08/24/2012

Construction Trends: Gaining Ground Despite Cost Spike

Trends in construction activity and materials prices

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The increase in construction materials prices has slowed to 3-4% from 8% in 2011. This is the third straight year of increases following five years of decline. Steel prices rose 6% and lumber declined nearly 5%. Asphalt’s inflationary cost follows crude oil; likewise for copper and stainless steel, which have moderated to reflect the value of precious metals. Hot rolled steel bar (rebar) spiked 4-5% in the last 12 months and could increase again due to the rising cost of steel.

The price of concrete block remains flat due to lack of demand. Precast concrete, however, has maintained 3-4% price increases over the last 36 months, likely due to the building industry’s recovery. Crushed stone has risen 25% over the last five years, and though the rate of increase has slowed, it continues to rise with 2-4% growth forecast for this year. Glass has also stayed flat over the last 24 months except a brief spike of 4-5% in early 2009.

Following a strong finish in 2011, construction spending slowed in the first quarter of 2012 but still grew 8% over the last 12 months. Most segments demonstrated gains except hospitality and religious.


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Note: All data is based on indices rather than unit or quantity prices. Source: U.S. Department of Labor, Producer Price Index

 

 

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Need portable cooling?

Rent or buy spot coolers from full-service locations nationwide. On call “24/7”. Primary, supplemental or emergency cooling. Atlas Sales & Rentals, Inc., or call (800) 972-6600.

Click here for more info


Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

Yaskawa drives offer quality performance for air handlers and cooling towers on the roof to secondary chilled water pumps in the basement

Bluebeam® Revu® simplifies digital facilities document management from design review to leveraging as-builts, maintenance manuals and O&Ms submittals.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.


 
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