May 2023 Construction Costs
Posted: May 5, 2023 | Cost Trends
Source: US Department of Labor, Producer Price Index
The housing market is still soft and not aided at all by the developing banking crisis. In the commercial arena, the banking uncertainty is tamping down the recovery and there are reports of projects that are being “slow walked” until the financial dust settles. There is talk of recession, but most feel that it will not surface until 2024. The infrastructure initiative is showing results, with job growth for civil and heavy construction up 7,000 for March. Contractors report a healthy backlog for the next 6 months and material shortages are becoming a thing of the past.
Still shell-shocked from the rises and falls of last year, the collective industry cannot shake off its fears. At time of publication, oil is hovering in the $80 range and may be on the way up. Inflation may be waning, but interest rates are putting a squeeze on construction spending while pushing up prices. Finding available materials is getting easier and lead times are rapidly shrinking. See more costs May/June 2023 DCD.