Higher Material Costs Hang Over Construction Industry..

Higher material costs hang over construction industry, from the USA TODAY, reports that prices of construction materials have been rising because of demand from overseas and higher energy prices, and builders are passing these higher costs on to the consumer. Higher material costs mean higher home prices, higher rents on commercial projects, and changes to projects based on the material costs and availability. In December, steel prices were up 4.2% from the previous year, plastics were up 20.6%, cement was up 12.3% and gypsum wallboard was up 15.3%. The run up in construction costs is tied to higher crude oil prices, which make the delivery of goods more expensive, and, since oil is used to make plastic pipe and vinyl siding, those material costs have also risen. Steel and concrete have risen among shortages created by strong demand from overseas, especially China. "We see it in lumber, concrete, insulation, drywall and vinyl," said Jason DeBoer of DeBoer & Gabriel Builders. "Every week we see memos (from suppliers) of price increases of 5% to 10%."

http://www.usatoday.com/money/economy/housing/2006-02-28-building-costs_x.htm