Demand for Construction Materials Dips

Words: Bronzella Cleveland

JanuaryFebruary 2009
Industry News

Demand for Construction Materials Dips

According to a recent report from Reed Construction Data, the declining economy continues to leave its mark on the construction industry, with demand for construction materials seeing a 6.5-percent volume decline at the end of 2008. The Jan. 13 report indicates that the dip is “consistent with the layoff of 82,000 construction workers in November and the 3.2-percent fall in the industrial production index for construction materials and supplies in the same month.”

“U.S. construction materials suppliers in November experienced a 3.6-percent monthly decline in orders, a 1.3-percent decrease in unfilled orders and increased their inventory 3.1-percent when they were trying to cut inventory,” the report continues. As a result, supplier inventory/sales ratio jumped from 1.43 to 1.47, equivalent to an extra day of inventory.

The report concludes that construction activity undoubtedly continued to decline in December (figures were not yet available), although the decline should begin to taper in the second half of 2009. The report states that the decline in November was spurred by the credit market collapse, and that materials suppliers will remain in “crisis mode” for more than a few months, while they try to cut production and discard excess inventory. MD

What gives with head protection? Why workers want to keep their hard hats and ditch safety helmets.
April 2025

Last August, I took my pickup to the dealership for a nagging check engine light. While it was being looked over, I chatted with the salesman I normally deal with, and he told me about the latest and greatest 2025 models. He told me how the twin turbo inl

Government Affairs: Bringing North Carolina to Washington, D.C. and Hopefully Young People to Your Jobsites
April 2025

For you long time members of the Mason Contractors Association of America you likely remember our Annual Washington, D.C. Fly-In where MCAA members from around the country would come to Washington, D.C. meeting with Members of Congress from their home sta

Chairman's Message: While We Are Still Here
April 2025

I truly value my days working on construction sites during the summers of my high school and college days. Some moments in our youth are so clearly meaningful that we file them away in our subconscious to be recalled when life events require inspiration.

Contractor Tip of the Month: The Tough Calls That Define a Leader
April 2025

In construction, every project balances a delicate trio: coordination, precision, and timing. However, beyond blueprints and schedules, leadership demands something far greater—the ability to lead and make difficult decisions that shape the future of a co