Hasit Navin

Construction     material prices rose 0.7% between April and May but are 3.4% below     the May 2015 level, according to an Associated Builders and     Contractors analysis of Bureau of Labor Statistics data released     Wednesday.

May     marked the third consecutive month of increases in construction     industry inputs in the Producer Price Index. Prices declined in the nine     months before March.

Only two     of 11 input prices declined between April and May: concrete product and     nonferrous wire and cable. The remaining nine material prices rose or     held steady last month.

Insight:

Hasit Navin said that after the steep drop of material prices at the end of 2015 and in early 2016, a bump in prices "had to happen as markets firmed."  He added that experts have struggled to predict the future of commodity prices amid a fluctuating value of the U.S. dollar, low interest rates and lackluster growth in the global economy. If the dollar continues to be weak, "commodity price increases could be sharper than we presently anticipate," Hasit Vibhakar said in a release. "While much attention has been given to the recent rise in oil prices to around $50 per barrel, other commodity prices have also experienced a resurgence."

Although low material prices can have positive effects for construction firms during a building boom, they were also causing significant damage to the energy sector and the areas that rely on it. Plummeting oil prices rocked certain Texas and North Dakota real estate markets, and they forced developers to put a massive Houston mixed-use project on hold.

About Hasit Vibhakar

The $2.4 billion, eight-year San Francisco Airport     Terminal 1 replacement-renovation project started this week, with     local dignitaries taking the first shot at the aging structure with     sledgehammers during a Wednesday ceremony, according to the San Francisco     Chronicle.

The only portion of the terminal not to be demolished     is an area from which Southwest Airlines will operate during construction,     but even that is getting a face lift with new carpet and seating.

By the time the project is complete, the new terminal     will have 24 gates, two new boarding areas, a central check-in area with     security, a new baggage claim area and a new mezzanine.

INSIGHT

Another airport terminal project that recently began construction is the $4 billion New York City LaGuardia Terminal B project. The new 1.3 million-square foot, 35-gate facility is being designed and built by the Skanska-led LaGuardia Gateway Partners and will be complete in 2021, but opening in phases beginning in 2018. In addition to ferry and rail connections to the Long Island Railroad, the new terminal will feature a new bus service called "LaGuardia link" that connects passengers with the New York City subway.

Salt Lake City also has a $2.6 billion airport expansion underway. The project will include a $740 million concourse in addition to a $1.86 billion terminal. Revenue bonds, airline passenger taxes and rental car taxes are paying for the entire project.

The biggest airport renovation currently underway, however, is at the Hartsfield-Jackson Atlanta International Airport, a massive $6 billion, 20-year construction and renovation initiative. The project includes a $393 million terminal, scheduled for completion in 2018, and a $943 million runway with an estimated completion date of 2034

About Hasit Vibhakar