Leading general contractor Turner Construction Co. notes in its most recent quarterly cost index that construction costs in the U.S. building industry
Leading general contractor Turner Construction Co. notes in its most recent quarterly cost index that construction costs in the U.S. building industry were continuing to increase in the third quarter, with numbers up 1.89 percent over this year’s second quarter and 7.74 percent higher than the third quarter of 2006.
The construction industry continues to face a shortage of skilled labor and trade contractor availability, says Turner Vice President Karl Almstead, who calculates the company’s index. The strength of the developing economies of the world has added to the demand for raw materials and equipment, adding to the pressure on material prices in the United States. In spite of this upward pressure on construction pricing, the forecast for the market continues to appear strong. According to McGraw-Hill Construction, the nonresidential building market activity grew 5 percent over the past twelve months, he adds, while the American Institute of Architects June Billing Index confirmed continued industry strength.
The forecast is produced by New York-based Turner Construction as an indicator of market trends and does not have direct implication for the company’s financial performance.