After decades of reports about stagnant or slipping construction productivity, a new U.S. Bureau of Labor Statistics study, “Measuring Productivity Growth in Construction,” shows gains in several construction sectors. Many economists say the study uses more reliable productivity measures than those used before.
Exploring the single- and multifamily residential, highway, road, bridge and industrial construction sectors, the study applies updated “output price deflators” across the industry to measure the change in what contractors charge for items, ranging from the number of bathrooms in single-family homes to the cost of maintenance and repairs for highways. Data developed through deflators allow for adjustments to the value of a project based on inflation. The study tailors the output price deflators to each construction sector, a technique not used in previous studies of construction productivity.