Evening star., 1943-01-02
Council Sees
Construction
Cost 81 Billion
Estimate Is 81 Pct.
Under Outlay
For This Year

The Committee on Construction
Forecasts of the Producers Council
today reported this year it is ex-
pected that 500OO0,OOO in new
construction will get under way.
Though estimated as 81 per cent
decline under 1912 the figure still
Is larger than in the pre-war year
OF 1899. Last years estimate was
given as $13,410 900, 900.
The council, in its report stated
the l943 program is still one of large
projects of specialized types" These
projects are mot distributed over
the whole country. and" according
to the statement, therefore, do not
afford work evenly to architects and
engineers, contractors, dealers, and
construction labor"
The review added that the coun-
ellis estimates do not include possible
increase in construction costs, and
assume that the announced policy of
reducing the war construction pro-
gram will be carried out to a sub
stantial degree.
The 1912 construction total is the
largest in history, despite marked
reduction in private construction
because Of WPB restrictions. Mill
tary and naval and government
financed industrial plant construc-
ton, more than double over 1941.
The peak was reached in the July
September quarter when more than
$4,000, ,000,0 of construction was put
in place.
Will Taper Off in '43.
"War construction will taper off in
1943, but continue in substantial VOL
ume until midyear, after which
sharper decline is expected. Publicly
financed construction is expected to
be as high as IS per cent of the
total, whereas it was little more than
SO per cent in 1941 and only 40 per
cent in 1899. All categories of pri-
Vate construction will decline fur
ther in 1943, including war housing.
The estimates given do not in
clude maintenance and repair which
have been averaging about $3.000,-
600, 900 per year. Shortage of building
pl ploduSCo lCHull llls SllClCdl Ild bcl Ids
and stringencies in the labor supply
In some localities, may retard certain
items of building maintenance; yet
other factors will operate to hold the
previous repair volume, or even to
increase it. WPB in November auth
orized the top priority rating of AA-1
to essential repair and maintenance
f0 vIv.NI,1rfiuo fooi1;tiar ~,
housing.
Under the new Controlled Mate
rails Plan war contractors are
instructed to submit estimates of
critical materials needed for main
tenance separately from what is |
needed for new construction or pro-
duction operations. WPB further
has removed the limitations on con-
struction work using non-metallic |
materials and equipment which con-
serves fuel. including insulation and
heating conversion. Thus there is
hope for substantial market for
maintenance and repair service pro-
viding work for the smaller and
specialized contractors.
Housing Picture Gloomy.
Residential construction. esti-
mated at slightly in excess of
50 100000 900 in 1912, may decline
AS much as 46 per cent in 1943 in
spite of the unsatisfied demand for
housing accommodations for war
workers. Privately financed war
housing may decline a greater per-
centage. This reduction is attrib-
uted to the policy of diverting ma
terials and labor to other war uses
apparently any resulting hous-
Ing shortage will be met by more
intensive use of existing structures.
Major dependence for single i'm
migrant war workers is now being
placed upon rooms in existing resi-
dences. of which there is reputed
present surplus in some war centers.
Additional accommodations, where
needed, are being provided in tenn
porary war dormitories.
1.-The National Housing Agency
last fall stepped up the importance
of its conversion program. Exist
ing residences and even commercial
properties are being leased by the
HDLC and converted at Govern
ment expense into apartments for
war workers and their families.
MIA recently announced liberaliza-
tion of the lease contract and has