Cost Trend Update Bulletin – July 2019

The Duff & Phelps cost trend update is now available for both the construction cost and equipment cost indices. This trend update shows national averages for the United States from 2016 to April 2019 and demonstrates how the last four years have been relatively stable for construction after a decade of volatility, while the equipment cost indices continue to show moderate year-on-year changes. Please be reminded that these indices are average indicators of change and are not absolutes. Duff & Phelps advises that every five to seven years you should establish a new replacement cost basis by using a qualified valuation professional. Please contact Brad Schulz at Duff & Phelps to discuss establishing a new replacement cost basis.

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by Mark Kwilosz

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