2005 Construction Spending Ends on High Note, 2006 Fuel Costs to Increase


November’s construction spending outpaced September and October totals, even after the numbers for both months were upwardly revised by 1% apiece, reported Ken Simonson, Chief Economist for the Associated General Contractors of America (AGC), earlier this month. He was commenting on new Census Bureau figures that showed the value of construction put in place set a record of $1.15 trillion at a seasonally adjusted annual rate, up 0.2% from October.

"Growth has been steady and well distributed among the major construction segments for the past several months," Simonson observed. "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.”

According to Simonson, the leading categories have been multi-retail (general merchandise, shopping centers, and shopping malls), up 25% year-to-date; manufacturing construction, up 23%; private multifamily, 21%; and hospitals, 13%.

For 2006, Simonson had these predictions: “I expect the cost of fuel, asphalt and plastics such as polyvinyl chloride (PVC) pipe, to average 10-20% higher than in 2005, because of high petroleum and natural gas costs. Copper remains expensive, and I expect continuing spot shortages of cement that will push concrete prices higher nationwide. However, steel, wood, and gypsum products should be no higher on average than in 2005 despite a lot of month-to-month volatility.”

He added that the leading construction segments are likely to be manufacturing, health care and lodging, noting that single-family construction will decrease as the year goes on.

Product of the Year
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
40 Under Forty: Get Recognized
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
MEP Giants Program
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
November 2018
Emergency power requirements, salary survey results, lighting controls, fire pumps, healthcare facilities, and more
October 2018
Approaches to building engineering, 2018 Commissioning Giants, integrated project delivery, improving construction efficiency, an IPD primer, collaborative projects, NFPA 13 sprinkler systems.
September 2018
Power boiler control, Product of the Year, power generation,and integration and interoperability
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
click me