Simonson predicts

There is certainly no lack of prognostication, as 2006 begins. "Fast-rising materials and fuel costs have exaggerated the recent growth of highway construction," says Ken Simonson, Chief Economist for the Associated General Contractors of America. "For 2006, I expect the cost of fuel, asphalt, and plastics such as polyvinyl chloride (PVC) pipe, to average 10-20 percent higher than in 2005, because of high petroleum and natural gas costs. Copper remains expensive, and I expect continuing spot shortages of cement that will push concrete prices higher nationwide. However, steel, wood, and gypsum products should be no higher on average than in 2005 despite a lot of month-to-month volatility. The leading construction segments are likely to be manufacturing, health care, and lodging. Single-family construction will fade as the year goes on. I'm worried that states will have a hard time maintaining growth in highway construction. High fuel prices are bringing down fuel consumption, which in turn lowers state and federal highway trust fund receipts." . . . So it is written. Your comment?