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2013 Construction Industry Forecast

There have been rises in prices. Concrete products have seen a +2.0% increase, while lumber and insulating materials are up +6.9% and +7.1%, respectively. Contractors have seen prices fall for several types of materials, including asphalt roofing materials.
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In mid-October, the national average retail price of highway diesel hit a four-year high of $4.15 per gallon, the Energy Information Administration reported on October 15, 2012. For items like concrete, gypsum and lumber, construction is pretty much the only market, and prices reflect supply and demand within the industry, according to Associated General Contractors. According to reports, materials costs are expected to remain volatile and to rise, on average, faster than consumer prices. That being said, projections indicate a 2- to 4% increase is more likely in 2013 than the 5% -plus increases that were common in 2004 through 2011.
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