Monday Morning Mumblings for 8/4
Fuel Cost Ripples Turn Into Waves: Besides affecting costs for construction companies the higher fuel costs are beginning to affect whether or not projects get built. In Orlando several large airport construction projects have been derailed. There was supposed to be new ticketing areas installed this year as part of a $1 billion capital improvement plan but since the airlines have drastically scaled back their operations the airport is taking a wait-and-see attitude regarding when, or if, to begin construction. Similar events are playing out in places like Ohio, Las Vegas and Oakland, CA.
Other infrastructure work is going on hold also. Texas announced potential delays in highway projects since people are driving less and therefore paying less gasoline taxes – a major funding source for highway projects.
Home Buyers Re-Think Priorities: As Los Angeles reports a 15 percent increase in the number of public transportation riders people are also changing other behaviors in the face of the higher fuel costs. More home buyers are thinking twice about buying in the burbs and others are looking for work close to home. The effect on the market is that there are pockets of properties that are largely unaffected by the decline in home prices. LA’s Westside neighborhoods are one example where places like Santa Monica and Brentwood have survived the double-digit depreciation seen in other neighborhoods.
Sitting On The Cranes: Here is something I’m not sure I’d try, especially in light of the recent problems with cranes staying upright. A group of Algerian nationals are staging sit-ins on construction cranes at six different sites in Brussels. They want the right to live and work in Belgium. Apparently they are frustrated with the delays in processing their applications to stay in the country. The unions are warning this protest could hold up work. Hmmmm, that may be stating the obvious.
