Facilities PlanningCOST PROJECTIONS BEGINNING FY 2010 The Past Year 2008 2008 was a mixed year for material costs. We saw some prices decline and some rise. January 2008 to January 2009 Price changes
2008 also saw the number of construction related jobs fall by 3% (-8.5% nationally) while wages rose. Non-residential construction starts also fell in 2008. That trend is expected continue throughout at least the first half 2009. The economic stimulus plan is expected to start impacting the industry gradually beginning in the second quarter of 2009. The Forecast for 2009 AGC of America has reported ‘January’s pattern was similar to what occurred during 2008—more weakness for housing, combined with a mounting loss of momentum for commercial building. At the same time, public works has been able to hold up relatively well, even with the erosion in state and local finances.’ stated Robert A. Murray, vice president of economic affairs for [MHC]. Overall material costs will be lower at the end of 2009 with an anticipated drop of -4% to 0%, labor costs will rise by 3% to 4.5%. Cost projections for the coming year are as follows:
These projections were compiled from multiple sources including AGC of America, US Bureau of Labor Statistics and Reed Construction Data. Historical Cost Indices
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