Turner Construction Company announced that the Second Quarter 2015 Turner Building Cost Index – which measures costs in the non-residential building construction market in the United States – has increased to a value of 938. This reflects a 1.19% increase from the First Quarter 2015 and a 4.69% yearly increase from the Second Quarter 2014.
The construction industry continues to experience a shortage in skilled labor, as high volume work continues to expand in 2015. This shortage is creating a strong upward pressure on construction costs.
Raw materials continued to experience minor cost decreases and manufactured product costs remained somewhat stable while delivery lead times have been extended due to increased market demands and reduced availability of production / fabrication facilities. Fuel costs have increased for two consecutive quarters but remain lower than the same period last year.
“While the volume of work and labor availability varies across individual geographic construction markets, the steady, high level of construction activity in specific urban areas has resulted in domestic construction cost increases,” said Attilio Rivetti, the Turner vice president responsible for the Cost Index.