Ken Simonson Materials Quotations

Many construction materials are likely to be pricier and scarcer because the storms knocked out so much supply, even if demand does not pick up. The loss of substantial oil and natural gas production will affect supplies and prices for diesel fuel, asphalt, roofing materials, insulation, PVC pipe, coatings and assorted construction plastics.

I expect some slow improvement in the Dallas-Fort Worth area. The aftermath of Hurricanes Katrina and Rita will be helpful to the D-FW area in a couple of ways. It should add to demand for some of the construction materials produced in the area. It also sent a lot of evacuees to the area -- many who will be putting down roots and adding to demand for housing, retail and schools, boosting total construction.

I think we're in for a prolonged period in which construction materials costs are going to rise more rapidly than consumer costs.

Whether the recovery from Katrina adds to demand for construction materials depends on the types and speed of rebuilding in damaged areas.

Contractors use a lot of diesel fuel to power bulldozers, trucks, and other heavy equipment. And many building materials industries, such as copper and steel, are energy intensive.

Fast-rising materials and fuel costs have exaggerated the growth in some of these categories, especially highway construction.