Since December 2003, the overall cost of construction material has climbed 41 percent, not including distribution costs. For comparison, the cost of consumer goods has increased 19 percent.

Nationwide, construction wages are expected to rise from 5 percent to 6 percent this year, primarily due to high demand for skilled workers such as crane operators. In 2007, construction wages grew by 4.7 percent.

Simonson uses a variety of federal data and industry surveys for his analysis of where the construction industry is headed.

Industrial space update

The market for industrial space, such as warehouses and manufacturing plants, held steady in the second quarter, according to the latest Market Trends report from Grubb & Ellis New Mexico.

The vacancy rate was 6.3 percent in the Albuquerque metro area, virtually unchanged from the first quarter of the year. For comparison, the national vacancy rate for industrial property was 8.2 percent in the second quarter, Grubb & Ellis reports.