Q2 2024 Texas Market Conditions : simplebooklet.com

TABLE OFContentsContentsQ2 TEXAS SPOTLIGHT» A MESSAGE FROM JED HEUBERGER IN SAN ANTONIONATIONAL / Q2 2024» MARKET CONDITIONS» SUPPLY CHAIN REPORTTEXAS / Q2 2024» AUSTIN MARKET CONDITIONS» DALLAS/ NORTH TEXAS MARKET CONDITIONS» HOUSTON MARKET CONDITIONS» SAN ANTONIO MARKET CONDITIONS» SUBCONTRACTOR SURVEY» UPCOMING BID OPPORTUNITIES Q2SPOTLIGHTIConnectLET'SWelcome to the Q2 2024Texas Market Conditions ReportAs we forge ahead with our sustainability initiatives, it's essential to stay informed about the economic factors inﬂuencing our industry. Inﬂation has eased over the past year, and as you read through this market outlook, you will see that is true in the construction industry. Material PPI has run at 1.8% year over year and 0.1% since March 2024. The Construction PPI is down -0.7% year over year, but on non-residential construction, it has been up 0.4% since March 24. This aligns with the Turner Cost Index, increasing 0.92% for Quarter 2 2024 and 4.10% over the last year. The July jobs report shows a slight increase in the unemployment rate to 4.3%, the highest in two years, and slower-than-expected job growth. The construction industry has continued to trend up, and it shows an increase of 2,000 jobs in non-residential construction and 11,300 in non-residential specialty trades across the nation. Non-residential job growth outpaced residential job growth.Construction wages and salaries show being up 2.7% over the last 12 months, but the three months between March and June 2024 show a decrease of 0.2% over the three months. Total compensation has increased by 0.1% over the last 3 months.On July 1st, the U.S. Census Bureau released revised spending ﬁgures for previous years: (2022) $54 billion (3%) was added, primarily in non-residential construction; and (2023) $44 billion (2%) was added. Total construction spending is forecasted to be up 8.5% in 2024, with non-residential building up 6.9%.For the last 12 years construction spending has averaged a growth of 8.2% per year, but when accounting for inﬂation, it really increased 3.2% per year. The market indicators show the market stabilizing with inﬂation returning to historical norms and tracking between 3.5% and 5% for 2024.Did you know that Turner will achieve Net Zero Emissions in our operations by 2030? Visit our 2023 ESG Report to see how Turner is Building Today to Transform Tomorrow. A MESSAGE FROM... SAN ANTONIOJED HEUBERGERPreconstruction ManagerSan Antoniojheuberger@tcco.com210.243.5973Jed HeubergerPRECONSTRUCTION MANAGERSAN ANTONIOConstruction 8,240 8,265 8,412 8,484 8,021 8,215 8,235 8,26025Construction of Buildings 1,844.1 1,864.0 1,905.3 1,919.5 1,807.1 1,869.1 1,877.4 1,881.13.7Residential Building Construction 938.4 947.7 960.7 969.2 920.3 947.7 948.5 950.21.7NonResidential Building Construction 905.7 916.3 944.6 950.3 886.8 921.4 928.9 930.92.0Heavy & Civil Engineering Construction 1170.1 1172.5 1191.1 1198.4 1118.2 1142.8 1144.5 1147.42.9Specialty Trade Contractors 5226.1 5228.8 5315.7 5635.7 5095.2 5203.5 5213.2 5231.918.7Residential Specialty Trade Contractors 2444.3 2422.9 2467.3 2483.5 2381.9 2408.2 2412.2 2419.67.4NonResidential Speciality Trade Contractors 2781.8 2805.9 2848.4 2882.2 2713.3 2795.1 2801.0 2812.311.3

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Q2 NATIONALIWHAT IS IN THIS REPORT? Among the information included in this publication and of special importance, is the Turner Building Cost Index. The Turner Cost Index, an industry recognized index now for over half a century, is determined by several factors considered on a nationwide basis, including labor rates and productivity, material prices and the competitive condition of the marketplace. The index does not necessarily conform to other published indices because others do not generally take all of these factors into account. Our mission in publishing this report is to share thoughtful insight with professionals we engage with in our industry regarding trends and their potential impacts. Graphic representation of tables to the left:• MATERIAL - Total Inputs to Construction Material PPI• LABOR - Construction Employment Cost Index• CONSTRUCTION PRICE - Final Demand Construction PPIOver the 12 month period from June 2023 to June 2024, the Total Inputs to Construction Material PPI increased +1.8%, the Employment Cost Index increased +4.2%, and the Final Demand Construction PPI decreased -0.7%.ldg Δ%Δ%d +4.-3.0-1.01.03.05.07.09.0Nov 23Dec 23Jan 24Feb 24Mar 24Apr 24May 24Jun 24Material PPI (% Y-Y)Wages (% Y-Y)Non-Residential Bldg Construction PPI (% Y-Y)Material Producer Price Index *. The selling price in processed goods used or bought for construction.In June 2024, total material inputs to construction increased +0.1% since March 2024 and increased +1.8% since June 2023.Material PPI Qtr YrInputs to Construction 0.1% 1.8%Ready Mix Concrete -0.5% 6.5%Steel Mill Products -3.9% -15.0%Flat Glass -0.5% 0.0%Aluminum Mill Shapes 7.5% 2.8%Sheet Metal Products -0.1% 1.5%Gypsum Building Materials -0.7% 2.3%Diesel Fuel -20.2% -10.6%Construction Machinery & Equip. 0.3% 3.9%MATERIALConstruction Producer Price Index *. Change in Producer Price Index for Final Demand Construction for all non-residential construction and key sub-categories. Includes material costs, labor costs, and contractor overhead and proﬁts.In June 2024, ﬁnal demand pricing for all new non-residential construction increased +0.4% from March 2024 and decreased -0.7% since June 2023.CONSTRUCTION PRICEConstruction Employment Cost Index *. The cost to employers for wages and salaries, employer share of beneﬁts, and legally required payments such as unemployment and workers’ compensation.Through June 2024, construction wages and salaries increased +1.0% for the quarter and +4.2% for the year*. (*Based on BLS data through March 2024)Construction Employment Cost Index Qtr YrTotal Compensation 1.0% 3.8%Wages & Salary 1.0% 4.2%Construction Employment *. The employment rate in construction, not seasonally adjusted.Through June 2024, construction employment increased by 38,000 jobs (+0.46%) since March 2024. Construction Employment Jobs %3-month change 38,000 0.46%LABORConstruction Spending - Value of Work in Place. 3 Percentage change in private, non-Residential work in place in the last 1-month and 12-month periods.Over the 12 month period from June 2023 to June 2024, total non-residential construction spending increased +6.2%.Non-Residential - 3/24 Mo YrTotal -0.1% 6.2%Ofﬁce Building -1.3% -0.1%Commercial -0.5% -13.0%Healthcare -1.4% 3.0%Educational -0.2% 6.5%Manufacturing 1.3% 20.3%Δ%Δ%-15-11-7-315913172125293337414549Oct 23Nov 23Dec 23Jan 24Feb 24Mar 24Apr 24May 24Total Office Comm Health Education Manuf.CONSTRUCTION SPENDING* Bureau of Labor Statistics 1 Turner Construction Company 2 Dodge Report 3 Census BureauMATERIAL, LABOR, & CONSTRUCTION PRICINGThe Architecture Billings Index (ABI) is a leading economic indicator that leads nonresidential construction activity by approximately 9-12 months. A score of 50 equals no change from the previous month. Above 50 shows increase; below 50 shows decrease. 3-month moving average.405060Jun-24Feb-24Oct-23Jun-23The Turner Building Cost Index. Determined by the following factors considered on a nationwide basis: labor rates and productivity, material prices and the competitive condition of the marketplace.The Q2 2024 index value of 1421 is a +0.92% quarterly increase from the Q1 2024 index value. The yearly increase from Q2 2023 is 4.10%.TURNER BUILDING COST INDEX 1AIA ARCHITECTURAL BILLINGS INDEXΔ%Δ%5.59.510.67.76.3-8.4-4.01.62.24.14.44.64.95.05.65.51.81.98.06.0-10.0-5.00.05.010.015.020042005200620072008200920102011201220132014201520162017201820192020202120222023% ChangeTURNER COST INDEX - PERCENT CHANGEYear to Year 4.10%Quarter Index Δ%Q2 2024 1421 0.92Q1 2024 1408 0.93Q4 2023 1395 1.01Q3 2023 1381 1.17Year Avg Index Δ%2023 1373 6.02022 1295 8.02021 1199 1.92020 1177 1.82019 1156 5.52018 1096 5.62017 1038 5.02016 989 4.92015 943 4.62014 902 4.42013 864 4.12012 830 2.22011 812 1.6Δ%Δ%10%.700800900100011001200130014002023202120192017201520132011200920072005TURNER COST INDEX - AVERAGE INDEXΔ%Δ%1000105011001150120012501300135014001450Q3Q1Q3Q1Q3Q1Q3Q1Q3Q12020 2021 2022 2023 2024TURNER COST INDEX - QUARTERLY INDEXWest:43.1Midwest:40.9South:43.9Northeast:52.2CLICK EACH CITY BELOW TO LEARN MORE ABOUT TURNER'S TEXAS LOCATIONSAUSTINAUSTINDALLASDALLASConstruction PPI Qtr YrNon-Residential 0.4% -0.7%Ofﬁce Building 0.9% -0.6%School Building 0.2% -0.7%Healthcare Building 0.2% -0.9%Industrial Building 0.0% -1.1%HOUSTONHOUSTONSAN ANTONIOSAN ANTONIO

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Structural Steel• Lead times continue to run at pre-pandemic levels, subject to project location and specs. • Steel pricing is ﬂat to decreasing depending on category.• Scrap prices have continued to decrease.• Plate prices have decreased as a result of ample supply and a strong import market.Curtainwall / Glass • Demand for Curtainwall has decreased overall with the industry shift away from ofﬁce buildings.• As a result of business strategy, some manufacturers are reporting increases in costs while others are reporting decreases. Please be sure to cast a wide net when soliciting bids. • Raw material and components pricing and availability remain stable.• Aluminum pricing increased and remains forecast for volatility due to China and Russia controlling the majority of supply.Drywall / Steel Studs & Related Products• Pricing for drywall remained stable.• Long lead times for mineral wool insulation continue are not anticipated to resolve soon.• Related accessory categories increased between 10 & 12%, with additional increases anticipated in Q3 across all components.Rooﬁng• Anticipate continued stability, availability, and minor ﬂuctuations in pricing for 2024.• Isolated manufacturers are reporting increases in costs.• Lead times at pre-pandemic levels, ‘standard’ delivery timing.Mechanical & Electrical• The SourceBlue Cost Index remained steady at 209 and is not projected to increase in Q3.• Demand remains high, and lead times for most have remained stable or declined slightly.• New manufacturers are entering the US market to aid in the demand for MEP equipment due to data center demand.Doors / Frames / Hardware• Unchanged pricing across all categories and continued market stabilization. • Products that include electronic components remain impacted by longer lead times.Cement • Current pricing increased by 6% to $140.00/ton.• Forecast projections indicate increases of 5% to 6% annually over the next 5 years.Oil• Per barrel cost decreased by 5% in Q2 2024 to $82.30/bbl• Forecast to increase in Q4 2024 back to $87/bbl. Transportation• All US Ports are operating with no, or minimal delays. • Ongoing commercial shipping attacks in the Red Sea and Panama Canal extreme drought conditions continue to cause increases in costs and delays.SUPPLY CHAIN REPORTTurner’s Supply Chain Report (TSCR) provides both recent trends and forecasts for future changes to the market for material pricing, supply chain issues, and impacts to lead times. This TSCR indicates continued stabilization, some improvements in availability of materials, and slowing to ﬂat inﬂation across almost all categories. (Note: some variance by region based on market conditions) Q2 NATIONALITrending UpFrom Q1 2024Same AsQ1 2024Trending DownFrom Q1 2024STATUS KEY

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Q2TEXASIDALLASIn 2023, North Texas saw record growth in data centers, absorbing 386 megawas of power and decreasing the vacancy rate to 3.73%, with over 3.5 million SF of new data center campuses expected by early 2025. The DFW oce market showed resilience, with leasing activity rising to 2.7 million SF in Q2 2024 despite slower oce-using employment growth. Residential and mixed-use developments are robust, with 64,120 multifamily units under construction and a 92.6% occupancy rate, concentrated in Collin, Denton, and Tarrant counties. The industrial sector is expanding, with over 52 million SF under construction, particularly in Southern Dallas County, South Fort Worth, and Alliance Texas, driven by technology and manufacturing companies. Additionally, North Texas is emerging as a biotech hub, with signiﬁcant investments in life sciences research facilities and strong collaboration between educational institutions and healthcare providers.Variance from Q1 2024Material↔Labor↔Market Conditions↔Overall↗Local Escalation SurveyTop Market SegmentsAutomobileCommericalData CenterEducationHotel/MotelIndustrial / WarehouseMulti-FamilyMunicipalRecreation, Communit…ShellTop 10 Market SegmentsCommerical $326.75M (33.92%)Multi-Family $195.74M (20.32%)Education $128.31M (13.32%)$73.55M (7.64%)$65.23M (6.77%)$25.21M (2.62%)Municipal $22.7M (2.36%)Automobile $22M (2.28%)Aviation $12.5M (1.3%)Data CenterShellIndustrial / WarehouseTop 10 Market Segments - Q2 2024 Top 10 Market Segments Permitted by County$0.0bn$0.1bn$0.2bn$0.3bn$0.4bn$0.5bn$0.6bn$0.7bnCountyDallas Collin Denton Tarrant$651.66M$111.74M$76.58M$62.68M$308.79M$73.55M$82.08M$37.54M$45.28M$91.86M$57.41M$51.8MTo$0.0bn$0.1bn$0.2bn$0.3bn$0.4bn$0.5bn$0.6bn$0.7bn36-Month Escalation TrendQ2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Avg.Labor 1.03% 1.17% 0.62% 0.79% 0.60% 0.68% 0.60% 0.54% 0.27% 0.70%Material 0.64% 0.70% 0.76% 0.62% 0.65% 0.09% 0.22% 0.26% 0.48% 0.49%Market 0.26% 0.32% 0.19% 0.21% 0.17% 0.14% 0.17% 0.15% 0.18% 0.20%Total 1.93% 2.19% 1.57% 1.62% 1.41% 0.92% 0.98% 0.95% 0.93% 1.39%0%2%4%6%8%10%12%14%LaborMaterialMarketConstruction Activity - North Texas Metro Areas05001000North Texas Metro AreasDALLAS,TXTARRANT,TXCOLLIN,TXDENTON,TXELLIS, TX SMITH,TXKAUFM…TX9747165882696947461061793635304745652ious Quarter Current Quarterter05001000$ MillionsPrevious QRenovation of an existing hospital building, totaling 261,000 SF throughout 8 ﬂoors and an MEP penthouse. The scope includes renovations to ORs, ICU rooms, nurses’ stations, PT therapy areas, and select patient rooms, as well as upgrades to the kitchen, cafeteria, and other public areas. Upgrades to clinical areas, like surgical suites and inpatient units, are specialized to include full MEP and infrastructure upgrades. Other scopes include structural repairs and the replacement of air handling equipment, domestic water, and redundant power. The ZL Pavilion project is approaching completion, slated for November of 2024.UTSW Medical Center Lipshy Pavilion RenovationAUSTINConstruction Activity - Austin Metro Area05001000$ MillionsPrevious Q05001000Austin Metro AreasTRAVIS, TX WILLIAMSO…TXHAYS, TX BASTROP, TX CALDWELL,TX868155887393218410383ious Quarter Current QuarterAutomobileCommericalEducationFitoutFood & BeverageGarageHotel/MotelMedicalShellSiteworkTop 10 Market SegmentsEducation $79M (25.36%)Commerical $76.85M (24.67%)Shell $63.6M (20.41%)$45.91M (14.73%)Garage $17M (5.46%)Hotel/Motel $10M (3.21%)Fitout $3.48M (1.12%)MedicalTop 10 Market Segments - Q2 2024 Top 10 Market Segments Permitted by CountyCountyTravis Williamson Hays$205.52M$97.39M$4.73M$40.6M$35.2M$64M$15M$17M$44.42M$36M$27.6M$0M$50M$100M$150M$200MAustin saw an overall increase of 1.2% for Q2 of 2024. On materials, mechanical equipment saw a signiﬁcant cost increase while sheetmetal was up slightly. Excavators reported a shortage of truckers which is driving up the cost of hauling. Electrical equipment is also up more than 3% from last quarter. Sheetrock and metal studs remained ﬂat. On labor, most trades reported an 1.5% to 3% increase as wages continue to rise, due to cost of living or competition for talent. Labor availability continues to be a challenge for some trades. While there is more labor available in the market, there is still a lack of skilled and experienced labor. On market conditions, most companies are steady with work and summer pricing is carrying a premium. Trades are looking for Q3 and Q4 work to ﬁll gaps in backlog.Variance from Q1 2024Material↗Labor↗Market Conditions↔Overall↔Local Escalation Survey36-Month Escalation TrendQ2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Avg.Labor 4.77% 4.36% 3.85% 0.52% 0.47% 0.27% 0.68% 0.47% 0.57% 1.77%Material 1.70% 1.44% 1.18% 0.51% 0.55% 0.40% 0.43% 0.44% 0.47% 0.79%Market 0.82% 0.60% 0.52% 0.18% 0.19% 0.14% 0.14% 0.29% 0.18% 0.34%Total 7.29% 6.39% 5.56% 1.21% 1.20% 0.81% 1.25% 1.20% 1.22% 2.90%LaborMaterialMarketIncludes renovations to the Kinesiology and Health Education (KHE) classrooms and labs on Levels 1, 2, and 9, and football suites on Level 8 of Bellmont Hall to meet the needs of the KHE and Intercollegiate Athletic departments The building's mechanical, electrical, and plumbing systems, constructed in 1972, will be updated for eciency. Additionally, two independent structures will be added to the South End Zone concourse for media operations and athletic facilities. Gameday operations will be moved to a new facility on Level 10 of the North End Zone. The project is 110,000 SF total and scheduled for completion in August 2026.University of Texas DKR Texas Memorial Stadium & Bellmont Hall Renovations

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Q2 TEXASISAN ANTONIOSan Antonio experienced a 1.01% escalation in Q2, primarily driven by labor and the MEP market. The abundance of projects indicates a thriving market, with MEP trades reporting incentive pay to retain talent. Some subcontractors are turning down new work as their backlog is ﬁlled through 2025. For large or complex projects, we recommend utilizing Design-Assist to secure MEP subcontractors' expertise and labor. Additionally, there are reports of copper volatility. Turner is collaborating with owners to secure large cabling orders to ensure cost certainty. Variance from Q1 2024Material↔Labor↔Market Conditions↔Overall↗Local Escalation SurveyAutomobileCommericalData CenterFood & BeverageFoundation OnlyHotel/MotelMedicalMulti-FamilyShellSiteworkTop 10 Market SegmentsCommerical $199.87M (37.67%)Sitework $132.41M (24.96%)Medical $55.12M (10.39%)$48.34M (9.11%)$38.85M (7.32%)Multi-Family $18.74M (3.53%)Automobile $5.56M (1.05%)ShellData CenterTop 10 Market Segments - Q2 2024 Top 10 Market Segments Permitted by CountyCountyBexar$518.89M$199.87M$38.85M$55.12M$48.34M$132.41MT$0.0bn$0.1bn$0.2bn$0.3bn$0.4bn$0.5bn36-Month Escalation TrendQ2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Avg.Labor 4.34% 2.07% 0.42% 0.63% 0.36% 0.16% 0.37% 0.49% 0.43% 1.33%Material 1.26% 0.67% 0.45% 0.40% 0.44% 0.28% 0.37% 0.33% 0.27% 0.58%Market 0.47% 0.14% 0.18% 0.29% 0.11% 0.29% 0.01% 0.20% 0.30% 0.25%Total 6.07% 2.88% 1.04% 1.32% 0.91% 0.73% 0.75% 1.02% 1.00% 2.16%Nort h Texas Loc al Escalati on Trend8/7/24Quarter Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 A verageLabor 4.34% 2.07% 0.42% 0.63% 0.36% 0.16% 0.37% 0.49% 0.43% 1.33%Material 1.26% 0.67% 0.45% 0.40% 0.44% 0.28% 0.37% 0.33% 0.27% 0.58%Market 0.47% 0.14% 0.18% 0.29% 0.11% 0.29% 0.01% 0.20% 0.30% 0.25%Total 6.07% 2.88% 1.04% 1.32% 0.91% 0.73% 0.75% 1.02% 1.00% 2.16%0%5%1 0%1 5%2 0%2 5%Q2 22Q3 22Q4 22Q1 23Q2 23Q3 23Q4 23Q1 24Q2 24LOCAL ESCALATION TREND CUMULATIVEMarke tMate rialLab o rLaborMaterialMarketConstruction Activity - San Antonio Metro AreasSan Antonio Metro AreasBEXAR, TX GUADALUPE, TX COMAL, TX WILSON, TX7655947079462531ious Quarter Current Quarter0200400600800$ MillionsPrevious QThe new, state-of-the-art Innovation, Entrepreneurship, and Careers (IEC) building is a seven-story, 180,000 SF collaboration space for programs in business, computer engineering, hardware/soware development and sciences. The structure prioritizes seamless indoor/outdoor connections and reconﬁgurable spaces, oering a versatile hub for students, faculty, sta, and the downtown community. San Pedro II will be an amenity-rich facility featuring a café, instructional spaces, conference rooms, large multipurpose spaces, wellness room, catering kitchen, laboratories, and a mix of open and private huddle spaces. UTSA's newest facility is slated for January 2026 completion.UTSA IEC - San Pedro IIHOUSTON36-Month Escalation TrendQ2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Avg.Labor 1.25% 0.89% 0.53% 0.30% 0.48% 0.41% 0.41% 0.20% 0.58% 0.56%Material 0.65% 0.55% 0.45% 0.53% 0.47% 0.52% 0.52% 0.38% 0.50% 0.51%Market 0.15% -0.02% -0.18% 0.06% 0.16% 0.13% 0.13% 0.27% 0.09% 0.09%Total 2.05% 1.43% 0.08% 0.88% 1.11% 1.06% 1.06% 0.85% 1.17% 1.16%North Texas Local Escalation Trend 8/8/2024Quarter Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 AverageLabor 1.25% 0.89% 0.53% 0.30% 0.48% 0.41% 0.41% 0.20% 0.58% 0.56%Material 0.65% 0.55% 0.45% 0.53% 0.47% 0.52% 0.52% 0.38% 0.50% 0.51%Market 0.15% -0.02% -0.18% 0.06% 0.16% 0.13% 0.13% 0.27% 0.09% 0.09%Total 2.05% 1.43% 0.80% 0.88% 1.11% 1.06% 1.06% 0.85% 1.17% 1.16%0%2%4%6%8%10%12%LOCAL ESCALATION TREND CUMULATIVEMarketMaterialLaborLaborMaterialMarketConstruction Activity - Houston Metro Area0500100015002000$ MillionsPrevious Qter0500100015002000Houston Metro AreasHARRIS, TX MONTGO…TXFORTBEND, TXWALLER,TXCHAMBE…TXLIBERTY, TX16892071784431131842227206483417ious Quarter Current QuarterTop Market SegmentsAviationCommericalEducationFitoutFood & BeverageIndustrial / WarehouseMedicalRetailShellSiteworkHOUSTONTop 10 Market SegmentsCommerical $196.37M (29.58%)Education $159.71M (24.06%)$67.62M (10.19%)Retail $35.82M (5.4%)$33.95M (5.11%)$33.69M (5.07%)$32.18M (4.85%)Sitework $27.16M (4.09%)Fitout $25.8M (3.89%)Aviation $14.23M (2.14%)Industrial / WarehouseMedicalShellFood & BeverageTop Market SegmentsHOUSTONTop 10 Market Segments - Q2 2024 Top 10 Market Segments Permitted by CountyCountyHarris Fort Bend Galveston$578.87M$45.16M$2.52M$195.38M$116.71M$43M$32.18M$67.62M$33.95M$33.31M$32.51MTop Market SegmentsHOUSTON$0.0bn$0.1bn$0.2bn$0.3bn$0.4bn$0.5bn$0.6bnTop Market SegmentsHOUSTONVariance from Q1 2024Material↗Labor↗Market Conditions↔Overall↑Local Escalation SurveyThe Houston metro area construction market in Q2 2024 is led by the commercial ($196.37M) and education ($159.71M) sectors. Harris County dominates construction activity with a signiﬁcant increase from $1689M in the previous quarter to $1842M, followed by Montgomery and Fort Bend Counties. Rising material and labor costs contribute to an overall upward trend in construction expenses. The market shows stability in conditions, but the overall escalation indicates increasing project costs.The Texas A&M University System selected Turner to construct its new 54,000 SF Engineering Classroom and Research Building on Pelican Island in Galveston, TX. Our Houston team successfully managed the Guaranteed Maximum Price (GMP) for the project, enabling us to start construction in May 2024. Since then, our team has completed the auger cast piles and are nearing the ﬁnish of relocating major existing utilities. By November 2025, the three-story building will be substantially complete, providing a new home for seven engineering departments and freshmen engineering students.TAMU Galveston Engineering Classroom & Research Building (ECRB)

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THANK YOU TO THESE TRUSTED PARTNERS FOR CONTRIBUTING TO THIS SURVEYThank you!Thank you!QUARTERLYSUBCONTRACTORSURVEYWages Labor Nd Material Market Price ImpactAustinDallasHoustonSan AntonioAustinDallasHoustonSan AntonioAustinDallasHoustonSan AntonioAustinDallasHoustonSan AntonioAustinDallasHoustonSan AntonioConcrete↗↗ ↗↗ ↗↗ ↗↗ ↗↗ ↔↔ ↗↗ ↗↗ ↔↔ ↔↔ ↔↔ ↔↔ ↘↘ ↔↔ ↑↑ ↗↗ ↔↔ ↔↔ ↔↔ ↔↔Steel↗↗ ↔↔ ↗↗ ↗↗ ↔↔ ↔↔ ↗↗ ↗↗ ↔↔ ↗↗ ↔↔ ↗↗ ↔↔ ↔↔ ↗↗ ↔↔ ↔↔ ↔↔ ↔↔ ↔↔Glass↗↗ ↗↗ ↑↑ ↑↑ ↗↗ ↔↔ ↗↗ ↗↗ ↔↔ ↔↔ ↔↔ ↔↔ ↑↑ ↗↗ ↗↗ ↔↔ ↗↗ ↔↔ ↗↗ ↗↗Drywall↗↗ ↑↑ ↑↑ ↑↑ ↔↔ ↔↔ ↔↔ ↗↗ ↗↗ ↑↑ ↑↑ ↗↗ ↔↔ ↑↑ ↓↓ ↔↔ ↗↗ ↑↑ ↑↑ ↗↗Elevator↗↗ ↔↔ ↔↔ ↑↑ ↗↗ ↔↔ ↗↗ ↗↗ ↗↗ ↔↔ ↔↔ ↗↗ ↔↔ ↔↔ ↔↔ ↔↔ ↗↗ ↔↔ ↔↔ ↗↗Mechanical↗↗ ↑↑ ↗↗ ↗↗ ↔↔ ↔↔ ↔↔ ↗↗ ↗↗ ↑↑ ↗↗ ↔↔ ↔↔ ↑↑ ↔↔ ↑↑ ↗↗ ↑↑ ↗↗ ↗↗Electrical↗↗ ↑↑ ↑↑ ↑↑ ↗↗ ↔↔ ↗↗ ↗↗ ↗↗ ↑↑ ↑↑ ↑↑ ↗↗ ↑↑ ↑↑ ↑↑ ↗↗ ↑↑ ↑↑ ↑↑WALL SYSTEMSTRINITYTEXASI Q2 AUSTINDALLASSAN ANTONIOHOUSTON

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Q2 TEXASUPCOMINGBID OPPORTUNITIES » City of Waxahachie City Hall Addition & Renovations updates » Regional Dallas Bank Expansion » Conﬁdential Data Center » DFW Terminal F Concourse & Skylink Station GMP3 (Innovation Next+ JV) » Conﬁdential Oce Renovation » Fair Park First - Community Park » Conﬁdential Plano Hotel DALLASHOUSTON » Lamar University Library Renovation GMP » MD Anderson Rotary House Renovation GMP » MD Anderson Bio Research Facility (Vivarium) » HEB Warehouse Facility » Methodist MedSurge FacilitySAN ANTONIO » Conﬁdential Data Center » Conﬁdential Hotel » Trinity University Welcome CenterLET'S STAYConnectedConnectedAUSTINTONI CROMERPreconstruction Managertcromer@tcco.com281.702.2033VIRTUAL CONTACT CARDHOUSTONLINDA MCCLUREPreconstruction Managerlmcclure@tcco.com281.779.5018LINKEDINDALLASJOSEPH STRUBPreconstruction Managerjstrub@tcco.com469.550.4924LINKEDINSAN ANTONIOJED HEUBERGERPreconstruction Managerjheuberger@tcco.com210.243.5973LINKEDINAUSTINFor upcoming bid opportunities in the Austin area, please email:Toni CromerPreconstruction Managertcromer@tcco.comStephen AnkenbauerSenior Estimatorsankenbauer@tcco.comOr scan the QR code on the following page!

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Q2 2024 Texas Market Conditions

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