Turner Construction Co. recently published its Building Cost Index, forecasting that construction costs in the U.S. building industry are continuing to increase in the third quarter.
According to the index, the third quarter in 2007 shows a 1.89-percent increase in construction costs over the second quarter of 2007, and a 7.74-percent increase over the third-quarter 2006 index. Experts link the looming shortage of skilled labor and talent in the industry to the pressure on material prices in the United States. Karl F. Almstead, Tuner vice president, adds, "In spite of this upward pressure on construction pricing, the forecast for the market continues to appear strong. The non-residential building market activity grew 5 percent over the past 12 months."
Used widely by the construction industry and federal and state governments, the building costs and price trends tracked by the Turner Building Cost Index may or may not reflect regional conditions in any given quarter. The index is determined by several factors considered on a nationwide basis - labor rates and productivity, material prices, and the competitive condition of the marketplace.