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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
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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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
"We need accurate estimates to manage an aggressive construction schedule with limited resources of time and money. I can safely state that our needs were met by Vermeulens®"
Virginia Performing Arts Foundation
"As we wrestled with the scope changes, value engineering, schedule issues, and funding questions you have never strayed from helping us to keep our eye on the bottom line."
- Virginia Performing Arts Foundation
"Our collaborations are marked by openness, a mutual respect of differing opinions, and a willingness to assimilate a complete picture based on the information regardless of the source."
- Walsh Brothers