Geoffrey Decker reports for Crain's that the unionized construction industry faces continued uncertainty as nonunion contractors erode its position--the subject of RPA-CUI's Construction Labor Costs in New York City: A Moment of Opportunity.
Construction Costs
High labor costs. Confusing and inefficient work rules. Counterproductive tax structures. Strangulating regulation. Clogged transportation routes. All these contribute to the absurdly high costs and long timeframes for building in New York.
Since 2003, construction costs have risen by as much as 1 percent each month, while the construction boom made it difficult to find skilled contractors and labor and pushed up land prices throughout the five boroughs. Today, construction has slowed down considerably--but New York's costs remain twice as high as the next mostly costly city, Chicago. The cost to build is a key competitive issue for world cities.
Construction Labor Costs in New York City: A Moment of Opportunity, available HERE.
Recent News
Jon Lentz reports for City & State on what the $1.5 billion pricetag for Dubai's Burj Khalifa would--or wouldn't--build in New York. Could New York City's construction costs, which are among the highest in the nation, discourage investment and push developers to build elsewhere? "That's the big fear: Have we reached the threshold, or when will we reach the threshold, that people will chose not to build here and build somewhere else instead?" said Hope Cohen, the associate director of the Regional Plan Association's Center for Urban Innovation. "And that goes directly to a question of New York's competitiveness, within the nation and also globally."
Forum to examine the current model for financing transportation projects in New York State and develop a new paradigm for funding these projects.
8am-1pm, Friday, December 2, 2011 @ McGraw-Hill Conference Center
Program description: http://www.navigatingopportunities.com/money/program.php
Register: http://www.navigatingopportunities.com/money/register.php
After the terrorist attacks of 9/11, prominent commentators argued that in an age of urban terrorism, tall buildings should become a thing of the past -- that cities should decentralize themselves and people should be encouraged to spread out around the country. New York magazine columnist Kurt Andersen contended that the Freedom Tower should be abandoned, calling it "a provocation to ambitious terrorists around the world."
Of course, Americans made their own decisions and -- contrary to all predictions -- moved to cities instead of away from them. Demand for living and working in tall buildings soared, and the race by developers to build the world's tallest resumed.
This is as it should be.
It was billed as the summer that would transform the city's $24 billion unionized construction industry. Two dozen contracts were expiring, and contractors vowed to negotiate a wide array of concessions to regain work lost in recent years to nonunion builders.
After down-to-the-wire bargaining and a brief concrete workers' strike, most of the deals got done--many with significant concessions on work rules and wages.
Older Entries
- 2011.09.02: Carpenters Hammer Out a Deal, Avoiding Strike (Crain's)
- 2011.08.30: Clouds Part, Carpenters Return to Negotiating Table
- 2011.08.19: Extension Puts Off Potential Carpenters' Strike (Crain's)
- 2011.08.17: REBNY Blasts Concrete Workers' Deal (Crain's)
- 2011.08.16: Deal in Final Hours Averts Concrete Strike (Crain's)
- 2011.08.16: Concrete Deal Could Affect Progress at World Trade Center
- 2011.08.04: Concrete Workers Return, But Carpenters OK Strike (Crain's)
- 2011.08.03: Ruling: Some Concrete Workers Can't Strike (Crain's)
- 2011.08.02: World Trade Center Workers Walk Off Job for Second Day (WNYC)
- 2011.08.02: Concrete Talks Resume as Strike Enters Day 2 (Crain's)
- 2011.08.02: Work Stoppage at World Trade Center
- 2011.08.01: Cement Workers Strike At WTC Site (NY1)
- 2011.08.01: Citywide Concrete Workers Strike Affects Atlantic Yards Arena (Atlantic Yards Report)
- 2011.07.26: Local Glaziers Union, Window Dealers Reach Agreement (ENR)
- 2011.07.13: Construction Strike Postponed 1 Week (Crain's)
- 2011.07.13: Stifling American Growth (USA Today)
- 2011.07.08: Concrete Workers Could Strike Next Week (Crain's)
- 2011.07.08: Room for Debate: Bedlam Is Not Inevitable
- 2011.07.02: Builders, Unions in Contract Deal
- 2011.07.01: Details Emerge on NY Operating Engineer, Contractor Deal (ENR)
- 2011.07.01: NYC Construction Strike Averted (GlobeSt.com)
- 2011.07.01: Major Construction Strike Averted (Crain's)
- 2011.07.01: Crane Operators and Developers Reach 11th Hour Deal Before Contract Expires
- 2011.06.30: Last-Minute Talks Seek to Avert Crippling Strike (Crain's)
- 2011.06.30: Operating Engineers Could Delay Construction Work
- 2011.06.26: Crane Strike Looms as Contract Deadline Nears (Crain's)
- 2011.06.25: Crane Operators Top $500,000 in Pay, Benefits
- 2011.06.24: Strike Threatens $10B in Construction Projects (Crain's)
- 2011.06.22: Hard Times Draw the Line For Bargaining (ENR)
- 2011.06.17: Ready To Walk Out (City Hall News)
- 2011.06.13: Construction Costs in New York City: A Moment of Opportunity
- 2011.06.12: Union Construction Costs Have Reached Their Limit (Crain's)
- 2011.06.10: Contractors, Unions Head for Collision
- 2011.06.09: Prefab--Future or Farce for New York's Buildings? (NYObserver)
- 2011.06.09: Debate Rages Over Way Forward for NYC Unions (GlobeSt)
- 2011.06.05: Labor Costs May Change Construction Industry (Crain's)
- 2011.06.05: Rebuilding Will Require Turning to Nonunion Labor (Crain's)
- 2011.06.02: Contractors Escalate War with Construction Unions (Crain's)
- 2011.05.19: Drastic Drop in NYC Construction Employment (GlobeSt)
- 2011.05.02: Painters' Deal Could Ease Construction Feud (Crain's)
- 2011.05.01: Construction Costs in New York City: A Moment of Opportunity
- 2011.04.29: Union Change or Die
- 2011.04.29: The High Price of Union Construction: Fix Work Rules or Jobs Will Vanish
- 2010.11.04: MAS Summit: is the path to sustainable housing changes in the housing code and work rules? (Atlantic Yards Report)
- 2010.10.22: Governor Christie, We Need this Tunnel
- 2010.09.10: A show of strength: Ground Zero rises at last (USA Today)
- 2010.09.10: Ground Zero - on the road forward, at last: appreciating the progress made in rebuilding the site
- 2010.05.26: Spitting on New York
- 2010.04.16: Regional Assembly 2010: Radical Housing
- 2008.07.31: Albany and City Hall: Here's What You Can Do to Slow Down Construction Costs
- 2008.07.01: Raise the Roof, Lower the Costs: Construction Costs and Housing Affordability in New York City

