17, 2024
Thinking outside the big box (store)
For over a decade now, the talk of the mall industry has been largely focused on what developers can do to fill the voids left by a steady number of big box store closures. But what do you do when big box tenants stay put?
Government Buildings | Sep 17, 2024
OSHA’s proposed heat standard published in Federal Register
The Occupational Safety and Health Administration (OSHA) has published a proposed standard addressing heat illness in outdoor and indoor settings in the Federal Register. The proposed rule would require employers to evaluate workplaces and implement controls to mitigate exposure to heat through engineering and administrative controls, training, effective communication, and other measures.
Codes and Standards | Sep 17, 2024
New California building code encourages, but does not mandate heat pumps
New California homes are more likely to have all-electric appliances starting in 2026 after the state’s energy regulators approved new state building standards. The new building code will encourage installation of heat pumps without actually banning gas heating.
