From Peter Stankiewicz
Managing Director, Construction
2015 was a banner year for post-recession construction activity, as office space under construction across the US peaked at just under 93 million square feet, and construction employment grew at a faster pace than overall employment. As evidenced in our latest US Construction Perspective, development firms surveyed agree that construction activity will remain stable through early 2016.
The biggest story though, especially locally, seemed to be costs. Despite a plateau in materials prices, including a steep decline in the price of steel, construction costs increased in primary markets driven by skyrocketing wages. In fact, Massachusetts led the way in construction labor costs, with New York and Washington, DC not far behind.
Looking forward, demand from downstream markets will stay strong and construction profit margins will continue to grow, keeping construction growing at a faster rate than the overall economy.
I encourage you to download the complete US Construction Perspective for additional insights and please feel free to contact me with questions or for more information about the local construction market.