Raw Material Cost Trends, Currency Effects,
Construction Indices Pat
LaStrapes, managing director, Zeus Development
Corp. Since the 2002 recession, raw material
costs, producer prices, interest rates and currency
fluctuations have converged to tighten construction
capacity and send costs soaring. LaStrapes will
review these trends and discuss their implications
as a way to frame up the issues for the rest of
the workshop.
10:15 - 10:55 AM
Time to Market: How Are Higher Costs and Longer
Leadtimes Impacting Energy Development Projects,
like LNG, GTL and New Refineries Thomas Armistead,
sr. editor, energy and environment, Engineering
News-Record (ENR) Engineering News-Record is the
weekly newsmagazine for the engineering, procurement
and construction industry published by McGraw-Hill
Construction. With construction costs soaring,
anecdotal evidence is that new development projects
are being delayed until costs come back down.
Leadtimes for key equipment have also extended
the critical path for commissioning many projects.
As the senior editor for energy at ENR, Armistead
has been asked to provide his observations on
energy construction costs, their leadtimes and
the effect on energy development.
10:55 - 11:25 AM
BREAK
11:25 - 12:10 PM
The Chinese and Indian Economies
and Their Impact on World Construction Thomas R. DeGregori,
UH Professor
Demand for infrastructure development in China and
India are often cited as a principle reason for
high raw-material costs and shortages of construction
capacity. However, growth in China is rumored to
be slowing as more supplies of raw materials like
steel become available. Where are the Asian economies
headed? Have raw material costs flattened and, if
so, might they decline as new supplies enter the
market while Asian demand softens? DeGregori will
focus on the Chinese and Indian economies and discuss
the likelihood that these massive economies will
continue to grow or are they also subject to economics
ebbs and flows.
12:10 - 12:55 PM
LUNCH
12:55 - 1:20 PM
Energy Construction Industry: Labor Russell Hamley, ABC Houston Associated
Builders and Contractors (ABC) is a national association
representing 23,000 merit shop construction and
construction-related firms in 79 chapters across
the United States. ABC's membership represents
all specialties within the U.S. construction industry
and is comprised primarily of firms that perform
work in the industrial and commercial sectors
of the industry. Mr.
Hamley has been asked to discuss the labor issues,
challenges and availability in the energy construction
industry.
1:20 - 1:55 PM
Golden Steel: When Might the Market for Carbon
Steel, 9% Nickel Steel and Invar Soften? Frank McWilliams,
Corus Steel Corus, formerly British Steel,
is an international metal company with an annual
revenues of $17billion. McWilliams has been asked
to review markets for plate and tubular steel,
including carbon, stainless products commonly
used by the LNG, GTL and refining industries.
1:55 - 2:30 PM
Where are Cement and Concrete Markets Headed? Robert
Nussmeier, director of business development, Baker
Concrete Baker Concrete has installed over
600 million square feet of slabs and 25 million
cubic yards of concrete for such structures as
stadiums, arenas and convention centers, heavy
industrial/commercial floors and highway systems.
With contractors proposing concrete outer and
possibly inner containment systems for tanks,
how will the concrete industry keep pace? Nussmeier
will review the industry's capabilities to provide
more material.
2:30 - 3:10 PM
LNG Construction Costs
Trends and Issues Richard Lammers,
general manager, LNG services, AMEC AMEC has assisted numerous clients
plan, fund, design and manage major LNG construciton
projects. The firm has firsthand knowledge of how
construction costs for LNG construction have been
rising. Lammers has been asked to discuss this trend
and how it is affecting the industry.
3:10 - 3:40 PM
BREAK
3:40 - 4:20 PM
Houston's Commercial Construction Industry
Forecast Jerry Nevlud, VP, Houston
AGC The Houston Commercial Construction
Industry has reportedly experienced unprecedented
growth in 2006. Nevlud will report on the growth
and what is predicted for the near future.
4:20 - 4:45 PM
Insurance and Risk Management Considerations
for LNG Development Projects David Robinson &
Kurt Tentinger, senior vice presidents, Aon's
Natural Resource Practice Group Aon Risk Services, the world's largest
commercial insurance broker, will
discuss insurance and risk management considerations
for LNG development
projects. Topics will include the correlation
between project development
and risk management issues, evaluation of total
cost of risk, project
insurance design and an overview of the energy
insurance market.
