Howard Hughes Holdings Inc. · NYSE:HHH
Howard Hughes — Gordian — 2024 Construction Costs Open Forum
31 slides from Howard Hughes's conference presentation, April 2024
Slide 1: 2024 Construction Costs Open Forum
G@RDIAN’ 2024 Construction Costs Open Forum
Slide 2: Before we get started
Before we get started…. Post questions The webinar is Participants’ in the Questions being recorded audio is panel on your and will be shared muted. GoToWebinar at the conclusion menu. of the event.
Slide 3: Speakers
Speakers John Timmerman Peter Reeves Manager, Product Marketing Director, Product Management
Slide 4: Industry Challenges / Agenda
% Stats on Today's Webinar 2024 Q1 Key Materials Industry ? Audience Q&A Challenges New RSMeans Data Online Features Additional Resources
Slide 5: Today's Stats
• Supply chain and lead times • Estimating for future projects Today's Stats • Specific material costs • Labor rates and availability • Regional cost variations • Controlling per-square-foot costs 2k+ Over 2,000 • Inflation registrants • Sustainable construction methods Over 500 question • AI in est
Slide 6: Poll Results
Gordian anticipat ng during G What topic are you eagerly anticipating exploring during Gordian’s 2024 Construction Costs Open Forum? Poll Results srcaneniflonpenginlittaett Materials 36% Labor 36% Equipment 9% Other (comment below) 18% G@RDIAN’
Slide 7: 2024 Q1 Cost Updates
2024 Q1 Cost Updates
Slide 8: Cost Trends: Lumber
Cost Trends: Lumber Framing lumber prices sink to their lowest point since the summer of 2020. However, North American wildfires threaten to reverse the trend. When Canadian wildfires intensified in June of 2023, the cost of lumber climbed temporarily. History may repeat itself.
Slide 9: Reviewing Cost Trends: Steel
Reviewing Cost Trends: Steel Structural steel prices maintain equilibrium into the new year, and there are no signs of volatility on the horizon. Our most recent analysis points to small but consistent cost increases for 2024.
Slide 10: Reviewing Cost Trends: Concrete & Masonry
Reviewing Cost Trends: Concrete & Masonry • Notes Placeholder Text Here • Notes While Placeholder most Text concrete costs fall,Here the price of concrete • Notes block Placeholder peaks and shows Text no Here sign of slowing down. • Notes for Demand Placeholder concrete Text is high andHere product
Slide 11: Reviewing Cost Trends: Copper
Reviewing Cost Trends: Copper Insights •Pricing forIncoming! copper wire has stayed consistent in the past several months, likely because until recently, there was a surplus expected in 2024. However, operations at mines in Panama and Peru have ceased operations, and it’s unknown as of now if that p
Slide 12: Reviewing Cost Trends: Insulation
Reviewing Cost Trends: Insulation The price of fiberglass insulation continues its steady upward trend and the wind is still at its back. Looking at interior finishes, drywall costs are on a prolonged six-month slide, with the price per square foot declining 11% from their peak last summer
Slide 13: Reviewing Cost Trends: Equipment
Reviewing Cost Trends: Equipment Average Equipment Weekly Rental Rates $3,000 • Average rental rates for • Supply shortages assetsdrove $2,500 site support up prices in 2022 Q1 after increased through 2023 $2,000 two years of decline $1,500 • Expect continued rate • Prices increasing increases into
Slide 14: Reviewing Cost Trends: Labor
Reviewing Cost Trends: Labor Average Total Hourly Labor Cost by Category $75 $70 • Continued pressure on • Significant escalations Supply shortages drovein $65 the skilled labor pool $60 2022 Q2 driven up prices in 2022byQ1 after driving up wages $55 international supply chain two years of decline $
Slide 15: Audience Q&A
Audience Q&A
Slide 16: What emerging trends and innovations do you foresee influencing construction in 2024?
What emerging trends and innovations do you foresee influencing the construction industry in 2024?
Slide 17: Why haven't construction costs stabilized since early 2020?
What are the primary reasons we haven’t seen construction costs stabilize since early 2020?
Slide 18: Budgeting best practices amid market uncertainty
When preparing budgets for projects years in advance, what are some best practices considering the current market uncertainty?
Slide 19: Which construction divisions have the most volatile materials?
Which construction divisions have the most volatile materials?
Slide 20: Average Price Movement Per Quarter, 2019 to 2023
Average Price Movement Per Quarter, 2019 to 2023 14.00% Asphalt/Topsoil 1.41% 12.00% Concrete 2.97% Doors 3.18% 10.00% Drywall 6.04% 8.00% Electrical 5.52% Flooring 5.21% 6.00% Glass 3.00% 4.00% Lumber 12.23% Masonry 3.35% 2.00% Reinforcing 7.96% 0.00% Roofing 5.39% g l l s il y te s Steel 8.00% g r
Slide 21: Variation in material and labor rates by US location
How much variation is there in material and labor rates based on US location?
Slide 22: Cost Fluctuations from Q4 2023 to Q1 2024
Cost Fluctuations from Q4 2023 to Q1 2024
Slide 23: Regional Cost Variation, Q1 2024
Regional Cost Variation, Q1 2024 City Material Index Install Index Total Index San Francisco 104.1% 165.1% 127.3% 170.0% New York 100.6% 169.6% 126.8% Chicago 101.3% 147.5% 118.8% 150.0% Philadelphia 100.1% 137.6% 114.3% Los Angeles 100.9% 135.3% 113.9% Boston 99.7% 133.6% 112.6% 130.0% San Diego 10
Slide 24: When are adjustments made to material pricing versus City Cost Index?
Can you explain when adjustments are made to material pricing versus the City Cost Index?
Slide 25: New RSMeans Data Online Features
New RSMeans Data Online Features
Slide 26: Data Insights: Cost Trends Dashboard
Coming Soon! Data Insights: Cost Trends Dashboard • Trusted, unbiased cost data • Location specific cost trends • Easy-to-understand visuals • Detailed cost breakdown (material, labor and equipment)
Slide 27: eTakeoff Benefits
eTakeoff Benefits Strategic partnership to provide takeoff solution to RSMeans Data Online users Increased Accuracy: Automate measurements & calculations Enhanced Efficiency: Eliminate manual task Improved Collaboration: Share plans & estimates with team members
Slide 28: Additional Data Resources
Additional Data Resources
Slide 29: Q1 Cost Trends Report and Labor Pool Report
Q1 Cost Trends Report and Labor Pool Report gordian.com/Q1Report gordian.com/LaborReport
Slide 30: What the Data Says Reports
What the Data Says Reports . Whatthe (ee. Whatthe é \ What the \ Data Says: f \\ Data Says: \. Data Says: @ Q1 2024 \ @ Q1 2024 \ y/ @ Q1 2024 What the ; \\ What the Data Says: Data Says: et) "Concrete Cost Updates) @ Q1 2024 @ Q1 2024 G@RDIAN’
Slide 31: Thank You
Thank You Want more information about Gordian’s Data Insights – Cost Trends Dashboard or eTakeoff? Call 800.874.2291