[New Orleans also was the] leading port for cement importation through the first half of 2005, ... So, whether those terminals received physical damage or are shut down because there are not enough personnel, it will cause wider cement shortages. |
As was the case for most of the year, growth was well distributed among the major construction segments. Comparing December 2005 to December 2004, public construction grew 10%, private residential construction rose 9.0%, and private nonresidential was up 6.0%. For the year, those categories increased 8.0%, 11%, and 5.0%, respectively. |
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. |
Construction spending in November outpaced even the upwardly revised October and September totals. |
Consumers who are doing repairs or additions to their home will notice the effect when they buy a bag of cement. |
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. |
Fast-rising materials and fuel costs have exaggerated the growth in some of these categories, especially highway construction. |
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. |
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. |
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. |
I doubt you'll feel it (rising costs) much, |
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. |
I still expect construction to be adding jobs but at a more modest pace. |
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. |
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. |