• 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!

March 14, 2008 ― CPI Flat, But Construction Input Prices Soar

By Ken Simonson
March 14, 2008
Several commodities used in construction continue to rise rapidly in price, including diesel fuel, natural gas, copper and steel.

The consumer price index (CPI) for all urban consumers in February was unchanged after seasonal adjustment from January’s level but 4% higher than in February 2007, the Bureau of Labor Statistics (BLS) reported. The CPI for urban wage earners and clerical workers (CPI-W), which is used to adjust many union contracts in construction and other industries, was up 4.4% from February 2007.

Several commodities used in construction continue to rise rapidly in price, including diesel fuel, used for powering offroad equipment, construction vehicles, and mining, manufacturing and transport of many materials; natural gas, which is the feedstock for polyvinyl chloride (PVC) and other construction plastics; copper; and steel. The national average retail price of on-highway diesel fuel jumped another 16 cents per gallon this week to a record of $3.82, up 42% from a year ago, the Energy Information Administration reported on Monday. The agency predicted in its March “Short-Term Energy Outlook,” issued on Tuesday, “Diesel fuel prices, which averaged $2.88 per gallon last year, are projected to average $3.45 and $3.22 per gallon, respectively, in 2008 and 2009….The Henry Hub spot price [for natural gas] averaged $8.76 per mcf [thousand cubic feet] in February, $0.51 per mcf more than the average January spot price.  Cold weather so far in the first quarter has kept pressure on prices, which are expected to decline as space heating demand begins to wane in April.  On an annual basis, the Henry Hub spot price is expected to average about $8.18 per mcf in 2008 and $7.95 per mcf in 2009.”

Copper futures on the New York Mercantile Exchange closed today at $3.82 per pound, up 32%  from a year ago. The Institute of Scrap Recycling Industries reported yesterday, “as widely reported, domestic producers [of hot-rolled coil steel, used to make numerous construction products] have announced higher [price] tags for April and May deliveries…AK Steel, for example, is looking at $800” per ton free on board (f.o.b.), a record, for May deliveries.

“U.S. employers anticipate a decline in hiring” in the second quarter, Manpower Inc. reported on Tuesday, based on its quarterly survey of 14,000 private and public employers. “The seasonally adjusted survey results show the weakest employment outlook since Quarter 1 2004, as hiring activity is expected to remain stable or decrease in all industry sectors but one….Transportation/Public Utilities is the lone sector to indicate an increase in hiring for the upcoming quarter, and that increase is expected to be slight….In the construction sector, employers project a moderate decrease in hiring…and the least optimistic hiring projections of the 10 industry sectors surveyed. According to seasonally adjusted survey results, employers anticipate a considerably steeper decline compared to Quarter 2 2007. For Quarter 2 2008, hiring plans are most promising in the Northeast, while employers in the West expect to take a far more cautious approach to hiring than those in the other three regions, with job cuts more likely than job gains.”

In another sign of the worsening job market for construction, BLS reported on Wednesday in its January job openings and labor turnover release that from January 2007 to January 2008, the rate of construction job openings fell 1.4%, the rate of hires was unchanged, and the rate of layoffs and discharges was highest of all 10 sectors.

“Between December 2007 and January 2008, employment increased in 30 states, decreased in 18 states and the District of Columbia, and remained unchanged in” Kansas and Wyoming, BLS reported on Tuesday. “Over the year, nonfarm employment increased in 44 states and the District of Columbia and decreased in 6 states.” The largest over-the-year percentage increases in employment occurred in Wyoming, 3%; Texas and Utah, 2.7% each; Louisiana, 2.4%; and  Washington, 2.3%. Rhode Island experienced the largest over-the-year percentage decrease in employment, -1.5%; followed by Michigan, -1.3%; Wisconsin, -0.2%; and Florida, Ohio, and West Virginia, -0.1% each.

Construction employment increased from December to January in 15 states, decreased in 27 plus DC, and was unchanged (or within 100 of prior levels) in eight. From January 2007 to January 2008, construction employment rose in 21 states, fell in 28 and was within 100 jobs of the prior level in DC and Missouri. The largest percentage increases were in Wyoming, 8%; Hawaii and Nebraska, 6% each; Texas, 5%; Oklahoma and Utah, 4% each. The largest percentage drops were in Florida, -11%; Arizona and Rhode Island, -10% each; California and West Virginia, -8% each.

Total revenue of architectural and related services firms in the fourth quarter of 2007 rose 4.7% from the third quarter and 13.5% from the fourth quarter of 2007, the Census Bureau reported on Wednesday in its quarterly release on revenue for selected services. Third-quarter revenues had risen 1.8% and 9.4% from the prior and year-ago quarters. Revenue of engineering services firms rose 2.7% and 11.4% in the fourth quarter, 5% and 11.8% in the third. These services are a rough guide to future demand for construction, especially nonresidential, and appear to suggest little if any slowdown. But the numbers are not adjusted for seasonal variation, and engineering in particular may include a lot of foreign demand, which can vary from changes in U.S. construction demand.

On March 7, BLS reported that architectural services employment in January 2008 was up 2.5% from January 2007, the slowest year-over-year growth since May 2004. Engineering and drafting services employment was up 3.5%, similar to the growth rates of the prior six months.

Retail and food services sales in February declined 0.6% after rising 0.4% in January, Census reported on Thursday. Sales for the past three months combined fell 0.1% from the prior quarter, a bad omen for retail construction.



Links

  • Construction Inflation Alert

Share This Story

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

Chief Economist, Associated General Contractors of America 703-837-5313; fax -5406; www.agc.org

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...
    Plumbing News
    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

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

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

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

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

The interior of a government building.

President Trump signs executive order promoting skilled trades and apprenticeships

Figure 1 is a sketch of the flow problems of the current plumbing system.

Hydronic heating glitch solved: Why adding a circulator won't fix primary loop flow issue

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

Using hydronics to leverage time-of-use electrical rates

PM BEMIS June 25 Free Webinar: Optimizing Plumbing Solutions for Single-Family, Multi-Family & Public Spaces

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

  • Construction costs cool but still outstrip overall CPI, PPI; housing, hotels stay hot
    May 20, 2005

    See More
  • PPI growth slows but steel prices soar again; cement supplies and prices vary

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

    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!