Dive Brief: New York City and San Francisco, according to the Arcadis International Building Cost Index 2021, are among the top 10 cities worldwide for the cost of construction. Arcadis compiled the report during the “second strongest wave” of the COVID-19 pandemic. The two US cities ranked seventh and eighth, respectively, with Geneva ranked as the most expensive. London was among the top ten. Copenhagen, Denmark; Oslo, Norway; Zurich. Hong Kong. Dublin and Macau. Despite the pandemic, Arcadis said, most of the markets covered in the report, including those in the United States, have remained stable and resilient, putting them in a position to recover. For example, the US saw a “relatively moderate” contraction of 2.4%. This means that many contractors will be able to take advantage of infrastructure and other construction programs potentially funded by the $1.9 trillion US Recovery Plan Act. Dive Insight: Other US cities in the Arcadis list were: 16 – Boston 20 – Philadelphia 27 – Seattle 31 – Chicago 33 – Los Angeles 36 – Washington DC 37 – Las Vegas 51 – Detroit 52 – Denver 56 – Phoenix 57 – Miami 61 – Memphis 62 – Dallas 63 – Houston At the time of the Arcadis report, the US Federal Reserve had forecast 4.2% growth for the country in 2021, and at a slower pace of about 3% thereafter. Arcadis said the strength with which the US construction industry is entering its post-COVID recovery period distinguishes itself even from the Great Recession because it is from a position of strength. Construction production and employment at the start of 2020 were at their highest levels since 2008, and thanks to the booming residential market, it was even able to grow by 1% in the second quarter of 2020 from 2019. Arcadis noted that some uncertainties remain. Commercial construction market segments are expected to shrink somewhat, and it is still unknown how much the recipients of the US bailout will spend on infrastructure and other public construction projects. The high cost of building materials and a shortage of skilled labor can also pose challenges. Arcadis suggested that the construction industry could help deliver the best value and achieve project goals by adopting a five-point plan that includes: understanding the project context, prioritizing goals and setting value. Optimizing a solution that addresses all expected results and balancing the necessary and required components. Monitor progress and measure performance and success. Review supply chain capacity and choose the right delivery method. Detailing project requirements and developing a feasibility study.
0 Comments