Berger Building Products, Inc. Introduces 2008 Product Catalog

Berger Building Products, Inc. introduces our 2008 Product Catalog. New products & additional technical information can be found in this year’s updated version, along with the quality roof drainage products that Berger has manufactured for over 130 years.

Look for these New Products & Information in the 2008 Catalog:

• Seamless Gutter System in 21 colors

• Trimboards

• T-Rail Kits

• Royal Apex items including: Hangers, Gutter Guards, Flashing, Coil, Roof Edging & Trim

• NoLeaf Bracket & End Caps

• Gutter Coil Estimator

Information on the following can also be found in the 2008 Catalog:

Gutter Systems in Copper, Aluminum & Steel  v   Gutter Guards & Accessories
Synthetic Roofing Underlayment  v  Ventilation Products  v  Coil Products  v  Roof Edging & Trim  v  Fascia  v  Step Flashing  v  Snow Retention Systems

Call Berger at (800) 523-8852 for your copy of the 2008 Catalog.

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WoodWorks Announces Agreement with RISA Technologies, LLC to Incorporate Advanced Wood Design Features into Building Design Software
Expanded Software to Offer Greater Flexibility in Non-residential Design

The Wood Products Council’s WoodWorks educational program announced an agreement today with RISA Technologies, a leader in structural analysis and building design software. This joint venture will expand RISA’s popular software to incorporate wood design features, giving architects and engineers greater flexibility and choice in the selection of materials for non-residential buildings.

“This partnership between WoodWorks and RISA is a natural fit,” said Kelly McCloskey, executive director of the WoodWorks program. “Both organizations are focused on making life easier for engineers and other users of building design software. RISA’s software is known for helping designers more accurately plan and budget their buildings—and it will soon offer the same benefits to individuals who also want the advantages of a wood structure, such as lower material costs and a smaller environmental footprint.”

Once the RISA software is updated, it will incorporate information on building code requirements, gravity design, diaphragm modeling and design, shear wall modeling, analysis and design, lateral force design, hybrid design and several other features. The upgrade will be Building Information Modeling (BIM) compatible and will be released in two stages throughout 2008. The first software release, set to occur in August, will incorporate flexible shear wall design. The second release, slated for December, will allow the design of wood diaphragms.

“Our software sets the standard for building design” said Bruce Bates, president of RISA Technologies. “The addition of a wood design component is something we’ve been planning for some time, and this partnership with the Wood Products Council has allowed us to increase the pace while also benefitting from the expertise of engineers who work with its partner associations like APA – The Engineered Wood Association. It will open up a world of possibilities to designers wanting to work with wood.”

For engineers with current licenses for RISA software, the new wood design features will be received automatically as part of their regular upgrades. WoodWorks will also be working directly with design professionals who agree to design a non-residential building with wood and with RISA to provide training on the updated software.

The WoodWorks program was established in 2007 to support architects, engineers, contractors and others using wood for a full range of non-residential building types, including: retail, offices, hotels, schools, industrial, churches, recreation, public, health care and multi-family. Regional field staff are available to discuss specific issues and have the expertise to provide a wide range of architectural, engineering and code support, either in person or through in-house presentations to an entire firm or design team. 

“A lot of people don’t realize how many advantages there are to using wood in non-residential buildings,” said McCloskey, “For one thing, it’s the only major building material that’s renewable and sustainable over the long term. It performs well in earthquakes and heavy winds, it’s strong and durable, and it offers greater design flexibility for less cost—all while meeting code requirements. With the new software upgrades, designers will be able to consider wood purely in light of its merits and not because the design process is more time consuming or difficult.”

About WoodWorks
WoodWorks, an initiative of the Wood Products Council, is a cooperative venture of all the major wood associations in North America, as well as research organizations and government agencies. It provides one-stop access to the widest possible range of information on the use of wood in non-residential structures. For more information, call 1-866-966-3448 or visit www.woodworks.org. 

About RISA Technologies
RISA Technologies, a California Limited Liability Company, is a leading developer of structural design and optimization software. RISA-3D, the flagship product of RISA Technologies, is the most widely used structural engineering application in the United States. For more information please visit www.risa.com. 

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On Center Software Names Cecilia Padilla As Vice President

On Center Software (www.oncenter.com), a leading provider of electronic plan viewing, takeoff, estimating and production tracking software for the construction industry, announced today that Cecilia Padilla has joined the firm as vice president. In the newly created position, she reports to Leonard Buzz, On Center Software’s president and CEO. 

“Cecilia’s long track record in the construction industry and in-depth knowledge of our products make her an asset to our customers,” Buzz said. “We’re delighted that after collaborating with her for many years as one of our clients, we were able to add her to our team.” 

Padilla has more than 25 years of experience in estimating and project management for commercial drywall and plastering projects. Prior to formally joining On Center Software, she assisted the company with beta testing for 14 years. She also has firsthand experience in the field with On Center’s Digital Production Control™, having used the application while working on a 28-story, twin-tower condominium project in Galveston, Texas. 

Padilla’s expertise includes drywall, light- and heavy-gauge framing, lath and plaster, EIFS, themed facades and acoustical ceilings. She previously served as senior project manager for Marek Brothers Systems in Houston and for Raymond Interior Systems in both Las Vegas, Nev., and Orange, Calif. 

About On Center Software, Inc. 
Located in The Woodlands, Texas, On Center Software, Inc. (OCS) is a privately held company that in 2008, is celebrating the 20th anniversary of its founding by construction industry professionals. Their mission is to transform the estimating experience of other construction industry professionals by developing and supporting innovative, practical, comprehensive software solutions that turn winning bids into profitable projects. On Center Software combines extensive industry knowledge, a solid understanding of the estimating process and state-of-the-art technology to turn ordinary bidding data into meaningful information. The On Center ProfitBuilding™; Suite of products includes Quick Bid, On-Screen Takeoff® and Digital Production Control&™. 

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Architecture Billings Index Drops Two Points
Business conditions weakest in the West

Following a slight rise in April, the Architecture Billings Index (ABI) fell two points in May, prolonging the downturn in design activity at architecture firms. As a leading economic indicator of construction activity, the ABI shows an approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the May ABI rating was 43.4, down from the 45.5 mark in April (any score above 50 indicates an increase in billings). The inquiries for new projects score was 46.5. 

“With the exception of the institutional sector – projects like government buildings, schools and hospitals – we’ve seen a dramatic contraction in design activity in recent months,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Right now things are especially hard in the West and in the commercial and multifamily residential sectors. This weakness in design activity can be expected to produce a contraction in these construction sectors later this year and into 2009.”

Key May ABI highlights:
- Regional averages: Midwest (51.9), South (47.0), Northeast (41.7), West (36.3) 
- Sector index breakdown: institutional (53.9), mixed practice (45.3) commercial / industrial (39.7) multi-family residential (36.8) 
- Project inquiries index: 46.5 

About the AIA Architecture Billings Index
The Architecture Billings Index is derived from a monthly “Work-on-the-Boards” survey and produced by the AIA Economics & Market Research Group. Based on a comparison of data compiled since the survey’s inception in 1995 with figures from the Department of Commerce on Construction Put in Place, the findings amount to a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction activity. The diffusion indexes contained in the full report are derived from a monthly survey sent to a panel of AIA member-owned firms. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended. According to the proportion of respondents choosing each option, a score is generated, which represents an index value for each month. 

About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. By using sustainable design practices, materials, and techniques, AIA architects are uniquely poised to provide the leadership and guidance needed to provide solutions to address climate change. AIA architects walk the walk on sustainable design. Visit www.aia.org/walkthewalk. 
http://www.aia.org/press2_template.cfm?pagename=release_061808_abi

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PPG web tool compares energy, environmental costs of architectural glazings

PPG Industries (NYSE:PPG) has introduced an online tool that enables architects, specifiers and building owners to compare the relative energy and environmental performance of common architectural glazings on prototypical buildings.

The tool, located at www.ppgideascapes.com/energy, features calculations made according to the U.S. Department of Energy's most sophisticated energy-modeling program. It offers a selection of menus that enable users to input variables related to glazing type, glazing design, building location and building type. Once selections have been made, the energy-modeling tool generates a table that contains comparative figures according to glazing type, glazing design and city for the following:

. Total gas and electric operating costs
. Total heating, ventilation and air conditioning (HVAC) equipment costs
. Potential energy cost savings
. Potential HVAC equipment savings
. Estimated energy-related carbon dioxide emissions
. Estimated energy-related carbon dioxide reductions

Users can select from 12 North American cities representing various climates. Standard building types include a one-story middle school and an eight-story office building. Glazing options include a complete window wall or punched windows in six glazing types, including high and moderate light transmittance solar control low-emissivity (low-e) glasses, tinted glass with a passive low-e glass and standard double-pane tinted glass.

The tool gives architects, specifiers and building owners a quick and easy way to compare the energy-saving potential of various architectural glazings but is not designed to be a custom building-specific model. It also helps users to estimate how quickly they can repay an investment in more sophisticated, high-performance products.

To preview PPG's online energy-modeling tool, visit www.ppgideascapes.com/energy.

About PPG
Pittsburgh-based PPG is a global supplier of paints, coatings, chemicals, optical products, specialty materials, glass and fiber glass. The company has more than 150 manufacturing facilities and equity affiliates and operates in more than 60 countries. PPG's sales in 2007 were $11.2 billion. SigmaKalon, a worldwide coatings producer based in Uithoorn, Netherlands, that PPG acquired Jan. 2, 2008, had 2007 sales of $2.9 billion. PPG shares are traded on the New York Stock Exchange (symbol: PPG). For more information, visit www.ppg.com.

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ASPE Elects First Woman President

In a recently held national election for the membership of the American Society of Professional Estimators, Paulette R. Rutlen, CPE, CEP was voted in as national president. Ms. Rutlen’s term will run from 2008-2009.

Paulette holds the distinction of being the first woman president of this fifty-two year-old, male dominated organization. She first joined the Society in 1982 as one of very few female members of the Society. 

Paulette has been very active in ASPE since being granted the status of Certified Professional Estimator in 1990. Active in her local chapters of ASPE since becoming a CPE, she was appointed to the National Certification Board in 1994 and reappointed for five successive two-year terms, serving as chairperson the last five years. Ms. Rutlen successfully ran for third vice president of ASPE in 2004-2005 and 2005-2006. She served as second vice president in 2006-2007 and as first vice president in 2007-2008. 

Ms. Rutlen is the resident Chief Estimator for The Austin Company’s Irvine, CA office, where she develops, oversees and presents cost estimates for all phases of design and design/build projects, conceptual through construction documents, establishing budgets, performing value analysis studies, constructability reviews, change order and claims analysis. Ms. Rutlen has been with The Austin Company since 2000. Ms. Rutlen’s varied experience in estimating and project management as a consultant, design-build contractor, claims consultant, construction manager, general contractor, concrete subcontractor and builder’s hardware material supplier has given her a broad range of experience and knowledge from which to draw.

Ms. Rutlen successfully participated in the beta testing of AACE’s Certified Estimating Professional exam this spring, giving her yet another credential. She was a panel member at the Groundbreaking Women in Construction 2007 conference. She received ASPE’s 2004 President’s Award, in recognition of her years of service on the National Certification Board, and the Total Quality Management Award, while working for Sverdrup Facilities, in recognition of her efforts on projects for which clients recognized and singled out her contributions. She served as an instructor for ASPE’s online estimating classes, and also taught an introductory estimating class in a classroom setting. Ms. Rutlen’s technical paper on Design Phase Estimating was published in ASPE’s national monthly magazine Estimating Today. Ms. Rutlen served as a panel member of the American Arbitration Association for fourteen years.

Ms. Rutlen began her experience in the construction industry in Minneapolis selling builder’s hardware in 1971. After graduation from Minneapolis’ Dunwoody Industrial Institute in 1981, she went to work for general contractor Kraus-Anderson of MN, as an estimator. She worked for a concrete subcontractor in the Washington, D.C. area from 1984-1989, before moving to southern California in late 1989. Since moving to CA, Ms. Rutlen has worked for firms such as Heery International, Perini Construction, and Sverdrup Facilities.

Ms. Rutlen’s Plans for ASPE
We face so many challenges in the next few years; rising costs, shortages in the labor force, developments in the use of technologies such as BIM, the greening of American business, to name several. All of these factors will create both difficulties and opportunities for our industry. Will BIM really deliver all that we hope it will? What other fascinating developments in technology await us? How will we reduce or off-set our carbon footprint? How will we cope with the rising cost of oil? These are the challenges we must conquer in order to survive.

ASPE needs to position itself to be seen as a leader in addressing the challenges of the future.

ASPE will continue to reach out to organizations such as the Building Smart Alliance, the National Institute of Standards and Technology, U.S. Green Building Council, and others, in order to position ourselves to have a voice in the development of the systems that are going to have a profound influence on the construction industry.

Our industry is suffering from a severe shortage of qualified individuals in all areas. ASPE offers estimators education and certification to help them be the best in the industry. The ASPE Estimating Academy offered to the industry is considered to be one of the best educational events in the country. Our online estimating classes grow in attendance every year and I see this as a tremendous value to those with a desire to advance their careers. We will continue to expand the classes offered in both of these programs.

Our certification program is unique in the industry. We are the only national association offering certifications in building construction estimating by discipline. We currently have certifications available in all of the major trades. Every year we continue to expand the number of trades for which we offer certification.

ASPE is able to offer itself as a source for speakers and presenters to the industry. We have a tremendous depth of talent in our organization that we can draw upon. We should be regarded as the premier organization to turn to for determining construction costs.

Some of our local chapters are involved with encouraging students to pursue careers in the construction industry. We need to develop a national campaign to recruit young people, to instill a passion for what it is that we do, and to mentor them in their careers. We are planning to revive our National Scholarship Program to assist students in construction related programs.

Despite the vagaries of the economy, ASPE’s future is bright. We have spent the past fifty years positioning ourselves to be the experts, setting the standards for construction cost estimators in the U.S.A. We have the ability to provide the industry with what they need most; estimators trained to a standard of professionalism second to none.

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Architecture Billings Index Remains Weak
Business levels still declining, while institutional sector remains lone bright spot

After sinking to its lowest level ever in March, indicating a rapid slowdown in billings at U.S. architecture firms, the Architecture Billings Index (ABI) rose slightly in April. As a leading economic indicator of construction activity, the ABI shows an approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the April ABI rating was 45.5, up from the historic low mark of 39.7 in March (any score above 50 indicates an increase in billings). The inquiries for new projects score was 53.9. 

“After dropping rapidly the past two months, this uptick shows that the slowdown is beginning to moderate,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Even though the downturn in design billings has come on very quickly, most areas of the country aren’t showing signs of an oversupply of nonresidential facilities. That provides hope that this weak patch may be relatively short-lived.”

Key April ABI highlights:

- Regional averages: South (46.6), Northeast (41.6), Midwest (41.6), West (37.7) 
- Sector index breakdown: institutional (50.4), mixed practice (45.2) commercial / industrial (39.3) multi-family residential (33.5) 
- Project inquiries index: 53.9 

About the AIA Architecture Billings Index
The Architecture Billings Index is derived from a monthly “Work-on-the-Boards” survey and produced by the AIA Economics & Market Research Group. Based on a comparison of data compiled since the survey’s inception in 1995 with figures from the Department of Commerce on Construction Put in Place, the findings amount to a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction activity. The diffusion indexes contained in the full report are derived from a monthly survey sent to a panel of AIA member-owned firms. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended. According to the proportion of respondents choosing each option, a score is generated, which represents an index value for each month.

About The American Institute of Architects
For over 150 years, members of The American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. AIA members have access to the right people, knowledge, and tools to create better design, and through such resources and access, they help clients and communities make their visions real. www.aia.org

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Custom-Curved Decking Panels Offer Strength, Aesthetics, Construction Economy

Curveline, Inc., which has a patented method for the "crimp-curving" of metal building panels, has the capability to custom-curve structural roof deck panels into domes, arches, and even S-curves and other multiple radius shapes. Crimp-curved roof decks provide architects and contractors with an economical way to make a bold statement when designing gyms and sports centers, entryways and lobbies, covered walkways and concourses, transit stations, airports and many other commercial spaces.

Curveline's crimp-curving methodology greatly increases the strength and rigidity of profiled metal panels. This allows the use of lighter-gauge material and achieves 15-20 percent longer spans than conventionally formed metal decks, for reduced framing and substructure costs. 

Capabilities include standard or acoustical nestable "B" deck panels in 22 to 18 GA steel. Customers can purchase panels from the decking manufacturer of choice, who will forward panels to the Curveline service center for curving to the desired specifications. Minimum radius varies depending on the panel gauge and length.

For further information, contact Curveline, Inc., 1745 E. Monticello Court, Ontario, CA 91761; phone (888) 998-0311 or (909) 947-6022; fax (909) 947-1510; email curveline@curveline.com; Web www.met-tile.com/curveline; direct link http://www.met-tile.com/curveline/decking.htm.

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Good News Buried In Construction Spending Report, Agc Says
Economist Simonson Cites Nonresidential Leap But Warns of Higher Costs, Spending Shortfalls

"Nonresidential construction spending rose an impressive 1.3 percent in March and 12 percent compared to March 2007," Ken Simonson, Chief Economist for The Associated General Contractors of America (AGC), said today. Simonson was commenting on the March construction spending figures released by the Census Bureau on May 1. "The housing slump buried this news by dragging total spending down by 1.1 percent for the month and 3.4 percent for the year. Yet nearly every category of nonresidential spending continued to exceed year-ago levels."

"In addition, estimates for nonresidential spending in January and February were each revised up, suggesting that gross domestic product (GDP) may have grown a little more in the first quarter than the Bureau of Economic Analysis (BEA) said yesterday," Simonson added. BEA reported that real (net of inflation) GDP grew 0.6 percent, the same as in the fourth quarter of 2007.

"Both private and public nonresidential construction are still growing, although public spending is losing speed," Simonson observed. "Private nonresidential spending was up 15 percent from March 2007, whereas public spending grew 7.2 percent.

"I expect a further slowdown in public spending as revenues flatten out or even shrink for highways, schools and other public projects," Simonson predicted. "On the private side, I expect ongoing vigor in spending on power, energy, communications, hospital, higher education and military base realignment-related projects to offset a likely retreat by office and retail construction.

"The biggest challenge for all nonresidential construction is runaway materials costs," Simonson warned. "Yesterday, a steel supplier told customers the price of rebar was rising another $100 overnight, compounding increases of 40 to 70 percent earlier this year. The retail price of diesel fuel is now almost 50 percent higher than a year ago. Copper is close to its all-time high set in May 2006, and near-record prices for oil and natural gas may push up asphalt and plastics prices.

"It is essential that public budget-setting and contracting agencies recognize that construction costs have been rising at more than double the rate of consumer prices and seem sure to keep doing so," Simonson concluded. "With regard to highway construction, Congress must act immediately to prevent a huge drop in spending that will begin five months from today unless the Highway Trust Fund is replenished by the start of fiscal 2009."

The Associated General Contractors of America (AGC) is the largest and oldest national construction trade association in the United States. AGC represents 33,000 firms, including 7,500 of America's leading general contractors and 12,500 specialty-contracting firms. More than 13,000 service providers and suppliers are associated with AGC through a nationwide network of chapters. Visit the AGC Web site at www.agc.org. AGC members are "Building Your Quality of Life."

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Architecture Billings Index Drops to its Lowest Level Ever
Inquiries for new projects also drop to historic low

Emblematic of the various struggling sectors in the overall economy, the Architecture Billings Index (ABI) dropped two points in March and fell to its lowest level since the survey’s inception in 1995. As a leading economic indicator of construction activity, the ABI shows an approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the March ABI rating dropped to 39.7, following its steep 9-point decline in February (any score above 50 indicates an increase in billings). The inquiries for new projects score was 48.0, also the lowest mark for the survey. 

“We’ve seen an 11-point fall-off in the first quarter of the year and the prognosis for commercial construction later this year is not favorable at this point,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Aside from historically low project demand, all regions are showing very poor business conditions. This is not likely to reverse itself anytime soon.”

Key March ABI highlights:
Regional averages: South (45.3), Northeast (38.7),West (38.7), Midwest (36.9) 
Sector index breakdown: institutional (50.8), commercial / industrial (38.3) multi-family residential (31.7) 
Project inquiries index: 48.0 

About the AIA Architecture Billings Index
The Architecture Billings Index is derived from a monthly “Work-on-the-Boards” survey and produced by the AIA Economics & Market Research Group. Based on a comparison of data compiled since the survey’s inception in 1995 with figures from the Department of Commerce on Construction Put in Place, the findings amount to a leading economicindicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction activity. The diffusion indexes contained in the full report are derived from a monthly survey sent to a panel of AIA member-owned firms. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended. According to the proportion of respondents choosing each option, a score is generated, which represents an index value for each month.

About The American Institute of Architects
For over 150 years, members of The American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. AIA members have access to the right people, knowledge, and tools to create better design, and through such resources and access, they help clients and communities make their visions real. www.aia.org

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Arch’s Glass Entrances Now Available Nationally with C.R. Laurence Hardware

Arch’s TGD Tempered Glass Entrances equipped with C.R. Laurence International’s architectural rails, patch fittings and hardware are now available nationwide from Arch Aluminum & Glass. 

"We’ve been manufacturing Tempered All Glass Entrances for 25 years and we’ve recently starting using the C.R. Laurence hardware at select regional facilities with consistent success and growing demand so Arch has expanded the program to our facilities nationwide," said Jeff Ziesche, Director of Aluminum Operations for Arch. 

The availability of the C.R. Laurence hardware in every region covered by Arch’s 33 locations nationwide continues the commitment by the glazing and aluminum extrusion manufacturer to be the Single Source for the industry. 

The TGD Tempered Glass Door from Arch comes complete with full rails, patch fittings and hardware for the four basic “all glass” door styles (P, B-P, a, & F) typically referred to throughout the industry.

These TGD doors are available with full rails in various heights, 2 5/16”, 4”, 6”, and 10” to accommodate 3/8”, ½”, and ¾” glass and are available in six stock colors.

Arch Aluminum is your TRUE SINGLE SOURCE® for Architectural Aluminum, Extrusions, Insulated, Tempered, Mirrors, Laminated, and Decorative Glass. Arch is an American-owned, family business founded in 1978. Arch now operates 33 facilities in 17 states with over 2400 employees. For more information on Arch Aluminum & Glass please visit www.archaluminum.net or call 1-866-629-ARCH.

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Atlas Keeps Roofs “Cool” With ACFoam CrossVent Polyiso Insulation

ACFoam CrossVent from Atlas Roofing Corporation is an environmentally friendly polyiso foam insulation board for use over sloped unventilated roof decks. To promote air circulation within, CrossVent contains vent spacer strips to separate 7/16” OSB from the foam insulation. CrossVent combines a nailable surface, insulation, and a ventilating airspace all in one panel.

ACFoam CrossVent is a cost-effective, “Green” solution for any roof. It can be installed without a thermal barrier directly on the roof deck. Installation is a one-step process – a labor saving solution with the benefit of high R-values to reduce energy demands. Visit Atlas online: www.atlasroofing.com. “Atlas – A World of Difference.”

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'Red-Hot' Steel, Fuel Prices Send Construction Costs Soaring, AGC Says

Economist Simonson Warns Worse Is Coming as Public Funds Run Short Washington, D.C.--"Red-hot steel prices, combined with record diesel fuel costs, are making construction unaffordable," Ken Simonson, Chief Economist for The Associated General Contractors of America (AGC), said today. Simonson was commenting on the producer price indexes (PPIs) for March reported today by the Bureau of Labor Statistics (BLS).

"The PPI for inputs to construction industries--materials used in all types of construction plus items consumed by contractors, such as diesel fuel--soared 2.1 percent in March alone," Simonson observed. "That jump was propelled by a staggering 24-percent increase in diesel fuel costs and a 5.5-percent rise in prices for steel mill products.

"Unfortunately, there is worse to come," Simonson asserted. "Steel suppliers have been burning up the fax wires announcing huge price increases and canceling previous quotes. And the Energy Information Administration reported last night that the average price of highway diesel crossed the $4 per gallon mark in all regions for the first time, with a 10-cent increase in the national average just in the past week, to $4.05 per gallon. These figures won't show up in the producer price index until next month, but contractors are paying them now.

"Public agencies as well as private owners need to adjust to these realities," Simonson noted. "Too many of them are still assuming construction costs are rising no faster than the consumer price index (CPI), when in fact the PPI for construction inputs has gone up 6.5 percent in the past 12 months and 34 percent since steel prices first surged in December 2003. That is more than double the run-up in the CPI.

"Diesel prices are now more than 60 cents a gallon higher than the $3.44 average price for gasoline," Simonson added. "This puts a triple burden on contractors, who use diesel to power offroad equipment and construction trucks and also pay a fuel surcharge on the thousands of deliveries and backhauls at a large job site.

"As the highway paving season gets under way, asphalt prices also are poised to take off," Simonson concluded. "Asphalt at the refinery cost 13 percent more in March than a year ago. But many states and the federal government are running low on highway funds because motorists and truckers have been driving less. It is imperative that Congress pass additional funding in the next few months to keep highway construction funds flowing and not choke off funds with an ill-advised moratorium."

Click on www.agc.org/march08ppi for the March PPI tables.

The Associated General Contractors of America (AGC) is the largest and oldest national construction trade association in the United States. AGC represents 33,000 firms, including 7,500 of America's leading general contractors and 12,500 specialty-contracting firms. More than 13,000 service providers and suppliers are associated with AGC through a nationwide network of chapters. Visit the AGC Web site at www.agc.org. AGC members are "Building Your Quality of Life."

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