Growing Construction Demand and Supply Chain Disruptions Lead to Increase in Construction Costs
Turner Construction Company announced that the Second Quarter 2021 Turner Building Cost Index—which measures costs in the non-residential building construction market in the United States—had increased to the value of 1187. This represents a 1.28% quarterly increase from the First Quarter 2021 and a 0.85% yearly increase from the Second Quarter 2020.
“An increase in demand for construction services combined with pandemic related supply chain disruptions led to a spike in construction costs for material including lumber, steel, copper, aluminum, PVC and gypsum. Towards the end of the Second Quarter 2021, raw material costs appeared to stabilize, but it may be months before we see any resulting impacts in the supply chain or in fabricated costs,” said Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index.
Turner has prepared the construction cost forecast for more than 80 years. The building costs and price trends tracked by the Turner Building Cost Index may or may not reflect regional conditions in any given quarter. The Cost Index is determined by several factors considered on a nationwide basis, including labor rates and productivity, material prices and the competitive condition of the marketplace. This index does not necessarily conform to other published indices because others do not generally take all of these factors into account.
About Turner Construction Company
Turner is an international construction services company. Founded in 1902, Turner first made its mark on the industry pioneering the use of steel-reinforced concrete for general building, which enabled the company to deliver safer, stronger, and more efficient buildings to clients. The company continues to embrace emerging technologies and offers an increasingly diverse set of services. With an annual construction volume of US $15 billion, Turner is the largest builder in the United States, ranking first in the major market segments of the building construction field, including healthcare, education, sports, commercial, and green building. The firm is a subsidiary of HOCHTIEF, one of the world’s leading international construction service providers.
For more information, please visit http://www.turnerconstruction.com.
