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 Reports Soaring Materials Costs, Supply-Chain Problems + Project Cancelations Continue to Impact Construction Industry

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One year after the pandemic struck, construction firms are experiencing soaring materials costs, widespread supply-chain problems and continuing project deferrals and cancellations, according to a new survey that the Associated General Contractors of America has released. Association officials urged Congress and the Biden administration to take steps to eliminate tariffs on key materials, address shipping backups and boost funding for new infrastructure to help the industry recovery.   “The survey results make it clear that the construction industry faces a variety of challenges that threaten to leave many firms and workers behind, even as some parts of the economy are … Read more

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Construction Costs Soar in May, Outpace Contractor Pricing

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Construction costs accelerated again in May, with steep increases for a wide range of building and road materials, including many that are subject to tariffs that could drive prices still higher, according to an analysis by the Associated General Contractors of America of new Labor Department data. Association officials say that the construction industry will bear a heavy share of the tariffs’ costs. “Prices jumped at double-digit annual rates for metals, lumber and plywood, and diesel fuel, while ready-mixed concrete, asphalt paving and roofing materials also had unusually large increases,” said the association’s chief economist, Ken Simonson. “The cost of … Read more

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Construction Costs Surge in April

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The cost of goods used in construction jumped in April at the fastest year-over-year rate since 2011, with ongoing increases for a wide range of building materials, including many that are subject to proposed tariffs that could drive prices still higher and cause scarcities, according to an analysis by the Associated General Contractors of America of Labor Department data. Association officials said that the new data indicates many firms are already being squeezed by higher materials prices that they are unable to pass along to their customers. “Contractors have started to boost the prices they charge, but they are falling … Read more

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Strong Level of Construction Activity Across U.S. Continues to Drive Increase in Construction Costs

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According to Turner Construction Company’s quarterly Building Cost Index, the busy construction market, shortages of skilled labor and the impact of natural disasters on material production and demand are putting upward pressure on construction costs. Officials with Turner Construction Company announced that the Fourth Quarter 2017 Turner Building Cost Index—which measures costs in the non-residential building construction market in the United States—has increased to a value of 1058. This represents a 1.34 percent quarterly increase from the Third Quarter 2017 and a 5.17 percent yearly increase from the Fourth Quarter 2016. “We saw slight cost increases for select raw materials … Read more

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