Inflation. Labor scarcity. A broken supply chain. These persisting conditions won't magically disappear with the new year. Yet 2023 does mark new opportunity for construction leaders to improve project outcomes—with deeper insight on price changes.
According to recent construction market analysis by Unispace, accurate price forecasting is the executives’ holy grail in a market where pricing is increasing rapidly. After all, the United States is currently one of the world’s most expensive countries in which to build.
In this era of volatility, the best tool for minimizing project risk and managing cost increases is the ability to assess the impact of construction and material lead times on your projects from the outset.
The first step? Find out what’s behind today’s construction cost hikes.
Three cost centers to watch in 2023
Even the most experienced project leaders had budget overages in 2022. To regain accuracy and control moving forward, industry leaders must understand the top three reasons prices will continue to differ from what we could reasonably have expected—and budgeted for—in the past.
In general, as you plan for 2023, bear in mind that importing supplies and equipment internationally versus sourcing domestically in the United States will mean additional tariffs–so choose materials accordingly.
How to navigate rising construction costs in 2023
While some costs may stabilize over the next year, others will continue to rise amid lingering uncertainty over transportation, labor and materials and policy-related costs. A preconstruction partner team with a deep research bench can help you navigate that volatility and determine future capital needs.
In this budget-busting world, knowledge really is power. By leveraging expert, real-time construction market analysis, you can gain the insight into cost and timing it takes to make the best decisions for your business.
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