Ken Simonson
Ken Simonson
among eight five grew growth higher major months nine past percent private public segments several steady total
Growth has been steady and well distributed among the major construction segments for the past several months. For the first 11 months of 2005, total construction was nine percent higher than in same months of 2004. Private residential construction grew 11 percent, public construction, eight percent, and private nonresidential, five percent.
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.
average below cents diesel fallen fuel gas gulf higher keeping mexico national natural oil per prices production record retail rita supplies year
Oil and natural gas prices have fallen sharply from their post-hurricane highs. However, production from the Gulf of Mexico is still down by more than 15 percent, keeping supplies tight. As of mid-March, the national average retail price of diesel fuel was around $2.55 per gallon, 60 cents below the record set after Rita but 35 cents (16 percent) higher than a year ago.
assume higher pass
You can't assume contractors will automatically pass on higher costs.
adding expect jobs modest
I still expect construction to be adding jobs but at a more modest pace.
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.
equipment expensive harder kinds rubber steel
Rubber for construction equipment tires, (Sheetrock) and some kinds of steel may also be harder to find or more expensive because of the storms.
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.
balanced cylinders growth hitting industry report shows spending
Today's report on construction spending shows the industry is hitting on all cylinders with strong, balanced growth.
immigrants impact noticeable percentage took
If a substantial percentage of the immigrants took the day away from work, that would have a noticeable impact on construction.
add adding aftermath area couple demand expect helpful improvement katrina materials produced putting retail rita roots sent slow total worth
I expect some slow improvement in the Dallas-Fort Worth area. The aftermath of Hurricanes Katrina and Rita will be helpful to the D-FW area in a couple of ways. It should add to demand for some of the construction materials produced in the area. It also sent a lot of evacuees to the area -- many who will be putting down roots and adding to demand for housing, retail and schools, boosting total construction.
cement month showing suspicion takes
My suspicion is that after the first month it takes effect, you'll see more cement showing up in Arizona.