Construction Costs on The Rise: The Time to Build is NOW

 

Waiting for the right time, right prices and right economic climate to decide its time to build? If so, that time is now! Research shows that construction costs are on the rise and are not likely to decline within the near future. Construction input prices collectively rose by .9 percent on a monthly basis and 4 percent on a year-over-year basis, according to analysis of U.S. Bureau of Labor Statistics released on February 14th, 2017. This is the fastest year-over-year rate of materials price inflation since the beginning of 2012.

“Despite a still-strong U.S. dollar, input prices have continued to rise in recent weeks,” said Associated Builders and Contractors Inc. Chief Economist Anirban Basu. “There are a number of factors at work, including some evidence that global demand for various materials has begun to firm, including in China.  Chinese economic growth was solid last year and ended 2016 on a strong note. There are also indications that U.S. economic growth is set to accelerate due in part to an expected pickup in business investment.

January Construction Input Prices

 

January Construction Input Prices 

Percent Change

 In a broad sense, construction activity shifted to a more mature stage of expansion in 2016, characterized by a slower rate of growth for total construction compared to the 10% to 12% gains of the previous four years. For 2017, more growth at a moderate pace is expected in the construction industry, pushing the price of construction materials and labor up. The economic climate for available labor is currently strong, as quality general contractors and sub-contractors have accessible time and resources. As the construction industry continues to pick back up, these labor pool will shrink, forcing labor costs to rise.

“We’re already starting to see escalation in materials creep back in. We knew it would be coming, and we knew it would be a big factor in 2017.”

Stuart Meurer, Executive Vice President and Chief Operating Officer of Windover Construction

 

Chief Construction continuously keeps a pulse on the industry trends; providing keen insights to our customers during the estimate and pre-construction phases of any project. Don’t put the decision off another day. With construction costs continuing to rise, the most cost effective time to build is NOW!

Top 5 reasons to build with Chief Construction today:

1. Strong Labor Force and Committed Partnerships with Subcontractors

a. Between April 2006 and January 2011, the construction industry eliminated more than 40% of its work force, cutting nearly 2.3 million jobs. With the labor shortage trend continuing to plague contractors, Chief Construction did not cut labor and has retained our experienced staff. Our project managers and superintendents have decades of experience with a wide array of building experience. From warehouses, to schools, to seven-story office buildings and healthcare facilities, our team has the expertise to complete simple to complex jobs with excellence.
b. Our self-performing concrete and steel crews allow us to dictate schedules and meet client directed time lines.
c. Subcontractors provide preference to our jobs, due to the trusted partnership

2. We understand the climate of the construction industry and are able to negotiate the best prices with suppliers and vendors

a. The longevity of our estimating team and project managers provides invaluable insight and knowledge into the cost trends of the industry. Understanding the trends allows us to purchase quality materials at the most economical prices.

3. Our stringent safety program is no accident; ensuring the highest safety standards required by OSHA regulations

a. Chief Construction partners with Great Plains Safety & Health Organization out of Kearney, NE. The professional education, support, ongoing certification and advice are an invaluable asset to our company. Our stringent standards provide security to the end owner to mitigate liability.

4. Our technological advanced team utilizes in-field equipment and software, allowing for seamless communication and updates to the project manager and end owners.

a. Communication at every step of the construction process is critical. Therefore, our team utilizes software systems that are industry leaders; allowing our team to work effectively and efficiently with the owners and subcontractors.

5. Strength & Longevity of our organization

a. With over 60 years of experience and dominance in the market, Chief Construction is stable and a leader in the construction industry for Central NE. We have been in the industry for 60 years and will continue to lead for the next 60.
b. Backed by financial strength with strong access to labor and materials, Chief Construction has the fortitude and ability to collaborate with you on your first, current and future builds. We stand behind our products and work and will be your trusted partner for years to come.

Your competitors aren't waiting to advance and update their facilities and resources. Don't let your business lag behind, build with us today.