Mortenson Raises Estimate for 2017 Chicago Construction Cost Increases to 4.5%

  • Posted on

CHICAGO, Ill. – With supplies of some key materials, equipment and labor tightening, Mortenson Construction has raised its estimate for nonresidential construction cost increases in Chicago, Illinois, for 2017 from 4 percent to 4.5 percent, the highest among the major markets that the national builder and developer tracks. This year’s increase follows a 2016 jump of 4.3 percent in Chicago, according to the Mortenson Construction Cost Index. “Chicago construction activity initially lagged other markets in recovering after the 2008 recession, but it has gradually caught up and is strong now,” said Dennis McGreal, chief estimator for Mortenson Construction’s Chicago office. … Read more

Filed under: Economic NewsTagged with: , ,

National Construction Unemployment Rate Ticks Up to 4.9 Percent in July

  • Posted on

WASHINGTON, Wash. – The national not seasonally adjusted construction unemployment rate was 4.9 percent in July, up 0.4 percent from a year ago, but still the third lowest July rate on record—matching the July 2001 rate, the U.S. Bureau of Labor Statistics reported. Unemployment rates increased in 34 states on a year-over-year basis, but the construction industry employed 186,000 more workers than in July 2016, according to an analysis released today by Associated Builders and Contractors. Rates fell in 14 states and were unchanged in two. Because these industry-specific rates are not seasonally adjusted, national and state-level unemployment rates are … Read more

Filed under: Economic NewsTagged with: , , ,

Hidden Opportunities Merge from Construction Industry Challenges

  • Posted on

CHICAGO, Ill. – Growing materials costs and dwindling talent pools coupled with looming political and economic uncertainty are leaving construction leaders grappling with serious challenges. But where there is greater challenge comes greater opportunity. According to JLL’s latest report on United States construction activity. there is stability ahead with indicators showing a growing backlog of contractor work and seasonal construction spending up 5.7 percent year-over-year. But that’s not all. A closer look at the construction industry’s biggest challenges reveals some unexpected opportunities amidst the adversity. Challenge or opportunity? You decide. The seemingly interminable labor shortage. Construction unemployment continues to reach … Read more

Filed under: Economic NewsTagged with: ,

Architecture Billings Index Growth Moderates

  • Posted on

WASHINGTON, D.C. – For the sixth consecutive month, architecture firms reported increasing demand for design services as reflected in the July Architecture Billings Index. As a leading economic indicator of construction activity, the ABI reflects the approximate 9-12-month lead time between architecture billings and construction spending. The American Institute of Architects reported the July ABI score was 51.9, down from a score of 54.2 in the previous month. This score still reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 59.5, up from a reading of 58.6 the … Read more

Filed under: Economic NewsTagged with: , ,

July Construction Starts Increase 6 Percent

  • Posted on

NEW YORK, N.Y. – The value of new construction starts in July advanced 6 percent from the previous month to a seasonally adjusted annual rate of $728.1 billion, it was reported by Dodge Data & Analytics. Leading the way was a 26 percent jump by the nonbuilding construction sector, which reflected an improved level for public works and the start of two massive power plants, located respectively in California and New York. Residential building in July increased 8 percent, as multifamily housing rebounded after three consecutive monthly declines. Running counter was a 7 percent slide for nonresidential building following its … Read more

Filed under: Economic NewsTagged with: ,