Greenville, SC, Feb. 25, 2025 (GLOBE NEWSWIRE) -- Gordian, provider of data-driven solutions for all phases of the building lifecycle, reported that construction costs continued to increase slightly faster than inflation heading into 2025, with labor wages rising by an average of 4.1% over the past year. This analysis is based on today’s release of 2025 RSMeans Data.
While construction materials, equipment and labor rates are still on the rise, the increases are not as pronounced as those seen in previous years:
- Labor Rate Changes: Perhaps most notably for construction project managers, labor wages increased by an average of 4.1% over the 2024 report.
- Material Cost Changes: In 2024, Gordian reported an 8.7% average materials cost increase. This year, the average change across the entire database decreased significantly to a 3.1% increase YoY, signaling volatility is tightening. Gordian researchers found that 50% of materials costs experienced a +/-5% change from 2024 to 2025.
- Equipment Cost Changes: The average change for equipment costs was a 4.5% increase YoY, which is also notably lower than the 7% increase reported in 2024. 68% of equipment costs changed by more than +/-5%.
"Data for 2025 is showing stability in the market compared to previous years; however, it remains critical to rely on the latest, detailed data to navigate global economic uncertainties and ensure accurate and competitive project estimates," said Chris Gaudreau, CTO and CPO of Gordian. "With more frequent data releases and the introduction of the Gordian Cloud Platform, we’re proving our commitment to providing our customers with advanced tools, innovative solutions and capabilities to stay ahead in the industry and help simplify their complex tasks.”
The 2025 cost information is available in multiple formats, the most comprehensive being RSMeans Data Online on Gordian Cloud Platform. This platform offers a revolutionary experience, delivering critical capabilities and connectivity across the building lifecycle. Starting in Q1 2024, Gordian began offering more frequent data releases to RSMeans Data Online, advancing from a single annual refresh of the costs with quarterly indexing from the CCI to producing a full refresh of all cost data points every quarter. RSMeans Data Online is built with robust tools and specialized features, like lifecycle costing, square foot estimating, predictive data and team productivity capabilities. Within the Gordian Cloud Platform, customers will find an enhanced user experience and interface that elevates their planning, estimating and procurement capabilities, all powered by industry-leading RSMeans Data.
Visit rsmeans.com for more information and to purchase 2025 RSMeans Data.
During its 82-year history, RSMeans Data from Gordian has established a reputation as the construction industry’s standard for material, equipment and labor costs. The comprehensive database is comprised of 92,000+ unit cost line items across 42 trades, 19,500+ assemblies and 100+ square foot models, backed by a cloud-based data infrastructure and a team of dedicated cost engineers. This team invests more than 30,000 hours each year developing supply chain relationships and researching local market conditions to provide reliable, up-to-date costs in the annual data and quarterly City Cost Index (CCI) updates. A wide range of engineers, architects, estimators, contractors and facility owners depend on the data to estimate the cost of both new building construction and renovation projects.
About Gordian
Gordian (www.gordian.com) is the leading provider of Building Intelligence™ Solutions, delivering unrivaled insights, robust technology and comprehensive expertise that fuel customers’ success during every phase of the building lifecycle. Gordian created Job Order Contracting (JOC) and the industry standard RSMeans Data. Gordian empowers organizations to optimize capital investments, improve project performance and minimize long-term operating expenses.
Sarah Walker Gordian 8644518036 s.walker@gordian.com
