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The Construction Industry Reaches full Employment as Construction Prices Increase to 6% Nationally

Written By Peter John Lucking On 21-Feb-2017

DENVER, CO, FEBRUARY 20, 2017 – VERMEULENS’ recent report, “Beyond Estimation Market Outlook – Fourth Quarter 2016,” indicates that construction prices increased an average of 6% in 2016, depending on location.

“We are nearing full employment in the construction sector and expect to see significant wage increases,” said James Vermeulen, Managing Principal, Construction Economist, PQS. “As volumes increase and contractor bidding opportunities and backlogs grow, the margins included in a bid will likely grow as well.”

The report indicates positive numbers for the economy with energy and commodity prices increasing by 11.4% in 2016, although they still remain at levels seen in the 1990’s due to the strength of the US currency. The stock market reached all-time highs in 2016, although volatility continues to fluctuate in a range consistent with the previous three years.

The report signals a strong labor market with job growth in the fourth quarter averaging 165,000 jobs per month in comparison to 180,000 jobs per month average throughout 2016. Additionally, there were 28,000 construction jobs added nationwide and 102,000 added in 2016. Growth and profit increases in the sector will continue to draw employment from new entrants and other sectors.

Vermeulens market reports are based on actual selling prices in the Institutional-Commercial-Industrial construction industry. Forecasts are based on leading indicators, and historical comparative analysis. Additional details, data, and insights can be found in the Market Outlook report at www.Vermeulens.com

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Since 1972, Vermeulens has led the construction cost control industry. To find out more, contact Melissa Chabot, Associate, Construction Economist at the Vermeulens Denver Office, can be reached at 303-385-8592.

 

 

 

 

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