Editor's Report
Katrina Aftermath Expected To Cause Rising Material Prices
Ken Simonson, Chief Economist for the Associated General Contractors of America (AGC) believes construction materials prices will rise at least 10 percent next year, instead of the 6-percent to 8-percent rise he had expected before the storm. Simonson spoke at AGC's Midyear Legislative Conference in Washington, D.C.
Drawing on first-hand accounts from AGC's member companies, Simonson said, "contractors can expect increased diesel fuel costs to operate off-road equipment such as bulldozers, tower cranes and trucks. Fuel cost increases will also show up as freight surcharges on the thousands of deliveries to a typical construction job site.
"Most of the increased costs in construction materials throughout the country will result from a reduction in oil and natural gas production, and not from higher demand for those materials for the reconstruction projects in the devastated areas."
Simonson also predicted higher prices and/or supply disruptions for PVC pipe, other construction plastics, tires for large off-road equipment, galvanized steel, gypsum products and cement.
Disaster Relief Fund Established For Construction Workers
The Hurricane Katrina Construction Workers Fund, established through the AGC Education and Research Foundation, provides financial assistance to the construction workers in Louisiana, Mississippi and Alabama who suffered financially from the disaster. AGC will work with the chapters in those states to establish criteria for eligibility, identify eligible victims and distribute contributions.
Many of the workers who are likely to benefit from this fund will be employed to participate in the clean-up and restoration of the cities and towns suffering damage.
Construction employment in the three states totaled nearly 275,000 in July, according to Bureau of Labor Statistics (figures are only available statewide; large parts of each state were unaffected). Many of these employees are without income in the short term while they are attempting to rebuild their homes and replace furniture, clothing and household goods for themselves and their families.
Contributions should be made to the AGC Education and Research Foundation at www.agc.org/donate or by mailing a check to the AGC Education and Research Foundation (Hurricane Katrina Construction Workers Fund)/333 John Carlyle Street, Suite 200/Alexandria, VA 22314.
ARA Reaches Out To Gulf Coast Rental Businesses
The American Rental Association has formed a relief fund for the rental stores impacted by Hurricane Katrina. ARA will accept contributions from the industry to assist those who have suffered loss or damage of their rental businesses in Louisiana, Mississippi, Alabama, and Florida as a result of Hurricane Katrina. These funds will be directed to both immediate and long-term needs, based upon the quantity of dollars that are raised from the rental industry.
ARA and ARA Insurance Services are the first contributors to this Fund. Donations can be made online at https://www.ararental.org/ReliefFund
, or can be sent directly to the ARA Foundation Rental Industry Relief Fund. Please make check payable to ARA Foundation Rental Industry Relief Fund and mail to 1900 19th Street, Moline, IL 61265.
Disaster Kleenup International Sponsors Hurricane Relief Drive
Disaster Kleenup International, Inc., is sponsoring a Hurricane Katrina Relief Drive.
"Even for those of us who see disaster on a daily basis as part of our jobs, the immense scale of the devastation from Katrina is beyond rational comprehension," said Dale Sailer, president of Disaster Kleenup International. "In times like this, it is comforting to see people from across the nation pull together to help those who now have nothing. Our relief drive is just another avenue for individuals to provide their support."
In addition to DKI's corporate Hurricane Relief Drive, several DKI member companies have organized humanitarian efforts, some similar to this drive, in their local areas. Over two dozen DKI member companies are also currently in the affected areas and actively participating in the restoration efforts.
For those interested in making financial contributions, simply visit Disaster Kleenup International's website at www.disasterkleenup.com to donate directly to the American Red Cross.
22-Jan-2006