Some economist have dubbed the current economic troubles “The Great Recession” to differentiate it from the Great Depression of the 1930s. While there are significant differences between the two economic calamities, there is one striking similarity: a sharp and prolonged decline in construction costs. Source: Turner Construction. Year-to-year percent changes for selling price of construction. Turner’s cost index Source: BLS. Forecast by IHS Global Insight Blip in Lumber Prices Source: IHS Global Insight Housing starts firm Related Links: Industry Has Little Confidence About Near-Term Market Gains Medical Costs Trump Savings From Safety Recession Steadies Prices For Liquid Paving Product Airport
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.