Ken Simonson
Ken Simonson
costs fuel growth highway materials
Fast-rising materials and fuel costs have exaggerated the growth in some of these categories, especially highway construction.
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.
affect demand diesel gas knocked likely loss materials natural oil pick prices production storms supplies
Many construction materials are likely to be pricier and scarcer because the storms knocked out so much supply, even if demand does not pick up. The loss of substantial oil and natural gas production will affect supplies and prices for diesel fuel, asphalt, roofing materials, insulation, PVC pipe, coatings and assorted construction plastics.
adds damaged demand depends katrina materials rebuilding recovery speed types whether
Whether the recovery from Katrina adds to demand for construction materials depends on the types and speed of rebuilding in damaged areas.
consumer costs materials period prolonged rapidly rise
I think we're in for a prolonged period in which construction materials costs are going to rise more rapidly than consumer costs.
again cement certainly certainty fully heading likely material near prices severe spike until
I think it's likely that prices will spike again and I think it's near certainty there will be some material shortages, ... Our cement shortages will certainly get worse. We're heading for severe shortages of cement at least until those ports are fully operational.
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.
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%.
eerie leave roof uncovered
It's an eerie challenge. You don't want to leave the roof uncovered in a place like that.
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.
affected home remains
You have a lot of home construction that will be affected by that. How much remains to be seen.
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.
adding expect jobs modest
I still expect construction to be adding jobs but at a more modest pace.
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.