AIA: Hurricane Rebuilding Likely to Take Up to Fiv

Washington, D.C., October 12, 2005--The American Institute of Architects (AIA) today issued a report titled, The Economic and Construction Outlook in the Gulf States after Hurricane Katrina, to provide design and construction professionals a forecast of key economic components related to the rebuilding process of the affected regions. Taking into consideration the larger context of the overall regional economy, the report examines the timeline for rebuilding efforts, the economic and construction indicators for Louisiana, Mississippi, and Alabama, and the outlook for building materials and construction labor demand. “In the coming months, we expect to see a jump in prices for building materials such as concrete and gypsum products. Due to the destruction of some regional timberlands by Hurricane Katrina, there will also likely be a rise in lumber and plywood prices,” said AIA chief economist Kermit Baker, PhD, Hon. AIA. “What is interesting from a labor perspective is that the increased demand for skilled trades in the gulf region is coinciding with an expected national slowdown in residential construction. That translates to a strong potential for a relocation of labor to the hurricane impacted regions.” Key findings: • Increased demand for labor coincides with an expected national slowdown in residential construction, allowing for skilled trade workers to commit to projects in the affected regions. • Rising prices for petroleum-based construction products (roofing products, PVC piping, and asphalt paving) will compound the effects of dramatic increases in transportation costs. • Less than half of the lost housing stock in Louisiana is expected to be rebuilt due to decreased population base. • Short-term spike in construction materials costs is not likely translate into long-term increases. To access the full report, go to: www.aia.org/econ_katrina_outlook

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