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High Levels of Construction Activity Continue to Place Upward Pressure on Building and Material Cost

High Levels of Construction Activity Continue to Place Upward Pressure on Building and Material Cost

Turner Construction Company announced that the First Quarter 2018 Turner Building Cost Index — which measures costs in the non-residential building construction market in the United States—has increased to a value of 1071.

This represents a 1.23% quarterly increase from the Fourth Quarter 2017 and a 5.10% yearly increase from the First Quarter 2017.

"In a construction market that continues to show high levels of activity, the first quarter saw modest growth in raw material prices," said Attilio Rivetti, the Turner vice president responsible for the Index. "Additionally, we are seeing a surge in steel driven by rising demand and limited offshore supply." Rivetti also noted that hurricane and other disaster recovery activities also continue to echo, boosting costs for fuel, oil and select building products.

Turner has prepared the construction cost forecast for more than 80 years. The building costs and price trends tracked by the Turner Building Cost Index may or may not reflect regional conditions in any given quarter. The Cost Index is determined by several factors considered on a nationwide basis, including labor rates and productivity, material prices and the competitive condition of the marketplace. This index does not necessarily conform to other published indices because others do not generally take all of these factors into account.

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