April 21, 2008 ― Steel, Fuel Prices Send Construction Costs Soaring
“The PPI for
inputs to construction industries - materials used in all types of construction
plus items consumed by contractors, such as diesel fuel - soared 2.1 percent in
March alone,” Simonson observed. “That jump was propelled by a staggering 24
percent increase in diesel fuel costs and a 5.5 percent rise in prices for
steel mill products.
“Unfortunately, there is worse to come,” Simonson
asserted. “Steel suppliers have been burning up the fax wires announcing huge
price increases and canceling previous quotes.” And, he said, the Energy
Information Administration reported that “the average price of highway diesel
crossed the $4 per gallon mark in all regions for the first time ... These
figures won’t show up in the producer price index until next month, but
contractors are paying them now.