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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
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McGill University Health Centre
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- Partners (Healthcare)
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Perkins + Will
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The University of Chicago
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Truex Cullins & Partners Architects
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Virginia Performing Arts Foundation
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