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In our latest DC Estimating Report, learn what’s trending in four key areas of cost estimating, including escalation, lead times, unemployment and workforce development.
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Escalation DeclineConstruction escalation is starting to decline moving into the second quarter of 2024 as construction prices are beginning to level out to reach a normal escalation level. We are anticipating a 5.25% escalation rate for 2025 and assuming at least a 5% escalation per year for projects after. Those numbers are slightly higher than historical averages, but better than recent years. |
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Supply ChainsThere’s good news and bad news with material lead times. The good news: lead times are leveling off to a regular norm. The bad news: we still face long lead times for acquiring material for mechanical and electrical equipment. To combat this, contractors are identifying these lead time items and pushing to have submittals and shop drawings early in the project to be able to secure these items and keep projects on schedule. However, contractors are still having difficulty bidding on projects due to the fact that suppliers cannot guarantee pricing at budget or even bid time without a contract or commitment within 15-30 days. |
Construction UnemploymentThe construction unemployment rate is near 3.3% as of June 2024, making it the lowest it has been since September 2019 when the rate was 3.2%. Both numbers are the lowest construction unemployment rate has been in the past five years, indicating a strong work force for 2024. |
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Workforce DevelopmentWe are starting to see positive effects from initiatives set in place by construction contractors toward workforce development. As the pool of qualified construction workers declined, many contractors took it upon themselves to implement programs aimed at educating high school students about the benefits of pursuing careers in construction. These programs have been years in the making, and we are starting to see the results as more young adults are interested in and pursuing careers in construction trades. |
Learn more about our cost estimating services and how your project can benefit by leveraging the expertise of Design Collaborative’s Chief Cost Estimator, Thad Berkes, from the beginning.
“We deeply understand the stress that comes with a construction project. Put that pressure on us—it’s what we do best.” Thad is a Design Collaborative boomerang, having first joined the firm in 2018 before returning in 2022. The Chief Cost Estimator role makes a real difference for our clients. We believe that the cost of…