Title: THE THREE BIG QUESTIONS FOR 2003 : THE CONSTRUCTION INDUSTRY ENTERS 2003 HEADED IN THREE DIFFERENT DIRECTIONS AT ONCE
Abstract: This article reports on trends in the construction industry in terms of how they will affect road building. Government highway spending at all levels climbed steeply in 2000, 2001 and 2002, but 2003 is not likely to see continued growth. In addition to fiscal constraints, political standoffs may postpone passage of the federal highway authorization bill in time to prevent a funding cutoff on September 30. Nonresidential building has been down for some time, hitting a six-year low in September 2002. Cancellations of power plant construction outnumbered new orders. Housing has been healthy but the question is how long it will last. Strong indicators are the growth in population in general and the new families being formed by the echo of the baby boom, as well as growing numbers of retirees and empty nesters who may spur new construction. On the cost side, inflation was not an issue, though rising oil prices are affecting the costs of operating equipment and buying supplies made from petrochemicals. The largest cost is from rising insurance premiums for coverage of all types. And an Internal Revenue Service proposal to end an exemption that off-road equipment enjoy from a 12% federal excise tax could make such purchases more expensive, as would the proposal to end the fuel tax exemption and other user taxes for them.
Publication Year: 2003
Publication Date: 2003-01-01
Language: en
Type: article
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot