CT2

FM Cost Trends: Construction Material Costs

Nov. 25, 2015

Construction Material Costs Are Mixed.

Commercial construction is showing gains in the 5-8% range, with hotels and offices leading the way. Overall, prices for construction materials seem to reflect a more stable domestic market less influenced by foreign markets. Among the major components, lumber and concrete are up while steel and pipe products (plastic and copper) are weak. Lumber’s increases are slowing down and headed toward a 3-4% increase for the year.

Prices for adhesives and sealants have traded in a narrow range. They are down for the current quarter. They seem to have a relationship to the price of oil, which is also down for this quarter. After dramatic gains last year, the price of wood siding has moderated, with gains in the 2-3% range. It seems to be mirroring the lumber industry as a whole, and following last year’s gain of 20%, wood siding is now in line with other lumber products.

After being up in 2013, fiber optic cable has been flat for the last 24 months. Since its peak in 2004, optic cable has decreased in price by almost 12% and no change is apparent on the horizon. This year, optic cable has shown a decrease of 1%. Granite seems to be languishing and shows no gains in spite of a recovering housing industry. Last year it began a substantial drive upward only to sputter in Q1 of this year. It recovered in Q2, but has remained flat since.

Vinyl floor covering remains flat despite major fluctuations in the price of petroleum over the last two years.

view larger

For more facilities cost data, visit the BUILDINGS bookstore at www.bnibuildings.com. Additional building case studies are available at DCD.com

Voice your opinion!

To join the conversation, and become an exclusive member of Buildings, create an account today!

Sponsored Recommendations

Building Better Schools

Download this digital resource to better understand the challenges and opportunities in designing and operating educational facilities for safety, sustainability, and performance...

Tips to Keep Facility Management on Track

How do you plan to fill the knowledge gap as seasoned facility managers retire or leave for new opportunities? Learn about the latest strategies including FM tech innovations ...

The Beauty & Benefits of Biophilic Design in the Built Environment

Biophilic design is a hot trend in design, but what is it and how can building professionals incorporate these strategies for the benefits of occupants? This eHandbook offers ...

The Benefits of Migrating from Analog to DMR Two-Way Radios

Are you still using analog two-way radios? Download this white paper and discover the simple and cost-effective migration path to digital DMR radios that deliver improved audio...