North Carolina Construction News

Home Sales Highest in 3 ½ Years

noreply@blogger.com (Bob Kruhm) — Wed, 22 May 2013 20:05:00 +0000

Sales of previously occupied U.S. homes ticked up last month to the highest level in three and a half years, helped by a jump in the number of houses for sale, reports the News & Observer. The National Association of Realtors said that sales rose to a seasonally adjusted annual rate of 4.97 million, up from 4.94 million in March.

Home sales have risen 9.7 percent in the past 12 months, evidence that the housing market is still improving. But sales have been roughly flat since November. The supply of available homes remains tight and many potential buyers aren't able to get loans.

The number of homes for sale rose 12 percent in April from March to 2.16 million. But inventory is still almost 14 percent lower than a year earlier. The increase in inventories partly reflects the beginning of the spring selling season. The supply of homes would be exhausted in 5.2 months at the current sales pace. That's below the typical level of about six months. More Americans are interested in purchasing homes: buyer traffic has risen 31 percent in the past year, the Realtors' group said.

Rising demand and tight supply has pushed up prices. The median price of a home for sale jumped 11 percent last month from April 2012 to $192,800. That's the highest in nearly five years. The median is the figure halfway between the highest and lowest number.

Higher prices could encourage more people to sell homes, fueling further sales gains. The increase in prices partly reflects more sales of higher-priced homes. Sales of lower-priced homes are rising more slowly.

And sales of cheap foreclosed properties are falling. The proportion of distressed sales has fallen sharply in the past year, to 18 percent from 28 percent in April 2012. Distressed sales include foreclosed homes and homes in which the size of the mortgage exceeds the home's value.

But first-time buyers made up only 29 percent of sales last month, the lowest proportion in more than 2 years. That's well below the 40 percent typical in a healthy market and down from 35 percent a year ago. First-time buyers usually help drive healthy markets. They purchase from existing homeowners, who then are able to move on to larger houses.

Many homes are being snapped up soon after being put on the market. Homes were on sale for a median 46 days in April, down from 62 in March. Homes are selling at a 45 percent faster pace than a year earlier. Since the housing bubble burst more than six years ago, banks have imposed tighter credit conditions and required larger down payments. Those changes have left many would-be buyers unable to qualify for the super-low mortgage rates.

Rising demand and limited supply have encouraged builders to boost construction. Applications for building permits rose in April to the highest level in nearly five years. And U.S. builders started work on more new homes and apartments in April compared with the same month a year earlier. Read More.

NC Senate Proposes Defunding of Rural Center

noreply@blogger.com (Bob Kruhm) — Tue, 21 May 2013 14:13:00 +0000

Guest Editorial from Rural Center President Billy Ray Hall

I was as shocked as everyone else this morning to see a proposed Senate budget that eliminates all state funding for the Rural Economic Development Center and re-creates key center programs in two state departments.

The budget seriously shortchanges the people of rural North Carolina. The Rural Center has a proven, 26-year history of creating jobs, improving infrastructure and providing access to clean water in the state's 85 rural counties. By removing all state funding from the center, the budget seeks to abolish the one organization dedicated exclusively to delivering a full range of financial resources and technical assistance to rural communities.

As the budget process moves forward, we look to House Speaker Thom Tillis and the House of Representatives to craft a budget that reinstates center funding and best serves the 4.7 million rural people of this state.

Why the center is important to North Carolina's rural communities

The Rural Center is the only statewide body focused exclusively on the economic challenges and opportunities of the state's 85 rural counties.

The center has delivered more than $600 million in financial resources to rural communities since 1987. More than 33,000 jobs have been created and more than 4,500 business have expanded.

The center's grants have leveraged more than $2 billion in other public and private investments.

91 percent of the center's appropriations directly aid local communities.

The center's job-generating grants have created one job for every $5,700 in grant funding.

Projects funded by clean water grants (two-thirds of the total) serve more than 2 million customers.

Rural communities continue to face daunting challenges from long-term economic restructuring, natural disasters and recession. They need a dependable, proven partner for progress. Read More.

Billy Ray Hall has served as president of the Rural Center since its founding in 1987. Prior to joining the center, Hall served as deputy director of the N.C. Department of Natural Resources and Community Development and chief economist for the Office of State Planning. Former Gov. James B. Hunt Jr. twice appointed Hall to lead state disaster recovery efforts, following Hurricane Fran in 1996 and Hurricane Floyd in 1999.

Can You Stop Work for Nonpayment?

noreply@blogger.com (Bob Kruhm) — Fri, 17 May 2013 01:27:00 +0000

If a general contractor fails to pay you (a subcontractor) for work performed or services provided, does the subcontract allow you to stop work? Many general contractor proprietary subcontracts are likely to be silent on a subcontractor’s ability to stop work for nonpayment.

The American Subcontractors Association provides members with the information they need to negotiate a particular subcontract clause, including ASA-recommended language, samples of what a subcontractor may see in a client’s proprietary subcontract, an explanation of the impact of poor language on a subcontractor, negotiating tips, and sources for more information.

Without specific language in the subcontract, the subcontractor is left with the ambiguous and unpredictable “common law” right to stop work and only if nonpayment constitutes a material breach by the contractor. Stopping work can be extremely risky without specific language because of courts’ wide-ranging views, and can be risky if the subcontract prescribes liquidated damages for unexcused delays. ASA recommends subcontractors include language such as:

“Should Subcontractor’s payment be delayed because (a) Customer fails to receive timely payment of amounts certified and approved, or (b) Customer fails to make timely payment after receiving payment for Subcontractor’s work, then Subcontractor may suspend work after giving at least seven (7) days written notice to Customer of the intent to suspend and the date of intended suspension. Should Subcontractor’s work be thereafter suspended for at least twenty-one (21) days, Subcontractor may terminate this subcontract upon written notice of termination to Customer.”

If the general contractor argues, “I can’t worry about you stopping work” or “This is an unreasonable request,” the subcontractor can counter with, “Why worry that I have the right to stop my work for nonpayment? If you pay on time, this becomes academic anyway.” The subcontractor could also respond, “I’ve agreed to give you all sorts of rights if I foul up. I need the same right if you default.” If the general contractor persists, “I just don’t get why you think you need this,” the subcontractor could argue, “I don’t have enough money to throw ‘good money after bad’ if payments dry up or if the job shuts down.” Sometimes general contractors insist, “This isn’t industry practice.” On the contrary, a subcontractor could reply, “What I’m asking is in line with what both ConsensusDocs and AIA documents say is fair, and these forms reflect current industry practice.” Read More.

Getting A Handle on the Economic Effects of Drilling in NC

noreply@blogger.com (Bob Kruhm) — Thu, 16 May 2013 19:56:00 +0000

Guest Editorial by Michael L. Walden

Like many public issues, drilling for energy resources in our country has both strong advocates and equally vocal critics. Supporters see domestic energy development as a route to national energy self-sufficiency and lower fuel prices. Detractors worry about possible costs to the environment and our health.

North Carolina has joined this debate. Estimates show our state has the largest reservoirs of off-shore energy resources of any East Coast state. There are also thought to be significant supplies of natural gas underground in the central part of the state.

This information has led to a push for developing North Carolina’s off-shore and on-shore energy resources, with the hope of creating substantial jobs, income and tax revenues for the state.
But what exactly will be the size of these economic effects? And how significant might be the environmental and other costs? Unfortunately, there have not been comprehensive answers to these questions, so – without any funding from any side of the drilling debate – I embarked on a study to find out.

It appears the largest economic benefits could come from off-shore drilling. Based on the mid-point estimates for off-shore energy quantities from the federal government and forecasts of energy prices from domestic and international sources, I estimate that more than 1,100 jobs and $181 million of annual economic activity would be created during a seven-year period of building the necessary infrastructure for drilling off-shore.

Then, assuming a 30-year production period, off-shore energy operations could create almost 17,000 jobs and $1.9 billion of yearly economic activity. Importantly, these economic numbers are only for North Carolina and do not include jobs or incomes going out-of-state. The numbers also include effects on suppliers and other supporting firms.

The average quantities of on-shore energy resources estimated by geologists are significantly smaller than for off-shore, so the economic-impact estimates are also lower. I calculate that just shy of 500 North Carolina jobs and $80 million of new annual economic activity would occur in our state while wells are drilled and supporting infrastructure constructed. Then, as the energy resource is being accessed and produced, 1,400 jobs would be supported and $158 million of yearly commerce would be created.

But these estimates are very, very sensitive to two factors: the amount of energy resources that exists and the future prices of those resources.

The federal government gives a range of estimated energy-resource quantities available off-shore and on-shore. I used the “mid-point” estimate for my calculations – meaning this was the amount the geologists were 50 percent confident was there. However, the government also gives a much lower amount that it is 95 percent confident exists and a much larger amount it is only 5 percent confident is there.

Forecasts of future energy prices are also fraught with uncertainty. Higher prices increase the economic value of the energy. And higher prices also make it profitable for energy companies to spend more exploring and finding more energy. But lower prices send these two effects in the opposite direction.

The point is that different assumptions about how much recoverable energy resources exist for North Carolina and the prices of these resources can dramatically change the estimated economic effects – both up and down – sometimes by a factor of 100!

What about the potential downsides of energy production in North Carolina? For off-shore production, I estimated the average annual cost of damage from oil spills. Using average spillage rates for the last 40 years and estimates of costs per spill, I calibrated the likely average yearly cost to be $83 million. Of course, improved technology and safety related to drilling could reduce these costs.

On-shore energy development from hydraulic fracturing is relatively new, so less data are available. However, several studies have found a negative relationship between on-shore energy production activities and residential property values. Unfortunately, the potential range of the effect is quite large, but applying the results suggests possible – and I emphasize, possible – property value declines between $600 million and $4.7 billion in affected North Carolina counties. The lower property values reflect the perceived adverse effects from drilling.

All these numbers and estimates are subject to change as new information becomes available. But hopefully my study can serve as a baseline for further debate and discussion. Read More.

Reprinted from the May 16, 2013 issue of News & Observer. Michael Walden is a William Neal Reynolds Distinguished Professor in the Department of Agricultural and Resource Economics at N.C.State.

CAGC-Supported Career and Technical Education Bill Clears House

noreply@blogger.com (Bob Kruhm) — Wed, 15 May 2013 17:42:00 +0000

In a 105-6 vote, the NC House approved a Carolinas AGC - supported bill calling for pay for industry certifications, credentials and bonus funding to be awarded to local administrative units. Under the bill, H968, students would be supported to earn approved industry certifications and credentials. Local school administrative units, in turn, would receive bonuses for each student earning an approved industry certification or credential.

Funding Proposal: The bill, as initially written, would appropriate $1,252,157 for 2013-14 and $7,011,200 for 2014-15 to pay for industry certifications, credentials and bonus funding to be awarded to local administrative units. The latest version of the bill that cleared the House was amended on the floor without the specific appropriations, as suggested by Rep. Hugh Blackwell, R-Burke, who said he hoped the budget bill would include the appropriations. Specifically, the latest version of the bill says:

"This act becomes effective only if the General Assembly appropriates funds to implement it in the amounts set out in Section 2 of this act for the 2013-2015 fiscal biennium. If such funds are appropriated, this act becomes effective July 1, 2013, and applies beginning with the 2013-2014 school year." Section 2 of the bill says that the act becomes effective on July 1, beginning with the 2013-14 school year.

What's Next: The bill will go to the Senate and be assigned to committee. Read More.

Construction Material Prices Fall 0.1 Percent

noreply@blogger.com (Bob Kruhm) — Wed, 15 May 2013 16:03:00 +0000

National construction materials prices slipped 0.1 percent in April, according to the producer price report by the U.S. Department of Labor. Year over year, construction materials prices are up just 0.4 percent, reported the Associated Builders & Contractors. Nonresidential construction materials prices decreased 0.1 percent for the month and are down 0.4 percent over the last 12 months.

"Contractors should not be surprised if nonresidential construction materials prices bounce back significantly over the next several months," said ABC Chief Economist Anirban Basu. “In the most recent month, materials prices would have actually fallen significantly except for an increase in energy prices,” Basu remarked. “In recent weeks, commodity prices have generally been weaker, a reflection of a soft global economy still prone to bouts of weakness.

Nonferrous wire and cable prices dropped 3.5 percent for the month and are down 4.2 percent on a year-over-year basis. Prices for plumbing fixtures and fittings slipped 0.5 percent compared to March, but are 0.8 percent higher than April 2012 prices. Prices for fabricated structural metal products decreased 0.4 percent for the month and are down 0.9 percent compared to one year ago. Iron and steel prices slipped 0.3 percent in April and are 9.3 percent lower from the same time last year. Steel mill product prices are an exception to the trend for metal prices, as they increased 0.4 percent for the month but remain 8.9 percent lower than the same time last year.

In contrast, crude energy prices increased 3.7 percent as natural gas prices jumped 15.5 percent. Year over year, crude energy prices are up 8.4 percent. Softwood lumber prices continue to climb and are up 2.5 percent for the month and 33.1 percent during the past 12 months. Prices for prepared asphalt, tar roofing, and siding increased 2.1 percent in April and are 6 percent higher compared to the same time last year. Prices for concrete products increased 1.1 percent compared to last month and are 3.2 percent higher from one year ago.

Overall, the nation’s wholesale goods prices decreased 0.7 percent in April—the largest drop in three years—but are 0.7 percent higher compared to April 2012.

Analysis

“Once again, the headline number for nonresidential construction materials prices remains benign,” said ABC’s Basu. “Over the past six months, the monthly percentage changes in nonresidential materials prices have shown little movement.

“However, beneath the headline numbers is some emerging volatility that should concern contractors,” said Basu. “This volatility is not necessarily associated with rising prices, but rather with expanding monthly fluctuation that may render bidding projects more difficult.

“Economic growth in China now appears to be firming and Japanese economic activity is accelerating, which would tend to be consistent with future materials price increases,” added Basu. “In addition to a shifting global outlook is the impact of central bank policy around the world. Many central banks are now following the lead of America’s Federal Reserve by lowering interest rates and increasing money supplies—a policy environment that is more likely to be associated with both volatile and rising materials prices.

“Only time will tell if materials prices generally remain lower,” said Basu. Read More.

NAHB Announces Improved Housing Metros

noreply@blogger.com (Bob Kruhm) — Mon, 13 May 2013 20:33:00 +0000

The number of U.S. housing markets showing sustained improvement in three key measures fell slightly to 258 in May from 273 in April, according to the National Association of Home Builders/First American Improving Markets Index (IMI). This total includes entrants from all 50 states and the District of Columbia.

The IMI identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. Four new markets were added to the list and 19 were dropped from it this month.

North Carolina cities on the sustained improvement list experiencing improvement in employment are: Charlotte, NC (8.2%), Durham (6.0%); Fayetteville (1.9%); Goldsboro (3.6%); Greensboro (1.7%); Greenville (6.6%); Hickory (2.1%); Rocky Mount (1.2%) and Winston-Salem (3.4%).

“The fact that over 70 percent of all U.S. metros are holding onto their spots on the improving list is definitely good news, and representative of the generally brightening outlook for housing markets nationwide,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “That said, our industry’s progress on the road to recovery is being slowed by rising challenges related to the availability of credit, building materials, labor and lots for development.”

“While seasonal trends in home prices resulted in an overall decline in the IMI this month, the index remains at a very strong level and continues to represent markets in every state,” noted NAHB Chief Economist David Crowe. “Some metropolitan areas that had previously charted marginal home-price gains dropped off the list this time as a result of typically softer prices seen in the winter months, which is similar to what the index showed in this same period last year.”

“Today’s report shows that the majority of U.S. metros are experiencing strengthening house prices, employment and permitting activity, which is a much more positive picture than the one we were seeing a year ago,” observed Kurt Pfotenhauer, vice chairman of First American Title Insurance Company. “That’s the big picture on which consumers need to focus.”

A metro area must see improvement in all three measures for at least six consecutive months following those measures’ respective troughs before being included on the improving markets list.
A complete list of all 258 metropolitan areas currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in May, is available at www.nahb.org/imi. Read More.

The Heat is On: What Contractors Can Do to Protect Workers from Heat-Related Illness

noreply@blogger.com (Bob Kruhm) — Mon, 13 May 2013 15:01:00 +0000

As a cold winter finally comes to an end, many of us look forward to summertime warmth. But while sun and heat may make for a fun day at the beach, they can spell danger for workers who are exposed to soaring temperatures and a rising heat index, reports the OSHA Law Blog.

According to the Occupational Safety and Health Administration (“OSHA”), thousands of workers in the United States get sick from excessive heat exposure while working outdoors each year and more than 30 workers died in 2012 from heat-related illnesses.

Although OSHA has no heat illness prevention standard, Section 5(a)(1) of the Occupational Safety and Health Act of 1970 (“OSH Act”), known as the General Duty Clause, requires employers to provide their employees with a workplace free from recognized hazards likely to cause death or serious physical harm. That includes protecting them from heat stroke and other serious heat-related illness. Of the “State-plan” states running their own safety programs under agreements with OSHA, only California and Washington currently have heat-related illness prevention standards. However, other State-plan states also have general duty clauses in their statutes which may be invoked to address these issues.

The dangers associated with excessive heat exposure are real. Employers should evaluate conditions at their worksites and take steps to prevent heat-related illness among their workers. OSHA has resources to help employers and employees stay safe when working in high-temperature and high-humidity conditions. They are available on OSHA’s website at www.osha.gov/SLTC/heatillness/index.html.

In evaluating worksite conditions, employers should keep in mind that employees required to engage in intense or continuous physical exertion, or who are exposed to high temperatures and humidity or direct sunlight may be susceptible to heat-related illness. Employees who are required to wear heavy or bulky protective clothing or equipment also may be susceptible. In addition, employees who have not previously worked outdoors in high temperature conditions generally are more at risk because they have not built up a tolerance to hot conditions.

Two of the most serious heat-related illnesses are heat stroke and heat exhaustion. Both are dangerous illnesses that could result in death or hospitalization of the worker.

• Heat stroke occurs when the body’s way of cooling itself fails and body temperature rises above 104°F. The signs and symptoms of heat stroke are a high body temperature, red or hot skin, confusion, fainting and/or convulsions. If a worker is experiencing heat stroke, employers should call 911 and move the worker to a shady or cool area immediately. Employers also should remove as much of the affected worker’s clothing as possible and attempt to cool down the worker by placing cold, wet towels or ice all over the body

• Heat exhaustion occurs when body temperature rises above 100.4°F. The signs and symptoms of heat exhaustion are headache, nausea, dizziness, weakness, irritability, confusion, thirst, and heavy sweating. If a worker is experiencing heat exhaustion, employers should move the worker to a shady or cool area immediately. Employers also should remove the affected worker’s shoes, socks, and other unnecessary clothing, apply a cold compress to the head, neck and face, and give the worker cool water to drink. If symptoms persist or get worse, employers should call 911.

Employers should consider implementing some of the following measures, OSHA suggests, to reduce heat-related illness among their employees:

•Provide air-conditioned or shaded areas close to the work area and schedule frequent rest breaks.

•Provide workers with plenty of cool water in convenient, visible locations close to the work area.

•Encourage and remind workers to drink water before they become thirsty and about every 15 minutes.

•Allow workers to get used to heat conditions by gradually increasing exposure over a five-day work period and by implementing more frequent breaks during the first week of work in those conditions.

•Monitor weather reports daily and reschedule jobs with high heat exposure to cooler times of the day.

•Encourage employees to wear or provide employees with light-colored and permeable clothing.

•Monitor workers for signs and symptoms of heat exposure and encourage employees to report symptoms of any heat-related illnesses.

•Train workers and supervisors about the hazards leading to heat stress and ways to prevent them.

•Implement an emergency plan and know what to do if someone is experiencing symptoms of a heat-related illness.

By limiting employees’ time in the heat and implementing safe work practices, employers can help prevent heat-related illness and reduce the chances of receiving a General Duty Clause citation. Read More.

Court Bars Notice on Workers' Right to Unionize

noreply@blogger.com (Bob Kruhm) — Fri, 10 May 2013 15:32:00 +0000

A federal appeals court struck down a National Labor Relations Board rule requiring most private sector employers to post a notice informing employees of their right to unionize, reports the New York Times.

Ever since the labor board proposed the rule in December 2010, business groups have asserted that the move exceeded the board’s authority and was an improper imposition on nearly six million employers, most of them small businesses.

In its decision, the United States Court of Appeals for the District of Columbia Circuit concluded that the N.L.R.B.’s rule violated a federal law that bars the board from punishing an employer for expressing its views so long as those statements do not constitute threats of retaliation or force. The labor board had originally said that an employer’s failure to post the notice would be considered an unfair labor practice, resulting in penalties, but the circuit court said the board would be acting illegally to punish an employer for expressing a statement or in this case, for failing to post a statement under orders by the labor board.

The labor board’s rule told employers to post a notice, informing workers of their right to form or join a union, to strike, to bargain collectively and to act together to improve working conditions. The federal circuit court issued an injunction in April 2012, suspending the labor board’s rule, after two lower courts differed on whether the board had overstepped its powers.

The circuit court cited several Supreme Court rulings to reach its decision that employers have a right to disseminate views as well as a right not to disseminate views. The court relied on First Amendment rulings that prohibit the government from telling people what they must say, like telling schoolchildren they must recite the Pledge of Allegiance.

Many businesses asserted that the labor board’s proposed poster was one-sided and pro-union, although the board said the poster was neutral. In holding that the labor board could not punish employers for failing to post the notice, the court decided to vacate the rule altogether, saying that the labor board would not have wanted to propose a merely voluntary rule that it could not enforce.

The labor board said it was reviewing the ruling and would “make a decision on further proceedings at the appropriate time.” It noted that the Fourth Circuit Court of Appeals was also reviewing the legality of the poster rule. Read More.

HouseTentatively Approves Anti-LEED Bill

noreply@blogger.com (Bob Kruhm) — Fri, 10 May 2013 13:06:00 +0000

The NC House of Representatives approved 78-34 a second reading of a bill that is expected to bar public projects from using the U.S. Green Building Council’s LEED program, reports the Charlotte Business Journal.

House Bill 628 — titled Protect/Promote NC Lumber — says those projects may use “a nationally recognized high-performance environmental building rating system” if that green building program doesn’t use a credit system “disadvantaging materials or products manufactured or produced” in North Carolina.

That will effectively block the use of Leadership in Energy and Environmental Design rating system, says Emily Scofield, USGBC-NC executive director.

House Bill 628 compelled representatives to protect North Carolina’s timber industry without providing evidence that the industry has suffered as a result of LEED certification,” Scofield said after the House vote. “The USGBC NC and its supporters worked to present the facts to our representatives that all N.C. forest products can contribute to points toward certification under the regional materials credits of LEED and some can also contribute to the certified wood credit.”

HB 628 was originally expected to be legislation calling for a study, Rep. Ruth Samuelson said during debate on the House floor this afternoon. Samuelson said she received numerous emails with concerns on the impact of the legislation after it was introduced, adding that there was uncertainty as to how the bill would affect Charlotte-based Nucor Corp., concrete makers and other companies that are part of the green building industry.

Samuelson offered an amendment that would delay the bill’s enactment to July 1, 2014. Her amendment also called for that deadline to apply to “construction and renovation projects for which the bidding process is initiated on or after that date.”

But Rep. Mark Brody (R-Union) called for the amendment to be voted down: “LEED does not hold the secret to green building.” Samuelson told other house members that, whether they supported or opposed the LEED program, that there was a “whole heck of a lot of jobs tied to it.” “Why would we not take the time to look into the potential problems and solve them in the year?” she says of any unintended consequences of HB 628.

But Rep. Mike Hager (R-Rutherford) said any delays would hurt economic development in the state. “I need to add jobs now,” Hager said, calling for opposition to Samuelson’s amendment. “If you are for jobs, you will vote for this amendment,” Samuelson responded. Samuelson’s amendment failed in a 53-58 vote.

A third and final reading of the bill is pending. If HB 628 is approved, it will still require support from the state senate. The state’s USGBC chapter plans to continue its efforts to stop the bill.
“We will work harder with the Senate once this bill crosses over,” USGBC-NC’s Scofield says. “LEED and NC timber both benefit our state’s economy and natural resources." Read More.

Homebuilders Can't Find Enough Qualified Workers

noreply@blogger.com (Bob Kruhm) — Fri, 10 May 2013 12:59:00 +0000

U.S. builders and the subcontractors they depend on are struggling to hire fast enough to meet rising demand for new homes, reports the Associated Press. Builders would be starting work on more homes – and contributing more to the economy – if they could fill more job openings. In the meantime, workers in the right locations with the right skills are commanding higher pay.

Consider Richard Vap, who owns a drywall installation company. The resurgent housing market has sent builders calling again. Vap would love to help – if he could hire enough qualified people. “There is a shortage of manpower,” says Vap, owner of South Valley Drywall in Littleton, Colo. “We’re probably only hiring about 75 or 80 percent of what we actually need.”

The shortage of labor ranges across occupations – from construction superintendents and purchasing agents to painters, cabinet makers and drywall installers. The National Association of Home Builders says its members have complained of too few framers, roofers, plumbers and carpenters. The shortage is most acute in areas where demand for new homes has recovered fastest, notably in Arizona, California, Texas, Colorado and Florida.

The problem results largely from an exodus of workers from the industry after the housing bubble burst. Experienced construction workers lost jobs. And many found new work – in commercial building or in booming and sometimes higher-paying industries like mining and natural gas drilling – and aren’t eager to come back.

A shortage of labor in a well-paying industry might seem incongruous in an economy stuck with a still-high 7.5 percent unemployment rate. But it reflects just how many former skilled construction workers have moved on to other fields.

In 2006, when the boom peaked, 3.4 million people worked in homebuilding. By 2011, the figure had bottomed at about 2 million. As of last month, about 2.1 million people were employed in residential construction.

Jobs in the industry did rise 4.1 percent in April from a year earlier, faster than overall U.S. job growth. But they’d have to surge 24 percent more to reach 2.6 million, their 2002 level – “the last time the market was normal,” says David Crowe, chief economist for the National Association of Home Builders.

For now, the industry is building faster than it’s hiring. In February, builders began work on single-family homes at the fastest pace in five years. And in March, new home construction broke the 1 million mark for the first time since June 2008. Permits for future construction are also near a five-year high.

In the 12 months that ended in March, housing starts surged 47 percent. Yet over the same period, the industry’s employment grew just 3.7 percent.Normally, a rebound in home construction helps propel an economy after a recession. But even with the steady gains in housing starts, sales and prices since last year, the industry remains below levels considered healthy.

The National Association of Home Builders says nearly half its members who responded to a survey in March said a scarcity of labor has led to delays in completing work. Fifteen percent have had to turn down some projects.

The higher pay they’re handing out helps explain why builders have been gradually raising prices on new homes. The median price was $247,000 in March, up about 12 percent from the same month in 2011, the Commerce Department says. The industry may have to look more aggressively for workers at vocational schools, federally funded programs like Job Corps and elsewhere, says Crowe of the homebuilders group. “We’ll have to recruit more,” he says.

Crowe and other economists predict that as demand for new homes strengthens further, higher wages will woo back many laborers who took up other jobs during the downturn.

The homebuilders association is pushing Congress to let more immigrants enter the country through a worker visa program. The association cites census data showing that foreign-born workers make up about 22 percent of the U.S. home construction work force. It estimates there are 116,000 unfilled jobs.

Still, even if builders find more workers to hire, two other factors could hold back the industry for a while: A tight supply of building materials and ready-to-build land. Surveys by the National Association of Home Builders show that builders have grown concerned about those obstacles. In part, that’s why Crowe thinks employment in single-family home building won’t return to its 2002 total until 2016. And he isn’t unhappy about that. “In a perverse sort of way, the mild housing recovery is probably a good thing,” Crowe says. “We need to rebuild the infrastructure of the industry.” Read More.

Construction Unemployment Drops 13.2 Percent

noreply@blogger.com (Bob Kruhm) — Tue, 07 May 2013 17:53:00 +0000

The unemployment rate for construction workers fell to the lowest April level in five years as contractors added more than 150,000 employees in the past year despite a dip in employment last month, according to an analysis of new government data by the Associated General Contractors of America. Association officials noted that, despite the monthly drop, the industry is likely to continue adding jobs for much of 2013.

“It is heartening to see that both nonresidential and residential segments of the construction industry added significant numbers of workers in the last 12 months, even though gains from March to April were limited to the residential side,” said Ken Simonson, the association’s chief economist. “Other indicators, such as the continuing growth in architectural and engineering employment, suggest that demand for construction will expand further.”

Seasonally adjusted construction employment of 5.79 million in April was 6,000 less than in March, but 154,000, or 2.7 percent, higher than in April 2012, Simonson noted. Residential building and specialty trade contractors added 13,300 workers in the month and 83,700 (4.1 percent) over 12 months. Nonresidential building and specialty trade contractors, along with heavy and civil engineering construction firms, lost 19,700 employees in April, but added 70,100 (2.0 percent) over 12 months. Architectural and engineering services employment climbed by 2,700 in the month and 23,400 (1.8 percent) from a year earlier.

The unemployment rate for jobseekers who last worked in construction fell to 13.2 percent from 14.5 percent in April 2012, the lowest April level since 2008. Three years ago, in April 2010, the rate was 21.8 percent. The industry unemployment rate is not seasonally adjusted and, thus, can be compared to the same month in past years but not month to month.

“The ongoing decline in the construction unemployment rate is only partly a result of opportunities in the industry,” Simonson pointed out. “Unfortunately, many former workers have now left the industry, perhaps permanently, which will make further recovery in construction more difficult.”
Association officials said that if construction employment grows as expected during the coming months, it will become increasingly difficult for employers in particularly fast growing market regions and segments to find qualified workers. They added that a lack of domestic skill-based educational programs and arbitrary caps on the number of construction workers in proposed immigration legislation would make it harder for firms to keep up with growing demand.

“It will not take a lot of growth in demand before many construction firms are scrambling to fill positions with skilled workers,” said Stephen E. Sandherr, the association’s chief executive officer. “We need to provide significantly more opportunities for students to learn skills-based crafts like construction and avoid imposing artificial limits on the size of the construction workforce in immigration legislation.” Read More.

Home Building Responsible for 20% of Economic Expansion

noreply@blogger.com (Bob Kruhm) — Tue, 07 May 2013 17:28:00 +0000

Over the last two years, home building has experienced significant growth, albeit off of low levels. And this expansion has added to overall growth of Gross Domestic Product (GDP). In fact, since the last quarter of 2011, advances in home building have been responsible for 20% of total economic expansion, reports the National Association of Home Builders.

While the economy as a whole has slowed somewhat over the last year, the expansion of home building has picked up steam. The home building component of the GDP accounts, as measured by the Bureau of Economic Analysis, is Residential Fixed Investment (RFI). RFI includes spending on residential structures and some equipment. The category of residential structures includes new construction of single-family and multifamily housing units, improvements and remodeling that expand or extend the life of housing units, expenditures for manufactured homes, brokers’ commissions on the sales of residential property and net purchases from government agencies.

The bulk of this spending is associated with construction of new single-family and multifamily units, plus improvement spending. It is also worth noting that this measure of home building’s contribution to economic growth does not include other housing-related spending, such as the average $7,400 spent by buyers of newly built homes on furnishings, appliances and other items in the two-year period after the purchase.

Since the last quarter of 2011, RFI has averaged a 14% growth rate. This growth has added between 0.19 and 0.43 total percentage points to the headline GDP growth rate in the last six quarters. For example, GDP growth in the first quarter of 2012 totaled 2%. Of that total, 0.43 points (or 21.5%) was due to advances in home building. Absent the expansion in residential construction, GDP growth in that quarter would have been only 1.6%.

As a result of this growth in home building and remodeling, housing’s overall share of the economy is climbing – slowly – back to historic norms. Housing’s share of the economy, determined by the contribution of the sum of housing services (the flow of economic benefits from the housing stock) and RFI (the contribution of home building and remodeling to the capital stock) has typically totaled 17 to 18 percent.

As of the first quarter of 2013, the total share of GDP due to housing stood at 15.18%, with 2.89 percentage points of that total due to home building. This is up from the cycle low share for RFI of 2.44% for the first quarter of 2011 at the end of the federal home buyer tax credit program. Read More.

Contractors: Reach Out to get Government Work

noreply@blogger.com (Bob Kruhm) — Tue, 07 May 2013 17:11:00 +0000

Clark Fields tells clients that registering to do business with the federal government is like getting a driver’s license. “You are eligible to drive a car,” said Fields, a government procurement counselor with the Small Business and Technology Development Center’s N.C. Procurement Technical Assistance Center (SBTDC). “But that’s not necessarily going to take you anywhere.”

The News & Observer reports Fields and others with experience in government contracts and related work say the public marketplace can help diversify a small business’ customer base and smooth out cash flow, as public and private spending often are often countercyclical. Paths to the public marketplace include subcontracting or teaming with a prime contractor, micro-purchases and building experience and certifications in programs intended to help disadvantaged owners.

The SBTDC’s N.C. Procurement Technical Assistance Center seeks to connect businesses to local, state and federal agencies. In 2012, SBTDC clients in the state reported that the center assisted them in being awarded nearly $119 million in government contracts.

Triangle business owners will have two opportunities this month to learn more about the public procurement process and network with contracting officers and prime contractors, businesses that have already won government contracts but might need help from small-business subcontractors to complete the work.

The N.C. Military Business Center and Wake Tech’s Small Business Center will host the Consolidated Federal Construction Teaming Forum on May 22 at Wake Tech in Raleigh. The free event will provide general and specialty trade contractors, suppliers and designers an opportunity to connect with prime contractors.

Subcontractors don’t have to be a registered as a government contractor or a small-business group such as a woman-owned business to participate, but that does help, said Scott Dorney, executive director of the N.C. Military Business Center. “Teaming is a great way to enhance your strengths and fill in your weaknesses,” Dorney said.

The second event, the SBTDC’s “reverse” trade show, Marketplace, will provide an opportunity for small-business owners to connect with government representatives and prime contractors from across the Southeast and nation, Fields said. The event will be held May 29 at the Sheraton Imperial in ResearchTrianglePark. “It’s very rare that you have all these folks in one room, and this is a great way to make those initial contacts,” Fields said.

The U.S. government is the single largest purchaser of goods and services in the world, awarding about $500 billion in contracts each year, according the U.S. Small Business Administration. The SBA works with federal agencies to award at least 23 percent of government contracts to small businesses, and meet specific statutory goals for small, disadvantaged businesses, women-owned small businesses and other businesses that face hardships.

But small-business owners are sometimes discouraged or hindered by the process’ complexities and regulations, and they have a lack of understanding of the importance of using networking and other resources.

“They think if the government needs me, they will find me,” Fields said. “And that is simply not true.” Planning, marketing and networking are important parts of the process, along with registering and receiving appropriate small-business certifications.

Branching out

Sepideh Asefnia, president and founder of Raleigh-based SEPI Engineering & Contracting, worked as a highway engineer for the N.C. Department of Transportation, and she held other related private and public positions for 16 years before starting her own firm in 2001. SEPI turned its attention to the private and federal markets in 2006, when transportation projects in the Carolinas, which accounted for about 80 percent of the firm’s revenue, dropped significantly. Asefnia’s strategy included seeking networking opportunities with large businesses and informing them of the services that SEPI offered.

Asefnia visited military bases and reached out to civil firms that had multiyear federal contracts. She also utilized the N.C.MilitaryBusinessCenter, which seeks to help companies in the state participate in military and federal contracts.

In 2006, SEPI won an opportunity to team with a prime contractor and participate in a traffic signal design at Seymour Johnson Air Force Base in Goldsboro. In 2009, SEPI became a prime contractor on a civil and environmental engineering contract with the U.S. Army Corps of Engineers in the Wilmington District. The company has been awarded prime federal contracts worth nearly $9.4 million, according to the Federal Procurement Data System. Now, about 20 percent of SIPI’s revenue comes from federal work, about 30 percent from private and 50 percent from state and local, Asefnia said. Read More.

ASCE Releases American Infrastructure Report Card - Score: D+

noreply@blogger.com (Bob Kruhm) — Tue, 30 Apr 2013 19:47:00 +0000

The American Society of Civil Engineers (ASCE) has released its American Infrastructure Report Card. Overall, the nation scored a D+. Here’s the latest breakdown for the transportation categories:

Aviation D
Bridges C+
Inland Waterways D-
Ports C
Rail C+
Roads D
Transit D

Below is the breakout for some of the categories in the North Carolina report card:

Dams
•North Carolina’s dam safety program has 18 Full-Time Employees that each oversee an average of 248.8 state regulated dams.
•North Carolina has 1,255 high hazard dams.
•31% of the state regulated dams in North Carolina have an Emergency Action Plan.
•North Carolina’s state dam safety program has an annual budget of $1,205,710.

Drinking Water
•North Carolina has reported $10 billion in drinking water infrastructure needs over the next 20 years.

Hazardous Waste
•North Carolina has 37 sites on the National Priorities List.

Wastewater
•North Carolina has reported $6.6 billion in wastewater infrastructure needs over the next 20 years.

Bridges
•2,192 of the 18,165 (12.1%) bridges in North Carolina are considered structurally deficient.
•3,296 of the 18,165 (18.1%) bridges in North Carolina are considered functionally obsolete.

Roads
•Driving on roads in need of repair costs North Carolina motorists $1.555 billion a year in extra vehicle repairs and operating costs – $241 per motorist.
•45% of North Carolina’s roads are in poor or mediocre condition.
•North Carolina has 105,103 public road miles.
•North Carolina’s highway vehicle-miles traveled in 2009 was approximately 10,709 per capita, ranking it 17th in the nation. Read More.

NC Job Deaths Undercounted, Study Says

noreply@blogger.com (Bob Kruhm) — Tue, 30 Apr 2013 18:34:00 +0000

Far more workers die on the job in North Carolina than the state reports, according to a new study by workplace safety advocates. An article in the Charlotte Observer says, While the N.C. Department of Labor reported that just 35 workers were killed on the job in 2012, the report by the National Council on Occupational Safety and Health estimates that the true number is more than three times higher. That’s chiefly because the state doesn’t count deaths due to vehicle accidents and workplace violence, or fatalities among the self-employed.

The report, titled “North Carolina Workers Dying for a Job,” also concludes that penalties are too low to deter unsafe working conditions and that “even repeat offenders get off easy.” Many of the findings echo those of a 2008 Observer investigation into workplace safety in the poultry industry.

“Clearly the absolute number of deaths has gone down…,” said NCOSH Executive Director Tom O’Connor, who wrote the report. “But there are still way too many people dying in easily preventable deaths.”

N.C. Labor Commissioner Cherie Berry has pointed to the state’s declining workplace injury, illness and death rates as evidence that her approach to workplace safety is working. “This has been achieved through increased education and training, consultation, and partnerships and alliances with employers and employees in the private and public sectors,” Berry said.

In its reports to the public, the state labor department includes only those deaths it has jurisdiction to investigate under law, agency officials say.

Other report findings:

• Disproportionately large numbers of Latino workers continue to die on the job in North Carolina. While Latinos make up about 9 percent of the state’s population, they accounted for about 28 percent of those killed at work in 2011 and 2012, in cases where an ethnicity was noted. One likely reason for the disparity: Many of the state’s most dangerous occupations rely heavily on Latino workers.

• Workplace violence is a significant cause of death in the state. NCOSH identified 13 people killed on the job due to violence in 2012, but said the actual number is likely much higher.

• More than 740 people died on the job in the five years ending in 2011. Transportation incidents were the most common cause, accounting for 291 deaths. While transportation deaths aren’t counted in the N.C. numbers, O’Connor said they should be because employers contribute to such accidents when they put excessive pressure on employees to get quickly from place to place.

• The state’s workplace fatality rate – 3.7 per 100,000 fulltime workers – has dropped significantly over the past decade. That rate is roughly equal to the national average.

• Employers who repeatedly run afoul of workplace safety rules “are still issued only a slap on the wrist.” Fines in such cases averaged $1,906 in North Carolina, as compared to $7,487 by federal OSHA.

Federal OSHA oversees workplace safety in about half the states. The remaining states, including both Carolinas, run their own programs.

History of problems

The report tells the story of 39-year-old Luis Javier Martinez, who lost his life in November, after the trench he was working in at N.C. State University caved in.

Martinez’s employer – J.F. Wilkerson Contracting, a Morrisville company that specializes in laying water and sewer lines – has paid few fines despite a history of safety violations. In August 2007, N.C. OSHA cited the company for violating trench safety standards and assessed a fine of $1,175. But the penalty was reduced to zero as part of an informal settlement. Two months later, after a worker complained of unsafe conditions, OSHA found three serious violations and proposed a $6,100 fine. The penalty was reduced to $1,820.

In February 2011, after another worker complained of unsafe conditions, OSHA inspected but did not cite the company for any violations.

Nineteen months later, Martinez was working inside a trench at the Raleigh campus when an earthen wall collapsed, burying him in dirt. N.C. OSHA is still investigating that case.

Department officials note that when a company contests a stiff penalty, it doesn’t have to correct safety hazards until the case is resolved. So the agency sometimes reduces penalties in the interest of getting safety problems corrected quickly, they say.

“There is no correlation or evidence to show that higher penalties create safer and healthier workplaces,” an agency spokeswoman wrote. “Commissioner Berry would rather see businesses spend their hard-earned money abating hazards … than writing a check to the government.”
In the second 2007 case, the department dropped one citation when the employer presented evidence that no violation had occurred, an agency spokesman said.

In the 2011 case, inspectors spotted no violations, the spokesman said.

Company President Joe Wilkerson declined to talk about the firm’s safety history, but said officials there don’t believe they could have done anything to prevent the accident that killed Martinez. “It was a most unusual incident,” he said.

Minimal fines

A 2010 audit by the U.S. Labor Department found that North Carolina downplayed serious safety problems, issued weak fines to violators and failed to properly handle whistleblower complaints.
In its 2008 workplace safety investigation, the Observer found that weak enforcement, minimal fines and declining inspections have allowed companies nationwide to ignore hazards that can kill and injure workers. The newspaper’s investigation also found that many violators in North Carolina get off easy. Average fines for serious violations in North Carolina were less than half the national average, the Observer found. Read More.

NC Long Leaf Pine Award Presented to Buckner's Eddie Williams

noreply@blogger.com (Bob Kruhm) — Mon, 29 Apr 2013 13:00:00 +0000

Buckner Companies Chairman of the Board, Eddie Williams, has been recognized by former North Carolina Gov. Bev Purdue for his accomplishments, service and contributions throughout the NC construction industry.

Former Senator Bob Atwater presented Williams with the prestigious Order of the Long Leaf Pine Award on behalf of former Gov. Purdue. The Long Leaf Pine Award is one of the most prestigious that the North Carolina governor can bestow recognizes a citizen’s contributions to his or her community and dedication to his or her profession. Williams joins a notable rank of more than 7,000 recipients, including Billy Graham, Michael Jordan, Charles Kuralt and Doug Marlette.

Williams started working with C.P. Buckner Steel Erection, Inc. in 1952 where he began his career as a rebar laborer to Chairman of Board of one of the country’s most respected steel erectors. Williams has made his way to the top by working at most every trade and management position within his company as well as holding leadership positions in virtually every major trade organization in NC construction industry.

Presently, he serves as Chairman of Board at Buckner Companies, a North Carolina based Corporation with Steel Erection, Precast Erection, Heavy Lift Crane Rental, Miscellaneous Iron, and Industrial Rigging. Read More.

2014 Defense Budget Calls for $202 Million for Construction at Fort Bragg

noreply@blogger.com (Bob Kruhm) — Mon, 29 Apr 2013 12:30:00 +0000

The Fayetteville Observer reports the 2014 defense budget proposed by President Obama includes more than $202 million in military construction on Fort Bragg. That’s a slight increase from last year’s $198 million in construction on the post but a far cry from past years, when Fort Bragg benefited from a building boom related to base realignment and closure.

The bulk of the construction plans focus on Fort Bragg’s special operations community. Special Operations Command requested $135 million in projects for Fort Bragg, including a civil affairs battalion annex for the 95th Civil Affairs Brigade, a combat medical skills sustainment course building for the Joint Special Operations Medical Training Center, an engineer training facility for the 1st Special Warfare Training Group, a language and cultural center for the John F. Kennedy Special Warfare Center and School, and an upgrade to a training facility at Camp MacKall. The projects are scheduled for completion between September 2015 and May 2016.

The language and cultural center comes with the largest price tag. It’s expected to cost more than $64 million and includes a pedestrian bridge that will connect it with the John F. Kennedy Special Warfare Center and School. That project is scheduled to be completed in March 2016.

Other Fort Bragg projects include nearly $6 million for a command and control facility for the 18th Airborne Corps, more than $24 million for a new home for Army Civil Affairs & Psychological Operations Command and more than $37 million for a new school. Those projects are scheduled to be completed in September 2015, April 2016 and June 2016, respectively.

Overall, the amount of money earmarked for military construction in the 2014 budget proposal is similar to last year’s budget. North Carolina will benefit from nearly $370 million in military construction, including projects at CampLejeune and New River Marine Corps Air Station. Only Hawaii, Kentucky, Guam and Maryland will see more military construction, according to the proposal. Read More.

Nonresidential Fixed Investment in Structures Slips 0.3 Percent in First Quarter

noreply@blogger.com (Bob Kruhm) — Fri, 26 Apr 2013 15:34:00 +0000

“Investment in nonresidential structures actually declined in the quarter, a reflection of the fact that the nation’s recovery, to date, has been unable to support a sustained nonresidential construction recovery, ” reported Associated Builders & Contractors Chief Economist Anirban Basu.

Evidence that the nation’s economy is being fueled by consumer purchases, nonresidential fixed investment grew 2.1 percent in the first quarter of this year, with 3 percent growth in equipment and software investments partially offset by a 0.3 percent decrease in investment in structures, according to the April 26 report by the Commerce Department on gross domestic product (GDP). In contrast, residential fixed investment increased 12.6 percent in the first quarter of 2013 following a 17.6 percent jump in the fourth quarter of 2012. Personal consumption expenditures advanced 3.2 percent in the first quarter with spending on goods increasing 3.3 percent and spending on services increasing 3.1 percent. The growth in real private inventories added 1 percentage point to GDP growth for the quarter after subtracting 1.5 percent from the fourth quarter.

Federal government spending fell 8.4 percent in the first quarter with national defense spending dipping 11.5 percent and nondefense spending slipping 2 percent. State and local government spending decreased 1.2 percent for the quarter following a 1.5 percent decrease in the prior quarter.
Real final sales of domestically produced output—minus changes in private inventories—increased 1.5 percent for the quarter following a revised 1.9 percent increase during the fourth quarter. Gross domestic purchases—purchases by U.S. residents of goods and services wherever produced—increased 2.9 percent in first quarter after going unchanged in the fourth quarter. Overall, the nation’s GDP grew at an annual rate of 2.5 percent in the first quarter of 2013; far short of the 3 percent economists were predicting, but higher than the 0.4 percent posted in the fourth quarter of 2012.

Analysis

“Today’s GDP report is evidence that the nation’s economic growth continues to be disproportionately motivated by consumer purchases,” said ABC Economist Anirban Basu. “To the extent that businesses are participating, much of the buying momentum is not related to construction, but is more closely related to equipment and software purchases.

“The most noteworthy aspect of today’s GDP report was the evidence of shrinking government outlays at every major level of government,” Basu remarked. “Collectively, the slowing pace of government outlay growth subtracted 0.8 percent from first quarter GDP. In other words, had it not been for public sector retrenchment, GDP would have expanded in excess of 3 percent during the first quarter.

“The impacts of sequestration is likely to become more intense in the second quarter which suggests that the negative impact of government spending on the pace of economic expansion could become even more significant,” stated Basu. “ABC continues to forecast roughly 2 percent growth for the U.S. economy in 2013, with the implication being that at least one of this year’s remaining three quarters will be softer than the now completed first quarter.

“This also implies that the nonresidential construction recovery will remain moderate,” Basu added. “While ABC expects that nonresidential construction spending will advance over the balance of the year, the rate of improvement will continue to be constrained by an economy that still refuses to mount an aggressive expansion.” Read More.

NC Renewable Energy Law to Stay in Place

noreply@blogger.com (Bob Kruhm) — Fri, 26 Apr 2013 14:53:00 +0000

A bill to repeal or freeze North Carolina’s landmark renewable energy law died this week in the Public Utilities and Energy Committee. The bill failed on a 13-18 vote reported the Charlotte Observer. The committee is chaired by the bill’s sponsor, Rep. Mike Hager, a Rutherford County Republican. Hager, a former Duke Energy engineer, had argued that the 2007 law unfairly forced consumers to subsidize solar, wind and other forms of green energy.

At the end of 2012, residential customers of Duke Energy Carolinas were paying 22 cents a month to offset the utility’s expenses to comply with the law. Progress Energy Carolinas customers were being billed 41 cents monthly. But the Republican-led legislature never appeared to embrace Hager’s argument.

Advocates released studies showing the law, the first in the Southeast, had opened new markets for energy developers and energy-efficiency firms, creating thousands of jobs during a down economy.
The N.C. Sustainable Energy Association’s 2012 jobs census found the equivalent of 15,200 full-time employees working for 1,100 energy-related companies with total revenues of $3.7 billion a year.

Hager’s initial bill deleted the law’s core requirement that utilities derive 12.5 percent of their sales from green energy or energy efficiency by 2021. Substitute language sent to the House Environment Committee on April 9 softened that language, freezing the green-energy mandate at 6 percent of utility sales by 2018.

The bill was withdrawn from that committee Monday and sent to Public Utilities. Even with a favorable vote there, it would have had to go back before the Environment Committee and then the Regulatory Reform Committee.

Duke Energy, which now serves most of North Carolina, has said it has not lobbied for changes in the law. Read More.

AIA Reports Steady Upturn in Architectural Billings

noreply@blogger.com (Bob Kruhm) — Thu, 25 Apr 2013 11:38:00 +0000

The Architecture Billings Index (ABI) is reflecting a steady upturn in design activity, according to the American Institute of Architects. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending.

AIA said the March ABI score was 51.9, down from a mark of 54.9 in February. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 60.1, down from the reading of 64.8 the previous month.

“Business conditions in the construction industry have generally been improving over the last several months,” said AIA Chief Economist, Kermit Baker. “But as we have continued to report, the recovery has been uneven across the major construction sectors so it’s not a big surprise that there was some easing in the pace of growth in March compared to previous months.”

Key March ABI highlights:

• Regional averages: Northeast (54.6), Midwest (53.9), South (53.6), West (51.9)

• Sector index breakdown: multi-family residential (56.9), commercial / industrial (53.5), mixed practice (53.3), institutional (50.6)

• Project inquiries index: 60.1

The Architecture Billings Index (ABI), produced by the AIA Economics & Market Research Group, is a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction spending activity. Read More.

Construction Employment Increased in Majority of States; NC Loses 1,800 Construction Jobs

noreply@blogger.com (Bob Kruhm) — Wed, 24 Apr 2013 14:42:00 +0000

Construction employment increased in 30 states in March as the industry expanded but at a slower pace than in February, according to an analysis by the Associated General Contractors of America of Labor Department data. Association officials cautioned, however, that many states remain vulnerable to construction cutbacks from newly enacted and proposed decreases in federal funding for infrastructure. North Carolina lost 1,800 construction jobs (1.1 percent) in March.

“A majority of states are adding jobs month by month and year-over-year,” said Ken Simonson, the association’s chief economist. “The expansion appears poised to continue for residential and private nonresidential construction. But investment in infrastructure and public buildings is still on a downward path. That will keep employment down in states with a large federal presence.” He added that construction employment nationwide rose for the 10th consecutive month in March, by 18,000, following an increase of 49,000 in February.

Simonson reported that 31 states and D.C. added construction jobs from March 2012 to March 2013 and 19 states lost workers Among the 19 states losing construction jobs during the past year, North Carolina lost 5,300 jobs (-3.0 percent).

Association officials said the cuts in federal funding for construction enacted in March would push employment totals lower in states with large military and federal civilian facilities. They urged policy makers to make infrastructure investment a priority even while cutting other categories of federal spending to bring down deficits.

“Shortchanging investment in the nation’s infrastructure hurts not just construction workers but anyone who relies on good roads, air travel or drinking water,” said Stephen E. Sandherr, the association’s chief executive officer. “We need to make urgent repairs and new investments in transportation and environmental infrastructure before our aging and overused systems begin to drag on economic growth.” View the state employment data by state. Read More.

Guest Worker Cap in Senate Bill Fails to Meet Construction Industry Needs

noreply@blogger.com (Bob Kruhm) — Wed, 24 Apr 2013 14:37:00 +0000

The U.S. Senate “Gang of Eight” unveiled a plan for comprehensive immigration reform that fails to include a guest worker program that would meet the needs of the construction industry, reports the Associated Builders & Contractors. The association congratulated the senators on taking the first step toward fixing the country’s broken immigration system, but said the guest worker program in the plan fails to provide a sufficient number of visas to meet market demand.

“A guest worker program is essential to the success of any viable reform to our immigration system; however, the current plan for construction is simply too small to address the workforce needs of our industry in times of both high and low unemployment,” said Geoff Burr, ABC vice president of federal affairs.

Burr went on to point out that, as construction continues its recovery, it will become more difficult to fill critical labor opening and make it impossible to secure the border. “For these reforms to be successful, we believe the cap on visas should be determined by labor market demand – the only measure that truly reflects the needs of the economy and our industry,” Burr said.

ABC continues to advocate for a viable immigration remedy that strengthens our national security; creates a role for employers in an employment system that functions in a fair, efficient and workable way; addresses the realities of future workforce needs in the less-skilled sectors; and finds a reasonable, rational way of dealing with the current undocumented population in the United States.

ABC, in conjunction with four other construction groups, advocated for a reasonable and balanced approach to comprehensive immigration reform in a Feb. 22 letter sent to the “Gang of Eight,” a bipartisan group of Senators working on the same issue. The letter was signed by ABC, Associated General Contractors, Leading Builders of America, National Association of Home Builders and National Roofing Contractors Association.

“We have a unique opportunity before us to reform our immigration policies to enhance our security, protect our economy, and continue our heritage as a welcoming country of immigrants,” the groups wrote. “We urge you to continue working together to craft a reasonable and balanced approach to addressing America’s immigration problems in a way that resolves the issue for the long-term.” Read More.

Career and Technical Education Bill Supported by Construction Industry

noreply@blogger.com (Bob Kruhm) — Wed, 24 Apr 2013 14:32:00 +0000

The bill title is: An act to increase successful participation in career and technical education coursework leading to industry certifications and credentials to enhance the employability of high school students by implementing a bonus program available to local school administrative units.. It establishes career and technical education incentives and directs the State Board of Education to”establish, implement and determine the impact of a career and technical education incentive program as spelled out in the bill. It is the intent of the State to encourage students to enroll in and successfully complete rigorous coursework and credentialing processes in career and technical education to enable success in the workplace, the bill says.

In addition, the State Board of Education, in consultation with the NC Department of Commerce, would rank each industry certification based on academic rigor and employment value. Funding would be allocated to the local school administrative unit per student completing the industry certification based on ranking. The bill also directs the local school administrative units to consult with local industries, employers and workforce development boards in identifying industry certifications and credentials to meet workforce needs.

The bill introduction comes at a time when other career education legislation, Senate Bill 14, was approved by the NC General Assembly and was the first legislation signed this year by Gov. Pat McCrory. Read More.

2013 Best Construction Blog Announced

noreply@blogger.com (Bob Kruhm) — Mon, 22 Apr 2013 13:17:00 +0000

Gould Design Inc. has been selected as the 2013 Best Construction Blog, though the combination of judged and popular vote. Sage Construction and Real Estate, Georgia Construction, Lien and Law Blog, Your Restoration Coach and PJHM Architects were finalists in the extremely close race. See finalists Here.

Mark Buckshon, editor of the Construction Marketing Ideas blog, will interview the five finalists within the next few weeks to learn more about their blogging methodologies, perspectives and goals. Each received a positive review and evaluation, helpful for search engine rankings and all blogs entered in the Best Construction Blog contest will continue to be listed in the Construction Marketing Ideas blog directory.

Nominations for the 2014 competition will open in December. In the meantime, if you have a blog you would like to be included in the blog directory at no charge, email buckshon@constructionmarketingideas.com.