Manufacturers Gear Up After Katrina; Prices May Rise

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anufacturers are gearing up to supply everything from construction materials to home appliances in the wake of Hurricane Katrina, the Wall Street Journal reported Monday.

But even as manufacturers boost production, problems in supply chains and high prices of petroleum-based raw materials could boost prices, the paper said.

The U.S. economy is foreast to take a hit from the hurricane, with 2005 growth estimated at a 3.5% annual rate, down from earlier predictions of 4%, the Journal said.

Some companies are increasing their output of things like construction wallboard and metal products, though metals prices already have been on the rise over the past two years, the Journal said.

Engine and equipment maker Caterpillar Inc. has already shipped 60 large generators from Brazil to the region, the paper said.

There could also be so much work in rebuilding the stricken Gulf region that there could be a labor shortage, the Journal reported.