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
Sports and Recreational Facilities | Jul 29, 2015
Milwaukee Bucks arena deal approved by Wisconsin state assembly
Created by Milwaukee firm Eppstein Uhen Architects and global firm Populous, the venue will be built in downtown Milwaukee. Its design draws inspiration from both Lake Michigan, which borders Milwaukee, and from aspects of basketball, like high-arcing free throws.
Contractors | Jul 29, 2015
Consensus Construction Forecast: Double-digit growth expected for commercial sector in 2015, 2016
Despite the adverse weather conditions that curtailed design and construction activity in the first quarter of the year, the overall construction market has performed extremely well to date, according to AIA's latest Consensus Construction Forecast.
Multifamily Housing | Jul 27, 2015
Miami developers are designing luxury housing to cater to out-of-town buyers and renters
The Miami Herald reports on several new multifamily projects, including the Paramount Miami Worldcenter, whose homes include maid’s rooms, larger terraces, boutique-size closets, and guest suites.
Green | Jul 23, 2015
NASA: U.S. headed for worst droughts in a millennium
Data from NASA shows carbon emissions could be the driving force behind devastating water shortages and record droughts in the western U.S.
Airports | Jul 22, 2015
MUST SEE: JFK airport taps Gensler to design terminal for animals
Pets can enjoy luxurious spa and grooming services before being transported directly to their flight from the terminal.
Office Buildings | Jul 21, 2015
Finally! There's a workplace trend that’s worth embracing
There’s a realization by corporate real estate executives that in order to create a successful workplace, there must be alignment between their people, their place, and the tools they have to do their jobs.
Codes and Standards | Jul 16, 2015
Berkeley, Calif., adopts balcony inspection program following deadly collapse
Apartment building balconies will be subject to inspections every three years under new regulations adopted following a deadly collapse.
Codes and Standards | Jul 16, 2015
Oregon to spend $300 million for seismic updates on public buildings
A survey found that more than 1,000 Oregon school buildings face a high risk of collapse during earthquakes.
Cultural Facilities | Jul 16, 2015
Louisville group plans to build world's largest disco ball
The sphere would more than double the size of the current record holder.
Industrial Facilities | Jul 14, 2015
Tesla may seek to double size of Gigafactory in Nevada
Tesla Motors purchased an additional 1,200 acres next to the Gigafactory and is looking to buy an additional 350 acres.
