The Washington herald., 1921-01-09

construction contracts during stSZe
in the twenty-five Northeastern
States of the country was practical
~ the same as in 1919, according to
statistics compiled by the F. w
Dodge Company. On account OF
greatly increased construction costs
this amount Of money, something
over s2.5OO.OOo.O 200, paid for a vol
ume of construction that was nearly
one-tourth less in 1920 than in 1913,
The year 1920 opened with a rate
Of construction activity unprece-
dented for the winter season. Total
contracts reached a maximum OF
over $500, 900, 900 in the month OF
April. From that time on, for
causes we'll known generally, &C
tivity declined more or less
steadily to the end of the year. De-
7cember contracts amounted to $780,
600, 900.
-, Comparing the past two years, the
most conspicuous feature of 1920
was the decline in residential con-
struction. This class Of construc-
tion represented 80 per cent Of the
b total in the yeear 1919, and 2Z per
cent Of the total in 1920. The amount
of residential floor space contracted
for declined from 240,0OO,0OO square
feet in 1919 to 136,O00,00O square feet
in 1890.
In the amounts of money involved
in 1920 contracts, industrial plants
and public works and utilities both
exceeded residential buildings, each
representing about % per cent OF
the years total.
.. More Educational Building.
There was in 1920 an increase over
1919 in actual volume OF construc-
tion of educational buildings
In normal years the total esti-
mated cost of contemplated or pro-
-jected work reported Is about so per
cent in excess OF the total amount
OF contracts awarded. In 1919 the
total Of projected work was IS per
cent in excess of contracts awarded;
in 1920 it was 90 per cent in excess
Of contracts awarded. These fig
ures give an indication Of the
amount by which each of the two
years has run behind its announced
construction program.
The construction industry enters
the new year under conditions very
similar to those that prevailed at
the opening of the year 1919.
There is a considerable aCcumulat-
ed demand for building. and activ-
ity is very slow on account Of un-
stabilized price conditions and hesi-
tatiOn on the part of prospective
builders because of uncertainties OF
future market conditions.
Conditions Same as 1919.
At the opening of 1919 building
material prices had remained, on the
average, at about the same level for
four months. They continued al
this level during the first quarter
of 1919. About April, 1919, many
people were convinced that build
ing costs would not fail, and activ-
ity increased rapidly. About two
thirds of the total of that years
activity was contracted for during
the second half of the year.
1t seems likely that a somewhat
parallel movement may be expected
in 1921. Material prices have not as
yet reached the stage of stabiliLa-
tiOn they had reached at the open
ing of the year 1919. Apparently
some further declines are to be eX-
pected 1t seems likely, however
that the period Of stabllization and
of hesitation on the part of the
buying public need not be so pro-
lonCed as il was two years ago,
When costs are actually stabilized II
should be more easy this time to
convince the public that such is the
case.
In an analysis Of the present price
situation, well-knOwn authority
has stated that the upward turn in
material prices will probably occur
some time in 1921 and that, in con-
sequence. building costs in 1921 will
be somewhat lower than they have
been in 1920 or will be in 1922 and
1928.
II that be true, then price condi-
tions will be more favorable to
building activity in 1921 than they
were in 1920 or will be next year
II the public comes to believe that
is the case. then a resumption OF
activity should be expected in 1921.
Not few leaders in the cOnstruc-
tiOn industry expect a Eevival of
construction activity in the spring
to be followed by increased activity
through the summer and fall.
Interest Awakening.
Awakened interest IN construction
activity is shown by the fact that
the amount of contemplated work
reported in DecembeH aggregated
more than for any month since
June.
A volume of construction equal to
that of 1919 on a cost basis some
where neear the 1919 level may be
given as the most reasonable fore
cast for 1921. In money this would
involve about s2.500,O0O, 900 for the
twenty-five Northeastern States OF
the country the same as the figure
for 1920, though on a cost level that
should represent a volume approx
mately One-third greater than the
1920 volume Of construction.
Should conditions develop so IA
vOrably that the full demand for
construction may assert itself. the
end OF the year might possibly
show a total of as much as three
billions for the twenty five North
eastern States.
Developments OF the next three
months should indicate whether the