Evening star., 1919-12-27
SEES BIC BUILDING
ACTIVITY AHEAD
S. W. Straus Anticipates Rec
ord Construction Program
in Country Coming Year.

| According to present indications, the
coming year viii witness the greatest
building activity this country has
| ever known, in the opinion of S. w.
Straus. New York banker.
! IAN fundamental conditions are
right for a great building era" said
Mr.. Straus. In the principal Ameri-
/ can cities we shall see much con-
structIon of the larger types of resi-
Dental buildings. such as apartment
/ houses and hotels. as the shortage of
servant labor and various other con-
ditionS have created an unp-e cedented
demand for living accommodations in
/ buildings of this description. Never
/ before has there been such q demand
Tor structures of all kinds as exists at
present. During the past year the
. populatlon OF al our cities has in
creased considerably. which, together
with tremendous business expansion
ana the large building deficit which
has existed since 1917, has created
very heavy building reduire-,ents
throughout the country.
Construction Not ID TO Demand.
Though the ensuing year will wit
ness great activity in the building
industry. this will not be commensu-
rate with the heavy demand as the
labor situation has not yet become
stabilized and production for some
time will necessarily be far below
demand Not only is there a shortage
of labor directly engaged in con-
struction work. but the stocks of
building materials are low.
During the last twelve months the
total building and engineering oper-
! 'tions thro ghout the United States,
! based upon contracts awarded.
amounted to approximately $1,000
600. 600. This increase was approXi-
mately $3.50 0G0,0 over 1918. The ac-
tual gain in construction work in
1919 however offensive
as these figures might indicate for
it must be taken into consideration
that the cost of labor and materials
are much higher than they were one
wear ago.
During 1919 the heavy demand for
housing accommodations of all kinds.
increases in costs of operations, taxes
and other expenses have brought
about great advances in rents.
Needs Exceeds supply.
according to some of the leading
manufacturers of building materials
in the United States the demand for
their products tthe present time is
much greater than the supply. The
labor shortage has been the main
cause of -underproduction, according
to these interests. In the steel indus
try, for example, the manufacturers
in normal years The output prior to
the big steel strike was about 50
per cent of normal, while at the pres
ent time it is about 10 or IS per cent,
according to statements made in well
informed circles ---
"There are widely divergent opin-
ions as to the length of time which
ust elapse before production in
building materials reaches the level
% the demand, but the prevailing be-
lief among leading manufacturers in
this country seems to be that after
.; q
lied such an equalization will occur
within the next few months.
an the manufacture of most build
, ing materials there are two groups or
employees directly concerned in pro
I duction skilled and unSkilled. Even at
the present time there is a tremendous
shortage of unskilled or wheelbarrow
labor, with the result that wages for
! this group have advanced since 1914
/ more than $50 per cent. so some re-
I ports show. This advance to unskilled
labor has resulted in large increases
to skilled labor. for the reason that
| this class of workmen has demanded
proportionate increase to that paid
! unskilled laborers. All these advances
/ to labor have played a most vital part
I in the increased cost of materials
Belief of Manufacturers.
|. Some manufacturers believe that
| the cost of labor in most building lines
has reached it's peak, and for this rea-
son there will be little or no further
| increases in the costs of building ma
! terials. On the other hand, many
manufacturers state that the present
upward trend in general costs will
continue as long as labor is scarce
and business good.
1T is interesting to note that during
the past year the public more than
ever before has participated in the
financing of the nations building
operations. We are coming to a thor
/ ough realization of the fact that the
! general investing public should be
given an opportunity to share in these
operations. This is opening up for the
benefit of the realty market a vast
reservoir of capital now employed in
other industries, and it is giving the
public an opportunity to participate
in the fruits of the general develop
ment of our American cities"