Contractors on the West Coast may be scratching their heads, asking why lumber prices are rising when they are falling every where else. The answer is China. The Chinese have more than doubled their purchases of lumber from Canada and the U.S. within the last year, according to industry specialist Random Lengths, Eugene, Ore. That demand drives a price disparity in the Pacific Northwest, especially for spruce products, and prices in the rest of the country. Related Links: Forecast: A Weak Recovery Checks Inflation Confidence Index: Heads of Major Firms Believe Market Is Nearing Stability Equipment: Why Few Are Debating
Cement prices could increase substantially within the next few years because of new regulations from the federal Environmental Proection Agency as well as the state of California’s regulations requiring substantial reductions in CO2 and hazardous air-pollution emissions from domestic cement plants. + Image Photo: put photo credit here photo caption here Related Links: Economics: With Margins Cut to the Bone and No Demand, Costs Are Left With Nowhere To Go Market: More Bad Economic News Dims Industrys Confidence Insurance: Recession and Politics Impact Workers Comp Labor: Wage Settlements Are Between A Rock and a Hard Place Complete Report For now,
The $787-billion American Recovery and Reinvestment Act has about $130 billion slated for construction. While much of the money is slow in coming, the first wave of funded projects typically were repaving and other quick, off-the-shelf highway projects. These had contractors scrambling and bidding ferociously, keeping prices at bare-bone levels and opening the door for even more construction projects. Photo: Michael Moore Source: Florida DOT Three quarter moving bid-price index Related Links: Competition Intensifies as Recession Deepens Industry Has Little Confidence About Near-Term Market Gains Medical Costs Trump Savings From Safety Recession Steadies Prices For Liquid Paving Product Airport To
Most of the U.S. construction industry may be on flat-line status, but the building pulse is still strong in Salt Lake City, Utah. More than $4 billion of large mixed-use, commercial, education and health-care projects are under construction in the metropolitian area, with others ready to start construction or go out for bid. Photo: Michael Moore / SME Steel Contractors Bidders fight for over $4 billion of nonresidential work. Related Links: Razor-Thin Margins As Contractors Fight For Stimulus Projects Costs Post Rare Quarterly Decline Firms Hold the Line on Raises, But Salaries Remain Competitive Slow Payment Is Sapping Contractors Strength
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