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
Architects | Sep 1, 2017
5 reasons why AEC firms need to focus on employer branding
Not to be confused with the branding of your firm overall, your employer brand is defined by your reputation as a workplace.
Mixed-Use | Aug 30, 2017
A 50-acre waterfront redevelopment gets under way in Tampa
Nine architects, three interior designers, and nine contractors are involved in this $3 billion project.
Giants 400 | Aug 29, 2017
Top 110 healthcare construction firms
Turner, McCarthy, and Skanska top BD+C’s ranking of the nation’s largest healthcare sector contractor and construction management firms, as reported in the 2017 Giants 300 Report.
Green | Aug 24, 2017
Business case for WELL still developing after first generation office fitouts completed
The costs ranged from 50 cents to $4 per sf, according to a ULI report.
BD+C University Course | Aug 23, 2017
AIA course: New steel systems add strength and beauty
Advances in R&D are fostering new forms of structural and aesthetic steel.
Market Data | Aug 23, 2017
Architecture Billings Index growth moderates
“The July figures show the continuation of healthy trends in the construction sector of our economy,” said AIA Chief Economist, Kermit Baker.
Giants 400 | Aug 16, 2017
Turning R&D into practice
Charlie Pankow’s mandate was simple: Use research to create even better buildings.
Giants 400 | Aug 11, 2017
Top 60 construction management firms
Jacobs, Kraus-Anderson, and Hill International are among the nation’s largest construction management and project management firms, as reported in Building Design+Construction’s 2017 Giants 300 Report.
Giants 400 | Aug 11, 2017
Top 115 contractor firms
Turner, Whiting-Turner, and AECOM top Building Design+Construction’s ranking of the nation’s largest commercial construction firms, as reported in the 2017 Giants 300 Report.
Multifamily Housing | Aug 9, 2017
Related Companies unveils plans for One Hudson Yards luxury rental residences
The 33-story tower will be positioned on the High Line with views of the Hudson River and downtown Manhattan.
