The devastating effects of the hurricanes that ripped through Louisiana, the Gulf Coast and Florida mean that heavy construction activity, which had already been rising before the destruction, will see strong spending well into 2007, according to Jim Haughey, director of economics for the Reed Research Group.

Haughey points out that in a normal hurricane season, cleanup work is completed in just a few weeks, but this year, the restoration stretched into November and December because flooding delayed access to damaged areas. The boost from initial first-aid repairs to the infrastructure are extended into this month because of the massive damage (see related story on p. 18).

Next year and in 2007, the outlook for heavy construction spending will be modestly higher when more permanent infrastructure repairs and replacements are built.

The initial repairs to make the infrastructure usable include work on levees, shipping channels and port facilities; rail lines; water and sewage treatment plants and lines; electric generating transmission lines; communication lines and relay facilities; and energy extraction, processing and transportation facilities.

Haughey notes that all construction sectors are expanding. Spending on highway/sewer projects increased this summer by 15 percent over the summer of 2004, but the increase for all other sectors was just under 5 percent.

Haughey reports on construction activity for Reed Construction Data, a sister company of Industrial Distribution and The Construction Specialist. If it's construction information you're looking for, RCD is the place for you to go. RCD, a leading provider of construction information, recently launched a new construction forecasting and market outlook information Web site, www.BuildingTeamForecast.com.

The Web site contains charts and tables along with key industry analysis on statistics such as housing starts, construction costs and a purchasing manager's index. The site also includes market-defining information from Reed Construction Data's proprietary project database and other Reed Business Information business units, including Reed Construction Canada.

Access to www.BuildingTeamForecast.com, which houses current articles and archived data, is free to all users. You can also register to receive an e-newsletter to provide you with updated information and links to the Web site on a weekly basis.

jkeough@reedbusiness.com