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DENVER, CO, NOVEMBER 7, 2016 – Monetary authorities are looking towards continued growth and productivity increases to substantiate and soak up eased money supply. Continuing low interest rates are good for stability in the interest rate sensitive construction sector. Price increases are also attributed to contractor margins sufficient to bring significant supply to a growing market. Wage and profit increases in the sector will continue to draw employment from new entrants and other sectors.
In the “Beyond Estimation Market Outlook – Third Quarter 2016,” several interesting findings highlight why the construction industry is continuing to grow in profits despite flat dollar volume. Construction dollar volume has remained flat through 2016 with steady construction spending. Non-Residential spending has declined nearly 6% since the beginning of 2016, which has been offset by a similar increase in infrastructure spending. The good news is that there were 34,000 construction jobs added nationwide during the third quarter 2016. Construction prices, which have continued to increase in 2016, are trending towards 6% per year, depending on location. After six consecutive years of above average growth, the construction cost trendline has shifted from 3.1% to 3.3%.
“While there has been a slight rebound in energy and commodity prices, they remain well below past levels due to the strength of the US currency,” said Richard Vermeulen, Business Development and Sustainability Associate. “These lower prices allow room for employment, wage, and profit increases in the construction sector. We continue to expect to see significant wage increases.” Additional details ,data and insights can be found in the Market Outlook report at www.Vermeulens.com
To participate in an interactive discussion on this topic, join Vermeulens at this webinar – “10 Things You Thought About Urban Economics But Were Afraid To Say” on Thursday, December 15th, 2016 from 12:00pm - 1:00pm MST. The discussion will examine the factors that can create economically leaner sustainable urban environments. Hear how other professionals are optimizing design solutions at lower costs to create economic and environmental sustainable urban areas.
Vermeulens is a leader in construction cost control since 1972. With over $5 billion in annual construction cost estimating, an extensive and continually expanded database, and their innovative parallel estimating system, the firm is committed to identifying and controlling project costs throughout the design process. Peter Lucking, Business Development and Sustainability Associate, head of Vermeulen’s Denver Office, can be reached at 303-386-2530. For details , please visit www.Vermeulens.com
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Architectural Resources Cambridge
"I understand that all of your MEP staff are either mechanical or electrical engineers and are therefore able to project what has not yet been drawn. In my opinion, this is one of the most valuable things you bring to the table."
- Architectural Resources Cambridge
"Consistently, we find that Vermeulens® has more enthusiasm and expertise than any other cost estimator with whom we've worked."
McGill University Health Centre
"Your involvement with the MUHC Project has created new standards in construction estimating in the Quebec Health Care System."
- McGill University Health Centre
"Your team's ability to address cost issues as they related to the ever-changing technology of healthcare is impressive."
- Partners (Healthcare)
"We enjoy pushing the envelope of design with you at our side to enable the team to deliver within a realistic budget."
Perkins + Will
"Vermeulens has been very supportive of the client's vision from the very inception of the work."
- Perkins + Will
The University of Chicago
"The accuracy of your estimate on our $200 million dollar (job) gave the University the confidence to test our project in the construction market. This strategy resulted in the University saving more than $10 million from the estimates provided by others. This is quite a return on the investment we made in your fee."
- The University of Chicago
Truex Cullins & Partners Architects
"Every bid project we've worked on with Vermeulens Cost Consultants, during the past twenty plus years, has come in within the prepared and accepted budget range."
- Truex Cullins & Partners Architects
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Virginia Performing Arts Foundation
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- Virginia Performing Arts Foundation
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- Walsh Brothers