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
| Jan 16, 2012
2012 40 Under 40 applications due Friday, Jan. 20
Building Design+Construction's 40 Under 40 is open to AEC professionals from around the world who are under 40 years old, as of January 1, 2012.
| Jan 16, 2012
Mid-Continent Tower wins 25 Year Award from AIA Eastern Oklahoma
Designed by Dewberry, iconic tower defines Tulsa’s skyline.
| Jan 16, 2012
Suffolk completes construction on progressive operating suite
5,700 square-foot operating suite to be test bed for next generation of imaged-guided operating techniques.
| Jan 15, 2012
Hollister Construction Services oversees interior office fit-out for Harding Loevner
The work includes constructing open space areas, new conference, trading and training rooms, along with multiple kitchenettes.
| Jan 15, 2012
Smith Consulting Architects designs Flower Hill Promenade expansion in Del Mar, Calif.
The $22 million expansion includes a 75,000-square-foot, two-story retail/office building and a 397-car parking structure, along with parking and circulation improvements and new landscaping throughout.
| Jan 15, 2012
535 Madison Avenue achieves LEED Gold certification
Class-A commercial building meets sustainability requirements of LEED Program.
| Jan 12, 2012
CSHQA receives AIA Northwest & Pacific Region Merit Award for Idaho State Capitol restoration
After a century of service, use, and countless modifications which eroded the historical character of the building and grounds, the restoration brought the 200,000-sf building back to its former grandeur by restoring historical elements, preserving existing materials, and rehabilitating spaces for contemporary uses.
| Jan 12, 2012
Stellar earns construction industry's most prestigious safety award
Now widely accepted as the construction industry's standard measure of safety performance, the STEP awards were established in 1989 to evaluate and improve safety practices and recognize outstanding safety efforts.
| Jan 12, 2012
Building independence: New take on female power
Memoir explores historic engineering project, women's empowerment era.
| Jan 12, 2012
3M takes part in Better Buildings Challenge
As a partner in the challenge, 3M has committed to reduce energy use by 25% in 78 of its plants, encompassing nearly 38 million-sf of building space.