While we are seeing raw material prices remain at historic lows, a shortage of skilled labor continues to put upward pressure on costs.
New York, New York (PRWEB) June 28, 2016
Turner Construction Company announced that the Second Quarter 2016 Turner Building Cost Index—which measures costs in the non-residential building construction market in the United States—has increased to a value of 983. This reflects a 1.34% increase from the First Quarter 2016 and a 4.80% yearly increase from the Second Quarter 2015.
“While we are seeing raw material prices remain at historic lows, a shortage of skilled labor continues to put upward pressure on costs. As a result, we are seeing subcontractors in the marketplace being very selective about what projects they have the resources to support,” said Attilio Rivetti, the Turner vice president responsible for the cost index. “In addition, the prices of fabricated materials and components—such as steel, framing, and gypsum—are expected to increase due to overall demand.”
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 around 44,000 employees and a sales volume of more than EUR 21 billion in FY 2015, HOCHTIEF is represented in all the world’s major markets. With its subsidiary CIMIC, 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.com/press.