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President's Message — AGC Is the
Association Voice In Construction Economics
Chief Economist Ken Simonson draws
national attention to recent construction materials changes
By AGC President Sam Hunter
Since joining AGC four years ago, Chief
Economist Ken Simonson has become the industry's recognized
authority on construction economics. Simonson keeps AGC members
informed about materials prices and information that can help
them anticipate price fluctuations that will affect their
businesses.
The construction industry continues to
play a vital role in the economy. Construction is a major
source of jobs, providing employment to 7.3 million employees-more
than 5% of total non-farm workers. Construction put in place
in 2004 was $1.03 trillion-nearly 9% of the gross domestic
product, a disproportionately large contribution to GDP.
However, recent construction materials
cost increases and availability remain a concern for contractors
and owners around the country. As a result of double-digit
increases in diesel fuel, gypsum products and copper and brass,
prices are substantially higher than two years ago. These
increases are causing greater uncertainty in the bidding process
and in contractors' ability to include cost-sharing mechanisms
or contingencies for future price increases. Cement shortages
in 32 states are also causing project delays and uncertainty
in bidding on future projects.
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| AGC's Construction Inflation Alert,
distributed in October, gave AGC members and the media
an analysis of current construction materials price increases
and provided a future forecast. |
AGC consistently tracks these materials
prices and delivers the information to its members through
Simonson's weekly "DataDIGest" and regular "Simonson
Says" articles in News & Views, and through AGC's
recent Construction Inflation Alert, which explained fluctuations
in construction prices over the past five years and provided
a forecast for the future.
The media also turn to Simonson for reliable
insights on the latest trends and an outlook for the future
of construction through his straightforward analysis and the
first-hand information he receives from contractor members.
Simonson has appeared on television and
radio broadcasts and has been quoted in hundreds of media
outlets nationwide, including: the Associated Press, Bloomberg
News, Reuters, USA Today, The Wall Street Journal, The Washington
Post, ENR, CNBC, CNN, MSNBC and NPR's Marketplace. His media
appearances help to tell the story of AGC's members, explaining
the conditions many contractors face in light of certain construction
materials prices and how those conditions may impact their
bottom line.
At the same time, AGC is active on Capitol
Hill, making sure that members of Congress understand the
issues that affect contractors. From advocating for favorable
tax and spending policies to urging the Commerce Department
to suspend the anti-dumping duty on imports of Mexican cement,
contractors have a voice in Washington, D.C. AGC continues
to draw national attention to the dominant role that construction
plays in the economy.
Make sure you use AGC's tools to better
inform members and owners about changing construction materials
availability and prices. As an AGC member, you can be the
local authority on construction economics.
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