Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-01-02
SEES BUILDING
REVIVAL AHEAD
FOR NEW YEAR
Materials Lower in Cost,
Wages Adjusted and
Credit Easier.
BY JOHN NJ. CRIES
Chief Division of Building and Housing
Department of Commerce.

<& Department of Commerce.
~ The building industry during the year
81 1921 has reached the soundest position
[~S which it has held since the war. Judged
sI by contracts awarded, building was near
81 " at a standstill at the first Of the year,
III but made a good recovery, and now, at
H# the end of the year, is holding up strong.
~ But two years ago industry was IN
& period of unhealthy activity, prices and
ri wages wer, rising, labor was scarce ard
An less efficient than today, and materials
&C. were being held for speculative rises, and
"a in some cases an actual shortage existed.
sH The transportation difficulties were add
sH ing to the confusion and the cost CT
#E obtaining loans was excessive.
s# Today conditions are different. Build
~ ing costs have fallen, while construction
~ activity has greatly increased Industry
*4 has been through a period of depression,
2M the curve of price deflation has been flat
NJ tening out and wages have tended down
4 ward following commodity prices There
III is no shortage of labor (notwithstand-
a. ing the occasional shortage IN certain
~ trades, the efficiency Of labor has nota-
A# bly, increased in most places thef
81 builders are increasing the efficiency u
81 their management, the railroads apreaF
& able to meet any demand the cOnStrUctiOSW
~ industry may make on them and tfe
easing in the money market must coo1er
!. or later reach prospective builders.
M The plant capacity of the producerst Oh
the principal building materials apr afs
adequate, and even with much or fater
SO building activity there is little prof peer
# of runaway" market like that Of I9-p
| Builders are not apt to show excl sSiFe
haste under the business COMO l'I0AS
which will probably prevail and any
1&k tendency toward q rapid rise in pr' es
~ will readily be checked. There Ilay pe
increases in certain products. or eA-
ample, there has been a noticed oie ao-
&k vance in the price Of some Of til p7t.eI
kss grades of lumber. but any grefa I'iH"
tion of building material prices JeehS OUT
'X&2of the question.
sfss The figures fer contracts aW aroeo' as
$# shown by the F. ". Dodge ! company
~ which were at a relatively hifn point III
- the early months of 1920, sbIo"eu ue
z# cline first in the amount of hooI space
~ and then in dollars, reaching the io"es'
M point in December of that yFar- January
49, 1921, showed an improvement Mea 9ureu
ID in floor space, April, May ana . ne
u showed an index of IA. anu 80 re-
- spectively, as compared I WIN 10" Iof
- the 1919 monthly average ne muck
"a for July dropped to 68I Whhe AUGUST
a was up to 70 and September 10 ~
~ higher than any month flhce ApI'' -
49, October was 81 and Nof elupef =. MS
- shows healthier SITUATION than tne cor
responding figures for lhe stqle PeraUl
- n 1920. a drop took 1lace III j ulS' -
10 co. a slight increase IN august 10
N&A then g steady deg me TO Sep' e.uheI
e October, IS. Nove1 Der II ue Hs uI7
go November 1921, f 81 almost 90 uOle
E&#*HHAof November 1f-O
49, ~ Nh "a many vaars TIE various groups in
4 III ali ~ N i'tion looked largely
#&%%s ssssr own rrsiups as entities more
<kf.NSsk4 kkssx,enf of the other groups.
81 49, ~ ~ 49, 52sf% s&SMepd practices dcvel-
zzzz.ssx $3.50 <#z& ~ dicap to the con
Ex5s< e - SL3 Ome of these We're
Il 3I$Yr more or less local.
~ Z &&<<I 4 49, years certain cGndi-
: <SsE{ x<Ss&#Z W$k&aRE became more aggra-
32 & 8 n 3sSsSs 90 the last year, espe-
I&s e M sz@1<x#*4EnY effort has been nade
zks< IN fa& - %s%sti tons through the joint
4 7S E.s4 IN &5Es ffSES&#& different groups.
sEss $500 Il #t&S&8 local community is the
IN 81 800 $3.50 keeping the building pro
~ q al s&x&sz# To allow aHv element or
S<yA&6&&4s94##sh population to absorb al
a <&z<s ~ 7Ykpmies or savings effected
5Ss<zzx - Tering of costs in building
S2 N S<S<3 0p the activity for the pub
$ez 80 <s4ssSfA<# dy nor willing TO go anead
! 49, &SSf3 ~ In line with this OrganiZa-
" 81 *S 49, 3S<& been created. composed Of
#S&3&# <L$$Zpts Of the population, such
4&szf 49, III scOntractors. bankers. build
go ~ &%<&&n& <K& callers, realtors and others.
& sszsz ~ y Usually added representa-
] @*< &&xIES and officers of building
~ - u &##s& 49, tions Chambers of Com
8 sHR&&jwf&&&WxH32a boards engineering
W ~ S5 EEfhers are also activelv in
s4kEkS N$&<&ES TE&@&ng and construction. and
&s III As5# monious efforts Of these
ii, &5 #k&*@4 #sE&% practices which had pre-
s 81 % of our cities are being
I. & Fl 49,. re understanding has been
4 ~ 49, constructive work is be-
* "a - FL nal organizations are also
s II 81 *Sns{ ia 49, the same general lines.
- - 10" of the spirit Of cooperation
TX %rzEs@gsuch national organizations as
s<xssz5S $y&1Y ciated General Contractors Of
~ s*fU the National Federation Of Con
Industries and the National
U s&Ass Of the Building and Construc-
% - z% Industry actively working to re-
Skf< $3.50 restrictions and certain bad prac-
81 s %$nlY that have developed in the construc-
.EMs ss4RkF industry.
4 & klS5he American Institute Of Architecture
So taken an active interest in the small
"a N se problem. The Architects Small
Use Service Bureau Of the United
s##&ZEes, supported by the institute has
: q aned plans for three, four, five and
EMR847 DOM houses, which are being fur
u kf@sSAd to prospective builders" for nom
- nc.
as4zssSYe& division of building and housiGg
zNS{xxHN3 Department Of Commerce was ere
44EfxH 4sSn part as clearing house for the
@sSSsS auction industry This division.
1&M&4sB% is apart Of the bureaus Of stand
'N4%HA ssAs receiving the active cooperation
AaSx xEEESsX groups interested in construc
k# E&si housing
800 xS@Ea& products such as lumber. brick
go zsEE%and steel make up a very high
~ $1,000 e of the total cost of materials
s$4INT4F&p building. There are other i'm
SO ksss<Faast items but the supply and prices
3. - 49, four named above are OF great
ssssx-e sj&&ss ~ ance.
EHIT% plant capacity of the sawmius is
~ %esx. ~ tie to take care of any building
( AEx ~ n that may take place. for nor
81 49, 3AHhey have a capacity far in excess
lesse$ S4e<xN uction The lumber industry can
sFAkAS2&S9ake care of any ordinary increase
$500 cXs<x$lding, although a quick boom
go s%sA result in a shortage of certain
AResIss*x14E8 with a rapid advance In prices
stE%y @S 1&EAg facilities have improved very
q - m - O that there should he no diff
& ~ ~ making deliveries That lumber
skAE3a y rise somewhat is very likely.