What’s Changing in Construction Costs?
The construction industry has been busy in recent months with strong demand for construction services. Yet, it faces many difficult challenges ahead if it is to continue this trend, including the impact of new tariffs, the disruption to material supply chains, increased material prices and price volatility, and questions surrounding material availability and increasing lead times. As the prospect of international trade wars looms, much uncertainty exists about what will happen in the longer run and what the net impact of the tariff related changes will be; however, beneficial agreements may yet be negotiated. Associated Builders and Contractors (ABC) analysis of U.S. Bureau of Labor Statistics (BLS) data shows the fastest pace of material costs increases since 2008.
Click here to read more analysis and data in the Summer 2018 issue of Cost Trends from Hixson, including specific trends in areas such as U.S. construction costs, construction spending, construction backlog indicators and more.
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