Higher Energy Costs and Strong Demand Keep Construction Inflation Going

Grogan, Tim
March 2006
ENR: Engineering News-Record;3/20/2006, Vol. 256 Issue 11, p35
Trade Publication
The article reports that two years of relentless materials price escalation has pushed construction costs into new territory. Contractors and owners are dealing with the reality of a permanently higher cost structure, especially for steel, concrete and petroleum-based products. Materials with a high-end use in the residential market, such as lumber and plywood, may get some price relief later with the expected slowdown in housing. But this will be countered by higher energy costs that will prop up a broad range of prices and a weak dollar that is cutting off cheap imports. Higher energy prices are working their way into many construction products, most notably asphalt paving and PVC pipe


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