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
| Mar 15, 2013
Singapore R&D campus takes top honor in Lab of Year competition
Singapore CREATE R&D campus takes top honor in Lab of Year competition, sponsored by R&D Magazine.
| Mar 15, 2013
Ben Johanneman promoted to VP of operations for McCarthy Houston Office
The Texas Division of McCarthy Building Companies, Inc., has promoted Ben Johanneman to vice president of operations for the Houston office. Johanneman is responsible for leading management and operations on projects. He will coordinate preconstruction strategy while also serving as the client interface.
| Mar 14, 2013
How to win more work from community colleges
The nation’s thousand-plus community college districts can be a steady source of income for your Building Team—provided you appreciate the special needs of this important sector of the higher education market.
| Mar 14, 2013
Shawmut Design and Construction promotes Randy Shelly to VP of Hospitality
Shawmut Design and Construction, located at 560 Harrison Avenue in Boston, has announced the promotion of Randy Shelly to Vice President of the company’s Hospitality Group. Shelly will replace veteran Paul Doherty, who has accepted a new position within Shawmut.
| Mar 13, 2013
RSMeans cost comparisons: jails, courthouses, police stations, and post offices
The March 2013 report from RSMeans offers construction costs per square foot for four building types across 25 metro markets. Building types include: jails, courthouses, police stations, and post offices.
| Mar 12, 2013
'World's greenest' office building seeks tenants in Seattle
Superefficient Seattle office building is designed to meet the ambitious goals of the Living Building Challenge.
| Mar 6, 2013
Dual towers designed by SHoP create new affordable housing in NYC
With the construction of Hunters Point South, New York City will get its first large new housing development for middle-class families in more than 30 years. Related Companies is partnering with the nonprofit Phipps Houses in the project, designed by SHoP Architects with Ismael Leyva Architects.