OSHA has officially withdrawn a proposed rule that would have changed how the agency operated its On-site Consultation Program for worksites, including those that have Safety and Health Achievement Recognition Program (SHARP) status. The agency withdrew the rule after reviewing comments, including those submitted by ABC and the Coalition for Workplace Safety (CWS). 

In the comments, ABC expressed concern the rule would have exposed On-site Consultation Program participants to a greater likelihood of enforcement if hazards were discovered during consultation visits, eliminating a key incentive for program participation and reducing the number of companies that choose to participate.

Under the proposed rule, any allegations of potential workplace hazards or violations from any source, including state or local health departments or the media, could terminate an onsite consultation visit and turn it into an enforcement visit.  In addition, OSHA would be able to inspect all sites within an industry when "workplace accidents occur that generate widespread public concern about a hazard or substance," even if those sites were normally exempt due to their status in the On-site Consultation or SHARP programs.

"With the global economy beginning to tread water, the good news is materials prices are unlikely to rise significantly during the next several months." -ABC Chief Economist Anirban Basu.

Summary 
Construction materials prices decreased 0.1 percent in June and are virtually unchanged for the quarter, according to the July 12 Producer Price Index report by the U.S. Labor Department.

Year over year, construction materials prices are 1.5 percent higher. Nonresidential construction materials prices were unchanged in June, rose 0.1 percent for the quarter and increased 1.2 percent during the last 12 months.

Following an 8.2 percent drop in May, softwood lumber prices fell 5.6 percent in June and are down 11.2 percent for the quarter. However, they remain 8 percent higher compared to the same time last year. Iron and steel prices decreased 0.9 percent for the month, and are down 3.4 percent for the quarter and 7.2 percent on a year-over-year basis. Steel mill prices follow a similar trend: down 0.7 percent for the month, down 1.6 percent for the quarter, and 8.1 percent lower than June 2012.

Prices for concrete products, fabricated structural metal products, and plumbing fixtures and fittings were all flat for the month. Year over year, concrete product prices are up 3 percent, fabricated structural metal product prices are down 0.8 percent, and plumbing fixtures and fitting prices are up 1 percent.

Crude energy materials prices kicked off the summer with a 0.3 percent increase in June. They increased 9.2 percent for the quarter and are up 21.5 percent from one year ago. Nonferrous wire and cable price rose 0.4 percent for the month, but were down 3.9 percent overall for the quarter and are down 2.1 percent during the last 12 months. Prices for prepared asphalt, tar roofing and siding rose 1.7 percent in June, increased 5.5 percent in the second quarter, and are 3 percent higher than the same time last year.

Overall, the nation's wholesale goods prices increased 0.8 percent in June, rose 0.6 percent during the second quarter, and are 2.5 percent higher than one year ago.

Analysis 

"Today's headline number for construction materials prices indicates little movement," said Associated Builders and Contractors Chief Economist Anirban Basu. "But, when viewed as individual components on a monthly or quarterly perspective, there is evidence of volatility.

"This volatility has been most apparent with softwood lumber, a category in which prices fell 5.6 percent in a single month," Basu said. "The drop is likely attributable to an increase in softwood lumber production as opposed to a decline in demand."
 
"Price volatility also has been apparent in recent months in crude energy categories, iron and steel, and in prepared asphalt," added Basu.

"With the global economy beginning to tread water, the good news is materials prices are unlikely to rise significantly during the next several months," Basu said. "However, even as global economic growth slows, equity and certain other asset prices have been on the rise due in large measure to accommodative monetary policy."

"It is always possible that investors will begin to shift greater focus toward commodities going forward, which could drive materials prices higher even in the absence of accelerating global economic growth or significant rebound in America's nonresidential construction industry," said Basu.