Gilbane Building Company today announces the publication of the Spring 2013 edition of Construction Economics – Market Conditions in Construction. Based on an array of economic data, construction starts, and material cost trends, the data is the most positive the company has seen in recent years.
“We are in a growth period that by all leading indicators seems here to stay. From 2006 to 2010, as work declined, we saw the largest decline of margins in recent history. In 2011 that trend began to reverse slightly” says Ed Zarenski, the report’s author and a 40-year veteran of the construction industry. “I expect the positive growth to continue.”
According to the report, the monthly rate of construction spending is up 20% in 24 months and increased in 18 of the last 24 months, which is a good leading indicator for new construction work in Q3-Q4 2013.
Other highlights include:
- Residential spending will take the lead in 2013, nonresidential spending will lag.
- Public spending will decline. Private spending will lead the charge in 2013.
- As spending continues to increase, even moderate growth in activity will allow contractors to pass along more material costs and increase margins. When activity picks up in all sectors, escalation will begin to advance rapidly.
- Predicted spending growth of 8.2% for Commercial markets, 5.2% for Office and 2.3% for Healthcare.
Construction jobs grew by 150,000 in the last five months. Just to meet the needs of the predicted residential building expansion, the workforce needs to grow by 750,000 jobs in the next two years, faster than the entire construction workforce has ever grown in history.
Future escalation, in order to support labor growth, materials demand and to capture increasing margins, will be higher than normal labor/material cost growth. Lagging regions may take longer to experience high escalation. Residential escalation will be near the upper end of the range.
This free report and its executive summary are available for download at http://www.gilbaneco.com/economic-report.
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
Student Housing | Feb 19, 2024
UC Law San Francisco’s newest building provides student housing at below-market rental rates
Located in San Francisco’s Tenderloin and Civic Center neighborhoods, UC Law SF’s newest building helps address the city’s housing crisis by providing student housing at below-market rental rates. The $282 million, 365,000-sf facility at 198 McAllister Street enables students to live on campus while also helping to regenerate the neighborhood.
MFPRO+ News | Feb 15, 2024
UL Solutions launches indoor environmental quality verification designation for building construction projects
UL Solutions recently launched UL Verified Healthy Building Mark for New Construction, an indoor environmental quality verification designation for building construction projects.
MFPRO+ News | Feb 15, 2024
Nine states pledge to transition to heat pumps for residential HVAC and water heating
Nine states have signed a joint agreement to accelerate the transition to residential building electrification by significantly expanding heat pump sales to meet heating, cooling, and water heating demand. The Memorandum of Understanding was signed by directors of environmental agencies from California, Colorado, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, and Rhode Island.
MFPRO+ News | Feb 15, 2024
Oregon, California, Maine among states enacting policies to spur construction of missing middle housing
Although the number of new apartment building units recently reached the highest point in nearly 50 years, construction of duplexes, triplexes, and other buildings of from two to nine units made up just 1% of new housing units built in 2022. A few states have recently enacted new laws to spur more construction of these missing middle housing options.
Green | Feb 15, 2024
FEMA issues guidance on funding for net zero buildings
The Federal Emergency Management Agency (FEMA) recently unveiled new guidance on additional assistance funding for net zero buildings. The funding is available for implementing net-zero energy projects with a tie to disaster recovery or mitigation.
Hospital Design Trends | Feb 14, 2024
Plans for a massive research hospital in Dallas anticipates need for child healthcare
Children’s Health and the UT Southwestern Medical Center have unveiled their plans for a new $5 billion pediatric health campus and research hospital on more than 33 acres within Dallas’ Southwestern Medical District.
Architects | Feb 13, 2024
Pierluca Maffey joins Carrier Johnson + Culture as new Firmwide Head of Design
Carrier Johnson + Culture (CJ+C) has hired Pierluca “Luca” Maffey, International Assoc. AIA, as the firm's new Firmwide Head of Design and Design Principal.
K-12 Schools | Feb 13, 2024
K-12 school design trends for 2024: health, wellness, net zero energy
K-12 school sector experts are seeing “healthiness” for schools expand beyond air quality or the ease of cleaning interior surfaces. In this post-Covid era, “healthy” and “wellness” are intersecting expectations that, for many school districts, encompass the physical and mental wellbeing of students and teachers, greater access to outdoor spaces for play and learning, and the school’s connection to its community as a hub and resource.
Office Buildings | Feb 13, 2024
Creating thoughtful tech workplace design
It’s important for office design to be inspiring, but there are some practical principles that can be incorporated into the design of real-world tech workplaces to ensure they convey an exciting, sophisticated allure that accommodates progressive thinking and inventiveness.
Airports | Feb 13, 2024
New airport terminal by KPF aims to slash curb-to-gate walking time for passengers
The new Terminal A at Zayed International Airport in the United Arab Emirates features an efficient X-shape design with an average curb-to-gate walking time of just 12 minutes. The airport terminal was designed by Kohn Pedersen Fox (KPF), with Arup and Naco as engineering leads.
