Material costs down, but wages aren't
A year ago, some construction materials manufacturers were making a killing. Today, they're getting killed.

Two years ago, wallboard prices were soaring and manufacturers built new plants to try and meet demand. A year ago, prices were still very high. Today, reports the Engineering News Record, prices are down 9 percent, but things are worse than they seem. "In some areas of the country where capacity has expanded greatly, the industry is in a panic," said one West Coast wallboard sales representative.

In January 1999, overall wallboard industry production capacity was at 28.84 billion square feet. By the end of this year, with new plant capacity coming on line, that number will jump to 32 billion square feet, the ENR reported. But while capacity is up, total wallboard production in 2000 is down from last year's numbers because of slackening demand, primarily in housing.

The cement business isn't doing much better. Through the first six months of the year, shipments of Portland cement were up 4.8 percent from 1999's record pace. The industry responded with 2.2 million tonnes of new cement capacity. Even with the strong demand, prices have gone up less than a percent over the past year.

In the wood business, the federal Bureau of Labor Statistics said the August price index for plywood was down 24% from 1999, while the price index for softwood lumber was down 18%. Ouch.

What's up? Higher oil prices have led to higher diesel fuel prices - up 38% from a year ago. And asphalt paving prices were up 28%, while PVC pipe prices increased 25%.

Oh yes, and wages are up too. The Construction Labor Research Council reports this month that union wage settlements are averaging 4.1% higher than a year ago.

Trades bid farewell to AGC's John Maas
Building trades representatives were present Sept. 28 to bid a fond farewell to John Maas, who retired as Executive V.P. of Associated General Contractors, Detroit Chapter.

John served the AGC for 37 years.

"It's not in every construction market that a guy from the local building trades would be asked to speak at the retirement celebration of a guy from the AGC," said Greater Detroit Building Trades Council Secretary-Treasurer Patrick Devlin. "It's a tribute to the tremendous relationship between the Greater Detroit Building Trades Council and the Associated General Contractors Detroit Chapter that I and numerous other labor leaders have been asked to be here tonight to take part in honoring John."