In light of Canada’s cooling construction market, materials costs have stabilized after years of price spikes, but they are stabilizing at high levels. Source: Statistic Canada. 2002=100 Material Cost Indices - Canada Related Links: Forecast: Inflation Stalls As Recession Undercuts Nonresidential Building Markets Markets: Major Firms Are Pessimistic About A Fast Industry Recovery International: Global Recession Pushes Down Inflation China: The New Driver Of International Costs Has Troubles Of Its Own Thailand: Construction Costs Bounce Up As The Recession Bottoms Out Complete 4th Quarterly Cost Report with Data and Analysis Costs generally are remaining at historically high levels, says Scott
Signaling a move out of deflation, China’s consumer price index in November climbed 0.6% from a year earlier. This comes in tandem with the decision by China’s government, which had held prices for materials at superficially low levels, to allow them to rise and to begin introducing market competition in several key resource sectors. Related Links: Parity Index Adjusts for Exchange Rate Swings Forecast: Inflation Stalls As Recession Undercuts Nonresidential Building Markets Markets: Major Firms Are Pessimistic About A Fast Industry Recovery International: Global Recession Pushes Down Inflation Thailand: Construction Costs Bounce Up As The Recession Bottoms Out Canada: Cool
The industry downturn that started in early 2008 and blossomed during the financial collapse late last year has continued unabated throughout 2009 and shows little signs of changing. The optimistic attitude shared by many in the industry that an economic rebound is just around the corner slowly is giving way to the realization that the industry is in for a long recession. How Different Types Of Firms View The Overall Market Related Links: Forecast: Inflation Stalls As Recession Undercuts Nonresidential Building Markets International: Global Recession Pushes Down Inflation China: The New Driver Of International Costs Has Troubles Of Its Own
The depth of the current recession is best measured by declines in construction costs, and they have taken their biggest tumble since the Great Depression of the 1930s. McGraw-Hill Construction forecasts that the recession will tighten its grip on the nonresidential building markets next year despite the best stimulus efforts. It is forecasting the dollar value of nonresidential building starts to fall another 2% next year, following a 30% decline in 2009. Even with a predicted 32% increase in housing starts in 2010, the deteriorating nonresidential building market and double-digit unemployment will keep construction costs on a short leash in
The Faithful & Gould Parity Index is designed to clarify the international cost picture, which can be distorted by gyrations in currency exchange rates. The index is based on put-in-place rates for 26 basic items used in the construction of a manufacturing facility. The parity index value in the table shows construction costs at each location relative to Chicago. A parity of £0.78 for Great Britain implies that £0.78 of construction is equivalent to $1 of work in Chicago. To calculate a relative index value, divide the parity value of the exchange rate and multiply by 100. In this study,
The Dept. of Health and Human Services has awarded $508.5 million in American Recovery and Reinvestment Act funds to build or renovate 85 community health clinics around the country. Competition was stiff for the Facility Investment Program grants, whose winners were announced on Dec. 9. HHS received about 600 applications for the funds, says David Bowman, a spokesman for HHS's Health Resources and Services Administration, which oversees the community health center program. Bowman says that the latest batch of ARRA awards involves larger awards than those contained in a round of HHS stimulus capital funding announced in June. That earlier
Democrats aren’t calling it a new economic-stimulus bill, but momentum is growing in Washington for a new measure aimed at producing more jobs, which would give the economy a lift. Proposals being floated include a new round of federal funding for highways and other infrastructure, probably in the tens of billions of dollars. If the public-works spending becomes a reality, it would provide welcome relief for the construction industry, whose unemployment rate remains the worst among major U.S. business sectors. Photo: AP Wideworld Obama. outlines a jobs-creation bill that could include more public-works funding. + Image Source: U.S. Dept. of
Large global engineering and construction firms appear to be “surprisingly positive in their outlook toward the future,” according to a new survey of executives by consulting firm KPMG International Inc., New York City. About two-thirds expect profits to hold steady or increase in 2010, and 35% say they have not had to cut any staff. But respondents were mixed on benefits of stimulus programs, and results may be skewed by the high proportion of non-U.S. respondents. Source: KMPG International Steps taken to align workforce with workload Source: KMPG International Impact of government stimulus packages over next 12 months KPMG’s survey
The value of new construction starts increased 12% in October with double-digit gains in nonresidential buildings and public works, according to McGraw-Hill Construction. Through the first 10 months of this year, total construction starts were down 29% from 2008. “After bottoming out in early 2009, there’s been an up-and-down pattern for starts, with a gradual upward trend beginning to emerge,” says Robert Murray, MHC’s chief economist. The nonresidential building market got a boost in October with construction benefitting from the $458-million expansion and renovation of the Javits Convention Center in New York City, as well as a $325-million U.S. courthouse
China will push the U.S. into second place as the world�s biggest construction market before the end of the next decade, according to a new Web-based report called Global Construction 2020. With its construction sector set to rise at an annual average of 6.3% for the next five years, the U.S. will be among the world�s top 12 fastest-growing markets, but it will lose its preeminent position, according to the report�s 10- year global projections. Photo: Oyibosonline.com Will oil weath fuel growth in Nigeria’s main city, Lagos? + Image Photo: Global Construction While CG2020’s forecasts are presented to one decimal
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