The U.S. financial crisis spread rapidly to the rest of the world during the second half of the year, slowing the global economy and rolling back construction inflation in Europe, Asia, the Middle East and North America. In particular, the economic slowdown in China has taken away one of the main drivers of global construction inflation as China’s once voracious appetite for raw materials evaporates. Related Links: Credit Cancer Kills Prospects for Recession-Proof Global Economy Global Financial Crisis and Recession Is Knocking Down Inflation Worldwide Even Overheated Gulf Market Moves Into a Slump in a Changing Economy Prices Go Awry
After several years of unprecedented demand and annual double-digit increases, costs for basic construction materials in the Middle East hit a major market barrier this fall. Whether the correction is short-lived or continues through 2009 or even 2010 is an open question, according to analysts. (Click to Enlarge Image) Sources: Rider Levett Bucknall. Percent Change Is From Peak 2008 Price To November 2008. Prices Are For The U.A.E. Related Links: Credit Cancer Kills Prospects for Recession-Proof Global Economy Global Financial Crisis and Recession Is Knocking Down Inflation Worldwide Even Overheated Gulf Market Moves Into a Slump in a Changing Economy
Uncertainty prevails in Asian construction markets this quarter as the global financial scare causes materials price indexes to go awry. A drop in building demand across China and Southeast Asia in the past two months has sparked a broad-based deflation of materials prices following record-high levels for steel, scrap, rebar, copper, and others, which peaked just months ago. (Click to Enlarge Image) Source: Davis langdon & seah. Asian Construction Inflation Related Links: Credit Cancer Kills Prospects for Recession-Proof Global Economy Global Financial Crisis and Recession Is Knocking Down Inflation Worldwide Even Overheated Gulf Market Moves Into a Slump in a
Officials with the North Carolina Dept. of Transportation see an expected federal stimulus package as a welcome boost to its sagging capital program. It has projects worth a total of $5 billion that could be �shovel-ready� within 180 days. Although there was a steady stream of contracts let in 2008, by December NCDOT had started laying off workers and reevaluating project needs. Related Links: North Carolina Projects Questions Swirl On Stimulus Plan �Ready to Go� May Be The Stimulus Ticket “The North Carolina Dept. of Transportation is having to lay off temporary workers in its field offices and take other
The Ohio Dept. of Transportation has a draft list of projects worth almost $3 billion that could benefit from a federal stimulus program. But that list is growing�perhaps to even double that figure�as ODOT continues to gather information, says spokesman Scott Varner. �But so much will depend on the restrictions placed on the dollars coming from Washington,� he cautions. �An important factor will be the ability to invest dollars across broad spending categories, and not just on construction. Ohio is losing planning and design jobs every day. These are real jobs and are important to the economy and future of
The Faithful & Gould Parity Index is designed to clarify the international cost picture, which can be distorted by gyrations in currency exchange rates. The index is based on put-in-place rates for 26 basic items used in the construction of a manufacturing facility. The parity index value in the table shows construction costs at each location relative to Chicago. A parity of 0.78 for Great Britain implies that £0.78 of construction is equivalent to $1 of work in Chicago. To calculate a relative index value, divide the parity value of the exchange rate and multiply by 100. In this study,
The global recession has not missed Mexico, which is seeing many large commercial projects being postponed or cancelled. However, large industrial and public works projects are going forward as the government fights back by stepping up public-works spending. The result has been a mixed impact on prices of construction materials in Mexico. (Click to Enlage Image) Source: Gardiner & theobald inc. Annual building tender price inflation. Mexico Building Inflation Related Links: Credit Cancer Kills Prospects for Recession-Proof Global Economy Global Financial Crisis and Recession Is Knocking Down Inflation Worldwide Even Overheated Gulf Market Moves Into a Slump in a Changing
Inflation had its last hurrah during the first half of this year and it was quite impressive with both steel and oil prices soaring to record levels despite a subprime mortgage crisis that was destroying the housing industry. But then the Fat Lady sang and the full extent of the financial crisis started to reveal itself. With banks, insurance companies, Wall Street investment firms and the automotive industry all lining up for bailouts, commodity prices started to tumble. Oil prices fell from over $140 per barrel to less than $70. Steel prices also started to head down and economists expect
Construction industry firms, hit by the recession, are searching feverishly for more details on which infrastructure projects might be funded in the eagerly expected economic stimulus package. Highways have been a particularly hot topic, partly because President-elect Barack Obama has mentioned that sector prominently and partly because the segment is so large. Stimulus Plan State-By-State Reports Related Links: �Ready to Go� May Be The Stimulus Ticket Interest in the stimulus is “huge,” says Brian Deery, senior director of the Associated General Contractors’ highway and transportation division. “I’m getting calls all the time,” from firms and AGC chapters. It’s no wonder
Although the U.S. credit crisis has spread north of the border, Canada’s tighter regulations and healthy financial system are insulating it from the more severe repercussions seen in the U.S. However, Canada cannot shield itself from the growing recession in the U.S. (Click to Enlarge Image) Source: Statistics canada; percent change from year-to-year Canadian Materials Cost Trends Related Links: Credit Cancer Kills Prospects for Recession-Proof Global Economy Global Financial Crisis and Recession Is Knocking Down Inflation Worldwide Even Overheated Gulf Market Moves Into a Slump in a Changing Economy Prices Go Awry Amid Shifting Markets Downturn in China Leads Retreat