Ken Simonson
Ken Simonson
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.
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.
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.
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.
categories highways leading percent private shopping
The leading categories have been multi-retail (general merchandise, shopping centers, and shopping malls), up 25 percent year-to-date; manufacturing construction, 23 percent; private multifamily, 21 percent; hospitals, 13 percent; private single-family, 12 percent; and highways and streets, 11 percent.
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.
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.
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.
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.
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.