Mortenson Construction has released its quarterly Construction Cost Index Report for Milwaukee along with five other metropolitan areas in the U.S. According to the report, construction activity in Milwaukee has grown 2 percent over the last two quarters following relatively flat growth in 2015. The report cites construction costs growing at a rate more consistent with long-term averages while construction employment growth has slowed over the past year and is currently five points lower than this time last year.
Despite the slower growth in the construction employment market, the overall Milwaukee construction cost index picked up in 2016. Mortenson experts believe construction pricing in Milwaukee will follow historic national norms or a marginal increase as the volume of construction activity continues to grow slightly.
“The construction market in Milwaukee has seen an increase in activity over the last year,” said Doug Heinrich, estimating director of Mortenson. “With the increase in work, we have experienced a modest growth in the cost of building components. We recommend building owners plan on a 4 percent annual increase in project costs for this coming year.”
Prices of building materials and components in Milwaukee that experienced the highest cost increase in the second quarter (vs. Q1 2016) included: Structural Steel/Decking, Fire Systems, Metal Stair Fabrication, Install Reinforced Steel, and Flooring/Carpet. The majority of other categories experienced flat or declining costs.
Mortenson tracks and reports on six metropolitan areas in the U.S. including Milwaukee, Chicago, Denver, Minneapolis, Phoenix, and Seattle. The Mortenson Construction Cost Index is calculated quarterly by pricing representative non-residential construction projects in various metropolitan areas.
It is part of a portfolio of industry insights and market studies provided by Mortenson. The Construction Cost Index is available for download at http://www.mortenson.com/cost-index.