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Posts Tagged ‘construction costs’

Construction Industry Takes A Yearly $23 Billion Hit To Pocket Book

June 11, 2010 3 comments

And you thought traffic only produced road rage.

Traffic congestion and the delays it causes are costing the nation’s construction firms an estimated $23 billion each year according to a new analysis released today by the Associated General Contractors of America. There is no relief from traffic in sight, association officials warned however, as Congress is months late in passing six–year federal transportation legislation, prompting more pain for the hard–hit construction industry.

“Traffic tie ups nationwide are sapping productivity, delaying construction projects and raising costs for construction firms of all types,” said Stephen E. Sandherr, the association’s chief executive officer. “Given the hardships they are facing, the last thing contractors need is to burn time, fuel and money stuck in traffic.”

Sandherr said the new analysis was based on responses from nearly 1,200 construction firms the association surveyed in late April and May. He noted that a “staggering” 93 percent of firms reported that traffic and congestion were affecting their operations. Meanwhile, nearly two–thirds of firms lose at least one day of productivity per worker per year due to traffic congestion, equaling 3.7 million days of lost productivity industry–wide each year.

Construction firms also reported that traffic tie–ups delay the average construction project at least one day, while one in three firms report traffic adds a minimum of three days to the length of the average project. As a result, Sandherr said that three–quarters of contractors say congestion adds more than one percent to their total costs, and one in ten report that traffic adds eleven percent or more to their cost of doing business.

Move it or lose it sister!

[ Full Release from AGC Of America]

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Categories: Construction, News

March Shows Another Price Increase In Construction Materials

April 26, 2010 Leave a comment

Associated Builders and Contractors Reports the rise in construction materials cost for the 5th straight month. [learn more]

Prices for construction materials and supplies shot up for the fifth straight month, increasing 1.3 percent in March, according to April 22 producer price index (PPI) report by the U.S. Labor Department. Over the first quarter of 2010, construction materials prices increased by 2.6 percent. On a year-over-year basis, construction materials prices are up 4.8 percent.

Leading the increase, iron and steel prices rose 5.1 percent for the month, are up 14.1 percent for the quarter and 23 percent higher from last March. Steel mill products prices are up 3.4 percent for the month, 10.3 percent higher for the quarter and increased 11.3 percent year-over-year. Prices for nonferrous wire and cable also grew substantially, up 4.2 percent for the month, up 1.7 percent for the quarter and 29 percent higher from the same time last year. Softwood lumber prices increased 2.4 percent in March, are up 10.7 percent in the first quarter, and up 24.2 percent from March 2009. Prices for prepared asphalt, tar roofing and siding rose 0.8 percent for the month, but are down 1.6 percent for the quarter and 4.4 percent lower since last March. Prices for concrete products inched up 0.1 percent for the month, but are down 1.1 percent for the quarter, and down 2.0 percent from the same time last year.

Categories: Construction, News

Daily Fill: Headlines

March 5, 2010 Leave a comment
Categories: Daily Fill, News

Decline In Construction Costs Anticipated

March 1, 2010 2 comments

More signs that the construction industry is on a recovery path.  Hard to get a good gauge on things, as the construction industry will be behind the economy recovery and we all know how that is going – [slow].

Turner Construction Company announced that the First Quarter 2010 Turner Building Cost Index, which measures non-residential building construction costs in the United States, has decreased by 0.5% from the Fourth Quarter 2009 and decreased 7.74% from the First Quarter 2009. Construction costs have decreased by 13.06% since their peak at the end of 2008. The Turner Building Cost Index value for First Quarter 2010 is 799.

Categories: News