Construction Cost

Reduced Construction Spending and Increased Costs Reflect Slowing Third Quarter

Market Outlook 2016 Q3

Published 11-9-2016

Non-residential construction spending has dropped 6 percent since the beginning of 2016. This reduction was offset by a nearly equal increase in infrastructure spending and steady residential construction. Increases in construction prices for 2016 are now trending towards 6 percent annually, depending on location, while job growth saw a slight up-tick with an average of 192,000 jobs added per month in the third quarter of 2016 versus the 171,000 jobs per month averaged in the first half of the year.

Stable Second Quarter Drives Continued Growth in Construction and Other Sectors

Market Outlook 2016 Q2

Published 8-17-2016

After a soft May, second quarter data indicates that job gains were stronger in June 2016, while economic activity has been expanding at a moderate rate. Overall job growth in the first two quarters of 2016 declined from an average of 245,000 per month to 172,000 per month. The slowing trend could be part of a cycle witnessed in previous expansions. Commodity prices appear to have stabilized at a reduced level, which increases room for inflation in construction and other sectors.

Penn Renovation Yields Class A Laboratory Space for Half the Cost of New Construction

Weighing the Cost/Benefit of Retrofit vs. Gut Renovation

Published 8-17-2016

Retrofit or renovate? It’s a common question facing many owners of laboratory facilities built in the 1970s, and the answer isn’t always obvious. A simple retrofit of building systems can improve reliability and cut energy consumption significantly, but a gut renovation can be transformative by enhancing performance and providing associated benefits in recruitment and retention, quality of life, and scientific productivity––benefits that can more than offset the higher initial cost.

Steady Market Growth and Stable Commodity Prices Support Healthy First Quarter

Market Outlook 2016 Q1

Published 6-22-2016

The economy started out the first quarter of 2016 in good shape, as energy and commodity prices stabilized at reduced levels. This led to more construction activity nationwide, with average prices coming in at an annual escalation rate of around 6 percent, depending on location. Construction job growth and dollar volume both continued upward trends as non-residential construction spending rebounded 48 percent from its most recent bottom in 2011. On balance, current indicators support stable construction growth over the short-term.