Gilbane Publishes Fall 2012 Construction Industry Economic Report
Posted
10/4/2012
Gilbane Building Company announces the publication of the Fall
2012 edition of Construction Economics -- Market Conditions in
Construction. Based on an array of economic data, construction
starts, and material cost trends, this free report indicates an
increase in construction spending over last year but cautions of an
expected downturn again in early 2013. The Architectural Billings
Index (ABI), which predicts activity 9-12 months out, indicates
increasing spending nearly through the end of the year before
another slowdown.
"Jobs continue to be the difficulty in this construction recovery.
They are at a near standstill, while spending continues a slow
climb," says Ed Zarenski, the report's author and a 40-year veteran
of the construction industry. "A nugget of good news, though, is
that climb may mean productivity is increasing. Spending is up only
2.5 percent since the beginning of the year, but up 6 percent from
a year ago. Supported by positive growth trends, contractors may be
able to recover a bit of lost margins."
According to the report, the construction industry has seen a small
but continued growth in contractor's margins that started a very
slow return to positive in 2011. Material price increases and labor
cost growth will still contribute to escalation. Contractors'
building costs "charged" in 2012 are above labor and material cost
increases, signaling a continued movement towards recovery of more
normalized margins.
Among the topics covered in this comprehensive report are:
-- Construction Starts, Spending, & Costs
-- Material Price Movement
-- Trends and Costs for Structural Steel, Recycling Steel,
and Copper
-- Architectural Billings Index
-- Current Inflation Forecast
-- ENR Index -- BCI History
This free report is available for download at http://info.gilbaneco.com/construction-economics.