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
Giants 400 | Jan 31, 2023
2022 Retail Giants: Top architecture, engineering, and construction firms in the U.S. retail building sector
Gensler, CallisonRTKL, Kimley-Horn, Henderson Engineers, Whiting-Turner Contracting, and Turner Construction top BD+C's rankings of the nation's largest retail sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Giants 400 | Jan 31, 2023
2022 Government Sector Giants: Top architecture, engineering, and construction firms in the U.S. government buildings sector
Gensler, Jacobs, Hensel Phelps, and Page top BD+C's rankings of the nation's largest government sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Healthcare Facilities | Jan 31, 2023
How to solve humidity issues in hospitals and healthcare facilities
Humidity control is one of the top mechanical issues healthcare clients face. SSR's Lee Nordholm, PE, LEED AP, offers tips for handling humidity issues in hospitals and healthcare facilities.
University Buildings | Jan 30, 2023
How wellness is reshaping college recreation centers
Moody Nolan, a specialist in the design of college recreation centers, has participated in the evolution toward wellness on college campuses.
University Buildings | Jan 27, 2023
Ozarks Technical Community College's advanced manufacturing center is first-of-a-kind in region
The new Robert W. Plaster Center for Advanced Manufacturing at Ozarks Technical Community College in Springfield, Mo., is a first-of-a-kind educational asset in the region. The 125,000-sf facility will educate and train a new generation in high tech, clean manufacturing and fabrication.
Mass Timber | Jan 27, 2023
How to set up your next mass timber construction project for success
XL Construction co-founder Dave Beck shares important preconstruction steps for designing and building mass timber buildings.
Sports and Recreational Facilities | Jan 26, 2023
Miami’s motorsport ‘country club’ to build sleek events center
Designed by renowned Italian design firm Pininfarina and with Revuelta as architect, The Event Campus at The Concours Club will be the first and only motorsport-based event campus located within minutes of a major metro area.
K-12 Schools | Jan 25, 2023
As gun incidents grow, schools have beefed up security significantly in recent years
Recently released federal data shows that U.S. schools have significantly raised security measures in recent years. About two-thirds of public schools now control access to school grounds—not just the building—up from about half in the 2017-18 school year.
AEC Tech Innovation | Jan 24, 2023
ConTech investment weathered last year’s shaky economy
Investment in construction technology (ConTech) hit $5.38 billion last year (less than a 1% falloff compared to 2021) from 228 deals, according to CEMEX Ventures’ estimates. The firm announced its top 50 construction technology startups of 2023.
Sports and Recreational Facilities | Jan 24, 2023
Nashville boasts the largest soccer-specific stadium in the U.S. and Canada
At 30,105 seats and 530,000 sf, GEODIS Park, which opened in 2022, is the largest soccer-specific stadium in the U.S. and Canada. Created by design firms Populous and HASTINGS in collaboration with the Metro Nashville Sports Authority, GEODIS Park serves as the home of the Nashville Soccer Club as well as a venue for performances and events.
