Providence, RI – August 15, 2013 – Gilbane Building Company today announces the publication of the Summer 2013 edition of Construction Economics – Market Conditions in Construction. Based on an array of economic data, construction starts, and material cost trends, the data continues to show positive growth for the industry.
“Supported by overall positive growth trends for year 2013, I expect margins and overall escalation to climb more rapidly than we’ve seen in five years,” says Ed Zarenski, the report’s author and a 40-year veteran of the construction industry. “Rates will continue to rise and borrowing costs will add potential cost to future funding of projects. The cheapest time to build is now behind us. ”
According to the report, work activity in nonresidential buildings construction slowed in the first five months but is expected to increase substantially in the second half of 2013. Other highlights include:
- Construction Spending for 2013 will finish the year 5% higher than 2012. All of the growth will be attributed to residential construction.
- The backlog of construction starts from the last two years indicates an upturn in nonresidential spending starting in May 2013.
- The Dodge Momentum Index (DMI), although down recently, is still well up since the mid-2011 bottom indicating growth.
- Along with the DMI, McGraw Hill New Construction Starts and the Architectural Billings Index – both leading indicators – all indicate an increasing rate of activity in the second half of 2013.
- The construction workforce is still 25% below the peak. As workload expands in the next few years, a shortage of available skilled workers may have a detrimental effect on cost, productivity and the ability to readily increase construction volume.
- Comments regarding the outlook for economic stimulus have recently caused interest rates to increase rapidly. Lending criteria is still tight and borrowers are cautious about taking on new debt.
This free report and its executive summary are available for download at http://info.gilbaneco.com/
About Gilbane, Inc.
Gilbane provides a full slate of construction and facilities-related services – from pre-construction planning and integrated consulting capabilities to comprehensive construction management, close-out and facility management services – for clients across various markets. Marking its 140th year in operation and still a privately held, family-run company, Gilbane has more than 60 office locations around the world. To find out what the next 140 years have in store, visit www.gilbaneco.com.
Related Stories
| Apr 23, 2014
Mean and Green: Top 10 green building projects for 2014 [slideshow]
The American Institute of Architects' Committee on the Environment has selected the top ten examples of sustainable architecture and ecological design projects that protect and enhance the environment. Projects range from a project for Portland's homeless to public parks to a LEED Platinum campus center.
| Apr 23, 2014
Architecture Billings Index dips in March
The March ABI score was 48.8, down sharply from a mark of 50.7 in February. This score reflects a decrease in design services.
Sponsored | | Apr 23, 2014
Ridgewood High satisfies privacy, daylight and code requirements with fire rated glass
For a recent renovation of a stairwell and exit corridors at Ridgewood High School in Norridge, Ill., the design team specified SuperLite II-XL 60 in GPX Framing for its optical clarity, storefront-like appearance, and high STC ratings.
| Apr 21, 2014
10 design-build best practices
Design-build requires more than a good contract and appropriate risk allocation, says the DBIA. Everyone from the owner to the subcontractors must understand the process, the expectations, and fully engage in the collaboration.
| Apr 17, 2014
Online mapping tool helps teams determine multifamily project tax credit eligibility
Accounting and advisory firm Baker Tilly has launched a new, interactive online mapping tool that helps users determine if a business or development project may qualify for the New Markets Tax Credit or Low-Income Housing Tax Credit program.
Sponsored | | Apr 17, 2014
Technology enables state transportation agency to make the leap to digital design review
Earlier this month, my colleague and I presented a session to a group of civil engineers and transportation agencies about the tech trends in the AEC space. Along with advice on how to prepare your plan for controlled collaboration, we also talked through some practical use cases. One such use case was especially interesting, as it outlined a challenge not unfamiliar to government agencies who are contemplating the leap from paper to digital processes: how to securely migrate workflows.
| Apr 16, 2014
Upgrading windows: repair, refurbish, or retrofit [AIA course]
Building Teams must focus on a number of key decisions in order to arrive at the optimal solution: repair the windows in place, remove and refurbish them, or opt for full replacement.
| Apr 15, 2014
12 award-winning structural steel buildings
Zaha Hadid's Broad Art Museum and One World Trade Center are among the projects honored by the American Institute of Steel Construction for excellence in structural steel design.
| Apr 15, 2014
Chipperfield's sparkling brass-clad scheme selected to be new home of Nobel Prize
The distinctive building, with its shimmering vertical brass elements and glass façade design, beat out two other finalists in the Nobel Center architectural competition.
Sponsored | | Apr 15, 2014
Value billing and differentiation
Regardless of the fee you charge, clients and prospects decide the value of your professional services based on their experience with your firm.
