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
| Nov 9, 2011
Lincoln Center Pavilion wins national architecture and engineering award
The project team members include owner Lincoln Center for the Performing Arts, New York; design architect and interior designer of the restaurant, Diller Scofidio + Renfro, New York; executive architect, FXFOWLE, New York; and architect and interior designer of the film center, Rockwell Group, New York; structural engineer Arup (AISC Member), New York; and general contractor Turner Construction Company (AISC Member), New York.
| Nov 9, 2011
Sika Sarnafil Roof Recycling Program recognized by Society of Plastics Engineers
Program leads the industry in recovering and recycling roofing membrane into new roofing products.
| Nov 9, 2011
American Standard Brands joins the Hospitality Sustainable Purchasing Consortium
American Standard will collaborate with other organizations to build an industry-wide sustainability performance index.
| Nov 8, 2011
Transforming a landmark coastal resort
Originally built in 1973, the building had received several alterations over the years but the progressive deterioration caused by the harsh salt water environment had never been addressed.
| Nov 8, 2011
WEB EXCLUSIVE: Moisture-related failures in agglomerated floor tiles
Agglomerated tiles offer an appealing appearance similar to natural stone at a lower cost. To achieve successful installations, manufacturers should provide design data for moisture-related dimensional changes, specifiers should require in-situ moisture testing similar to those used for other flooring materials, and the industry should develop standards for fabrication and installation of agglomerated tiles.
| Nov 8, 2011
$11 million business incubator Florida Innovation Hub at the University of Florida completed by Charles Perry Partners, Inc.
The facility houses the UF Office of Technology Licensing, UF Tech Connect, other entities, and more than 30 startup technology tenants.
| Nov 8, 2011
Designer joins Holabird & Root
Clifton has been awarded numerous awards throughout her career, including two AIA Chicago Design Excellence Awards.
| Nov 4, 2011
Mortenson Construction builds its fifth wind facility In Illinois
Shady Oaks Wind Farm is under construction near Compton, Ill.
| Nov 4, 2011
CSI and ICC Evaluation Service agree to reference GreenFormat in ICC-ES Environmental Reports?
ICC-ES currently references CSI's MasterFormat and other formats in all of its evaluation reports. The MOU will add GreenFormat references.