Slight dip in '05 for construction wages
Wage and benefit increases in the U.S. construction industry will "ease slightly" in 2005, according to the Construction Labor Research Council.

Increases in collectively bargained contracts will average 3.9 percent or $1.59 per hour in 2005, according to the CLRC. Through 2006, agreements then dip to 3.7 percent or $1.59 per hour.

Over the last five-year period through Jan. 1, 2005, construction industry increases have risen slowly, at 4 percent annually and was highest in 2002 at 4.3 percent.

Hike in '05 seen for building biz
New U.S. construction activity will rise 6 percent in 2005, up from $974 billion in 2004, said a March 3 report by construction consulting firm FMI.

Unlike other prognosticators who say there will be a decline in residential activity in 2005, FMI predicts that area will grow by 7 percent this year.

FMI predicts highway construction will rise 3 percent. Nonresidential building will increase 6 percent, and manufacturing construction will ratchet up by 13 percent.

In the meantime, a survey by Manpower Inc. in the Construction Labor Report said 41 percent of U.S. construction employers anticipate increased hiring and 49 percent anticipate no change in hiring as construction season ramps up during the second quarter of 2005.

More swings for material prices
Prices of construction materials are expected to continue to be unstable in 2005 - just as they were in 2004.

"Last year, the ride was more like a rocket, as steel, petroleum, gypsum, and other materials costs shot straight up," said Ken Simonson, chief economist the Associated General Contractors of America, during the trade group's annual convention last month, as reported by the Engineering News Record. "This year, there should be some price drops, but like a true thrill ride, you may not see them coming."

The ENR said crude prices climbed to record heights last October, then plunged in November and December, and have come back up with a fury. Prices for items like steel, copper, aluminum and wallboard are expected to also be unstable.

"All of these items jumped more than 20% in cost in 2004," Simonson toold the ENR. "This year, there'll be some downturns, but analysts disagree widely as to when relief will come, how deep it will be, and how long it will last."