Deloitte: Construction cost pressures to continue in 2020

A new report from accounting services firm Deloitte touches on what construction pros already know: It's getting harder to make a profit in commercial building. According to the 2020 Construction and Engineering Industry Outlook, a number of factors will put extra pressure on U.S. engineering and construction companies profitability in 2020. These include increasing project complexity, competition from Asian companies, talent shortages and supply chain constraints. In addition, construction and input costs for key building materials such as steel are rising, largely driven by limited supply and tariff uncertainties. The report cites the 2019 Turner Building Cost Index, which measures costs in the nonresidential building construction market in the U.S., and noted that it increased to a value of 1177 in 4Q 2019, the highest ever in its 13-year history.

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