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Construction Costs Increase as Markets Remain Active

Construction Costs Increase as Markets Remain Active

Turner Construction Company announced that the Fourth Quarter 2018 Turner Building Cost Index—which measures costs in the non-residential building construction market in the United States—has increased to a value of 1120.

This represents a 1.36% quarterly increase and 5.86% yearly increase from the Third Quarter 2018 and Fourth Quarter 2017, respectively.

“For the Fourth Quarter, the escalation on raw and fabricated materials continue,” said Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index. “While aluminum and steel product pricing has not increased significantly since August, gypsum products continue to rise on a monthly basis. Above average level of work in numerous cities across the United States is increasing the need to understand and manage the availability of skilled labor in those markets.”

Turner has prepared the construction cost forecast for more than 80 years. 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.

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