Americas Office Fit Out Cost Guide 2023

KEY TAKEAWAY

GC sentiment on labor costs improved YoY based on our recent survey. In the 2022 survey, 16% percent of respondents expected labor costs to increase significantly, whereas in the current survey this fell to 4%. And 32% of respondents to the 2023 survey expect costs to remain at their current levels, which remain elevated when compared to long-term trends. Despite the economic uncertainty of a looming potential recession, only 1% of GCs expect labor costs to decrease in the next six months. To remain competitive, and given the labor constraints, labor will continue to be a significant contribution to persistently high costs.

Nonresidential construction employment has not recovered the jobs it lost during the pandemic, although jobs have been available. A remaining deficit of 2,000 jobs is predicted for EOY 2023. GC sentiment about labor costs improved in our survey—only 4% expect labor costs to increase significantly vs. 16% in 2022; 32% expect labor costs to stay at current levels.

IMPROVEMENT IN LABOR COST AND PROJECT EXECUTION SENTIMENT, NEXT 6 MONTHS

CUSHMAN & WAKEFIELD CONSTRUCTION CONTRACTOR SENTIMENT SURVEY, WINTER 2023

WHAT IS YOUR EXPECTATION FOR OVERALL LABOR COSTS OVER THE NEXT SIX (6) MONTHS?

Decrease Significantly Decrease Slightly No Change Increase Slightly Increase Significantly

100%

4%

16%

80%

63%

60%

71%

40%

20%

32%

13%

0%

2022

2023

Source: Cushman & Wakefield Research

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