Construction costs continue their upward trend. The Federal Bureau of Labor Statistics reports an 8.8 percent year over year increase in materials, with largest increases coming from diesel fuel, aluminum mill shapes and lumber and plywood.
Trade disputes and the concern about trade wars is the consensus as to cause.
The rate of cost increase is the highest since 2011.
- Aluminum mill shapes, 17.3 percent.
- Lumber and plywood, 13.9 percent.
- Copper and brass, 13.8 percent.
- Steel mill products, 10.5 percent.
- Diesel fuel, 44.5 percent.
- Asphalt felts and coatings, 8.9 percent.
- Ready-mixed concrete, 6.5 percent.
- Paving mixtures and blocks, 5.2 percent.
The impact is upon commercial contracts is equal to that upon owners. Both are struggling to deal with accelerated cost pressures.
It is becoming more important than ever to improve productivity and collaboration via LEAN construction delivery.
