Fall 2006 issue of Horizons

This volume may explain part of the increased price of asphalt in 2006 over 2005. However, the costs of petroleum and other material inputs are expected to keep asphalt prices high. Office retail vacancy rates have improved for the ninth con- secutive quarter to 13.8 percent in the second quarter of 2006, down from 14.2 percent in the first quarter - a good sign for the office segment. Finally, commercial, health care, manufacturing, lodging, and power and energy markets are expected to grow. Such demand for construction will keep upward pressure on construction material prices. The result from these increases in construction material prices may cause public sector segments, such as education and high- way construction, to cancel, redesign or delay projects as current bids exceed earlier cost estimates and previously approved budgets.

Questions? Contact Frank Hogg, CPA Partner-in-Charge, Contractor Services Group 314-290-3413 frank.hogg@rubinbrown.com or Mark Jansen, CPA Partner, Contractor Services Group 314-290-3208 mark.jansen@rubinbrown.com

36 • summer 2006 issue