Reading the data
Reading the data
In the regional update section, we analyze the construction market across several locations in the US. In doing so, we explore multiple economic indicators, as well as the supply chain capacity within a typical building project.
Key performance indicators
Metric
Descriptions
Source
Construction escalation
This measures the trend of contractors’ pricing level in accepted bids, i.e., cost to the client.
Turner & Townsend
CPI-U
The Consumer Price Index for All Urban Consumers (CPI-U) is a monthly measure of the average change over time in the prices paid by consumers for a market basket of consumer goods and services.
Bureau of Labor Statistics
Residential building permits
National, state, and local statistics on new privately-owned residential construction.
Census Bureau
Unemployment rate
The unemployment rate represents the number of unemployed people as a percentage of the labor force (the labor force is the sum of the employed and unemployed).
Bureau of Labor Statistics
Supply chain capacity
Descriptions
Above escalation
In normal market conditions, a supply chain which has capacity would be more competitive in their pricing strategies to secure work. As such, price increases are offset by the desire of the supply chain to secure work which leads to price increases below escalation.
Below escalation
In normal market conditions, a supply chain which has limited capacity would be less competitive in their pricing strategies when bidding for new work. As such, price increases are exaggerated since there is little supply of labor to execute the work. This leads to price increases above escalation.
Construction descriptors
Descriptions
Fit-out
Construction work associated with interior trades i.e. drywall, flooring, wall and ceiling finishes and millwork
Services
Construction work associated with plumbing, HVAC, electrical, lighting, fire safety and communications work
Facade
Construction work associated with envelope and roofing work
Structures
Construction work associated with below grade and above grade structural concrete, steel or lumber work
In the regional update section, we analyze the construction market across several locations in the US. In doing so, we explore multiple economic indicators, as well as the supply chain capacity within a typical building project.
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