Construction Costs To Take A ‘Roller Coaster’ Ride This Year

Contractors should prepare themselves for a “bumpy roller coaster ride for materials costs” in 2005, Ken Simonson, chief economist with the Associated General Contractors of America, Alexandria, Va., told attendees at the association’s 86th annual convention in Las Vegas.

“Last year the ride was more like a rocket, as steel, petroleum, gypsum and other material costs shot straight up,” he said. “This year, there should be some price drops, but like a true thrill ride, you may not see them coming.”

Simonson said he expects volatility this year in steel, copper, aluminum and gypsum wall board costs.