Construction Prices No Longer Falling
Costs will go up in 2011
November 15th headline in Construction News was “Drywall Price Increase to Hammer Builders.” A 25% increase hit construction firms around the first of December
According to Turner Construction’s Construction Cost Index, construction costs have leveled out at about 13% below 2008 and are expected to begin rising . The Bureau of Labor and Statistics shows that construction materials prices have been rising for more than a year (since September 09). So far these costs have been offset by decreases in labor costs. Now that labor cost reductions have gone about as far as they can, it appears that overall construction costs will start to rise through 2011.
For those who need to update facilities, or build new ones, the time is right. Even small projects will be cheaper now, than in the near future. Planning now can put you in position to take advantage of the lower costs and available construction services. As difficult as the recession has been, it has created an opportunity for those that plan now for the recovery.