Following Katrina was Hurricane Rita, which caused an additional $10 - 15 billion in damages in Texas and Louisiana. In the short term, the repair process will place heavy demands on a wide range of building materials like lumber, steel, plywood, electrical components, glass, roofing materials, asphalt, carpeting, drywall and PVC piping, so costs and delivery times for these items are likely to increase nationwide. Skilled construction labor, particularly framers and drywall installers, will also be at a premium as far away as north Texas. Katrina will result in a temporarily reduced demand for concrete in the region as workers focus on repairs rather than new construction. This reduced demand may or may not translate into price reductions, however; New Orleans is the country's largest port of entry for imported concrete, and with that city's diminished functionality, available supplies will be reduced as well as local demand. For the long term, Katrina's impact on our nation's oil supplies and continually increasing demand may have the greatest affect on construction costs. http://bestex.web44.net Several American refineries and oil delivery mechanisms were affected by Katrina; as a result, already-tight oil supplies were further diminished by the hurricane and the cost to manufacture and deliver products or operate construction equipment is likely to continue its rise. Adding refinery capacity in our country would take at least a decade so we have no short term solution to this problem.
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