COST PROJECTIONS BEGINNING FY 2017
The Past Year
June 2016. Public construction is down from earlier this year, but is up from this time last year. Construction employment is rising, only partially due to the time of year as construction starts are increasing as well. Asphalt and steel prices have gradually increased as the construction season is in full swing. The rising diesel fuel prices will probably continue and will begin to affect material prices before long.
The Architectural Billings Index is above 51 (any score over 50 indicates building growth) for architectural firms. This means that architectural firms are seeing an increase in billings over the previous month.
(Above data compiled from AGC)
With the state budget issues continuing, the volume of state funded construction related work is on the downslide however post-secondary education construction, utilizing private funding, continues to expand with significant work at the University of Kansas, Kansas State University and Wichita State University. KU’s P3 projects and several large projects at KSU are limiting the availability of sub-contractors in north east Kansas causing these prices to escalate as general contractors have to go farther afield to find qualified sub-contractors.
The Forecast for FY17
With design and construction on the upswing, the problem facing the construction industry is skilled labor and qualified subcontractors. We are experiencing bid numbers at or slightly above the budgeted amounts as opposed to the lower bidding numbers of recent years. We expect cost to continue to rise.
||0.004167 / month (4%/12 months)
||0.002917 / month (7%/ 24 months)
||0.002778 / month (10%/ 36 months)
||0.002917 / month (14%/ 48 months)
||0.002833 / month (17%/ 60 months)
These projections were compiled from multiple sources including AGC of America, US Bureau of Labor Statistics and Engineering News Record
Historical Cost Indexes
The numbers above represent the percent change in cost from one year to the next. Base line is established as 100% in January 1993.
Source of Cost information: Engineering News Record