Muir Construction Cost Index

 

Pandemic Era Impact:

 

The 'Muir Construction Cost Index' uses a patent protected process to develop the 'Muir Material Cost Index', and the 'Muir Construction Cost Index'. The Materials Cost Index develops and tracks a cross reference of over 40 materials across the building construction sector.

 

The Construction Cost Index tracks the change in costs for over 40 installed products (products, materials & equipment) in the building construction sector.

 

The line graph below represents the 'Muir Construction Cost Index', also referenced as a headline cost index. It is illustrating the results at specific dates in the post pandemic era, after applying the patent protected methodology and process developed by the 'Muir Construction Cost Index's Chief Index Expert.

 

We believe the index is the first 'Market Reactive' index (Patent protected) that has the capacity to update monthly, however when completed the index will represent quarterly results.

 

Shown below is a version of the 'Muir Construction Headline Cost Index', and the 'Muir Construction Materials Index', that shows the impact of the Pandemic on non-residential construction costs as an industry average and metric.

 

Please refer to the next tab on our website titled, 'Muir Master Headline Cost Index'. It is our first official v1 release of our Index. It commences in 2019 prior to the Pandemic so we can display how we are able to track the markets through the era of the pandemic and beyond, and why we should be your trusted source.

 

 

 

The Pandemic was a once in a century event. It triggered an unprecedented period of hyperinflation and uncertainty in all industries, and especially throughout the building construction industry. The 'Muir Construction Cost Index' was developed to provide a better tracking system with its patented protected 'Market Reactive Index'.

 

The results of the first preliminary version and the Pandemic impacted version of the 'Muir Construction Cost Index's' headline cumulative graph translated into yearly cost escalation in the non-residential building construction sector is as follows:

 

i.) Yearly escalation rate as of December 2021: Headline Cost Escalation - 12.02%, Material Escalation - 21.41%.

 

ii.) Yearly escalation rate as of June 2022: Headline Cost Escalation - 16.53%, Material Escalation - 23.57%.

 

iii.) Yearly escalation factor as of December 2022: Headline Cost Escalation - 9.58%, Material Escalation - 14.48%.

 

iv.) Yearly escalation factor as of March 2023: Headline Cost Escalation - 10.12%, Material Escalation - 13.25%.

 

 

The 'Muir Construction Cost Index' had the non-residential building construction sector peaking in and around Mid-2022 with headline cost escalation in the range of 16.5% on a yearly basis. While escalation had dropped to a yearly metric of 9.6% by the end of 2022, the index looks to be moving upward again in 2023 but on a slower trajectory. The headline cost escalation factor as of March 2023 even with the time aspect has increased slightly up to 10.12%. We see different materials fluctuating on different timelines. While the Material Index continues to decline on a yearly escalation basis, 2023 is seeing pressure in the headline cost escalation due to pressure from wages. Refer to our 'Materials' and 'Installed Products' tabs for more in-depth tracking and data.