International property and construction consultancy firm Rider Levett Bucknall (RLB) has released its latest Crane Index and Quarterly Cost Report. Together, the two documents provide an on-the-ground picture of construction activity in 14 key North American markets and data-driven insights into the industry. Read the complete QCR report here and the Crane Index here.
While the surge of the COVID-19 Omicron variant is subsiding, pandemic-induced problems remain. Supply chain issues continue to plague all levels of the construction industry, from raw materials to finished products, as pent-up demand for building supplies grows. A spike in fuel prices and a shortage of truck drivers are still slowing overland transit of goods, a condition exacerbated by lack of warehouse space.
Significant recent events—the Russia-Ukraine war and inflation—are now compounding the current picture. The conflict in eastern Europe is likely to affect costs and availability of some key materials; Russia is a major producer of copper and aluminum. Inflation is on the rise, pushing prices across the board higher.
“It’s a complicated situation,” said Julian Anderson, FRICS, President of RLB North America. “While the bipartisan passage of the $110 billion Infrastructure Investment and Jobs Act is a major step forward, it remains to be seen how inflation will affect its implementation.”
Crane Index notes
- Cities seeing an increase in cranes include Chicago, Denver, New York, San Francisco, and Toronto
- Cities holding steady in their crane counts include Honolulu, Las Vegas, Los Angeles, and Phoenix
- Cities with a decrease in cranes include Boston, Calgary, Portland, Seattle, and Washington, D.C.
- The top three sectors for cranes are residential, mixed-use, and commercial
Quarterly Cost Report notes
- The U.S. quarterly national average increase in construction cost is approximately 1.58%, compared to 8.04% year-over-year
- The U.S. Gross Domestic Product (GDP) is 7.0%
- The Architectural Billings Index (ABI) was unchanged from the previous month’s 51.0 (This option if want to refer monthly)
Read the complete QCR report here and the Crane Index here.
Rider Levett Bucknall is an award-winning international firm known for providing project management, construction cost consulting, and related property and construction advisory services—at all stages of the design and construction process. Rider Levett Bucknall’s North American practice has offices in 21 cities across the United States and Canada, including Boston, Calgary, Chicago, Denver, Hilo, Honolulu, Las Vegas, Los Angeles, Maui, New York, Phoenix, Portland, San Francisco, San Jose, Seattle, Toronto, Tucson, Waikoloa, and Washington, D.C. With more than 3,600 employees worldwide, Rider Levett Bucknall brings unparalleled value and service to its group of prestigious clients, through its robust experience and high-level expertise. The firm enjoys a professional heritage that spans over 230 years, and it continues to be a global leader in the construction industry throughout the Americas, Africa, Asia, Europe, the Middle East, and Oceania.
