Construction economics analyst Ed Zarenski writes in more of his spare time now, here giving an outlook on market conditions that call for a trifecta year in construction spending growth, and a hockey stick on input costs and inflationary pressure.
Zarenski notes that spending could reach a total 30% growth for the three years 2014-15-16. The only comparable periods in the last 20 years are 29% in 2003-04-05 and 27% in 2013-14-15. Here's his take on inflation ahead:
Anticipate construction inflation for residential and nonresidential buildings during the next two years closer to the high end rapid growth rate of 6% to 8% rather than the long term average of 3.5%.