Welcome back to the latest edition Substack Blog that focuses on labor and construction material costs. Engineering News Record (ENR) history that can be traced back to 1874. The publication has its roots in two separate publications, Engineer & Surveyor and The Plumber and Sanitary Engineer. The first issue of Engineering News-Record was published on April 5, 1917. On January 1st, 1987, the acronym ENR was adopted as the title of the bi-weekly magazine. The charts that follow use data that are courtesy of ENR magazine that is published 26 times a year. Historical data was pulled from microfiche copies of the magazine obtained from the New York Public Library. ENR magazine is only a small portion of the products offered by Engineer News Record and we recommend readers, particularly those with an interest in engineering and construction, take the time to view the ENR website to learn more at…
https://www.enr.com/
Setting aside the constant “chug” higher over the long-term and a normal seasonal boost in Common Labor Costs (often driven by volatile weather conditions) and considering the effects of potential shortages of the common labor pool driven by the current political climate, the Common Labor Index is up 3.12% from this time last year. The five-month moving average (red line) of the 12-Month Rate of Change in the lower panel is noteworthy.
The Skilled Labor Index has also seen a large “pop” in the 12-Month Rate of Change since last April. What economic or labor demand fundamentals that caused the sharp drop in the second quarter of last year is not my forte to explain, but there has been a sharp rebound as the ENR Skilled Labor Index is up 4.36% YoY.
After two years of declining prices, a sharp jump in the 20-City Average Price of 16 Guage Stainless Steel Sheet, up 11.71% since this time last year. At the risk of stating the obvious, “stock piling”?
Since Q3 of last year Asphalt prices have jumped sharply higher and are now up 52.70% over the past 12 months even with oil prices down from $95 in October of last year (currently in the low 60s). As can be seen below the move in the ENR 20-City Average Price of Cutback MC800 has been in concert with a higher move in Crushed Stone.
After a brief dip in the ENR 20-City Average Price of Crushed Stone in the 3rd quarter of last year the per ton price for Base Course has lifted off again and is up 40.06% since this time last year.
The ENR 20-City Price of Light Weight Concrete Block had moved sideways for the better part of a year and a half until it rose to new highs at the start of this year and is now up 10.93% over the past twelve months.
The 20-City Average cost of 36” Corrugated Steel Pipe has risen steadily since the second quarter of 2022 and last month it marked a all-time high. It is currently up 46.53% since this time last year.
Data is courtesy of Engineering News Record
Charts are courtesy of Optuma whose charting software enables anyone to visualize any price data. To receive a 30-day trial of Optuma charting software go to…
www.optuma.com/TMC.