One of the biggest concerns before most contractors in the US is the case of rising costs in construction. Before another rise was noted in 2019, costs in construction were on a stubborn rise for years, including the year 2018. What is important in this case is that construction activity is also on the rise and will continue to rise in 2020 and beyond. Some contractors are not worried about construction activity as there are many projects in the pipeline in 2020. However, the costs of construction continue to grow, still posing as one of the main concerns of contractors and construction companies.
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Are Construction Costs Becoming More Stable in 2020?
Although the rise in construction costs is still noted in one of the biggest industries in the US and around the globe, experts claim that the costs are slowly becoming more stable in 2020. That being said, costs in constriction should soon become more manageable for contractors in the current year. Construction companies may feel the decline in costs already by the end of 2020 as experts in the field claim, which should provide the needed relief for the construction industry. Construction is faced with many challenges, one of these challenges being a shortage of labor. Stabilizing costs in construction may mean that the industry is moving forward with resolving some of these challenges.
Why Are Construction Costs on the Rise?
Only a year before, in 2019, costs in construction went up by 2% on the national level with a clear prediction made by Tim Duggan that the costs will continue to rise in 2020 as well. Even though some experts are predicting relief in the rising costs by the end of the year, others claim that the shortage of labor is one of the driving forces behind the rising costs. Increasing prices for materials needed for construction combined with labor shortages consequently increase the costs of production and labor in the industry.
