April 23, 2019
This issue of the Mortenson Construction Cost Index marks our tenth year of arming folks like you with market knowledge to better inform your facility planning. Our construction cost index has increased steadily over the past decade, reflecting the tremendous impact the economic recovery has had on our industry.
Building what's next.SM Podcast
Check out our latest podcast where we're joined by Clark Taylor, Mortenson's Vice President of Estimating, who breaks down the national trends and translates what the new report means for owners.
The Minneapolis construction cost index was flat in the first few months of 2019, trailing our national index. Although we continue to monitor trade negotiations with China, volatility due to tariffs has seemingly eased over the past few months and prices have stabilized. Non-residential construction employment growth was flat, but the overall market remains healthy and the Architecture Billings Index (an early predictor of construction activity) is holding steady. We recommend owners plan on a 2% to 3% increase in the remainder of the year.
To view the trend of local construction costs, download the 1st Quarter 2019 Cost Index.
Our team is available for your questions around this or other project-related issues; please don't hesitate to reach out to us or your other contacts at Mortenson.
Vice President, Project Development
Vice President, Estimating