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
| Feb 9, 2011
Gen7 eco-friendly modular classrooms are first to be CHPS verified
The first-ever Gen7 green classrooms, installed at Bolsa Knolls Middle School in Salinas, California, have become the nation's first modular classrooms to receive Collaborative for High Performance Schools (CHPS) Verified recognition for New School Construction. They are only the second school in California to successfully complete the CHPS Verified review process.
| Feb 7, 2011
GSA Unveils New Sustainable Workplace Design Tool
The U.S. General Services Administration launched its Sustainable Facilities Tool on Monday, Feb. 7. The innovative online tool will make it easier for both government and private-sector property managers and developers to learn about and evaluate strategies to make workplaces more sustainable, helping to build and create jobs in America’s clean energy economy of the future.
| Feb 4, 2011
President Obama: 20% improvement in energy efficiency will save $40 billion
President Obama’s Better Buildings Initiative, announced February 3, 2011, aims to achieve a 20% improvement in energy efficiency in commercial buildings by 2020, improvements that will save American businesses $40 billion a year.
| Jan 31, 2011
Cuningham Group Architecture launches Healthcare studio with Lee Brennan
International design firm Cuningham Group Architecture, P.A. (Cuningham Group) has announced the arrival of Lee Brennan, AIA, as Principal and Leader of its new Healthcare studio. Brennan comes to Cuningham Group with over 30 years of professional experience, 22 of those years in healthcare, encompassing all aspects of project delivery, from strategic planning and programming through design and construction. The firm’s new Healthcare studio will enhance Cuningham Group’s expertise in leisure and entertainment, education, mixed-use/housing and workplace environments.
| Jan 31, 2011
CISCA releases White Paper on Acoustics in Healthcare Environments
The Ceilings & Interior Systems Construction Association (CISCA) has released an extensive white paper “Acoustics in Healthcare Environments” for architects, interior designers, and other design professionals who work to improve healthcare settings for all users. This white paper serves as a comprehensive introduction to the acoustical issues commonly confronted on healthcare projects and howbest to address those.
| Jan 28, 2011
Firestone Building Products Unveils FirestoneRoof Mobile Web App
Firestone Building Products Company unveiled FirestoneRoof, a first-of-its-kind free mobile web app. The FirestoneRoof mobile web app enables customers to instantly connect with Firestone commercial roofing experts and is designed to make it easier for building owners, facility managers, roofing consultants and others charged with maintaining commercial roofing systems to get the support they need, when they need it.
| Jan 28, 2011
Survey Shows BOMA 360 Designees Demonstrate Operational Savings and Compete for Tenants
A new survey conducted by the BOMA International shows that BOMA 360 designees are able to document operational savings, develop new policies and procedures, and attract new tenants because of their designation. The BOMA 360 Performance Program is a program designed to recognize commercial properties that demonstrate best practices in building operations and management.
| Jan 27, 2011
Perkins Eastman's report on senior housing signals a changing market
Top international design and architecture firm Perkins Eastman is pleased to announce that the Perkins Eastman Research Collaborative recently completed the “Design for Aging Review 10 Insights and Innovations: The State of Senior Housing” study for the American Institute of Architects (AIA). The results of the comprehensive study reflect the changing demands and emerging concepts that are re-shaping today’s senior living industry.
| Jan 25, 2011
Bloomberg launches NYC Urban Tech Innovation Center
To promote the development and commercialization of green building technologies in New York City, Mayor Michael R. Bloomberg has launched the NYC Urban Technology Innovation Center. This initiative will connect academic institutions conducting underlying research, companies creating the associated products, and building owners who will use those technologies.
| Jan 25, 2011
Top 10 rules of green project finance
Since the bottom fell out of the economy, finding investors and financial institutions willing to fund building projects—sustainable or otherwise—has been close to impossible. Real estate finance prognosticators, however, indicate that 2011 will be a year to buy back into the real estate market.
