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Wage & Per Diem Escalation

Using CLMA data and analytics, we provide detailed labor wage and per diem cost escalation projections and market analysis, highly valued by our clients. These reports, either econometric or trend-based, analyze individual craft disciplines for specific states/regions over a 3-5 year horizon. While more traditional forecasts are based on macroeconomic theory, our predictive cost models use empirical project data evidence. This data-driven approach improves on traditional econometric modeling and produces more reliable results, which improve risk planning.


Fluctuating economics add significant pressure to project labor budgets. Our wage analytics provide clarity on how labor costs are escalating over time based on market dynamics.


The more clarity you have, the more confident you can be when setting labor budgets on future projects. Our wage analytics to enable you to effectively budget and manage cash flow.


The earlier in the project planning process you can identify cost risk, the more empowered you are to lessen that risk. Our wage analytics help improve outcomes on cost-driven projects.

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Econometric Labor Cost Escalation

We combine empirical project data and traditional econometric modeling to produce standardized and client-customized comprehensive labor cost escalation analysis for a selected region This methodology integrates regional economic prospects, construction activity, skilled labor supply/demand headcount, and wage rates, along with 2 alternative scenarios outlining upside potential and downside risks. The report focuses on wage and per diem forecasts for the current year, plus 4 years out, for the selected region with the goal being to anticipate near and long-term impacts on labor cost.

These detailed reports are produced as requested for the Gulf Coast region which includes Texas, Houston, Beaumont, Louisiana, Baton Rouge, and Lake Charles. Reports may also be prepared for other states and regions based on client specifications.

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Trend-Based Labor Cost Escalation

Although the econometric market analysis is the most comprehensive, the timing and cost is commensurate with the level of effort and detail. An effective alternative is our trend-based, formulaic wage and per diem escalation report. These reports are affordable and can be delivered within a few days, or even hours, depending on the request and urgency.

These reports employ an exponential growth model to fit historical wage data and forecast future wage levels, using certain anticipated market growth assumptions within a state, region and industry. In addition to economic growth, this forecasting model recognizes and adjusts for the impact of supply and demand imbalance on wage growth rates. The outputs are benchmarked to the Employment Cost Index (ECI) to validate the growth trend as compared to overall wage/salary change in a census division. The report provides directional perspective for how labor cost is expected to change over time within a specific region.

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