Show Prospects for Building Industry f During 1927 Discussed By Observer Observe Real Opportunity in Construction Lies Les in Producing Lower Cost Dwellings Still Good Demand for Homes 1926 Set Record of Over Six Billion Dollars Dol tars Special Ial BABSON PARK PAnK Fla Jan Z S In view of o the tremendous volume of new building during the tho past three years year W Yo was waa today asked to o t give his hb views on the tho building Industry and the prospects for tor 1927 lie JIo 11 states u as follows The to-tal to volume of ot construe construe- c- c tion In 1927 n all probability I bo be less lew lea than In 1326 1026 er as long lone a money con con con- c n- n cat plentiful and rat rates com corn corn- m- m fay easy a y there Is no reason ion tt td expect any drastic r readjustment adJustment nt in building Rather I look for for- 1 a gradual readjustment until rents re are and anil th the demand for tor buildings once more moro up t the supply Government con con- n- n should bould sOmewhat although It Is la a small part of the total Public works work and tonal buildings building moreover will rill continue to be constructed In heavy volume this thi year Office Ottice 01 buildings and apartment houses houss hou stem seem em to ba be b overdone Nearly early all 1111 reports report show an excess of uch auch ch property A A real however lies lle la lit lower cost co t dwelt dwell toga Ings Ing dwellIng nl nI spite of o the tremendous us I number of oC houses built In the tho past p a t five ivo years cars there Is la a 0 great demand deina nd today tor for houses hou that can be bo built from 1000 to 2000 2000 less lesa Those Th e who find Und the way aY to do this witt- witt wl out sacrificIng too much ot of corn com cc fort Cort and serviceability will wIlt find a aready aready ready market mulet SED IN 1 1926 l that the month month-lo-month trend In 1226 1326 was iras for tor the most part downward the tho total volume of o building for tor the year was wag as a a a record According to estimates furnished by I 1 W Dodge corporation was waa the construction total in 1026 This Thu represents an Increase 01 ot about 4 per cent over 1325 1025 11 It should be bo noted however that the second cond half holt of ot the tha year 1926 1126 was Vas I slightly lower than the he second bali li of ot 1925 n 5 The Tho reason the total tot for 1926 1920 shows how how an Increase Is because of tho the aDUS large larS volume ot of building building- In the first holt halt of the year Nevertheless the tho final month of ot the year ear December reg a surprisingly large volume of ot contracts awarded aw December showed an aim Increase of oC o 10 per cent over November and an Increase oC 01 2 3 per een cen over December 19 1925 fronta na Building results for tor 1926 1326 front a 0 geographical standpoint Indicate Indie that the activity was rather evenly enly distributed over the country Texas was wan an outstanding bri bright spot The Tho total contracts award aard awa cd thoro there for tor the year ear were 25 per por percent cent Iorge than In 1925 In- In In Increases creases In total building over o 1921 l In various sections of the country were VelO as follows New rew Ingland 8 I p per r middle Atlantic states slates 19 per cent central west 12 per percent cent New York state and north north- cm ern northern em New Nsw Jersey 11 per cent northwest 7 I I- I p r cent The PIUs burg bure district Including western west West est Virginia Ohio hlo and I Kentucky and the south south- eastern ca tern states tate Including the tho Car Georgia I T Tennessee Alabama Arkansas Arkanas and a Louisiana showed total decrease andI I I In building toIL In Ill 1926 amounting to 11 IL per cent and 6 per cent for tor these respective sections For the country as a ft whole wh residential building Continues continue II to bo ho tobo the ho largest single class as 88 It was In hi 1926 au About of ot residential vork I Vas In 1926 A notable Increase In the amount of ot road building public works and public utility Construe Construe- I Is expected to continuo continue ery very active In the tho present year ear In- In jn crease creases were also shown In corn com mercial commercial and bUildings hospitals and nd Institutions or 01 G co COSTS A great deal 0 ol f discussIon I 19 is heard beard as to tho tIme trend tind ti nd ot of building costs coats Union wage wago scales are aro thata hard to reduce but I believe bellove that t a lot ot of the tho arbitrary and waste waste- te- te wasteful ful tul that local unions hove have mado 10 will win bo ho cast aside naido this year ear A softening In the tho amount of ot building build in and consequently In the demand for rOI artl an should Increase in in- in crease efficiency of ol those loosa wo lug Iny and result In lower labo costs Builders may as wel look to other means than titan reo re reducing r wages In order reduce costs Building as at pres ent tnt carried on Is tur ta- from I InI from Crom an efficiency standpoInt In- In Increased creased use US Of o machinery better pl planning of ot work worl and utilization ot I If Improved methods of ot all must Rust be bo relied on to cut down the labor cost cot Such Improvements provoke pro I labor troubles but no I that hat tho the shortage of ot building has haa h 1 eul made matJe up costs cote must conic come comedown con down through competition The 1 unusual demand for high priced and m medium priced houses houles has bc boon been I lowI met net but there thelo Is a need for tor low low- lower loi I er tr cost houses Building material costs hai have havo I slightly In the thc past tv two 1 years rears ears even though construction waS vai va at record levels On the whole howe cr er cr building materials I have has save been fairly stable during 1926 In the past few tew of oC te- te to f I erish building activity producing capacity rapacity I or ot material plants has haa 1 been ben built up to meet the great do- do demand d stand mand If It the volume of buildIng 1 Is Is somewhat lower In III 1927 as I scents probable building materials materia materials will sell belt In lit a 0 a more highly I Live markot market which may lead to some tome price cutting rutting It does not se seem I seem m probable that lint there will b be I maI any serious crash In building ma- ma m I ferial tonal prices pricel but some Bomo lowering of average material costs CoalS seems Ilk like like- likely likely ly At present building materials materia as os a group are arc 80 SO per cent over ovi I war pre all com tie I tier Lies average a average only 49 43 per cent over war pro I ION One ot of the outstanding devel- devel developments ot of tho ho Industry Is the li In In- In attention that bellU gl Cn to A A few tew years Ago no ono otto thought ot of o thoroughly Insulating his house against cold Then came camo the weather stripping Gt 01 doors and windows Today there are arc a 0 number of ot very ery effi- effi clout clent methods ot of window and door do Insulation For some Borne time the theco co toi ring of oC heating pipes has lias been rr 1 zed liS as a a great aid to efti- efti c ft CIn end and economical heating beating but 53 past few tew years that this type tyPO of Insulation has been adopted on bit a a wide scale Now row It ft Is becoming common practice to In- In 1 ulato the th walls and inside ot of roofs of ot buildings Grea Great Greaf Improvements improvement In li lit heating systems stems have o been made The oil oil- c burner has passed through the ex- ex experimental x- x stage atago and there hero are aro now ni some very ery dependable and erti- erti dent oil burning systems Bell Better coal coat burning heaters whether tot tor or steam stearn water or warm warm air are also alo on Iso on the market The latest devel- devel development Is the tho use uso of oC gas for tor heat heat- In I ng Painting during the next few ew years will be revolutionized Now kinds kId of plaster stucco and ond plas plas- plas pi plastic tic paint are aro coming Into use Ex- Ex Experimentation Ii with paint spraying machinery Is going on and pro prom prom- SS Isca 1st's much In the reduction ot of painting costs Another big step sl toward economy In building Is the I Increased use uso of or stock fixtures pro pro- p produced by lumber mill mills such os as kitchen cabinets medic medicine I no closets clos doorways and various arious other ports parts ts Really artistic millwork Is la now ob oh- oh b- b at much touch lower prices be- be because 1 cause causo of ot production aa u stock Items Itel ns Cheaper and still durable methods of oC brick and masonry construction construct Sl are being developed Improvements In tile tHe cement and other wood wo od shaving building blocks have be been worked out J Economic pressure for lower cost cot of build building building- In Is forc- forc foi improvements In forcing forcIn ing the time Industry to make Improve Improve- Improvements ments In materials and work ork out now new and ond more economical meth- meth methods mcl of construction Till TIlE I y BuildIng has been one ot of the I bulwarks ot of o the prosperity which this country has enjoyed In the tho t pat past five lIvo years Any recession In inI It naturally affects oc Jeneral con I oc I erse Con Conversely ot of o course c any ony decline In general industrial activity affects building It Ie build era and lenders will use common commonsense sense and quit trying merely to trail someone else the tho danger ot of dum clump I In the Industry will VIII be lessened It If everyone c has 3 thatIs been boon building office buildings that is a very ver good reason why you should hould turn to some somo other kind oc of building It If everyone In your lo 10 lo- lo caHty Is speculating In apartment houe houses It means that soon there th ere will bo be too many apartments apartment Try to find what people want and can afford to pay then pay then build tl that Tho rho greatest need ot of tie moment Is a 0 reasonably comfortable small entaIl house that the average family can afford to live 11 in This will ren- ren render der r n real teal service anti and toa to II a n largo laro number of ot people always brings success The Tho Is i now about 11 ii per cent b normal ht 1927 by P Pi rs Financial l Bureau |