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Politics : Sioux Nation

DJT 13.77

-3.8%

Dec 26 9:30 AM EST

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To: Jim Willie CB who wrote (70438)	6/11/2006 5:36:50 AM
From: Wharf Rat	of 361945

Greetings, These discussions are important though are difficult to partake in with this blog system. I thought it was important enough to bring it up again in today's open thread. There was a discussion brewing on a Drum Beat thread of a few days ago that discussed the ability of the US to: Build its way out of a depression... My contention was and is that it would not be possible. I brought up the "New Deal" of old and explained that in those days energy was on the upswing. Given the falling dollar and rising energy costs of today how can we build our way out? The concept being that to implement a "New Deal" type plan today to stimulate the labor sector by adding lots of jobs related to public works projects would be difficult to impossible given the costs of energy, labor and materials. When you stroll down the isles at the Home Depot or Lowes glance at the price of a 1/2" x 4 x 8' sheet of sheetrock and see the reality. This time last year a board was in the $4-6 range. Yesterday I saw $13.75 +tax. You can do the same thing for all the materials and you will be shocked. Most of the material supplies have doubled in cost, while others have even quadrupled. Items with copper or brass are off the charts. Plumbing and electrical components make up a majority of the copper and brass materials. Home Depot is not a place to obtain wet concrete however their bagged concrete as doubled. If you were to contact a concrete supplier you will note that 10 yards of delivered concrete has doubled and a fuel surcharge is added to the order. Here I'm talking about actual costs of any given construction project related to both materials and labor. Today when estimating a project the materials are broken out from labor. While labor costs do raise this difference is small and can often be absorbed by the contractor. Material costs on the other foot have across the boards have at least doubled. In the past builders could offer new construction for $60.00 per foot and now we see numbers like $140.00 per foot less hardwoods, bathrooms, kitchens, etc. Energy costs related to construction in the past helped to keep the costs of construction down. When these costs rise so does the bottom line of any given project. I met a plumber who charges $600.00 to change a toilet excluding the cost of said toilet and the disposal of the old one if he can not take it to the curb. Myself, I would not pay that fee yet it is clear that those that are not equipped to do plumbing work will seek a licensed pro and pay the going rate. Regardless of the business you are in the general costs of doing your business today have most likely doubled. The greatest feature of this cost is energy. Trucking companies are forced to raise freight charges and delay shipments so that trucks are as full as possible, these transportation costs as you would imagine inflate the costs of all goods both durable and consumer. If I were to build a house last year at $60.00 per foot this year I could not do the same project for less then $150.00 per foot. In the past labor costs in construction started at $10.00 per hr and now the lowest paid earn $15.00 per hour. My contractor to contractor labor charge last year was $210.00 per day and now I'm forced to charge $265.00 per day. My living expenses have gone up at a disproportionate rate compared to my hourly labor rate to contractors or as a contractor. Clearly builders use a wide variety of equipment and tools to build and tool prices have jumped up as well. Energy efficient homes would be desired today but are not affordable to most home buyers. Energy efficient homes require more insulation and larger framing members. Standard construction practices for a home typically start with a 2 x 4 stick frame. This will allow R13 insulation. Bothe the 2 x 4's and the insulation have inflated in price. To move to energy efficient building requires the use of thicker framing members to allow for R19 insulation in the walls. Houses and buildings need to have a durable exterior that can withstand the elements at a low cost. In the old days the standard cedar shake or clapboard were used and offered a decent lifespan. Today the most common siding is vinyl and has many issues with the first being rising costs. This material requires large amounts of fossil input and appears to be a dangerous to the dwellers and the environment. The costs of all of the above will rise along with the costs of energy. This will compound if the national unemployment rate were to go up (as it is doing). Suppliers will cut staff to control costs and this will lead to material shortages since the ability to maintain material output depends on staff and low input costs. I wish someone would explain how the US will be able to build low cost homes again for the expanding middle and poor classes? If we don't wire homes, heat homes or put plumbing in homes the cost may come down a fraction yet going to the bathroom will be hard. Please help me to understand how we can build our way out of this mess? [new] AlphaOmega on Saturday June 10, 2006 at 2:07 PM EST theoildrum.com

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