International real estate and construction consultancy Rider Levett Bucknall (RLB) has released its latest crane index and quarterly cost report (QCR). Together, the two documents offer an insightful perspective on the North American construction industry in 14 key markets. In Phoenix, the number of cranes has dropped to February 2020 levels as several buildings have completed construction. Luxury residential projects, including Aspire Fillmore, The Rey, and The Fillmore, make up multiple cranes, and there is crane activity in mixed-use locations in Midtown.
Read the full QCR report here. The crane index is here.
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The latest data from the quarterly cost report shows that despite the slowdown in construction, the combined impact of material price increases with challenges in maintaining the supply chain has pushed costs back into the familiar range of 1% per quarter (4% on an annual basis) are.
In the past 12 months, building material prices have risen significantly. The price of copper has almost doubled from a low of $ 2.11 / lb. to $ 4.01 / lb .; Aluminum has increased from $ 0.73 / lb. in April 2020 to around USD 1.05 / lb. in March 2021; and sawn timber rose to nearly $ 1,000 / MBF in March 2021.
“Looking ahead, I anticipate that the pressure on construction prices will increase as the year progresses due to the stimulating effects (on the construction industry) at least the easing of the COVID-19 pandemic and the incentives of the American Rescue Plan Act.” Said Julian Anderson, FRICS, President of RLB North America, “If the Biden administration can get an infrastructure plan through, it should keep the momentum going for a few more years.”
Crane index notes
• Cities where crane numbers are increasing include Boston, Calgary, Denver, Honolulu, Los Angeles, Toronto, and Washington DC
• Cities where crane numbers remain constant include Chicago, New York City, Portland, and Seattle
• Cities with a decline in cranes include Las Vegas, Phoenix, and San Francisco
• Toronto is still home to the majority of the total cranes counted (43%), followed by Los Angeles (9%), Seattle (9%) and Washington DC (9%).
Notes on the quarterly expense report
• The quarterly national average increase in US construction costs is approximately 0.99% versus 1.82% year over year
• US gross domestic product (GDP) growth recovered to 4.1 in the fourth quarter of 2020
• The Architectural Billings Index (ABI) fell from 47.0 in the previous quarter to 42.6
Read the full QCR report here. The crane index is here.
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