Surveyor

[John Mercier]

I'm seeing a lot of late cycle pricing on most materials and labor. I would presume surveying to be under that category at this time.

[secondcurve]

Originally Posted by John Mercier

I'm seeing a lot of late cycle pricing on most materials and labor. I would presume surveying to be under that category at this time.

How do you know it is late cycle? There is a lot of momentum and endless liquidity in the market. Throw on top of this the demographics of the baby boom and I'm not sure this is late cycle. Will it eventually end in tears as the fed sucks money out of the economy? Probably. But it might have a ways to go before there is a noticeable slowdown.

[John Mercier]

Originally Posted by secondcurve

How do you know it is late cycle? There is a lot of momentum and endless liquidity in the market. Throw on top of this the demographics of the baby boom and I'm not sure this is late cycle. Will it eventually end in tears as the fed sucks money out of the economy? Probably. But it might have a ways to go before there is a noticeable slowdown.

Early Cycle there is more materials and labor than the demand... Mid Cycle, they are roughly balanced... Late Cycle, the demand is more than the material and labor available.

Prices drop in the Early Cycle... stay steady in the Mid Cycle... and climb abruptly in the Late Cycle.

The slowdown will be due to lack of materials and labor. That will happen irregardless of the FED actions.