Mortenson report: Construction costs continue to rise
- Blog Post by: Janet Moore
- August 6, 2014 - 11:15 AM
All this construction in the Twin Cities comes at a cost. Literally.
Golden Valley-based Mortenson Construction, which is building the new $1 billion Vikings stadium and many other projects here and elsewhere, says in a new report that constuction labor, material and equipment costs have increased 5.1 percent year-over-year.
That compares with a 3.9 percent increase nationally.
This "confirms what Mortenson and industry economic experts have identified as an uneven recovery across the U.S. with widening inflationary gaps in construction pricing among regions," the report states.
Mortenson said it expect prices to increase by about 6 percent over the next year, as the economic and construction industry recovery continues.
This increase is highest among the six metro areas that Mortenson tracks, including Minneapolis, Milwaukee, Chicago, Denver, Phoenix and Seattle.
Clark Taylor, chief estimator for Mortenson Construction, said in a statement, "There is a lot of activity in the market at the moment and it is fueling growth on a number of levels."
Categories in the Twin Cities that are increasing the most include: Earthwork, 5.4 percent; Steel framing/stairs, 3.9 percent; Gypsum board, 2.9 percent; Roofing systems, 2.9 percent and Electrical systems, 2.6 percent.
However, prices for HVAC systems, plumbing, structural steel, and floor/carpeting remain flat. The report alsoc cites Bureau of Labor Statistics data that shows strong growth in local construction employment -- double-digit growth.
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