Contractors use a lot of diesel fuel to power bulldozers, trucks, and other heavy equipment. And many building materials industries, such as copper and steel, are energy intensive.

My suspicion is that after the first month it takes effect, you'll see more cement showing up in Arizona.

Consumers who are doing repairs or additions to their home will notice the effect when they buy a bag of cement.

Historically, recovery from catastrophes happens very rapidly, but I don't think we've ever seen road damage to the extent we have seen here. I would think they would find the machines and manpower to do road repairs because you can't get to the other jobs until you have access.

Whether the recovery from Katrina adds to demand for construction materials depends on the types and speed of rebuilding in damaged areas.

I doubt you'll feel it (rising costs) much,