• Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • CONTRACTORS
  • ENGINEERS
  • RADIANT & HYDRONICS
  • INSIGHTS
  • MEDIA
  • RESOURCES
  • EMAGAZINE
  • SIGN UP!
cart
facebook instagram twitter linkedin youtube
  • CONTRACTORS
  • BATH & KITCHEN PRO
  • BUSINESS MANAGEMENT
  • HIGH EFFICIENCY HOMES
  • TECHNOLOGY
  • WATER TREATMENT
  • PMC COLUMNS
  • PMC COLUMNS
  • Dave Yates: Contractor’s Corner
  • John Siegenthaler: Hydronics Workshop
  • Kenny Chapman: The Blue Collar Coach
  • Matt Michel: Service Plumbing Pros
  • Scott Secor: Heating Perceptions
  • ENGINEERS
  • CONTINUING EDUCATION
  • DECARBONIZATION | ELECTRIFICATION
  • FIRE PROTECTION
  • GEOTHERMAL | SOLAR THERMAL
  • PIPING | PLUMBING | PVF
  • PME COLUMNS
  • PME COLUMNS
  • Christoph Lohr: Strategic Plumbing Insights
  • David Dexter: Plumbing Talking Points
  • James Dipping: Engineer Viewpoints
  • John Seigenthaler: Renewable Heating Design
  • Lowell Manalo: Plumbing Essentials
  • Misty Guard: Guard on Compliance
  • RADIANT & HYDRONICS
  • RADIANT COMFORT REPORT
  • THE GLITCH & THE FIX
  • INSIGHTS
  • CODES
  • GREEN PLUMBING & MECHANICAL
  • PROJECT PROFILES
  • COLUMNS
  • SPONSOR INSIGHTS
  • COLUMNS
  • Codes Corner
  • Natalie Forster: Editorial Opinion
  • Guest Editorial
  • MEDIA
  • PODCASTS
  • VIDEOS
  • WEBINARS
  • RESOURCES
  • INDUSTRY CALENDAR
  • DIRECTORIES
  • EBOOKS
  • PM BOOKSTORE
  • CE CENTER
  • MARKET RESEARCH
  • CLASSIFIEDS
  • EMAGAZINE
  • EMAGAZINE
  • ARCHIVE ISSUES
  • CONTACT
  • ADVERTISE
  • PME EMAGAZINE ARCHIVES
search
cart
facebook instagram twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • CONTRACTORS
    • BATH & KITCHEN PRO
    • BUSINESS MANAGEMENT
    • HIGH EFFICIENCY HOMES
    • TECHNOLOGY
    • WATER TREATMENT
    • PMC COLUMNS
      • Dave Yates: Contractor’s Corner
      • John Siegenthaler: Hydronics Workshop
      • Kenny Chapman: The Blue Collar Coach
      • Matt Michel: Service Plumbing Pros
      • Scott Secor: Heating Perceptions
  • ENGINEERS
    • CONTINUING EDUCATION
    • DECARBONIZATION | ELECTRIFICATION
    • FIRE PROTECTION
    • GEOTHERMAL | SOLAR THERMAL
    • PIPING | PLUMBING | PVF
    • PME COLUMNS
      • Christoph Lohr: Strategic Plumbing Insights
      • David Dexter: Plumbing Talking Points
      • James Dipping: Engineer Viewpoints
      • John Seigenthaler: Renewable Heating Design
      • Lowell Manalo: Plumbing Essentials
      • Misty Guard: Guard on Compliance
  • RADIANT & HYDRONICS
    • RADIANT COMFORT REPORT
    • THE GLITCH & THE FIX
  • INSIGHTS
    • CODES
    • GREEN PLUMBING & MECHANICAL
    • PROJECT PROFILES
    • COLUMNS
      • Codes Corner
      • Natalie Forster: Editorial Opinion
      • Guest Editorial
    • SPONSOR INSIGHTS
  • MEDIA
    • PODCASTS
    • VIDEOS
    • WEBINARS
  • RESOURCES
    • INDUSTRY CALENDAR
    • DIRECTORIES
    • EBOOKS
    • PM BOOKSTORE
    • CE CENTER
    • MARKET RESEARCH
    • CLASSIFIEDS
  • EMAGAZINE
    • EMAGAZINE
    • ARCHIVE ISSUES
    • CONTACT
    • ADVERTISE
    • PME EMAGAZINE ARCHIVES
  • SIGN UP!

January 11-17, 2006 - Factory output grows; construction input prices outstrip PPI; relief possible on cement

January 20, 2006
Industrial production (IP) at mines, utilities, and factories rose 0.6% in December, seasonally adjusted, and 2.8% since December 2004, the Federal Reserve Board announced this morning. Output of construction supplies dropped 0.9% for the month but rose 5.2% for the year. Manufacturing IP climbed 0.2% for the month and 3.8% for the year, while capacity utilization in manufacturing reached 79.6% of capacity in November and December, up from 78.3% in December 2004. Together, rising output and capacity utilization in manufacturing imply further demand for factory construction.

The producer price index (PPI) for finished goods rose 0.9% in December, seasonally adjusted, and 5.4% for the year, the Bureau of Labor Statistics reported on Friday. The monthly and annual gains were driven largely by energy costs. In contrast, the “core” index, which omits food and energy, rose 0.1% for the month and 1.7% for the year. The PPI for materials and components for construction (not seasonally adjusted) rose 0.5% for the month, 2.7% over the past three months, and 6.1% over 12 months. Among construction segments, the PPI for inputs for highway and street construction went up 14.1% over the year; other heavy construction, 8.8%; multi-unit residential, 7.6%; single-unit residential, 6.9%; and nonresidential buildings, 7.4%. The only PPI for finished buildings, covering new warehouses, rose 7.6%. PPIs for specific construction materials showed large variation between three- and 12-month figures and among various materials. For instance, the price of #2 diesel fuel rose 46% over 12 months despite a 7% decline from September to December. At the other extreme, steel mill product prices fell 3.6% last year but moved up 5.5% in the past three months. The largest three-month increases were for rubber and plastic plumbing products, +30%, and copper and brass mill shapes, +16%.

Cement prices, which rose 0.7% from September to December and 11.7% over 12 months, may moderate as a result of recent developments. The International Trade Administration of the Commerce Dept. announced (www.ita.doc.gov/media/FactSheet/0106/cement_011206.html) as the result of an annual review that it was lowering the antidumping duty on Mexican cement from 54.91% to 42.26%, retroactive to August 1, 2003. More significanly, long-running negotiations between Commerce and the Mexican government appear to be close to conclusion; the Southern Tier Cement Committee issued a press release on Thursday that said the potential agreement would sharply reduce tariffs, open the Mexican market to imports, and prevent a surge of imports from Mexico into the southern U.S. On January 6, the U.S. International Trade Commission announced that it would conduct a full “sunset” review to determine whether revocation of the antidumping order “would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.” U.S. Geological Survey data (www.usgs.gov) released on January 6 show that domestic production of cement for the first 10 months of 2005 was unchanged from the same period of 2004 but shipments climbed 5.5%; the difference was made up by imports, which increased 25.5%. The fastest-growing source of cement imports was China, now second after Canada. Greece, Thailand, South Korea, and Venezuela followed, with Mexico seventh. Presumably, lower duties would make Mexican cement cheaper than some other imports.

The Construction Labor Research Council (CLRC) reported in a yearend summary of collective bargaining settlements that negotiations completed in 2005 produced an average first-year increase in wages and fringe benefits of $1.53 or 3.9%, compared to 3.8% in 2004 and 4.3% in 2003. The average second-year increase in newly negotiated multi-year agreements was $1.81 or 4.2%, and the average third-year increase was $1.91 or 4.2%, the first time since 2001 that second-year and third-year increases have exceeded 4%. Increased contributions to health-and-welfare funds accounted for a significant portion of the total increase amounts, CLRC found, with an average allocated amount of $.78.

The Federal Emergency Management Agency on Thursday raised its estimate of the number of evacuees from Hurricane Katrina by a third, to roughly two million. This has several implications for construction: more demand for housing, infrastructure, retail and consumer services in areas where evacuees have relocated, and fewer workers left in the hurricane zone to perform construction or provide other services that support construction (or basic living). For instance, an article in the January 13 Memphis Business Journal found that several local contractors in different market segments reported no sign that construction workers were leaving the area for the Gulf. Mixed signs about the recovery appeared this month. The Louisiana Dept. of Transportation and Development announced that the westbound span of Interstate 10 had been reopened across Lake Pontchartrain, nine days ahead of schedule. But the next day the agency closed both spans to oversize and overweight vehicles, leaving longer routings for some construction equipment and components. A commission appointed by New Orleans Mayor Ray Nagin presented its rebuilding plan, sparking strong opposition from some residents and suggesting that rebuilding will be very drawn out and contentious.

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Worker using the Milwaukee Tool SWITCH PACK drain cleaner

    Pipeline profits: Drain cleaning, pipe inspection create opportunities

    Drain cleaning and inspection services offer lucrative...
    Green Plumbing and Mechanical
    By: Nicole Krawcke
  • Uponor employee, Arturo Moreno

    The reinvestment in American manufacturing and training

    Plumbing & Mechanical Chief Editor Nicole Krawcke and...
    Plumbing News
    By: Nicole Krawcke and Natalie Forster
  • March 2024 Women in Plumbing hero image of woman engineer overlayed by circle of hexagon shapes with numbers from 1 to 10

    Celebrating 10 Influential Women in the Plumbing Industry

    Celebrating Women's History Month and Women in...
    Plumbing News
    By: Nicole Krawcke
close

1 COMPLIMENTARY ARTICLE(S) LEFT

Loader

Already a Registered User? Sign in now.

Subscribe For Free!
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine
  • Manage My Preferences

AI can boost efficiency and profitability for plumbing, HVAC contractors

AI can boost efficiency and profitability for plumbing, HVAC contractors

NIBCO Press Solutions

NIBCO Press Solutions

IPEX celebrates grand opening of new Florida distribution center

IPEX celebrates grand opening of new Florida distribution center

Bell & Gossett Illustrates Path to Net-zero at AHR Expo

Bell & Gossett Illustrates Path to Net-zero at AHR Expo

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Plumbing & Mechanical audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Plumbing & Mechanical or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • J.J. Keller CMV vehicles on road
    Sponsored byJ. J. Keller & Associates, Inc.

    The dash cam game-changer for small business safety

Popular Stories

Underfloor heating installation with drain sewer hole in bathroom close up on water floor heating.

Using hydronics to leverage time-of-use electrical rates

Watts Nexa mobile image

Behind the Wall: Where smart plumbing gets smarter

Six tankless water heaters that feed the nutraceutical manufacturer’s operations.

How to deliver large volumes of hot water quickly and intermittently

PMCE Home-X April 29 Free Webinar: From Legacy to Leadership: Preparing Your Home Services Business for the Next Generation

Events

November 13, 2024

Future Proofing MEP: Navigating the 2026 High Efficiency Water Heating Standards

Join our deep dive into DOE’s new standards so you can future-proof your MEP practice.

EARN: 0.1 ASPE CEU; 1 AIA LU/HSW; 0.1 IACET CEU*; 1 PDH

View All Submit An Event

Poll

Will business be up or down in 2025?

Do you anticipate business in 2025 to be up or down in comparison to 2024?
View Results Poll Archive

Products

The Water Came To A Stop

The Water Came To A Stop

See More Products

Download the FREE Water Conservation, Quality & Safety eBook: Plumbing Trends Increasing Safe Water Availability

Related Articles

  • PPI jumps and construction input prices jump higher; steel prices are mixed

    See More
  • Aug. 17, 2007 - Overall PPI, CPI outstrip construction in July; lending standards, rates tighten; IP rises

    See More
  • PPI moderates in January but some increases loom; housing starts, factory output rise

    See More
×

Keep your content unclogged with our newsletters!

Stay in the know on the latest plumbing & piping industry trends.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
    • Supply House Times
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing

search
cart
facebook instagram twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • CONTRACTORS
    • BATH & KITCHEN PRO
    • BUSINESS MANAGEMENT
    • HIGH EFFICIENCY HOMES
    • TECHNOLOGY
    • WATER TREATMENT
    • PMC COLUMNS
      • Dave Yates: Contractor’s Corner
      • John Siegenthaler: Hydronics Workshop
      • Kenny Chapman: The Blue Collar Coach
      • Matt Michel: Service Plumbing Pros
      • Scott Secor: Heating Perceptions
  • ENGINEERS
    • CONTINUING EDUCATION
    • DECARBONIZATION | ELECTRIFICATION
    • FIRE PROTECTION
    • GEOTHERMAL | SOLAR THERMAL
    • PIPING | PLUMBING | PVF
    • PME COLUMNS
      • Christoph Lohr: Strategic Plumbing Insights
      • David Dexter: Plumbing Talking Points
      • James Dipping: Engineer Viewpoints
      • John Seigenthaler: Renewable Heating Design
      • Lowell Manalo: Plumbing Essentials
      • Misty Guard: Guard on Compliance
  • RADIANT & HYDRONICS
    • RADIANT COMFORT REPORT
    • THE GLITCH & THE FIX
  • INSIGHTS
    • CODES
    • GREEN PLUMBING & MECHANICAL
    • PROJECT PROFILES
    • COLUMNS
      • Codes Corner
      • Natalie Forster: Editorial Opinion
      • Guest Editorial
    • SPONSOR INSIGHTS
  • MEDIA
    • PODCASTS
    • VIDEOS
    • WEBINARS
  • RESOURCES
    • INDUSTRY CALENDAR
    • DIRECTORIES
    • EBOOKS
    • PM BOOKSTORE
    • CE CENTER
    • MARKET RESEARCH
    • CLASSIFIEDS
  • EMAGAZINE
    • EMAGAZINE
    • ARCHIVE ISSUES
    • CONTACT
    • ADVERTISE
    • PME EMAGAZINE ARCHIVES
  • SIGN UP!