Speculation Sparks Huge Price Surge Hitting Electrical and Mechanical Costs

Several stories recently reported in the general press concerned the theft of copper products from utilities and construction work sites. Estimators know that when the materials they are working with develop a "street value" similar to cocaine that things are getting crazy. The thievery is more than conventional break-ins. There is a pilferage problem - people will take a little bit at a time. With copper prices at an all time high, loosing small bits of copper products can add up quickly. According to John Mothersole, economist with the Washington, D.C.-based forecasting firm Global Insight, what is really driving prices is pure speculation in the commodity markets. Mechanical and electrical systems are bearing the brunt of impact of higher copper prices. Higher copper prices do not impact all building costs equally. The price of copper is forcing some contractors to search for alternatives.