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
Building Team | May 11, 2022
Miami to get its first supertall building
After completing its first supertall building, 111 W 57th Street in New York, developer PMG is now preparing for the groundbreaking of the first supertall in Miami: Waldorf Astoria Miami.
Sponsored | BD+C University Course | May 10, 2022
Design guide for parapets: Safety, continuity, and the building code
This course covers design considerations for parapets. The modern parapet must provide fire protection, serve as a fall-protective guard, transition and protect the roof/facade interface, conceal rooftop equipment, and contribute to the aesthetic character of the building.
Sponsored | BD+C University Course | May 10, 2022
Designing smarter places of learning
This course explains the how structural steel building systems are suited to construction of education facilities.
Contractors | May 10, 2022
W.E. O’Neil Construction acquires Austin-based DCA Construction
W.E. O’Neil Construction announces it has acquired DCA Construction, a prominent general contracting firm based in Austin, Texas. The acquisition marks an exciting opportunity to formally expand W.E. O’Neil’s operations into the Texas market, where they have completed several projects for long-time clients over the last two decades.
Market Data | May 10, 2022
Hybrid work could result in 20% less demand for office space
Global office demand could drop by between 10% and 20% as companies continue to develop policies around hybrid work arrangements, a Barclays analyst recently stated on CNBC.
Multifamily Housing | May 10, 2022
Multifamily rents up 14.3% in 2022
The average U.S. asking rent for multifamily housing increased $15 in April to an all-time high of $1,659, according to Yardi Matrix.
Headquarters | May 10, 2022
JPMorgan Chase’s new all-electric headquarters to have net-zero operational emissions
JPMorgan Chase’s recently unveiled plans for its new global headquarters building in New York City that is rife with impressive sustainability credentials.
Building Team | May 9, 2022
Cincinnati’s Andrew J Brady Music Center transforms the city’s riverfront
In Cincinnati, Ohio, the Andrew J Brady Music Center aims to connect audiences with live music while transforming Cincinnati’s riverfront.
Sponsored | Multifamily Housing | May 8, 2022
Choosing the right paver system for rooftop amenity spaces
This AIA course by Hoffmann Architects offers best practices for choosing the right paver system for rooftop amenity spaces in multifamily buildings.
Market Data | May 6, 2022
Nonresidential construction spending down 1% in March
National nonresidential construction spending was down 0.8% in March, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.
