Stable Construction: Why Managers Expect Medium-term Higher Rates

Construction sector leads European share slide to 1-month low

So even though the number of ships on order alone would have shown that all is not well for Supramax vessels, Aprils jump may point to optimism among companies focused more on minor bulks, or intense competition due to smaller capital requirements. While construction activity for Capesize vessels remains most optimistic, the recent decline shows that new ship deliveries will continue to fall over the short to medium term. Plus, its important to note that the construction of Capesize vessels takes longer because of their size. Construction activity is basing Construction activity has started to base. This signals that the construction-starts-to-delivery balance is finally normalizing (the number of orders that are going into the construction process compared to those that are delivered to shipping companies match up), which reflects managements expectation of higher rates in the medium term.While higher construction activity could drive supply growth higher, it isnt so worrisome, as shipping companies just went through a huge bubble burst. Psychologically, managers arent going to rapid-fire new vessel orders like they did from 2006 to 2008. With good shipyards fully booked, according to shipping company CEOs, investors should view higher construction activity as a medium to long-term positive for firms such as DryShips Inc.

Construction Week: Dodge Momentum Index Up in Sept.; Hydraulic Issue Blamed in NYC Crane Mishap

And, is it safe to swing on a wrecking ball in the nude? No one could provide the answers. Some assume the debate on this topic is really what shut down the government. So, naturally, CollegeHumor turned to the people who know sledgehammers and wrecking balls best construction workers.

budget impasse prompted some investors to trim back positions in sectors such as construction. The FTSEurofirst 300 index fell for a third straight day and was down 0.3 percent at 1,227.91 points by 0704 GMT, just off an intraday trough of 1,227.38, its lowest level since early September. The construction sector, meanwhile, was down 1.1 percent. However, losses were limited on news that U.S. President Barack Obama will announce later in the day the nomination of dovish Federal Reserve Vice Chair Janet Yellen to head the central bank.

on Sept. 30 won a $6.4-million fixed-price contract from the U.S. Navy to repair and restore the Naval Sea Systems Command building at the Navy Yard in Washington, D.C. The site sustained extensive damage in the Sept. 16 shooting that killed 12 people, including a Naval Facilities Engineering Command employee and contractor. The firm will make immediate safety repairs, conduct detailed damage assessments and develop alternative concept designs for the historic structure.


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