Sunday, June 15, 2008
LOS ANGELES - The surge in oil prices is driving up the cost of key construction materials and further eroding the confidence of homebuyers. Prices have gone up for steel, copper, aluminum, concrete, asphalt, bricks and plumbing fixtures, among other materials, and homebuilders are feeling the pressure from suppliers to foot the bill. In total, the wholesale price of building materials for new house construction has gone up by 3.4% overall in April from a year earlier, according to the Labor Department.
"Any material which is petroleum-based or transportation-intensive will have pricing pressure during periods of rising oil prices," according to a Purchasing, Planning & Design Atlanta based company. Manufacturers are trying to push cost increases through for materials like carpet, asphalt roof shingles and insulation. For now higher oil prices might be hurting consumers more than homebuilders, but this still hurts homebuilders.
"Any material which is petroleum-based or transportation-intensive will have pricing pressure during periods of rising oil prices," according to a Purchasing, Planning & Design Atlanta based company. Manufacturers are trying to push cost increases through for materials like carpet, asphalt roof shingles and insulation. For now higher oil prices might be hurting consumers more than homebuilders, but this still hurts homebuilders.
posted by Webprofits
@ 9:44 PM
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