THE LATEST ON REGIONAL COST TRENDS
COST INDEX Q3 2024
We are seeing material prices moderate in the third quarter of 2024. There is a continuing trend of material stabilization as global supply chains become more reliable for most materials and products. The exceptions to this continue to be switchgear, transformers, generators, busways, and mechanical equipment. The sustained high demand, spurred by the large volume of data center projects, has resulted in long lead times and ongoing product availability challenges.
KURT’S KEY UPDATES
on Regional Cost Trends
Kurt Jaeger Executive Vice President, Preconstruction
jaegerk@claycorp.com 314.595.6373
Commodity prices seem to have stabilized. Aluminum has come down from its earlier 2024 highs, and copper is projected to follow the same trend. More good news is that current futures for our commodities appear stable and steady over the next few months.
ENR CONSTRUCTION COST INDEX
Annual Construction Increase of 0.98%
The Clayco Cost Index Q3 2024 provides an overview of regional construction cost trends, highlighting a moderate annual increase of 0.98%. The report includes detailed insights on material and construction producer price indexes, delivery lead times, and cityspecific cost comparisons across various regions. We would like to extend our sincere thanks to our vendors and trade partners for their invaluable contributions in providing the data and insights that helped shape the Clayco Cost Index Q3 2024.
Private Construction Spending
In August 2024, construction spending decreased by 0.2% compared to July but remained 4.1% higher year-over-year. Over the first eight months of the year, spending increased by 7.6% compared to the same period in 2023.
PRODUCER
The material indexes are a quarterly compilation from our suppliers, trade partners, self-perform entities and nationally published commodity indexes. The material cost consist of the following: Concrete, Aggregates, Carbon Steel Pipe, Stainless Steel Pipe, Rebar, Wide Flange Steel, 5/8” Drywall, Copper, Hot Milled Sheet Steel, Lumber, Crude Oil and Hot Liquid Asphalt.
MIDWEST
NORTHEAST
WEST
SOUTHEAST
National City Cost Index, reference RSMeans 2024 Third Quarter. Shown are six of the main markets in each of the four regions. These are weighted averages, leveraging material and labor across all scopes of work. This chart compares city to city cost based on a national average of 1.
NATIONAL AVERAGE = 1.0 National City Cost Index, reference RS Means 2024 Third Quarter. Shown are six of the main markets in each of the four regions. These are weighted averages, leveraging material and labor across all scopes of work. This chart compares city to city cost based on a national average of 1.
Northeast
Southeast
These numbers constitute both union & non-union composite rates, as well as year over year changes for the following trades: Concrete Mason, Carpenter, Electrician, Iron Worker, Laborer and Plumber. Midwest
Hankook Tire Manufacturing Facility Expansion
Clarksville, Tennessee
The 2.2M SF expansion will house the production of Hankook’s passenger car (PCR) and truck/ bus (TBR) tire production lines. This large-scale project includes site improvement, utility installation and relocations, paving, deep foundations, concrete foundations/slabs and deep equipment pits, multistory structural steel Mixing Building, ASRS mat foundations, IMP exterior, CMU-IMP interior walls, TPO roofing, and misc supporting architectural features.
QTS Data Centers
Arizona
Since 2022, we have successfully delivered 10 data center projects for QTS. Currently, we are managing multiple ongoing projects in Arizona. Our commitment to excellence and safety has been recognized with the 2023 Safety Contractor of the Year award, highlighting our strong partnership with QTS and dedication to project success.
