Construction Inflation 2015

Construction Inflation 2015

Overall Construction Inflation

According to Engineering News Record, construction inflation for the last year (2014) was at about 3-percent. Overall construction inflation has held at about 3-percent for the last couple of years.

Bad News – Inflation

So while the overall index has seen steady growth, there are specific construction materials or specific locations that have seen dramatic changes up or down. As an example cement and lumber are two examples of materials that have seen dramatic increases of near double the average or about 6-percent annual inflation. Drywall material is even more dramatic as it has seen inflation near 20-percent in the last year.

Steel Costs – Deflation

While there are materials that have seen large increases, steel has had about half the national overall average at less than 2-percent. In fact for the last couple months, overall steel costs have actually had a minor deflation of about 0.2-percent. The good news is steel is not only a raw material used in beams and rebar for concrete beams, it is also a major component of mechanical systems and some plumbing piping. So the lower costs of the raw material affects a wider range of buildingĀ materials and systems.

Church Construction Inflation

For those of us who have been in the construction industry a long time, we know that history is no predictor of 2015 inflation rates. But the best estimates for 2015 believe for churches planning to do construction this year should plan for about 3-percent inflation. As you can tell from the information, some materials and building systems will be up dramatically – (like wood and drywall), while others (like steel) will likely hold steady. So if you are planning on wood and drywall as your major church construction materials, be cautious and consider higher construction inflation like 4 or 5-percent. If you are planning on steel as your major church building material, you should be safe at about 3-percent.

Robert Lee for INvigorate Blog, February 15, 2015

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