Ken Simonson
Ken Simonson
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.
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.
november october revised september spending
Construction spending in November outpaced even the upwardly revised October and September totals.
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.
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.
impact
I think the impact is going to be nationwide for 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.
eerie leave roof uncovered
It's an eerie challenge. You don't want to leave the roof uncovered in a place like that.
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.
adding expect jobs modest
I still expect construction to be adding jobs but at a more modest pace.
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.
assume higher pass
You can't assume contractors will automatically pass on higher costs.
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.