Construction Costs Set to Increase by 3-6% in 2024

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U.S. construction costs are set to increase by 3-6% in 2024, following an average increase of 4% in 2023. Cost escalation will challenge construction firms, which will need to develop new processes and capabilities to keep costs under control and projects on track. The findings are shared in How to navigate 2024: Balancing challenge with opportunity, a report published by Currie & Brown. The company also forecasts significant variation in cost escalation between major cities. For example, construction costs in Chicago, Illinois are predicted to rise 3.5% in 2024, compared to 6% in Phoenix, Arizona. This means that a $10-million … Read more

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AGC: Construction Employment Rises, Job Levels Reach Near Record Levels

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Construction employment increased in 231 or 65% of 358 metro areas between January 2023 and January 2024, according to an analysis by the Associated General Contractors of America of new government employment data. Association officials noted the industry ended the month with more than 400,000 job openings nationwide, suggesting that many more metros would have experienced employment increases if enough qualified workers were available. Phoenix-Mesa-Scottsdale, Arizona added the most construction jobs (10,900 jobs or 8%) between January 2023 and January 2024, followed by Riverside-San Bernardino, California (7,900 jobs, 7%); Baton Rouge, Louisiana (6,700 jobs, 15%); Austin-Round Rock, Texas (5,900 jobs, … Read more

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ABC: Nonresidential Construction Spending Falls Sharply in January

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National nonresidential construction spending decreased 0.4% in January, according to an Associated Builders and Contractors analysis of data published by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.190 trillion. Spending was down on a monthly basis in 10 of the 16 nonresidential subcategories. Private nonresidential spending fell 0.1%, while public nonresidential construction spending was down 1.0% in January. Healthcare construction decreased slightly from December to January, spending overall in this sector is up 13% from last January. “Despite January’s disappointing data, nonresidential construction spending is still up more than 17% over the past year,” … Read more

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AIA/Deltek Release Latest Architecture Billings Index

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Architecture firm billings remained soft entering into 2024, with an AIA/Deltek Architecture Billings Index score of 46.2 in January. Any score below 50 indicates decreasing business conditions. “This now marks the lengthiest period of declining billings since 2010, although it is reassuring that the pace of this decline is less rapid and the broader economy showed improvement in January,” said Kermit Baker, Ph.D., AIA Chief Economist. “Firms are seeing growth with inquiries into new projects and value of newly signed design contracts is holding steady, showing potential signs of interest from clients in new projects.” Business conditions remained weak at … Read more

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2024 Construction Workforce Shortage Tops Half Million, Says ABC

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The construction industry will need to attract an estimated 501,000 additional workers on top of the normal pace of hiring in 2024 to meet the demand for labor, according to a proprietary model developed by Associated Builders and Contractors. In 2025, the industry will need to bring in nearly 454,000 new workers on top of normal hiring to meet industry demand, and that’s presuming that construction spending growth slows significantly next year. “ABC estimates that the U.S. construction industry needs to attract about a half-million new workers in 2024 to balance supply and demand,” said Michael Bellaman, ABC president and … Read more

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