Gordian Reports Increase in Construction Material, Labor & Equipment Costs

GREENVILLE, S.C. (Feb. 25, 2025) — Gordian, provider of data-driven solutions for all phases of the building life cycle, reported that construction costs continued to increase slightly faster than inflation heading into 2025, with labor wages rising by an average of 4.1% over the past year. This analysis is based on today’s release of 2025 RSMeans Data.

While construction materials, equipment and labor rates are still on the rise, the increases are not as pronounced as those seen in previous years:

• Labor rate changes — Perhaps most notably for construction project managers, labor wages increased by an average of 4.1% over the 2024 report.
• Material cost changes — In 2024, Gordian reported an 8.7% average materials cost increase. This year, the average change across the entire database decreased significantly to a 3.1% increase year over year (YoY), signaling volatility is tightening. Gordian researchers found that 50% of materials costs experienced a +/-5% change from 2024 to 2025.
• Equipment cost changes — The average change for equipment costs was a 4.5% increase YoY, which is also notably lower than the 7% increase reported in 2024. 68% of equipment costs changed by more than +/-5%.

“Data for 2025 is showing stability in the market compared to previous years; however, it remains critical to rely on the latest, detailed data to navigate global economic uncertainties and ensure accurate and competitive project estimates,” said Chris Gaudreau, chief technology officer and chief product officer of Gordian. “With more frequent data releases and the introduction of the Gordian Cloud Platform, we’re proving our commitment to providing our customers with advanced tools, innovative solutions and capabilities to stay ahead in the industry and help simplify their complex tasks.”

The 2025 cost information is available in multiple formats, the most comprehensive being RSMeans Data Online on Gordian Cloud Platform. Starting in Q1 2024, Gordian began offering more frequent data releases to RSMeans Data Online, advancing from a single annual refresh of the costs with quarterly indexing from the CCI to producing a full refresh of all cost data points every quarter.

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