42 ordspråk av Ken Simonson

Ken Simonson

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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.

Fast-rising materials and fuel costs have exaggerated the growth in some of these categories, especially highway construction.

Construction spending in November outpaced even the upwardly revised October and September totals.

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.

They used to throw up houses and try to sell them. Now, they wait for a signed check before they break ground.

I still expect construction to be adding jobs but at a more modest pace.

There's plenty of cement worldwide, but in the U.S., cement production capacity has leveled off and no one is building more plants.

I think we're in for a prolonged period in which construction materials costs are going to rise more rapidly than consumer costs.

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.

Today's report on construction spending shows the industry is hitting on all cylinders with strong, balanced growth.

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%.

The finance and services sectors reported the highest expectations for capital spending, especially on computers and communications equipment.

It's an eerie challenge. You don't want to leave the roof uncovered in a place like that.

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.

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