Construction Spending Forecast at 9.7 Percent Growth in 2016

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PROVIDENCE, R.I. – Gilbane Building Company has released its winter economic report: Building for the Future Construction Economics: Market Conditions in Construction, which provides an overview of 2015-2016 trends that impact growth, spending and the labor market that shape the construction industry. The report shows that this may end up the most active three-year period of growth in construction in more than 20 years, having been ongoing since 2013-2014 periods. With the forecast for 2016 taken into account, spending growth could reach a new three-year high. For those expecting growth, the nonresidential buildings construction boom could become an historic expansion. … Read more

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Nonresidential Construction Costs Forecast to Increase with Robust Activity, Employment

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MINNEAPOLIS, Minn. — Mortenson Construction recently released its quarterly Construction Cost Index report for Minneapolis – St. Paul, Minnesota, along with five other metropolitan areas in the U.S. According to the report, building owners should anticipate nonresidential construction costs to increase 3- 4 percent on average in the coming year with most markets reporting robust activity and healthy employment. While the rate of growth in construction employment has plateaued in many of the markets tracked, nonresidential construction activity is considered healthy according to data from the Bureau of Labor Statistics. The Mortenson Construction Cost Index also tracks building component trends … Read more

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Report Expects Chicago to Lead in 2016 Construction Cost Increases

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CHICAGO, Ill. – After construction costs increased 4.6 percent in 2015, the Chicago, Illinois non-residential construction market can expect costs to rise 3.5 percent to 4 percent in 2016, according to Mortenson Construction’s Construction Cost Index for Chicago. Of the six major markets that Mortenson measures, only Denver, Colorado and Seattle, Washington can expect comparable increases in 2016 following a 4.2 percent cost increase for Denver and 3.6 percent increase for Seattle last year. “After lagging compared to other cities in the early years after the 2008 recession, the Chicago construction market continues to recover,” says Dennis McGreal, chief estimator … Read more

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Strong Demand for Construction Continues in Most States, Reports AGC

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Forty-four states and the District of Columbia added construction jobs in 2015 while construction employment increased in 39 states and D.C. between November and December amid strong demand for construction in most states, according to analysis of Labor Department data recently released by the Associated General Contractors of America. Association officials said that many of the states experiencing construction declines appear to be energy-producing states. “Construction employment expanded in most parts of the country last year as demand for new projects rebounded,” said Stephen E. Sandherr, CEO for the association. “The question now is whether declining energy prices will impact … Read more

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U.S. Non-Residential Construction Retreats 6.9% in December

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Non-residential construction starts declined 6.9 percent from November to December in the U.S., according to a new report from construction data provider CMD. December’s new construction total, $22.2 billion, was 7 percent lower than December 2014. The retreat in construction starts was only slightly higher than the construction activity typical of November to December. However, compared to the five-year average for December from 2010 to 2014, starts increased 9.2 percent. Among the three major subcategories of non-residential construction, commercial and heavy engineering/civil activity decreased 4 and 6.2 percent respectively, but by far the most dramatic change from November to December … Read more

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