Wages are Increasing for Skilled Labor in the Construction Industry
Turner Construction Company announced that the Third Quarter 2022 Turner Building Cost Index—which measures costs in the non-residential building construction market in the United States—had increased to the value of 1311. This represents a 2.18% quarterly increase from the Second Quarter 2022 and an 8.62% yearly increase from the Third Quarter 2021.
“We are experiencing a robust market with numerous mega-jobs. A shortage of skilled labor continues to lead contractors to be more selective in the projects they pursue. Wages are increasing to attract more labor into the industry and to incentivize skilled labor to travel to meet project needs,” said Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index. Attilio continued, “Material lead times continue to impact pricing. A focused and strategic approach to procurement that engages contractors, designers, suppliers, manufacturers, and clients reduces the risk of price escalation and produces the most competitive results for our clients.”
Turner has prepared the construction cost forecast for more than 80 years. The building costs and price trends tracked by the Turner Building Cost Index may or may not reflect regional conditions in any given quarter. The Cost Index is determined by several factors considered on a nationwide basis, including labor rates and productivity, material prices and the competitive condition of the marketplace. This index does not necessarily conform to other published indices because others do not generally take all of these factors into account.