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 0.3% in Seattle. Over the last twelve months, costs increased 9.6% nationally and 9.3% in Seattle.
Construction employment in the Seattle metro region reached 30,100 in September 2022. This is a 7% increase (2,000 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)
Prices for commodity-based materials are beginning to level off, but high shipping costs, product lead times and material shortages are a continued challenge.
About this report: The Mortenson Construction cost index is calculated quarterly by pricing a representative non-residential construction project in Seattle and other geographies throughout the country. Local employment figures are from the Bureau of Labor Statistics.