The New York herald., 1921-03-28
RUSH OF HABITATION
BUILDING STARTED
But Material Dealers Still Suf-
fer From Slump in Office
Construction.

In the face OF what now appears TO
be the development OF nationwide
building construction movement OF con-
siderable magnitude, building material
distributors find themselves slipping into
a market vacuum that Is causing them
some concern. according to the current
Dow Service Dolly Building Reports.
What seemed TO be insurmountsb BILE
obstacles to .he speedy development OF
The 1921 building movemen nj few weeks
ago have dissolved before the demand
Tor space accommodation. These bar
riers were chiefly represented BY tight
ness Of mortgage money building ma
terial supply at mill centres and high
cost OF labor. Impstience has come TO
o the menace Of the moment.
Building material manufacturers have
been accustomed for so long to cater 10
tho big order markets that they are still
prone TO shape their production sched-
ules upon this class of business for the
carly part OF this year. This sort Of
business. however, Is not Immediately in
form of projects now Gkering upon
architects boards and revival OF jobs
that have been lying dormant for a year
and more. The preponderant volume OF
demand for building materials until
June will be for comparatively small
order construction. such as private
homes. &c. 1t takes many such struc-
lures TO take the place in building ma
ferial requirement of single large COM
r1ercial project.
Housing Work Orders I'm Embryo.
Since last autumn this big order busi-
Less has been out OF the market Com
C. ercial projects started before that time
are now nearing completion and when
work on them has been finished there
will not have been enough new work
developed to take up the sag.
To be sure, there is rush OF habi-
tation building under way, but it is
so far only in preliminary stages in
architects and engineers hands. A
month or more may elapse between the
preliminary sketch OF building and the
actual award OF contract. and since
the turn in the tide of building affairs
8 still less than a month old 1t is evil
dent that this market vacuum. about
which the building material production
and distribution industries are at pres
ent complaining. is only now in process
OF development.
A similar vacuum occurred immedi-
ately following the signing of the armis-
tice in relation to labor supply. 1t wss
caused by the outflow of unsisilled labor
and the enlistment of building trade
artisans before and during the war. It
resulted in the imitation of labor values
just as the present vacuum developing
in the building material production and
distribution markets will advance the
value Of building materials to consumers
entering the market later in the year
when all sorts Of building construction
projects will be vieing with one another
for all kinds OF labor. The basic condi-
tions creating the present developing
stringency are Identical with thosswhich
developed the premium market for labor
last year
Road Work Demand Is Heavy.
During this interim of waiting for the
actual building market TO develop build
ing material manufacturers are putting
in new capacity for the purpose of an
ticpating the later year market and TO
take care of road requirements. Four
lettings for road work alone last week
accounted for million barrels OF
cement
All but three cement mills In the
Lehigh Valley district supplying this
market have resumed operations. Struc-
tural steel plants are taking more busi-
ness for building requirements and are
therefore throwing in more capacity.
Lumber mills in the South are resumlng
operations In full satisfaction that the
market will absorb their stocks before
the half year turns. Calcined product
mills like lime and plaster are throw
ing in more lulns based upon increas-
ing inquiry.
The building material market vacuum
OF 1921 will be as memorable as the
labor vacuum of last year. but not so
protracted. It's sinister effect upon con-
struction costs will be softened by the
fact that prospective builders are fore
warned OF it's existence and OF Its In
6uence upon future buying conditions.
It is giving the prospective purchaser
of building materials a chance TO buy
cheap. III road building requirements
ehould he supplemented by pyramiding
building construction requirements as
result OF the decided change In the
attitude OF the money market toward
building construction this vacuum that
IL now The sole influence In keeping
building material prices comparatively
low will be quickly filed BY spectators
purchasing materials In anticipation OF
later requirements