Building materials shortages

Building materials shortages
Published: 26 August 2004

This month, the US National Association of Home Builders reported that shortages in cement and other building materials threatens record home-construction levels.  After conducting a national survey in July, the group reported that rising construction material prices have added between $5,000 and $7,000 to new home building costs.  "Left unchecked, these factors could result in serious disruptions to the housing market," said association CEO Jerry Howard in a press release.

The survey results reported that the number of respondents who said cement shortages were of immediate concern in July jumped 30 percent since May.  They reported an active winter building season meant companies that usually stockpile cement for increased building during the spring didn’t build up inventories in colder months as they typically would have, the group reported. The cement association also reported higher shipping costs as a factor in cement price increases. The high demand for cement drives up shipping costs because more vessels are needed to meet the transportation demand, the group said.