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 26, 2012
Ball State University completes nation's largest ground-source geothermal system
Ball State's geothermal system will replace four aging coal-fired boilers to provide renewable power that will heat and cool 47 university buildings, representing 5.5-million-sf on the 660-acre campus.
| Mar 22, 2012
Hawaiian architecture firm chooses FRP trellis system over traditional materials
MGA Architecture plans to add five more trellis systems on the neighboring building.
| Mar 22, 2012
Moline Public Library uses copper as an exterior building material
Architects incorporate decorative copper panels to create the look of a heavy plate copper shingle.
| Mar 21, 2012
10 common data center surprises
Technologies and best practices provide path for better preparation.
| Mar 21, 2012
ABI remains positive for fourth straight month
Highest spike in inquiries for new projects since 2007.
| Mar 21, 2012
Iowa’s Mercy Medical Center’s new Emergency Department constructed using Lean design
New Emergency Department features a "racetrack" design with a central nurses' station encircled by 19 private patient examination rooms and 2 trauma treatment rooms.
| Mar 21, 2012
Clary, Hendrickson named regional directors for HDR Architecture
New directors will be responsible for expanding and strengthening the firm throughout the central region.
| Mar 20, 2012
FMI releases 2012 first quarter construction outlook
The last time construction put in place was at this level was 2000-2001.
| Mar 20, 2012
Ceco Building Systems names Romans marketing director
Romans joins Ceco Building Systems with over 15 years in marketing and customer service.
| Mar 20, 2012
UT Arlington launches David Dillon Center for Texas Architecture
Symposium about Texas architecture planned for April.