AGC Leaders Meet with President Bush

Douglas E. Barnhart (J. Reese Construction Inc., San Diego), president of the Associated General Contractors of America (AGC) and Stephen E. Sandherr, CEO of the AGC met with President George W. Bush on Aug. 12 to discuss the impact 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 vs. 5 percent for the consumer price index.

“The PPI for highway and street construction, the most fuel- and asphalt-intensive construction segment, rose 18.9 percent. The national average retail price of on-highway diesel fuel on Aug. 4 was $4.50 per gallon, up 55 percent in a year and 57 cents more than the average for gasoline.”

The construction industry has faced unforeseen increases in all construction materials, which are resulting in a reduction in projects and causing job uncertainty.

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 pressure on Congress.

More information is available at www.agc.org.