Build Now or Pay More Later: Non-Residential Construction Costs Trending Up in 2017
Building owners should plan on a 4% annual increase in project costs in the coming year.
Milwaukee, WI – (February 21, 2017) – Mortenson released its quarterly Construction Cost Index for Milwaukee and five other major metropolitan areas in the U.S. The markets tracked are experiencing steady construction activity and employment with indications of continuing strong growth in certain areas. According to the report, Milwaukee’s construction labor market growth has been modest, growing 2% in the latest quarter. Despite the slower growth in the labor market, the overall Milwaukee construction cost index finished 2016 with accelerated growth. Building owners should plan on a 4% annual increase in project costs in the coming year.
While the rate of growth in construction employment has plateaued in several of the markets tracked, the non-residential construction labor market is considered healthy according to employment data from the Bureau of Labor Statistics. The Mortenson Construction Cost Index also tracks building component trends in 30 categories across all markets with many component prices flat to up as much as 8.4% in the fourth quarter of 2016.
Mortenson tracks and reports on six metropolitan areas in the U.S. including Chicago, Denver, Minneapolis, Milwaukee, 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. A podcast with more insight on the topic is also available at http://www.mortenson.com/company/news-and-insights/bwn-q4-2016-cost-index-podcast.
About Mortenson Construction
Founded in 1954, Mortenson is a U.S.-based, privately held development and construction services company. As one of the nation’s top builders, Mortenson provides a complete range of services, including planning, program management, preconstruction, general contracting, construction management, and design-build. Mortenson’s development services include feasibility analysis, financing and ownership, site acquisition, project planning, project implementation, and property and facility management.
Mortenson’s Milwaukee office has been a staple in the Milwaukee community for more than 25 years and is currently building the Wisconsin Entertainment and Sports Center, the new home of the Milwaukee Bucks. Additionally, we are working with customers including Kohler Company, Aurora Health Care, Uline, Acuity Insurance, and Froedtert & the Medical College of Wisconsin. Mortenson’s Milwaukee operation employs more than 110 craftworkers and 100 professional team members. In addition to Milwaukee, Mortenson has offices in Minneapolis, Chicago, Denver, Iowa City, Phoenix, Portland, San Antonio, Seattle, and Washington DC with international operations in Canada. For more information, visit mortenson.com.
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He has been involved in major local developments totaling more than 2.6 million square feet.