Futures prices for commodities have continued their rapid retreat from July’s highs, but many products used in construction are still rising in price.

On September 3, crude oil futures dropped to a five-month low. Copper, aluminum, nickel and natural gas all traded at or near the lowest levels since last spring. The Wall Street Journal reported, “In the U.S., prices of domestic hot-rolled and cold-rolled steel are off about 8 percent, or $80 a ton, in the past month.”

Some of these raw-materials price declines are showing up in construction materials, but not all. Among the favorable changes: the Energy Information Administration reported that the average retail price of on-highway diesel fuel fell to $4.12 per gallon on September 1, a drop of 64 cents in just seven weeks and the lowest price since April. Liquid-asphalt prices also have dropped in some states, and structural and reinforcing-steel prices appear to have stopped rising in September for the first time all year.

But September 3 also brought price-increase announcements from producers of materials as diverse as concrete, building-weatherization and tire-retreading products. Makers of ceiling tile and wallboard have also put increases into effect within the past three weeks, and announced more to take effect soon.

The mixed pattern is likely to prevail for some weeks, or even months. Imports may help bring some prices down, now that European and Japanese economies are shrinking, the dollar is strengthening and the cost of ocean shipping has dropped. Some firms have cancelled fuel surcharges, and some plastics makers have dropped planned increases in light of lower natural-gas feedstock costs. But other producers are trying to recoup costs they swallowed for months.

These disparate patterns may make it harder than ever for contractors to convince owners that material costs have not retreated, or have even continued to rise, while prices that owners see for themselves - such as for gasoline - are dropping.

To send examples of price change announcements to AGC or to receive monthly tables of PPI changes, send an email to Ken Simonson at simonsonk@agc.org.

AGC of America, Airports Council International-North America (ACI-NA) and the Airport Consultants Council (ACC) recently held the Airport Project Delivery Systems Summit III on August 13-14, 2008 in San Diego, Calif.

For the third year in a row, this event was a great success.  The 100 attendees included airport executives, consultants and contractors from around the country.  AGC members David Hanson (Walbridge Aldinger, Tampa, Fla.) served as moderator of the Summit and Michael Kenig (Holder Construction, Atlanta, Ga.) was one of the opening speakers.    

For more information, contact Mike Stark at (703) 837-5365 or starkm@agc.org.

The 2008 CLC Working Weekend will take place October 31-November 1 in Boston, Mass.  The agenda includes professional development programs, tours, networking events and the exchange of ideas on issues facing construction professionals.  Several sessions will offer both ANSI/IACET CEUs and AIA CLEs. 

Hotel accommodations are available at Millennium Bostonian Hotel at Faneuil Hall Marketplace.  Register online at www.agc.org/workingweekend2008.

AGC is again partnering with the Construction Financial Management Association (CFMA) to offer the 12th annual Construction Financial Management Conference on October 23-24, 2008, at Caesars Palace in Las Vegas.  Early registration is $710 by September 5.

The two day conference is filled with over 20 sessions, including: an economic update, separate tax and audit updates, intergenerational work harmony, document retention and a presentation from a board member of the Financial Accounting Standards Board (FASB).  A special panel presentation this year will focus on the Capital Markets and the Construction Industry.

The Conference was developed in response to a need for programs and workshops designed specifically for financial professionals in the construction industry, and is appropriate for owners, CFOs, controllers, CPAs, bankers, sureties and others.

Early registration is only $710 ($790 after September 5) and participants will be eligible to receive up to 18 CPE credits.  Click here for more information and to register.

For more information, contact Heidi Blumenthal at (202) 547-8892 or blumenthalh@agc.org.