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
AEC Tech | Apr 19, 2022
VDC maturity and the key to driving better, more predictable outcomes
While more stakeholders across the AEC value chain embrace the concept of virtual design and construction, what is driving the vastly different results that organizations achieve? The answer lies within an assessment of VDC maturity.
Healthcare Facilities | Apr 19, 2022
6 trends to watch in healthcare design
As the healthcare landscape continues to evolve, IMEG’s healthcare leaders from across the country are seeing several emerging trends that are poised to have wide-ranging impacts on facility design and construction. Following are six of the trends and strategies they expect to become more commonplace in 2022 and the years to come.
Concrete Technology | Apr 19, 2022
SGH’s Applied Science & Research Center achieves ISO 17025 accreditation for concrete testing procedures
Simpson Gumpertz & Heger’s (SGH) Applied Science & Research Center recently received ISO/IEC17025 accreditation from the American Association for Laboratory Accreditation (A2LA) for several concrete testing methods.
Sponsored | BD+C University Course | Apr 19, 2022
Multi-story building systems and selection criteria
This course outlines the attributes, functions, benefits, limits, and acoustic qualities of composite deck slabs. It reviews the three primary types of composite systems that represent the full range of long-span composite floor systems and examines the criteria for their selection, design, and engineering.
Building Team | Apr 18, 2022
Shive-Hattery Acquires WSM Architects
Shive-Hattery announces that it has acquired WSM Architects, Inc., a 13-person architecture firm in Tucson, Arizona.
Building Team | Apr 15, 2022
Frank Gehry to design his largest building yet for his hometown of Toronto
Famed architect Frank Gehry will design his largest building to date for his hometown of Toronto, Canada.
Healthcare Facilities | Apr 14, 2022
Healthcare construction veteran creates next-level IPD process for hospital projects
Can integrated project delivery work without incentives for building team members? Denton Wilson thinks so.
Industrial Facilities | Apr 14, 2022
JLL's take on the race for industrial space
In the previous decade, the inventory of industrial space couldn’t keep up with demand that was driven by the dual surges of the coronavirus and online shopping. Vacancies declined and rents rose. JLL has just published a research report on this sector called “The Race for Industrial Space.” Mehtab Randhawa, JLL’s Americas Head of Industrial Research, shares the highlights of a new report on the industrial sector's growth.
High-rise Construction | Apr 14, 2022
Seattle’s high-rise convention center nears completion
The new Washington State Convention Center Summit Building—billed as the first high-rise convention center in North America—is on track to complete most of its construction later this year.
Wood | Apr 13, 2022
Mass timber: Multifamily’s next big building system
Mass timber construction experts offer advice on how to use prefabricated wood systems to help you reach for the heights with your next apartment or condominium project.
