Donation to Architecture for Humanity
May 16, 2012 1:55 PM CDT
Mortar Net is donating up to $7,500 for AFH
By Candice Sexton
Mortar Net is donating up to $7,500 for Architecture for Humanity (AFH) as part of its participation in the AIA 2012 National Convention and Design Exposition in Washington, D.C., May 17-19, 2012.
Between now and May 19, Mortar Net will donate $30 for every person who registers to support AFH at www.mortarnet.com, or at the Mortar Net AIA Convention booth #1701.
Mortar Net will base the amount it donates solely on the number of registrants, up to a total of $7,500. Participants register for free by filling out a short form.
About the Author
Candice Sexton is the Advertising Marketing Coordinator for Mortar Net® USA, Ltd.
CONSTRUCTION MATERIALS PRICES INCH UP IN APRIL, WHILE CONTRACTORS’ PRICES FOR NEW NONRESIDENTIAL BUILDINGS RISE MODERATELY
Construction Association Notes that Uneven Growth of Construction, Lack of Long-Term Infrastructure Funding Leave Firms Vulnerable to Price Spikes
The cost of construction materials took a breather in April, while contractors showed slightly greater ability to roll past price increases into their bids, according to an analysis of producer price index figures released today by the Associated General Contractors of America. Association officials noted that despite the temporary reprieve from materials price hikes, market conditions for construction remain difficult.
“Contractors caught a bit of a break on major input costs in April, enabling some firms to make up for recent price spikes,” said Ken Simonson, the association’s chief economist. “However, workloads remain uneven by segment and geographical region, leaving many firms very vulnerable to unexpected price hikes for key materials.”
Simonson noted that there was a rise of 0.1 percent in April and 2.5 percent over 12 months in the producer price index for inputs to construction—a weighted average of the cost of materials used in all types of projects, plus items consumed by contractors such as diesel fuel. That was the smallest year-over-year increase since early 2009, he observed.
There have been slightly larger increases in the indexes for new nonresidential buildings, which are a measure of what contractors estimate they would charge to put up a new building, Simonson added. He pointed to increases of 0.5 percent for the month and 4.3 percent over 12 months for new school construction; 0.5 percent and 4.0 percent, respectively, for new warehouse construction; 0.6 percent and 3.2 percent for industrial buildings; and 0.1 percent and 3.2 percent for offices.
Prices moderated in April for a variety of materials, some of which had experienced large jumps earlier in the year, Simonson noted. For instance, the price index for diesel fuel dropped 0.9 percent for the month and 0.1 percent year-over-year. The price index for gypsum products such as wallboard, which leaped 14 percent in the first quarter of the year, fell 1.9 percent in April, although it remained 11.5 percent higher than in April 2011. The biggest monthly and year-over-year decreases among key materials occurred in the price index for copper and brass mill shapes, which tumbled 2.7 percent and 11.4 percent, respectively.
Association officials said that while improvement in the price indexes for finished buildings is a positive sign, it will do little to help construction firms working in the public sector, where the volume of projects has been declining. They added that because most firms have to guarantee their bids months before knowing what they will have to pay for materials, the industry remains particularly vulnerable to future price spikes.
“Until Washington finalizes a number of long-delayed infrastructure measures, public sector demand for construction is likely to continue to decline,” said Stephen E. Sandherr, the association’s chief executive officer. “With less work available, firms working on public projects will be particularly susceptible to price spikes.”
Click here to view the Producer Price Index tables.
NATIONAL TRADE GROUPS TEAM UP TO CREATE A DRUG- AND ALCOHOL- FREE CONSTRUCTION INDUSTRY
Five of the nation’s largest construction trade associations have teamed up to form the Construction Coalition for a Drug- and Alcohol-Free Workplace (CCDAFW). The coalition’s mission is to create a drug- and alcohol-free construction industry by providing companies and organizations with the resources necessary to implement drug- and alcohol-free policies into their business practices.
CCDAFW today launched a nationwide effort urging construction-related firms and organizations to sign an online pledge signifying they will create and maintain a workplace free from substance abuse. In addition to listing current pledge signatories, the CCDAFW website, includes educational materials and state-by-state policies for substance abuse testing.
The CCDAFW is comprised of Associated Builders and Contractors (ABC), The Associated General Contractors of America (AGC), Construction Industry Round Table (CIRT), Construction Users’ Roundtable (CURT) and Women Construction Owners Executives (WCOE).
“We are driving an industry toward world-class safety,” said ABC President and CEO Michael D. Bellaman. “If we want to have an industry that is world class in safety, we have to start with a rock-solid foundation that includes an environment free of drugs and substance abuse. This coalition is a way to help companies build that foundation so we can continue toward our goal of eliminating all fatalities on construction worksites.”
“This partnership will build on the significant steps firms across the country have already taken to make construction safer today than it has ever been,” said AGC CEO Stephen E. Sandherr. “Making sure that every construction worker on every construction site is fully in control and absolutely sober is the best way to save lives and prevent injuries.”
“As an organization composed of CEOs from both leading design and construction firms, the CIRT Board of Directors views participation in the coalition as extremely critical to reinforcing the importance of safety across the wide range of disciplines involved with construction job sites,” noted CIRT President Mark A. Casso. “To that end, we see the center piece of this effort as not only the pledge itself, but also the educational materials, model policies, informational aids and best practices that will be made available and shared.”
“At CURT, we believe the road to zero incidents encompasses all facets of effective safety and health programs,” said CURT Executive Vice President Gregory L. Sizemore. “The Drug- and Alcohol-Free Workplace initiative is a way to help owners and contractors improve their safety performance – on and off the jobsite – leading to the elimination of accidents and injuries.”
“The health and safety of the construction industry workforce is of primary importance to company owners,” said WCOE National Executive Director Penny Pompei. “Drugs and construction sites do not mix. Small businesses often don’t have the resources to develop in-depth substance abuse awareness and prevention programs. This coordinated effort by a group of construction industry organizations will provide the tools WCOE’s small business owners need to combat this danger to our workers.”
The launch of the CCDAFW website and online pledge coincides with North American Occupational Safety and Health Week, May 6-12.
MFM hires North Woods Reps, LLC
May 05, 2012 4:15 PM CDT
North Woods Reps, LLC to represent MFM in Canada
By MFM Building Products
MFM Building Products is pleased to announce that the firm has reached an agreement with North Woods Reps, LLC to represent MFM in Canada.
North Woods Reps, LLC is a family-operated agency based in Maine. The firm represents numerous product lines within Eastern Canada, as well as several Canadian national programs. They develop their 2-step distribution accounts by creating demand at both the contractor and dealer level.
Representation from North Woods Reps, LLC includes:
Bob Hagenaars, Principle Partner, brings more than 26 years of experience to the Canadian construction marketplace. Bob is the founding member of North Woods Reps, LLC.
Courtney Hagenaars, Sales Representative, a University of Maine graduate, has been working as a sales representative in the Canadian market for six years.
About the Author
MFM Building Products, founded in 1961 by Robert E. Simpson, offers the construction industry nearly 50 years of knowledge and expertise in providing waterproofing and weather barrier products.
Concrete block helps contain fires
May 04, 2012 1:30 PM CDT
Concrete block contributes to a four part ‘balanced design’
By Canadian Concrete Masonry Producers Association
When fire strikes, there can be any number of contributing factors, from human behaviour (an untended fry pan; a cigarette left- burning) to the proximity of hazardous materials (half-empty paint tins stacked in a basement). Regardless of the cause, however, it’s the structural composition of the building that will largely determine how well the blaze is contained. And while industry-standard fire testing deems materials such as gypsum drywall to be fire resistant, the fact is that they cannot offer the fire protection of masonry products such as concrete block.
Following two fatal fires that made headlines in 2009 at retirement homes in Orillia, Ontario and Saguenay, Québec, the Canadian Concrete Masonry Producers Association (CCMPA) called into question Ontario’s building codes and whether or not they are doing enough to protect citizens.
The same year, a fire at a residence at Wilfred Laurier University, also with tragic consequences, again raised questions around the fire safety of our building codes. However, a significant differentiating factor in the case of WLU, specifically Waterloo College Hall, is that the fire was relatively well-contained and quickly extinguished compared with the fires at the Muskoka Heights Residence in Orillia and the Apartments Belles Generations in Saguenay. Again, while there are varying and location-specific factors that would have contributed to these blazes (a lack of sprinklers has been cited in the Muskoka Heights fire, for example), it’s worth noting that in the construction of Waterloo College Hall, concrete block had been used not only in the separating walls between each two-bedroom unit but also in the shared bedroom walls within the units themselves.
According to Waterloo Fire Rescue, the block walls — in addition to the concrete slab flooring — were a critical factor in the containment of a fire that, while tragic, could have been even worse.
Waterloo College Hall is perhaps a good example of the ‘balanced design’ approach to fire safety in building construction. It’s an approach that relies on four complementary fire-safety systems:
- a detection system to warn occupants of a fire
- an automatic suppression system
- education and training
- a containment system (concrete block) to limit the extent of fire, smoke and structural failure
Detection, most notably in the form of mandatory smoke alarms, has been the most well-publicized and arguably the most effective means of reducing injury and death due to fire. According to Canada Mortgage and Housing Corporation (CMHC), by 1999, the fire-death rate per 100,000 one- and two-family houses was 75 percent lower than it had been in 1980 — a drop attributed mainly to the legislated use of smoke alarms in new building construction.
Suppression is also being legislated in our building codes: in 2008, Ontario became the last jurisdiction in North America to mandate the use of sprinklers in high-rise apartments and condos (three storeys and higher). The recent study by the Ontario Association of Fire Chiefs underscores the need for sprinklers, especially in buildings housing elderly, frail and handicapped individuals.
Effective containment — or, as it’s referred to technically, compartmentalization — is a logical next logical step in the fire-safety equation. By containing a fire, you minimize its damage and essentially buy more time until it can be extinguished. Fire ratings obtained through lab testing offer an indication of that time. Using industry-standard two-hour tests involving exposure to 1800°C temperatures, a wall made of concrete block easily withstands the heat and the subsequent blast from a fire hose at 30 PSI (pounds of water per square inch). When the same testing is applied to fiber-reinforced gypsum panels, the hose penetrates the panels in about 10 seconds.
In a laboratory, we have the luxury of duplicating tests and debating the merits of one material over the other. Real life offers only one chance.
Concrete masonry can’t prevent fire, but it is the best way we have to contain and maintain its structural integrity, to help increase our chances of survival.
About the Author
The Canadian Concrete Masonry Producers Association works to improve the quality of life for people, through the creation and development of timeless and environmentally friendly masonry structures. Learn more at www.ccmpa.ca.
CONSTRUCTION EMPLOYMENT REMAINS NEARLY FLAT IN APRIL BUT RISES 1.1 PERCENT FROM A YEAR AGO; UNEMPLOYMENT RATE FALLS TO 14.5 PERCENT, A FOUR-YEAR LOW
Industry Association Notes Workers are Leaving Industry as Employment Gains Remain Sluggish; Officials Call on Congress to Act Promptly on Long-Term Infrastructure Funding
The construction industry lost 2,000 jobs in April, following similar declines of 3,000 in March and 1,000 in February, but still added 63,000 jobs over the past year as the industry unemployment rate shrank to 14.5 percent—the lowest April level in four years, according to an analysis of new federal employment data released today by the Associated General Contractors of America. Association officials said that lack of long-term federal highway and transit funding, along with other infrastructure budget cuts, threatens to limit construction job growth.
“The plunge in the unemployment rate for former construction workers from 17.8 percent in April 2011 and 21.8 percent two years ago is good news for them,” said Ken Simonson, the association’s chief economist. “Unfortunately, few of them have found jobs in construction, which actually employed 1,000 fewer workers than it did in April 2010.”
Construction started losing jobs in 2006—more than a year before the rest of the economy—and did not touch bottom until February 2011, a year after other sectors, Simonson pointed out. Even in the past year, there have been construction job losses in half the months, he said.
“It is tough to attract and retain workers when employment gains are so spotty,” Simonson observed. “With workers finding jobs in other industries, retiring or returning to school, contractors face a potential shortage of skilled workers in a year or two.”
Simonson noted that the 1.1 percent increase in construction employment over the past year was shared among all sectors of the industry. Employment among residential specialty trade contractors climbed by 33,100 or 2.3 percent, helped by a large increase in multifamily construction. Heavy and civil engineering employment rose by 18,400 (2.2 percent), thanks to work on power, energy and manufacturing projects. Nonresidential building employment increased by 6,000 (0.9 percent), while nonresidential specialty trade contractors added 3,900 employees, as private hospital, higher education, warehouse and transportation work accelerated. Residential building construction, mainly single-family homebuilding, eked out a gain of 700 workers (0.1 percent), he said.
Association officials said that inadequate long-term funding for infrastructure investment is likely to undermine construction employment gains in coming months. They cited the lack of a multiyear federal highway and transit bill as a particular problem, along with shrinking federal funding for a range of construction projects.
“Instead of hiring workers for desperately needed improvements to the nation’s transportation network, contractors must wait to see if lawmakers pass more than a short-term, no-increase highway and transit bill,” said Stephen E. Sandherr, the association’s chief executive officer. “Meanwhile, other federal appropriations for water, wastewater and building infrastructure have been cut for two years in a row, with further cuts likely, making the jobs outlook even grimmer, unless Congress passes adequately funded, long-term bills now.”
Construction materials prices spike in March
May 03, 2012 3:40 PM CDT
Prices contractors charge remain stagnant
By Associated General Contractors of America
The cost of construction materials jumped in March, even as the amount contractors charge to complete projects remained stagnant, according to an analysis of producer price index figures released by the Associated General Contractors of America. Association officials noted that the spike in materials prices continues despite relatively weak overall demand for construction, and cautioned that current market conditions could force some firms out of business.
“Price shocks for a number of key construction materials may have caught contractors by surprise in a period when overall inflation remained very moderate,” said Ken Simonson, the association’s chief economist. “Even though the increases are generally small compared to the high levels of last March, contractors have not been able to pass along these new costs, putting firms at risk of insolvency.”
Simonson cited increases in March for diesel fuel, up 3.5 percent for the month after rising 3.0 percent in February; gypsum products such as wallboard, up 2.2 percent after increasing 5.1 percent in February and 5.9 percent in January; and aluminum mill shapes, up 1.2 percent after a 1.9 percent rise the previous month, as particular problems. Overall, the producer price index for construction materials prices increased by 1.4 percent between February and March, following a rise of 0.9 percent from January to February.
Even as materials prices spiked in March, the amount contractors are able to charge for completed projects remained relatively flat, the construction economist added. He noted, for example, that the amount contractors charge for new industrial building construction declined by 0.2 percent between February and March. Meanwhile, the amount contractors charge for new warehouse construction rose by only 0.2 percent, for new school construction rose by 0.1 percent and for new office construction was up by only 0.2 percent.
Association officials said construction firms have been coping with over four years of relatively weak market conditions, driven in particular by declining public sector demand for construction and little demand for new housing construction. They added that conditions were being made more difficult because just as many stimulus and Base Realignment and Closure projects were wrapping up, Congress has failed to enact a number of long-term infrastructure investments programs for highway, transit, airport and water maintenance.
“Contractors are paying peak market prices for construction materials even as they charge bottom market prices to build new structures,” said Stephen E. Sandherr, the association’s chief executive officer. “Needless to say, many firms won’t be doing much hiring if they have to continue to cope with higher costs, less income and little demand for work.”
About the Author
With over 33,000 member firms, AGC of America is the leading association for the construction industry. AGC provides a full range of services satisfying the needs and concerns of its members, thereby improving the quality of construction and protecting the public interest. Learn More at www.agc.org.
CONSTRUCTION EMPLOYMENT INCREASES IN 155 OUT OF 337 METRO AREAS BETWEEN MARCH 2011 & 2012 AS WEATHER IMPACTS TYPICAL MARCH HIRING PATTERN
Bakersfield, Calif. and Denver-Aurora-Broomfield, Colo. Are Top Gainers; Monroe, Mich. Had Largest Percentage Decline, Chicago-Joliet-Naperville, Ill. Lost the Most Jobs
Construction employment increased in 155 out of 337 metropolitan areas between March 2011 and March 2012, decreased in 134 and stayed level in 48, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials said that fewer metro areas added construction jobs in March compared to February because of disruptions to typical hiring patterns caused by weather.
“While last March firms were getting a late start to the construction season because the winter was so cold, this year’s warm winter allowed many firms to do their typical spring hiring in February,” said Ken Simonson, the association’s chief economist. “It is too early to tell whether the hiring momentum within construction is slowing down or just pausing to let contractors catch up with the weather.”
Bakersfield-Delano, Calif. added the highest percentage of new construction jobs (30 percent, 3,900 jobs) followed by Battle Creek, Mich. (25 percent, 300 jobs) and Fargo, N.D.-Minn. (25 percent, 1,400 jobs). Denver-Aurora-Broomfield, Colo. added the most jobs (5,600 jobs, 9 percent). Other areas adding a large number of jobs included Indianapolis-Carmel, Ind. (5,300 jobs, 15 percent); Phoenix-Mesa, Ariz. (4,200 jobs, 5 percent); Portland-Vancouver-Hillsboro, Ore.-Wash. (4,000 jobs, 9 percent) and Bakersfield-Delano.
The largest job losses were in Chicago-Joliet-Naperville, Ill. (-5,900 jobs, -6 percent), followed by St. Louis, Mo.-Ill. (-5,700 jobs, -9 percent); Atlanta-Sandy Springs-Marietta, Ga. (-4,100 jobs, -5 percent) and Tampa-St. Petersburg-Clearwater, Fla. (-4,000 jobs, -8 percent). Monroe, Mich. (-36 percent, -800 jobs) lost the highest percentage. Other areas experiencing large percentage declines in construction employment included Springfield, Mass.-Conn. (-25 percent, -2,000 jobs), Anchorage, Alaska (-20 percent, -1,600 jobs), Anniston-Oxford, Ala. (-20 percent, -200 jobs) and Sheboygan, Wis. (-20 percent, -300 jobs).
Association officials said construction employment was also impacted by the market uncertainty being created by unresolved federal infrastructure measures. Construction firms that build public infrastructure, in particular, are uncertain about future work levels given Washington’s failure to enact a host of long-term investment measures like the highway and transit bill. Adding to the confusion, many construction firms, including many small companies that file taxes under individual rates, are uncertain how much they will owe starting next year, they added.
“When it comes to politicians talking about the need to support private sector job creation, construction firms could benefit from less rhetoric and more action,” said the association’s chief executive officer, Stephen E. Sandherr. “Instead of jousting at straw men and arguing about who cares more, it would be helpful if Congress and the administration would instead help end much of the uncertainty holding back the industry.”
Economic webcast on construction recovery
May 02, 2012 2:15 PM CDT
Complimentary webcast is open to everyone
By Reed Construction Data
Chief economists from Reed Construction Data, the Associated General Contractors of America and the American Institute of Architects are joining forces once again to host the upcoming economic webcast: A Construction Recovery At Last—But How Long and How Strong?
The webcast will feature economic experts Bernard Markstein, Ken Simonson and Kermit Baker in a detailed analysis of likely future activity within the various construction sectors. The construction industry is finally showing signs of sustained growth in multiple regions and market segments, but the recovery remains fragmentary and tentative. Join this webcast to hear views for the 2012 season:
- Will the current recovery gain strength or will it simply stall?
- Can the strength extend to additional geographic areas?
- Which segments and regions are still vulnerable?
- What global or domestic economic developments could derail the recovery?
- What will happen with materials costs?
The webcast will broadcast live starting at 2 p.m. EDT, May 3, 2012, and will be archived for later viewing. The speakers will accept questions from the online audience in the last half hour.
Brought to you by Maxwell SystemsComplete Construction Software Solutions, this complimentary webcast is open to everyone. Pre-registration is required prior to the event.
Register now at www.reedconstructiondata.com/events/register/11482.
About the Author
Reed Construction Data is a leading information provider to the construction industry, delivering targeted and timely project information, cost data and market intelligence.
CONSTRUCTION SPENDING INCHES UP IN MARCH COMPARED TO FEBRUARY AS PRIVATE SECTOR SPENDING CONTRIBUTES TO 6 PERCENT ANNUAL INCREASE IN ACTIVITY
Private, Public Sector Construction Activity Continue on Opposite Tracks as Private Activity is Up 11.5 Percent for the Year While Public Activity Declined 3.2 Percent Since March 2011 Amid Tight Budgets, End of Stimulus
Construction spending inched up in March 2012 to an annualized rate of $808 billion, up 0.1 percent compared to the previous month and is now 6 percent above year ago levels, according to a new analysis of federal data released today by the Associated General Contractors of America. The overall gains mask divergent trends however, as public sector construction activity continues to decline while private sector demand for new construction continues to strengthen.
“Private and public sector demand for construction appear to be heading along two distinct directions,” said Ken Simonson, the association’s chief economist. “While it is great to see private sector activity coming back to life, it is unfortunate to see declining public sector demand dampen the industry’s overall growth.”
Simonson noted that private construction activity expanded by 11.5 percent between March 2011 and March 2012 and by 0.7 percent compared to February 2012. Nonresidential spending was particularly robust, expanding by 15.2 percent from March 2011 and by 0.7 percent compared to February 2012. He noted that the biggest private nonresidential monthly spending increases were for transportation (up 6.7 percent for the month) and office projects (up 5.4 percent for the month), while manufacturing (up 38.6 percent for the year) and power construction (up 22.1 percent for the year) experienced the largest annual increases.
The economist added that private residential spending increased by 0.7 percent compared to February 2012 and 7.4 percent compared to March 2011. New single-family construction posted a 10.3 percent year-over-year rise and a 3.8 percent increase for the month. New multi-family construction was up 23.3 percent from the previous March but down 3.1 percent from February. Spending on residential improvements moved up 2.6 percent year-over-year and fell 1.9 percent for the month.
Simonson noted that public construction spending declined 3.2 percent in March from a year earlier and 1.1 percent from March. The two largest public categories showed similar results. Highway and street construction, the largest public category, was down 0.5 percent year-over-year and fell 0.8 percent for the month. Educational spending declined by 2.7 percent over 12 months after dropping 1.2 percent from February to March.
Association officials warned that the ongoing declines in public construction spending were making it difficult to benefit from the growing private sector construction activity. While Congress appears to finally be making progress on a long-overdue highway and transit bill, the lack of key bills, the winding down of the stimulus and the conclusion of many military base realignment projects were offsetting growth in private sector activity.
“While it is good to see Washington inching closer to passing some key infrastructure measures, at the rate they are progressing, they will be in place in time for the next private sector downturn,” said the association’s chief executive officer, Stephen E. Sandherr. “Instead of holding back a construction recovery, elected officials could support and encourage even more growth by enacting a host of long-term infrastructure bills.”
