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
Laboratories | Aug 30, 2021
Science in the sky: Designing high-rise research labs
Recognizing the inherent socioeconomic and environmental benefits of high-density design, research corporations have boldly embraced high-rise research labs.
Giants 400 | Aug 27, 2021
2021 Healthcare Sector Giants: Top architecture, engineering, and construction firms in the U.S. healthcare facilities sector
HDR, AECOM, Turner Construction, and Brasfield & Gorrie head BD+C's rankings of the nation's largest healthcare facilities sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Giants 400 | Aug 27, 2021
2021 Office Sector Giants: Top architecture, engineering, and construction firms in the U.S. office building sector
Gensler, Jacobs, Turner Construction, and STO Building Group head BD+C's rankings of the nation's largest office building sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.a
Giants 400 | Aug 26, 2021
2021 University Giants: Top architecture, engineering, and construction firms in the higher education sector
Gensler, AECOM, Turner Construction, and CannonDesign head BD+C's rankings of the nation's largest university sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Giants 400 | Aug 26, 2021
2021 Data Center Giants: Top architecture, engineering, and construction firms in the U.S. data center facilities sector
Corgan, Holder Construction, Jacobs, and Whiting-Turner top BD+C's rankings of the nation's largest data center facilities sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Giants 400 | Aug 26, 2021
Top 90 Construction Management + Project Management Firms for 2021
CBRE, Jacobs, Alfa Tech, and VCC head the rankings of the nation's largest construction management (as agent) and program/project management firms for nonresidential and multifamily buildings work, as reported in Building Design+Construction's 2021 Giants 400 Report.
Hotel Facilities | Aug 26, 2021
Building hotels with modules, with citizenM's Menno Hilberts
In this exclusive interview for HorizonTV, Menno Hilberts, Managing Director of Project Management with hotelier citizenM, explains how the company is employing modular construction to help double its presence in the U.S.
Giants 400 | Aug 25, 2021
Top 140 Contractors for 2021
Turner Construction, Whiting-Turner Contracting, STO Building Group, and DPR Construction top the rankings of the nation's largest general contractors, CM at risk firms, and design-builders for nonresidential buildings and multifamily buildings work, as reported in Building Design+Construction's 2021 Giants 400 Report.
Sports and Recreational Facilities | Aug 25, 2021
The rise of entertainment districts and the inside-out stadium
Fiserv Forum, home to the 2021 NBA Champion Milwaukee Bucks, proved that the design of the space outside a stadium is just as important as inside.
Architects | Aug 19, 2021
BD+C Events
Building Design+Construction's annual events include the Women in Design+Construction conference and the ProConnect meeting series.
