Building Cost Projections

COST PROJECTIONS BEGINNING FY25

THE PAST YEAR 2023

Nationally 2023

Inflation has eased somewhat after a few years of exceptionally high rates.  Supply chain issues have eased in most areas except for switchgear, some HVAC components, generators, and some electrical components.  The lack of skilled construction workers has multiple effects to the construction industry.  

Locally 2023

Steel, concrete, roofing, and MEP prices trended up, however delivery delays eased somewhat.  While construction starts decreased, construction spending significantly increased.  Large construction project in the Kansas City and Wichita areas reduced the availability of subcontractors, most specifically in the southeast portion of the state.  Kansas is investing an increase in funding for higher education and healthcare.

Brand loyalty often had to go to the wayside due to both cost and extended lead times.  To maintain a construction schedule, substitutions from favored manufacturers have been made to more readily available brands.

Current Conditions

We are still seeing long delivery times for generators and automatic transfer switches, and a host of electrical and mechanical materials.  The state of Kansas is continuing to fund large capital improvement projects and deferred maintenance projects.   

FORCAST FOR FY25

Labor shortages and cost increases are easing as funding appropriations are increasing to meet the demand of the recent inflation.  A reduction in inflation is easing, but inflation increases of the last few years will not go away.  While still volatile, the inflation rate reduction is seeing a more favorable bidding climate and currently we are seeing more bidders for each project. 

Cost Projections

Cost Projections

These projections were compiled from multiple sources including AGC of America, US Bureau of Labor Statistics and Engineering News Record, McCownGordon and Turner Construction Cost Index

Historical Cost Indexes

(The above historical cost data was obtained at www.turnerconstruction.com/cost-index.)