Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-23
Construction Industry
Prospects for the Year
BY HARDEN COLFAx.

prospects Tor the construction indus
try in 1880 are all q matter of view
point. 1t is equally easy to find author
tiles who declare 1880 will be q record
breaking period for construction and
those who assert that building will
show q marked falling OF for the pc
Rod, as compared with recent years.
Both are right and both are wrong.
Secretary of Commerce Robert p.
Lamont has just declared that con-
tracts awarded in 81 States during
January showed q gain Of 116 per cent,
as compared with December, and estab-
lished new record for any January in
the last six years; but Mr. Lamont ex-
plains that his figures referred only to
public works and utility construction.
Men identified with private building
and industrial and commercial con-
Struction reported q marked decline in
the contracts and permits, so far In 1880,
as compared with 1929, which, in turn.
was smaller year in those lines than
1928. There Is no question that the figures
on which Mr.. Lamont's statement Is
based are accurate. They come from
the governors Of the 81 States. But
State authorities also sponsor figures
dealing with commercial building and
residential construction which indicate
q decided drop in this type Of activity.
4
For example, Pennsylvania, through
its Department of Labor and Industry,
declares that a very quiet year is in
dicated for commercial and residential
work. The statement asserts that pros
poets for a good volume of business
construction are discouraging, accord
ing to reports from business inspection
oficeS in 43 Of the principal cities.
These reports show that permits for
building work in January involved an
expenditure of only 4,874, 024, as COM
pared with $21.645,470 in January,
1929. This was q loss of II per cent
and was the greatest decline in build
ing recorded In Pennsylvania in the last
five years.
According to survey Of $50 towns
throughout the country, the loss in
residential and commercial types of
construction amounted to IS per cent,
as compared with January, 1929.
There is every reason to believe that
public works and utility construction in
1880 will break all records. Money
rates have declined and credit has
eRsed.
1t is equally obvious that private and
likely to show q decline, as compared
with 1929 One reason for this Il that
such building is, to q certain extent,
speculative, and real estate and con-
struction men are not speculative
minded at present. Neither are the
banks. Banks are full of money and
rates are low, but applications for
financing of residential. commercial
and speculative building are being
scrutinized by the lenders more closely
than at any time in late years.
The weather also is q factor which
cannot be overlooked in estimating
building trends and volume. So far in
1880 weather conditions have been I'M
favorable to outdoor construction work.
This has led the construction section
of the National Business Survey con-
ference to lay special stress on repair
work and renovations which will fur
ntsh employment for building trades
craftsmen, even in severe weather
There Is small doubt that when wealth.
er moderates and utility and public
works construction gets fully under way,
1t will have a most heartening and
stimulating effect on commercial and
residential building.
Despite the predictions for q drop In
residential building, the outlook for
business In this line Is far from dis
couraging. Construction Of ONCE build
ings and residences now Is pretty well
stabilized on q 20-year basis; that Is,
with the idea of replacement of the
structure in 20 years. It Is figured that
hotels. once buildings and even resi-
dences become obsolete and uneconom-
ical in that time. This constant re-
placement demand is SUFFICIENT to give
sound support to the building industry
over the general course of years,
(Copyright. AooO.)