WASHINGTON - Douglas E. Barnhart, president of the Associated General Contractors of America (AGC), and Stephen E. Sandherr, CEO of the AGC, met with President George Bush to discuss the effect of rising petroleum costs on the construction industry.
“Construction costs have risen much more than consumer prices this year, due to the extreme run-up in petroleum costs,” Barnhart explained during the meeting at the White House. “The producer price index (PPI) for inputs to construction rose 10.4 percent from June 2007 to June 2008, versus 5 percent for the consumer price index.”
According to the AGC, the construction industry has faced unforeseen increases in all construction materials, which are resulting in a reduction in projects.
Barnhart and Sandherr were among leaders from a coalition of eight other business associations to meet with the president. During the meeting, President Bush told the group, “Increased domestic energy production will have a psychological impact on the marketplace.” He also said that the activities of the coalition, “have worked to increase the pressure on Congress.”
For more information, visit www.agc.org.
Publication date:08/25/2008
