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 28, 2012
Tsoi/Kobis & Associates developing master plan for UT Southwestern Medical Center
Firm will spearhead strategies for transforming existing in-patient hospital into state-of-the-art ambulatory care facility.
| Mar 28, 2012
Ideas and input drive stories in online community, noraXchange
Community designed to help building and design professionals address challenges they face in their jobs.
| Mar 27, 2012
Bank of America Plaza becomes Atlanta's priciest repo
Repo will help reset market prices for real estate, and the eventual new owner will likely set rental rates at a new or near the bottom and improve the facilities to lure tenants.
| Mar 27, 2012
Skanska hires aviation construction expert Bob Postma
Postma will manage Skanska’s nationwide in-house team of airport construction experts who lead the industry in building and renovating airport facilities and their essential features.
| Mar 27, 2012
Precast concrete used for affordable, sustainable housing in New York
Largest affordable housing development in the nation will provide housing for close to 500,000 people.
| Mar 27, 2012
Groundbreaking held for Valencia College West Campus Building 10 in Orlando
Project led by design-build team of SchenkelShultz Architecture and McCree General Contractors, both of Orlando.
| Mar 27, 2012
Hollister Construction completes LEED Silver bank in Woodland Park, N.J.
Ground-up construction project included installation of solar panels.
| Mar 26, 2012
Jones Lang LaSalle completes construction of $536M Parkview Regional Medical Center
Hospital ushers in new era of local access to advanced medical treatments in Northeast Indiana.
| Mar 26, 2012
McCarthy tops off Math and Science Building at San Diego Mesa College
Designed by Architects | Delawie Wilkes Rodrigues Barker, the new San Diego Mesa College Math and Science Building will provide new educational space for students pursuing degree and certificate programs in biology, chemistry, physical sciences and mathematics.
| Mar 26, 2012
Los Angeles County to host free green building training
Opportunity for residential and commercial building professionals to gain insight on state and county green building standards and regulations.