Cushman & Wakefield’s 2022 Americas Office Fit-Out Cost Guide found supply chain constraints and shifting consumer demands will continue to add pressure to costs, both in materials and labor.
Increases in construction and customer demand for durable and non-durable goods have driven supply chain disruptions over the past two years. COVID-19 outbreaks and labor shortages have also wreaked havoc through ports and on trucking, transportation, and distribution capacities. The supply chain stress indices for both China and the U.S. ended 2021 up over 40% from pre-pandemic levels.
For office construction and fit-outs, these stressors have created increased delays, greater uncertainty, and higher costs. There appears to be some light at the end of the tunnel, though,
as the supplier delivery index that measures manufacturer delays has been receding
since the middle of 2021, the report says.
The waning of the pandemic may add more fuel to cost pressures, however, as office tenants are targeting the first half of 2022 for employees to return to a more standard office attendance model. “As office space usage increases, we expect organizations will expand their piloting and testing of different types of layouts related to hybrid work,” the report says. “This is likely to increase the amount of fit-out and office space construction activity in the coming quarters, creating even more demand for materials and labor.”
Related Stories
| Jan 30, 2012
Roofer’s fatal plunge demonstrates need for fall-prevention regulations
“The biggest problem is getting our workers to use the equipment,” says Michael J. Florio, executive director of the organization.
| Jan 26, 2012
Tampa moves to streamlined online permitting system
The system will replace an inefficient patchwork of old software and is designed to provide businesses, homeowners, and contractors with online access to permitting and licensing information.
| Jan 26, 2012
EPA to collect more data, seek comments before finalizing mud rule
The EPA says it will seek more data and is accepting comments until March 5.
| Jan 26, 2012
Industry challenges Connecticut's suit over defective construction work
The dispute arose over multimillion-dollar leaks at the University of Connecticut's law library.
| Jan 26, 2012
Earthquake 'fuse' could save buildings during temblors
The idea is to use an earthquake "fuse" that can prevent the tiny fractures and warps that make structures unsafe after a quake and very expensive to repair.
| Jan 26, 2012
HPD open materials standard for green building materials gains momentum
GreenWizard, provider of a cloud-based product management and project collaboration software, is the latest industry participant to sign on
| Jan 26, 2012
Siemens launches smoke detection knowledge center
New knowledge center web site demonstrates efficacy of smoke detection.
| Jan 18, 2012
Chile's seismic code upgrades credited with saving lives in 2010 quake
Since 1960, when Chile suffered a 9.5 magnitude quake, the largest ever recorded; the country has steadily improved building codes to protect lives and property.
| Jan 18, 2012
Report analyzes residential hurricane codes in 18 states
The Insurance Institute for Business & Home Safety (IBHS) released a new report analyzing residential building codes in 18 hurricane-prone coastal states along the Gulf of Mexico and the Atlantic Coast.
| Jan 18, 2012
Death in Chicago high-rise apartment fire blamed on fire code
The death of a Chicago woman who stepped off her elevator into a blazing inferno last week has underscored the need for fire sensors in elevators.