Ken Simonson
Ken Simonson
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.
damage extent happens jobs machines manpower recovery road seen until
Historically, recovery from catastrophes happens very rapidly, but I don't think we've ever seen road damage to the extent we have seen here. I would think they would find the machines and manpower to do road repairs because you can't get to the other jobs until you have access.
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.
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.
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.
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.