Ken Simonson Quotes (17 Quotes)

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.

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.

Consumers who are doing repairs or additions to their home will notice the effect when they buy a bag of cement.

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

In 2005, we had 32 areas (of the country) that ran short of cement at certain times of the year. With the demand for cement growing in 2006 and very little expansion of production, I think further supplies are limited.

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

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.

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.

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.

Last year, 32 states and the District of Columbia were short of cement. Many will have worse shortages this year,

You can't assume contractors will automatically pass on higher costs.

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.

The demand for concrete has been outstripping supply for several years. We've become more steadily dependent on imports.

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.

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

If a substantial percentage of the immigrants took the day away from work, that would have a noticeable impact on construction.

This marks a real turn around for non-residential construction. I think we will see more real gains in 2005.