Building
Author: Diana Heeb Bivona
Builders attending a AGC members luncheon probably heard the phrase, “do you want the bad news first or the good?” in terms of building materials and prices. According to Ken Simonson, chief economist of the Associated General Contractors of America, the good news is that prices for raw materials such as copper and concrete have dropped. The bad news is that other costs such as labor are increasing. Not only is the price of labor increasing, but many areas of the country are experiencing a shortage of qualified labor.
While Simonson does not belive there will be a rapid increase in prices as seen last year, he is projecting a steady inflation of 6 to 8% a year for the cost of raw materials.