Katrina's Impact: Construction & Equipment

Sept. 7, 2005
Materials Costs Will Rise Prices for cement, steel, copper, gypsum and diesel fuel were on the rise before Hurricane Katrina hit the Gulf Coat of the U.S. last week. And prices for many of these items will now go higher, believes Ken Simonson, chief ...

Materials Costs Will Rise

Prices for cement, steel, copper, gypsum and diesel fuel were on the rise before Hurricane Katrina hit the Gulf Coat of the U.S. last week. And prices for many of these items will now go higher, believes Ken Simonson, chief economist for the Alexandria, Va.-based Associated General Contractors of America.

More On Hurricane Katrina

See IndustryWeek's Hurricane Katrina News & Resources section for more on coverage and how companies are responding.
"Contractors use a lot of diesel fuel for off-road equipment, their own trucks, and the multitude of deliveries of materials and equipment. Petroleum or natural gas is a key ingredient in asphalt, roofing materials, plastic pipe and insulation. And energy costs are built into the price of mining, milling, making, molding and transporting metals, concrete and most other construction materials," he explains. Cement was already in short supply in 32 states and the District of Columbia before the hurricane. "The disruption to ocean, barge and rail transport from Katrina, and the loss of power to cement plants in the storm's path, will cut further into cement supplies," he predicts.

Demand Seen For Computers, Fire Trucks

In addition to replacing production machinery and computers damaged by Hurricane Katrina, the storm will create demand for fire trucks, police cars and dump trucks, predicts the Herman Group, a Greensboro, N.C.-based consulting firm. At the same time, "employers throughout the U.S. could recruit displaced workers, with their high level of competency. The difficulty will come in connecting employers and qualified workers."

Popular Sponsored Recommendations

Lean Manufacturing in the Age of the Industrial Internet

Oct. 24, 2023
Read how advanced MES capabilities can help you improve your labor utilization, reduce WIP, and optimize your production. Download the white paper today.

Smarter Savings for Manufacturers - Guide

Sept. 12, 2023
Enhance your service experiences and boost revenue while reducing costs. Learn how one platform can help your business be more agile and productive in today's market.

Navigating Disruption: A Leader’s Guide to Strategy Under Uncertainty

Nov. 1, 2023
AI, sustainability, digital--industrials are facing disruptive forces that are redefining what it takes to win. What got your company where it is today won’t get you where you...

Discrete and Process Manufacturing 2024 Trends and Outlook for North America

Oct. 29, 2023
Manufacturers are reaping the benefits of automation and cloud-based solutions. Discover what is driving today's industry trends and how they can shape your growth priorities ...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!