St. Louis-based Walton Construction Co. has completed construction of a $15 million Wal-Mart Supercenter located in Jacksonville, Illinois, according to REBusiness Online. The grand opening for the 200,000-square-foot retail center was held last week. During construction, 90 percent of the project subcontractors hired by Walton were residents of the Jacksonville community.

Source: REBusiness Online

Perhaps the most accurate word for predicting the construction economy in 2008 is “tumultuous,” according to Ken Simonson, the chief economist for the Associated General Contractors of America (AGC).

Simonson reports that some nonresidential segments such as energy will grow, while others such as lodging will slow or decline. Diesel fuel, copper and steel prices will increase but a slumping demand for gypsum and other residential construction products may help moderate building costs.

Labor accounts for roughly half the cost of a construction project, and shortages mean higher wage. Simonson predicts that some crafts may experience labor shortages, but workers in the residential specialty trades will be plentiful.

Overall, Simonson predicts overall nonresidential building cost increases of less than 6% and wage increases from 4.5% to 5.5%.