The cost of everything from gas to movie tickets has been on a steady incline for the past 18+ months and so has the cost of construction materials. “Materials costs for construction have greatly outstripped the Consumer Price Index and even the overall Producer Price Index in the first four months of 2011,” says Ken Simonson, chief economist for The Associated General Contractors of America.
“However, contractors are so hungry for work that they are continuing to promise to deliver jobs for almost no increase in price, in spite of their having to pay more for materials,” says Simonson. “That’s a pretty dangerous situation for contractors who have already cut their margins to a minimum, or maybe into negative territory.”
Pretty scary to say the least. Seems as though contractors are doing everything in there power to stay alive in the construction business.
No comments:
Post a Comment