THE LATEST ON REGIONAL COST TRENDS
COST INDEX Q4 2024
The 4th quarter of 2024 continued to show stabilization in material costs and availability. The supply chain has been trending toward greater reliability for most products and materials. However, electrical and mechanical items remain exceptions, as previously reported. High demand for mission-critical data centers continues to result in long lead times and limited availability of electrical and mechanical materials.
KURT’S KEY UPDATES
Kurt Jaeger
Executive
Vice President, Preconstruction
jaegerk@claycorp.com
314.595.6373
A new market dynamic is the impact from potential tariffs being contemplated for enactment as soon as Q12025. These tariffs are expected to primarily target products from Canada, Mexico, and China. We will need to monitor the situation closely to assess the impact once the specific tariffs are announced.
Annual Construction Increase of 0.86%
The Clayco Cost Index Q4 2024 provides an overview of regional construction cost trends, highlighting a moderate annual increase of 0.86%. 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 Q4 2024.
In November 2024, construction spending was unchanged from October but rose 3.0% year-over-year. For the first eleven months, spending increased by 6.5% compared to the same period in 2023.
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.
National City Cost Index, reference RSMeans 2024 Fourth 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 RSMeans 2024 Fourth 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
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
The new Quantum Campus on the former USX site on Chicago’s South Side marks a significant milestone in establishing the city as a global quantum computing hub. Once the country’s leading steel producer, this campus will lead the nation in quantum research, computing power, and education. The site encompasses 120 contiguous acres within a 440-acre property, making it one of the largest contiguous infill waterfront properties in the country.
Moses Lake, WA
Group14 Technologies, a global manufacturer and supplier of advanced silicon battery technology, has created their one-million-square-foot campus to be home to the world’s largest factory of advanced silicon battery materials for EV programs to meet global decarbonization targets. This project is the second plant planned to produce silicon battery materials in the US.
The following graphs depict material price changes each quarter, with the initial baseline set at Q1 2023. The values represent the percentage change from the initial baseline, offering a clear perspective on quarterly fluctuations in material prices.
The 2024 Q3 Clayco cost projections for Q4 2024 resulted in a 0.46% variance from the actual Q4 2024 costs.
