ADVICE FOR BUILDING OWNERS
While early indications point to a slowing U.S. economy, overall non-residential construction activity remains steady and the outlook is holding positive with certain categories charging ahead at a faster pace. According to the AGC of America, this includes power construction with wind, solar, battery energy storage, and transmission leading the way. Infrastructure will also see a boost moving forward as funds from the Infrastructure Investment and Jobs Act make their way to the market.
CONSTRUCTION COST INDEX
(JANUARY 2009 = 100)
The Mortenson Cost Index is showing a single quarter increase of 0.8% nationally and 1.2% in Chicago. Over the last twelve months, costs increased 9.6% nationally and 10.8% in Chicago.
Building construction employment in the Chicago metro totaled 29,800 in September 2022. This is 3% higher (1,000 jobs) compared to September 2021. Worker shortages are likely to persist into 2023.
Source: Bureau of Labor Statistics
MATERIAL PRICING CHANGES
(Cumulative Q3 2020 to Q3 2022)
Costs for building materials remain escalated due to continued increases in shipping costs, fuel surcharges, product lead times, and material shortages.
About this report: The Mortenson Construction cost index is calculated quarterly by pricing a representative non-residential construction project in Chicago and other geographies throughout the country. Local employment figures are from the Bureau of Labor Statistics.