Gilbane Publishes Fall 2012 Construction Industry Economic Report

PROVIDENCE, R.I. (Oct. 4, 2012) – Gilbane Building Company today announces the publication of the Fall 2012 edition of Construction Economics — Market Conditions in Construction. Based on an array of economic data, construction starts, and material cost trends, this free report indicates an increase in construction spending over last year but cautions of an expected downturn again in early 2013. The Architectural Billings Index (ABI), which predicts activity 9-12 months out, indicates increasing spending nearly through the endof the year before another slowdown.

“Jobs continue to be the difficulty in this construction recovery. They are at a near standstill, while spending continues a slow climb,” says Ed Zarenski, the report’s author and a 40-year veteran of the construction industry. “A nugget of good news, though, is that climb may mean productivity is increasing. Spending is up only 2.5% since the beginning of the year, but up 6% from a year ago. Supported by positive growth trends, contractors may be able to recover a bit of lost margins.”

According to the report, the construction industry has seen a small but continued growth in contractor’s margins that started a very slow return to positive in 2011. Material price increases and labor cost growth will still contribute to escalation. Contractors’ building costs “charged” in 2012 are above labor and material cost increases, signaling a continued movement towards recovery of more normalized margins.

Among the topics covered in this comprehensive report are:

•   —  Construction Starts, Spending, & Costs
•   —  Material Price Movement
•   —  Trends and Costs for Structural Steel, Recycling Steel, & Copper
•   —  Architectural Billings Index
•   —  Current Inflation Forecast
•   —  ENR Index — BCI History

This free report is available for download at http://info.gilbaneco.com/construction-economics. Gilbane provides a full slate of construction and facilities-related services — from sustainable building to the latest in construction technology — for clients across various markets. Founded in 1873 and still a privately held, family-run company, Gilbane has more than 60 office locations around the world.