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As construction activity increases labor costs go up

​After a record year of industrial construction, the development pipeline will likely continue to grow given the demand and health of the market. In 2017, 6.5 million square feet of new industrial product was delivered in the LA Basin. In turn, this trend will increase the demand for construction labor.

•From 2012-2017 Los Angeles county added 19,690 new construction jobs, growing by 22.5 percent in this sector.

•In the last five years, construction labor cost have gone up by 8.0 percent.

•Currently in Los Angeles county, there are 4.7 m.s.f of industrial product, 1.9 m.s.f of office product and 1.8 m.s.f of retail product under construction.

•Los Angeles has the highest construction labor costs in Southern California at $27.38 per hour and 16.5 percent higher than the U.S average at $23.51 per hour. 

Source:  ​

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