Ken Simonson
Ken Simonson
center climbed commercial grew growth hospital nearly office segments several shopping swelling warehouse
On a two-month basis, there were several segments that showed exceptional growth. Shopping center construction leaped 61%, after swelling nearly 40% in 2005 and 25% in 2004. Hospital construction grew 22%, while manufacturing and commercial warehouse construction climbed 20%. The previously lackluster office segment was up 18%.
areas cement certain demand expansion further growing ran short supplies
In 2005, we had 32 areas (of the country) that ran short of cement at certain times of the year. With the demand for cement growing in 2006 and very little expansion of production, I think further supplies are limited.
eerie leave roof uncovered
It's an eerie challenge. You don't want to leave the roof uncovered in a place like that.
capacity expanding growing meet problem spot
Availability is going to be even more of a problem in 2006 than it was in 2005. In 2005 you had spot shortages. In 2006, nonresidential construction is growing and capacity is not expanding to meet those needs.
bag buy consumers effect home notice
Consumers who are doing repairs or additions to their home will notice the effect when they buy a bag of cement.
building copper diesel energy fuel heavy materials power
Contractors use a lot of diesel fuel to power bulldozers, trucks, and other heavy equipment. And many building materials industries, such as copper and steel, are energy intensive.
success
It showed a little more success than I had expected.
gains marks turn
This marks a real turn around for non-residential construction. I think we will see more real gains in 2005.
among case categories comparing december grew growth increased major private public rose
As was the case for most of the year, growth was well distributed among the major construction segments. Comparing December 2005 to December 2004, public construction grew 10%, private residential construction rose 9.0%, and private nonresidential was up 6.0%. For the year, those categories increased 8.0%, 11%, and 5.0%, respectively.
cement concrete continuing demand expect healthy higher increases price prices push spot
For 2006, I expect to see healthy demand for nonresidential construction but also double-digit price increases for many construction inputs. I expect continuing spot shortages of cement that will push concrete prices higher nationwide.
break check houses sell signed throw wait
They used to throw up houses and try to sell them. Now, they wait for a signed check before they break ground.
november october revised september spending
Construction spending in November outpaced even the upwardly revised October and September totals.
costs fuel growth highway materials
Fast-rising materials and fuel costs have exaggerated the growth in some of these categories, especially highway construction.
building capacity cement leveled plenty production
There's plenty of cement worldwide, but in the U.S., cement production capacity has leveled off and no one is building more plants.