Source: Construction Dive
The U.S. construction industry plans to close 2017 with a bang.
Average U.S. construction costs were up nearly 5 percent between April 2017 and the same month last year. The highest cost increases were in Los Angeles and San Francisco. Honolulu was cited as the U.S. city where costs declined. Boston, Chicago, Denver, New York, Phoenix, Portland, Seattle, and Washington D.C. had more modest increases, ranging from 3.74 percent to 5.29 percent.
The findings are from a new report by cost management and consultancy firm Rider Levett Bucknall (RLB) and reported in Construction Dive magazine. According to RLB, the average project bid costs were higher than the actual costs of labor and materials, including glass. It's a finding that suggests contractors are confident enough in the market to leave more room for profit and overhead in their proposals.
The one setback for the construction industry is the ongoing labor shortage. Seventy-three percent of construction companies said they expect to take on more work this year, however an equal percentage, according to Construction Dive reported that they will struggle filling jobs.
The construction industry is waiting on an infrastructure package the Trump administration promised earlier this year that earmarks $25 billion for rural infrastructure, $100 billion for local infrastructure, and $15 billion for projects described as “transformative.”
