Steel in the News
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Posted by Geoff Weisenberger on May 2, 2008 at 12:43 PM.
Turner Construction Company, in its quarterly market forecast, announced that construction costs increased 1.48% over fourth quarter 2007 and 4.96% over first quarter 2007. Turner has issued this quarterly forecast for more than 80 years.
According to Karl F. Almstead, the Turner vice president responsible for the Turner Building Cost Index, “The non-residential construction market remains active in spite of the residential market slowdown and the uncertainty in the credit markets. The perception that there may be an economic slowdown has lead to an easing of pricing pressure and an increase in competition among trade contractors in some markets. However, in major metropolitan markets such as New York City, the available volume of work continues to drive pricing upward.”
Almstead also expressed that the industry is still facing a shortage of skilled labor, as well as uncertainty of the availability and cost of materials, adding that the pressure on construction costs in the non-residential markets will continue to result in cost increases over the next several quarters.
The Turner Building Cost Index may or may not reflect regional conditions in any given quarter. The Cost Index is determined by several factors considered on a nationwide basis: labor rates, productivity, material prices, and the competitive condition of the marketplace.