Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.
Data for the Market Intelligence Report is gleaned from reputable economic sources, including the American Institute of Architects, Associated Builders and Contractors, and the U.S. Census Bureau.
Here are some of the highlights from the May 2024 report:
- U.S. construction spending for commercial, institutional, industrial, and multifamily buildings was flat in March 2024 vs. the previous month, but 12.5% higher than March 2023.
- The education, amusement/recreation, public safety, manufacturing, and religious sectors all saw double-digit year-over-year growth in construction spending.
- After a relatively solid showing in February, the Architectural Billings Index took a major step back in March, dropping 5.9 points to 43.6. According to AIA, this marks the 14th consecutive month of declining billings at firms.
- Commentary on the latest ABI report from Kermit Baker, PhD, AIA Chief Economist: "This marked the 14th consecutive month of declining billings at firms as inflation, supply chain issues, and other economic challenges continue to affect business. While inquiries into new projects have continued to grow during that period, it has been at a slower pace than in 2021 and 2022. More notably, the value of new signed design contracts was flat in March, which has generally been the trend for the last year and a half. This shows that clients are interested in starting new projects but remain hesitant to sign a contract and officially commit to those projects. However, most firms report that they still have strong project backlogs of 6.6 months, on average, so even with the ongoing soft patch, they still have work in the pipeline."
- Construction backlogs remain steady: The average U.S. contractor had 8.5 months worth of building construction work in the pipeline as of April 2024, flat from March 2024, but down 0.7 months from the same time last year.
- Construction material prices rose 0.5% in April 2024 vs. the previous month, and were 2.3% higher than a year ago. This marks the fourth straight month of rising prices, after a streak of three consecutive monthly declines.
- Commentary on the latest construction materials price report from Anirban Basu, ABC Chief Economist: “Construction input prices jumped half a percentage point higher in April and have increased 3.5% over the first four months of the year. While iron, steel, asphalt and gypsum product prices fell in April, oil and copper prices surged, driving the monthly increase. Rising input prices will put pressure on profits at a time when nearly 1 in 4 contractors expect their margins to contract over the next two quarters, according to ABC’s Construction Confidence Index. Perhaps more importantly for contractors, the overall Producer Price Index reading for final demand goods and services increased 0.5% in April. This is yet another sign that inflation is accelerating and suggests that interest rates are set to stay higher for longer."
Related Stories
Construction Costs | Jul 18, 2024
Data center construction costs for 2024
Gordian’s data features more than 100 building models, including computer data centers. These localized models allow architects, engineers, and other preconstruction professionals to quickly and accurately create conceptual estimates for future builds. This table shows a five-year view of costs per square foot for one-story computer data centers.
Construction Costs | Jun 3, 2024
Escalation: Predicting project costs in a volatile market
Thad Berkes, Chief Cost Estimator, Design Collaborative, shares that one of the major hurdles that Design Collaborative attempts to forecast for its commercial construction projects is escalation.
Construction Costs | May 31, 2024
Despite challenges, 2024 construction material prices continue to stabilize
Gordian’s Q2 2024 Quarterly Construction Cost Insights Report indicates that supply chain issues notwithstanding, many commodities are exhibiting price normalization.
Healthcare Facilities | May 6, 2024
Hospital construction costs for 2024
Data from Gordian breaks down the average cost per square foot for a three-story hospital across 10 U.S. cities.
Construction Costs | Apr 18, 2024
New download: BD+C's April 2024 Market Intelligence Report
Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.
Construction Costs | Apr 16, 2024
How the new prevailing wage calculation will impact construction labor costs
Looking ahead to 2024 and beyond, two pivotal changes in federal construction labor dynamics are likely to exacerbate increasing construction labor costs, according to Gordian's Samuel Giffin.
Construction Costs | Apr 11, 2024
Construction materials prices increase 0.4% in March 2024
Construction input prices increased 0.4% in March compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices also increased 0.4% for the month.
Construction Costs | Mar 15, 2024
Retail center construction costs for 2024
Data from Gordian shows the most recent costs per square foot for restaurants, social clubs, one-story department stores, retail stores and movie theaters in select cities.
Market Data | Mar 14, 2024
Download BD+C's March 2024 Market Intelligence Report
U.S. construction spending on buildings-related work rose 1.4% in January, but project teams continue to face headwinds related to inflation, interest rates, and supply chain issues, according to Building Design+Construction's March 2024 Market Intelligence Report (free PDF download).
Construction Costs | Feb 27, 2024
Experts see construction material prices stabilizing in 2024
Gordian’s Q1 2024 Quarterly Construction Cost Insights Report brings good news: Although there are some materials whose prices have continued to show volatility, costs at a macro level are returning to a level of stability, suggesting predictable historical price escalation factors.