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Contractor Warehouse

With the release of data for July 2005, the Bureau of Labor Statistics expanded the Producer Price Index (PPI) by introducing an index measuring the changes in output prices for new warehouse building construction. This index is classified under a PPI-specific 2002 North American Industry Classification System (NAICS) code, 236221. Data for this industry reach back to December 2004. The index for NAICS 236221, new warehouse building construction, is the first measure developed and published by PPI as part of its Nonresidential Building Construction (NRBC) initiative. This index will appear in table 5 of the PPI Detailed Report and is available online through the BLS website.
In the late 1990s, BLS began the NRBC initiative to develop output price indexes for the nonresidential building construction sector of the U.S. economy. Ultimately, the initiative, as currently funded, will yield output price measures for four types of nonresidential building structures and for the work performed by contractors from four trade groups on nonresidential building structures. The initiative is noteworthy for several reasons. It expands coverage into an important sector of the U.S. economy previously not measured by the PPI. The value of private fixed investment in structures totaled $995 billion in the first quarter of 2005. This represented about 8.2 percent of the total gross domestic product (GDP) in the same period. Nonresidential structures alone represented $294 billion, or about 2.4 percent of total GDP. These new measures will provide BLS data users with information not available from other sources. The initiative also is important because the Bureau of Economic Analysis of the U.S. Department of Commerce has indicated an interest in using the BLS data to improve its GDP deflator estimates for the nonresidential building construction sector.

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