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With Covid-19 behind us, other factors continued to impact the supply chain in Q4 of 2023, according to a new report from Gordian. Laminate Flooring For Living Room
With Covid-19 behind us, other factors continued to impact the supply chain in Q4 of 2023, according to a new report from Gordian.
Gordian’s most recent Quarterly Construction Cost Insights Report for Q4 2023 describes an industry still attempting to recover from the impact of COVID. This was complicated by inflation, weather, and geopolitical factors that resulted in widespread pricing adjustments throughout the construction materials industries.
Gordian’s RSMeans Data team analyzed overall pricing trends in construction sector supply chains, reviewing both the quarter-over-quarter historical cost index, as well as the city and state market variations reflected in the cost data.
In addition to the Gordian experts, industry contributors for the Q4 report included PCL Construction, Skanska USA Building, and Webcor, who offered their informed perspectives on specific materials:
The report reveals that commodity and labor shortages continued to create supply chain challenges that impacted project schedules and caused order backlogs. In addition, weather conditions had a significant impact, with droughts along major river shipping corridors causing delivery delays and a resultant increase in prices.
The data also indicates that while construction material prices remained steady on average over the course of 2023, there was variability among individual materials. For example, structural steel, framing lumber, and conduit all decreased compared to the previous year, but pricing for fiberglass insulation increased by more than 20%. Gordian notes that this is due in part to the significant demand generated from the credits for installing new residential insulation offered by the Inflation Reduction Act.
At the state level in Q4, the average total cost of construction increased in Alaska, Hawaii, California, Illinois, and several northeastern states. In general, the further away the location from the Mississippi River and major manufacturing centers, the higher the material and labor costs.
Looking ahead into 2024, it is anticipated that while regional cost pressures will continue to impact pricing in various locations, there will be a continuing trend toward price stabilization compared to the market volatility previously seen. This normalization is expected to be driven by a trend away from offshore suppliers and instead toward more reliable onshore and near-shore sources.
While the construction industry is still experiencing a degree of unpredictability, there is cautious optimism. By leveraging a proactive approach to supply chains, implementing strategies gleaned through data analytics, and through the use of data-driven technological tools, the industry is positioning itself to better anticipate and mitigate supply chain challenges in 2024 and beyond.
The full Quarterly Construction Costs Insights Report for Q4 2023 can be accessed here.
Construction input prices declined 1.2% in October on a monthly basis, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices fell 1.1% for the month.
National nonresidential construction spending increased 0.3% in September, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.1 trillion.
The newly released Quarterly Construction Cost Insights Report for Q3 2023 from Gordian reveals material costs remain high compared to prior years, but there is a move towards price stabilization for building and construction materials after years of significant fluctuations. In this report, top industry experts from Gordian, as well as from Gilbane, McCarthy Building Companies, and DPR Construction weigh in on the overall trends seen for construction material costs, and offer innovative solutions to navigate this terrain.
Building owners and project teams can use the new Building Owner Assessment Tool (BOAT) to better understand how an owner's decision-making profile impacts outcomes for different project delivery methods.
Data from Gordian breaks down the average cost per square foot for 15-story hotels, restaurants, fast food restaurants, and movie theaters across 10 U.S. cities: Boston, Chicago, Las Vegas, Los Angeles, Miami, New Orleans, New York, Phoenix, Seattle, and Washington, D.C.
Data from Gordian breaks down the average cost per square foot for a three-story hospital across 10 U.S. cities.
Fresh data from Gordian breaks down the average cost per square foot for a two-story college classroom building across 10 U.S. cities.
Construction input prices increased 0.2% in March, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data released today. Nonresidential construction input prices rose 0.4% for the month.
The easing of supply chain snags for some product categories, and the dispensing with global COVID measures, have returned the North American construction sector to a sense of normal. However, that return is proving to be complicated, with the construction industry remaining exceptionally busy at a time when labor and materials cost inflation continues to put pricing pressure on projects, leading to caution in anticipation of a possible downturn. That’s the prognosis of JLL’s just-released 2023 U.S. and Canada Construction Outlook.
Coldwell Banker Richard Ellis (CBRE) is forecasting a 14.1% year-on-year increase in U.S. construction costs by the close of 2022.
Construction input prices declined 1.2% in October on a monthly basis, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices fell 1.1% for the month.
National nonresidential construction spending increased 0.3% in September, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.1 trillion.
The newly released Quarterly Construction Cost Insights Report for Q3 2023 from Gordian reveals material costs remain high compared to prior years, but there is a move towards price stabilization for building and construction materials after years of significant fluctuations. In this report, top industry experts from Gordian, as well as from Gilbane, McCarthy Building Companies, and DPR Construction weigh in on the overall trends seen for construction material costs, and offer innovative solutions to navigate this terrain.
Building owners and project teams can use the new Building Owner Assessment Tool (BOAT) to better understand how an owner's decision-making profile impacts outcomes for different project delivery methods.
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