The Associated General Contractors of America Releases 2006 Construction
Forecast (1/3/06)
AGC's Chief Economist Ken Simonson reported that for the first 11 months of 2005, total construction was 9 percent
higher than the same months in 2004, with public construction up 8% and private non-residential and residential up 5%
and 11% respectively. He pointed out that fast-rising fuel and material costs have exaggerated growth in certain
categories, especially in highway construction.
Simonson predicted "For 2006, I expect the cost of fuel, asphalt and plastics to average 10-20% higher than in 2005,
because of high petroleum and natural gas costs." He went on to add that he expects copper to remain expensive, and for
concrete to push higher nationwide. He also expects steel, wood and gypsum products on average to be no higher than in
2005, but to exhibit a lot of month-to-month volatility.
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