Latest News

Education And Healthcare Spending Showing Strength, Decrease In Construction Costs Forecast

March 9, 2009
/ Print / Reprints /
ShareMore
/ Text Size+
The cost of construction has come down as construction spending has decreased and competition in the industry has increased; however, construction activity in the education, healthcare and public sectors continue to show strength.

General builder Turner Construction Co. announced a decrease in the Turner Building Cost Index, which projects domestic commercial building construction costs. The first-quarter 2009 index number is down by 5.77 percent from the fourth-quarter 2008 number. Since the first quarter of 2008, construction costs have decreased by 2.59 percent.

“The cost of construction has come down as construction spending has decreased and competition in the industry has increased,” said Karl F. Almstead, the Turner vice president responsible for the cost index. “However, construction activity in the education, healthcare and public sectors continue to show strength, and increased investment in green buildings across all segments are sources of optimism as potential beneficiaries of the economic stimulus legislation.

“In the second half of 2008, commodity and material prices fell from their recent highs. Material prices are now stabilizing as a result of production cutbacks and inventory reductions. Labor costs are countering the downward cost trend with labor wage settlement increases in 2008, reflecting the demand prior to the market contraction in the second half of the year.”

The building costs and price trends tracked by the Turner Building Cost Index may or may not reflect regional conditions in any quarter. The index is determined by several factors on a nationwide basis, including labor rates and productivity, material prices and the competitive condition of the marketplace.

Did you enjoy this article? Click here to subscribe to Supply House Times. Stay connected with us via social media.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

BNP Media's Plumbing Group Visits Grundfos North American Headquarters

BNP Media’s Plumbing Group, comprised of the Plumbing & Mechanical, Supply House Times, PM Engineer (pme) and Reeves Journal brands, recently visited Grundfos’ new North American headquarters building in the western Chicago suburb of Downers Grove, Ill.

8/26/14 1:00 pm EST

Free Webinar: Low Temperature Heat Emitter Options in Hydronic Systems

With proper design, you can create systems that require supply water temperatures no higher than 120° F under design load conditions.

Supply House Times

Cover Image

2014 October

Our October 2014 issue features a look at the 2014 Supply House of the Year: Ferguson Enterprises.

Table Of Contents Subscribe

NAECA 2015 Water Heater Regulations

Is your company ready for the NAECA 2015 Water Heater Regulations?
View Results Poll Archive

The Supply House Times Store

2015.jpg
2015 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

CS-OflRGBhomepage.jpgWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

facebook Twitter Updated icon Youtube Updated icon    LinkedIn Updated icon  Google+

Premier 125

Premier 125 button

The information SUPPLY HOUSE TIMES uses to rank the Premier 125 is the most accurate we can gather. It is primarily based on responses to a questionnaire we send to the wholesalers in our database, supplemented with information obtained from industry reports and estimates.