Leopardo Companies, Inc. released its 2015 Construction Economics Report and Outlook, an essential guide to help business leaders, healthcare administrators, and government decision-makers understand the factors that impact construction costs.
This year’s report shows that different factors have opposing effects on construction costs. Low oil prices greatly reduce the cost of construction, and some material costs have come down over the past year.
But these factors reducing cost are more than offset by the strong increase in labor costs, brought on by a shortage of skilled workers as more than 25% of Illinois construction workers left the industry over the past five years. The overall effect is that construction costs are rising as development volume increases in Chicago and across Illinois.
“Organizations that are considering new construction and renovation projects need to understand the factors in the economy and in the construction industry that may affect the timing and cost of their projects,” said Leopardo President Rick Mattioda. “Our annual Construction Economics Report and Outlook offers a wealth of useful information to help people make informed decisions when building.”
To create the report, Leopardo analyzed economic and construction industry data from universally respected sources, and utilized that data as well as the experience of the firm’s principals to forecast the direction of construction costs over the next year.
The report provides current and recent costs relating to:
• Construction materials, including steel, wood, concrete, asphalt, aluminum, copper and paint
• Oil, electricity and other energy sources
• Union and general wage increases for construction workers and specialty contractors
• Average markup of contractor and subcontractor bids
Also included in the report is economic data such as the Producer Price Index, the Consumer Price Index, employment projections for Illinois, and construction spending by industry.
The report concludes with a snapshot of construction volume and trends by property type, including office, warehouse, hotel, multifamily residential, healthcare, educational, entertainment, and public-sector properties.
Related Stories
| Aug 11, 2010
Urban Land Institute honors five 'outstanding' developments in Europe, Middle East, and Africa
Five outstanding developments have been selected as winners of the Urban Land Institute (ULI) 2009 Awards for Excellence: Europe, Middle East, and Africa (EMEA) competition. This year, the competition also included the announcement of two special award winners. The Awards for Excellence competition is widely regarded as the land use industry’s most prestigious recognition program.
| Aug 11, 2010
A glimmer of hope amid grim news as construction employment falls in most states, metro areas
The construction employment picture brightened slightly with 18 states adding construction jobs from April to May according to a new analysis of data released today by the Bureau of Labor Statistics (BLS). However, construction employment overall continued to decline, noted Ken Simonson, the chief economist for the Associated General Contractors of America.
| Aug 11, 2010
Thom Mayne unveils 'floating cube' design for the Perot Museum of Nature and Science in Dallas
Calling it a “living educational tool featuring architecture inspired by nature and science,” Pritzker Prize Laureate Thom Mayne and leaders from the Museum of Nature & Science unveiled the schematic designs and building model for the Perot Museum of Nature & Science at Victory Park. Groundbreaking on the approximately $185 million project will be held later this fall, and the Museum is expected to open by early 2013.
| Aug 11, 2010
American Concrete Institute forms technical committee on BIM for concrete structures
The American Concrete Institute (ACI) announces the formation of a new technical committee on Building Information Modeling (BIM) of Concrete Structures.
| Aug 11, 2010
Former Colorado Governor Bill Owens retained by PCL Construction as senior advisor
Bill Owens, former Colorado Governor, has been retained by PCL Construction as senior advisor for the company’s U.S. operations, headquartered in Denver, Colorado. The PCL family of companies collectively form the seventh largest contracting organization in the U.S. with major offices in 29 locations across North America, the Hawaiian Islands, and the Caribbean.
| Aug 11, 2010
10 tips for mitigating influenza in buildings
Adopting simple, common-sense measures and proper maintenance protocols can help mitigate the spread of influenza in buildings. In addition, there are system upgrades that can be performed to further mitigate risks. Trane Commercial Systems offers 10 tips to consider during the cold and flu season.
| Aug 11, 2010
Reed Construction Data files corporate espionage lawsuit against McGraw-Hill Construction Dodge
Reed Construction Data (RCD), a leading construction information provider and a wholly-owned subsidiary of Reed Elsevier (NYSE:RUK, NYSE:ENL), today filed suit in federal court against McGraw-Hill Construction Dodge, a unit of The McGraw-Hill Companies, Inc. (NYSE:MHP). The suit charges that Dodge has unlawfully accessed confidential and trade secret information from RCD since 2002 by using a series of fake companies to pose as RCD customers.
| Aug 11, 2010
NAVFAC releases guidelines for sustainable reconstruction of Navy facilities
The guidelines provide specific guidance for installation commanders, assessment teams, estimators, programmers and building designers for identifying the sustainable opportunities, synergies, strategies, features and benefits for improving installations following a disaster instead of simply repairing or replacing them as they were prior to the disaster.
