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
| Sep 15, 2022
Monthly construction input prices dip in August
Construction input prices decreased 1.4% in August compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data released today.
| Sep 15, 2022
First LEED Platinum, net zero and net zero water synagogue opens
Kol Emeth Center, the world’s first LEED Platinum, net zero and net zero water synagogue, opened recently in Palo Alto, Calif.
| Sep 14, 2022
Fires on Amazon warehouse roofs seemingly caused by faulty PV installations
Amazon has made installing solar panels on rooftops a key part of its ESG strategy, but a series of events last year show how challenging greening up major facilities can be.
| Sep 14, 2022
Indian tribe’s new educational campus supports culturally appropriate education
The Kenaitze Indian Tribe recently opened the Kahtnuht’ana Duhdeldiht Campus (Kenai River People’s Learning Place), a new education center in Kenai, Alaska.
| Sep 13, 2022
California building codes now allow high-rise mass-timber buildings
California recently enacted new building codes that allow for high-rise mass-timber buildings to be constructed in the state.
Laboratories | Sep 12, 2022
Lab space scarcity propels construction demand in life sciences sector
In its 2021 Life Sciences Real Estate Outlook, JLL predicted that access to talent would be a primary concern for an industry sector that had been growing by leaps and bounds. A year later, talent still guides real estate decisions. But market conditions of a different sort were cooling the biotech field: namely, investors that have soured on startups which underperformed after going public. What this means for new construction and renovation going forward is unpredictable, as the drivers behind life sciences’ surge are still palpable.
| Sep 12, 2022
Staff at New York City architecture firm is first in U.S. to unionize
Staff at New York City architecture firm is first in U.S. to unionize.
| Sep 12, 2022
San Antonio’s new courthouse aims to provide safety and security while also welcoming the public
The San Antonio Federal Courthouse, which opened earlier this year, replaces a courthouse that had been constructed as a pavilion for the 1968 World’s Fair.
| Sep 9, 2022
Add sand shortage to supply chain woes
As if it wasn’t enough to have lumber, windows, doors, and metal pipe in short supply, you can add sand, which is theoretically plentiful on Earth, to the list of construction materials that can be hard to come by.
Senior Living Design | Sep 8, 2022
What’s new with AQ: The top trends in active adult living
Today's 55-or-better buyers are ready to design their lives and their homes as they see fit. With so much growth on tap, builders and developers must stay apprised of trends related to home, environment, and culture of 55+ communities.
