While the volume of work and labor availability varies across individual geographic construction markets, the steady, high level of construction activity in specific urban areas has resulted in domestic construction cost increases.
New York, NY (PRWEB) June 25, 2015
Turner Construction Company announced that the Second Quarter 2015 Turner Building Cost Index – which measures costs in the non-residential building construction market in the United States – has increased to a value of 938. This reflects a 1.19% increase from the First Quarter 2015 and a 4.69% yearly increase from the Second Quarter 2014.
The construction industry continues to experience a shortage in skilled labor, as high volume work continues to expand in 2015. This shortage is creating a strong upward pressure on construction costs.
Raw materials continued to experience minor cost decreases and manufactured product costs remained somewhat stable while delivery lead times have been extended due to increased market demands and reduced availability of production / fabrication facilities. Fuel costs have increased for two consecutive quarters but remain lower than the same period last year.
“While the volume of work and labor availability varies across individual geographic construction markets, the steady, high level of construction activity in specific urban areas has resulted in domestic construction cost increases,” said Attilio Rivetti, the Turner vice president responsible for the Cost Index.
Approximately 90% of Turner’s business is performed under contract arrangements where Turner provides extensive preconstruction planning services before the contract price is fixed and before construction starts. By providing preconstruction services and utilizing enhanced procurement strategies, Turner effectively manages the market risks associated with cost-related issues.
Turner has prepared the construction cost forecast for more than 80 years. Used widely by the construction industry and Federal and State governments, the building costs and price trends tracked by the Turner Building Cost Index may or may not reflect regional conditions in any given quarter. The Cost Index is determined by several factors considered on a nationwide basis, including labor rates and productivity, material prices and the competitive condition of the marketplace. This index does not necessarily conform to other published indices because others do not generally take all of these factors into account.
About Turner Construction Company
Turner is a North America-based, international construction services company. Founded in 1902, Turner first made its mark on the industry pioneering the use of steel-reinforced concrete for general building, which enabled the company to deliver safer, stronger, and more efficient buildings to clients. The company continues to embrace emerging technologies and offers an increasingly diverse set of services. With an annual construction volume of $11 billion, Turner is the largest builder in the United States, ranking first in the major market segments of the building construction field, including healthcare, education, sports, commercial, and green building. The firm is a subsidiary of HOCHTIEF, one of the world’s leading international construction service providers. For more information please visit http://www.turnerconstruction.com.
HOCHTIEF is one of the most international construction groups worldwide. The company delivers complex infrastructure projects, in some cases on the basis of concession models. The Group operates in the transportation infrastructure, energy infrastructure and social/urban infrastructure segments as well as in the contract mining business. With about 53,000 employees and a sales volume of more than EUR 22 billion in FY 2014, HOCHTIEF is represented in all the world’s major markets. With its subsidiary Leighton, the Group is market leader in Australia. In the USA, the biggest construction market in the world, HOCHTIEF is the No. 1 general builder via its subsidiary Turner and, with Group company Flatiron, ranks among the most important players in the field of transportation infrastructure construction. Because of its engagement for sustainability, HOCHTIEF has been listed in the Dow Jones Sustainability Indexes since 2006. Further information is available at http://www.hochtief.de/press.