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Every State And The District Of Columbia Lost Construction Jobs During The
Past Year, New December Employment Data Finds
Mississippi tops list of Six States to Add Construction Jobs Between
November and December 2009, Wyoming Had Largest Monthly Percentage Decline
in Construction Employment
For the first time since the start of the economic downturn, every state and
the District of Columbia reported losing construction jobs over the past
twelve months, according to a new analysis of state-by-state employment data
released today. The analysis, conducted by the Associated General
Contractors of America, found few signs of a construction industry recovery
with only six states reporting construction job increases between November
and December 2009.
“There’s nowhere for construction workers to turn for relief from job losses
and hardship,” said Ken Simonson, the association’s chief economist.
“Sifting through the monthly variations, it is obvious that construction
employment is losing ground almost everywhere.”
Simonson noted that Nevada experienced the largest annual percentage
decrease in construction employment (27.7 percent), followed by Wyoming
(23.8 percent); Tennessee (20 percent); Montana (19.6 percent); and Arizona
(19 percent). He added that California had lost more construction jobs
(116,100) than any other state during the past year.
The smallest declines in construction employment between December 2009 and
December 2009 were in Louisiana (3.5 percent); D.C. (4 percent); Oklahoma (4
percent); West Virginia (4.2 percent); and North Dakota (4.8 percent), the
economist noted. Simonson added that the District of Columbia lost the
fewest of construction jobs (500) during that time.
Unusually cold and wintry weather throughout most of the country in December
contributed to the downward trend in monthly construction employment,
Simonson suggested. He said that compared to November reports showing 24
states added construction jobs during the past month, the December report
had only six states adding jobs after normal seasonal adjustments (which
does not take into account exceptional mild or harsh weather.)
Mississippi had the largest monthly percentage increase in construction
employment (1.2 percent) followed by Virginia (1.1 percent); Hawaii (1
percent); Oklahoma (1 percent); South Carolina (0.5 percent); and New Mexico
(0.2 percent). Meanwhile, Montana had the largest monthly percentage
decrease (10.5 percent), followed by North Dakota (9.6 percent); Wyoming
(6.8 percent); Nevada (5.7 percent); and Wisconsin (5.5 percent).
Given that 90 percent of contractors don’t expect a recovery in 2010,
according to an industry forecast the association released earlier this
week, construction officials urged Congress and the Administration to act
now to avoid continued construction job losses. “The best way to boost
employment is to continue making the kind of infrastructure investments
everyone agrees our country needs to remain globally competitive,” said
Stephen E. Sandherr, the association’s chief executive officer.
View state-by-state construction employment data.
The Bureau of Labor Statistics, which compiles the employment figures,
combines mining and logging with construction employment in Delaware, D.C.,
Hawaii, Maryland, Nebraska, South Dakota and Tennessee.
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Nearly 90 Percent Of Contractors Say Industry Will Not Recover In 2010 As
Construction Outlook Finds Stimulus Lone Bright Spot
Construction Firms Predict Drop in Private-Sector Work, Fewer
Equipment Purchases Amid Widespread Uncertainty About 2010 Hiring & Lay Off
Plans
Nearly nine-in-ten contractors say there will be no recovery in 2010 as part
of a new national construction hiring and business outlook forecast released
today by the Associated General Contractors of America. As a result, fewer
contractors plan to purchase construction equipment and after a year of
near-record industry layoffs, many doubt they’ll be able to hire new staff
this year.
“Unfortunately for the industry and for our economy this year’s construction
outlook is far from positive,” said Stephen E. Sandherr, the association’s
chief executive officer. “As long as the construction industry remains mired
in its own depression, broader economic and employment growth will continue
to lag.”
The outlook, which is based in part on survey responses from nearly 700
construction firms submitted in late December and earlier this month, shows
that privately-funded construction activity is likely to decline even
further this year. Indeed, 64 percent of responding contractors expect
demand for new manufacturing facilities will decline, while 71 percent
expect demand for new retail, warehouse and lodging facilities will drop.
As a result, the number of firms expecting to buy new equipment is down to
46 percent this year from 61 percent in 2009. Meanwhile, 81 percent of firms
report already having to cut profit margins in their bids just to stay
competitive and another ten percent say they are now submitting bids so low
they will actually lose money on the projects.
Sandherr added that many construction firms are uncertain that they’ll be
able to add staff following a year of record layoffs. In 2009, 73 percent of
firms said they laid off employees, averaging 39 layoffs per firm. For 2010,
however, 60 percent of firms say they are unsure whether they will be able
to add new staff, or be forced to make further cuts. “Perhaps they can’t
imagine who else to let go,” Sandherr noted.
One of the relatively few bright spots for the industry was the federal
stimulus. Thirty-one percent of contractors say they were awarded stimulus
funded projects. Of these, 46 percent say the stimulus helped them retain an
average of 24 employees each. Another 15 percent say the stimulus helped
them to add an average of 10 new employees per company while 12 percent cite
the stimulus as driving new equipment purchases.
Sandherr added that the stimulus is driving up expectations for
publicly-funded construction activity in 2010. He noted that 62 percent of
contractors expect the highway market to improve or remain stable, 61
percent say water and sewer construction will improve or remain stable. And
55 percent say work on public buildings will improve or remain stable in
2010.
“The stimulus is finally beginning to have a measurable, but limited, impact
on the construction industry,” Sandherr noted. “The full impact of those
investments has sadly been tempered by the inability of Congress to put a
host of multi-year infrastructure funding plans in place.”
In addition to stimulus-funded projects, contractors also are relatively
upbeat about prospects for power and hospital/higher education construction.
Fifty-two percent expect demand for power facilities to be at or above last
year’s levels while 57 percent of contractors expect growth or stability in
demand for hospital and higher education construction.
Overall, however, the outlook points to another difficult year for
contractors Sandherr said. The only truly good news, he added, is that
construction costs remain at multi-year lows, providing good deals for
anyone willing to begin a construction project.
Citing examples like a DC-area county that is increasing its capital budget
in light of the “limited time sale,” Sandherr said the association was
contacting Congressional and Administration leaders to urge them to invest
in new construction activity. “If they act now, they can save taxpayers
millions on construction costs while immediately boosting employment and
economic activity,” Sandherr said.
Read Stephen Sandherr’s remarks.
View the 2010 National Construction Hiring and Business Forecast.
View the state-by-state Construction Hiring and Business Forecasts for 29
states.
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Architecture Billings Index Remains in Negative Territory
Inability to get financing main roadblock to recovery
On the heels of a more than three point drop in November, the Architecture
Billings Index (ABI) had a negligible increase of less than one point in
December. 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. The American Institute of Architects (AIA)
reported the December ABI rating was 43.4, up slightly from 42.8 in
November. This score indicates a continued decline in demand for design
services (any score above 50 indicates an increase in billings). The new
projects inquiry score was 55.3, down more than three points.
“The main impediment to an economic turnaround for the design and
construction industry remains frozen credit markets. We continue to hear
that there are numerous viable projects out there awaiting financing,” said
AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “And the longer this
situation persists, the more dire the news for the architecture profession
which is struggling at unprecedented proportions.”
Key December ABI highlights:
- Regional averages: Northeast (48.6), Midwest (46.6), South (43.2),
West (40.0)
- Sector index breakdown: multi-family residential (51.0),
institutional (44.2), commercial / industrial (42.7), mixed practice
(38.1)
- Project inquiries index: 55.3
About the AIA Architecture Billings Index
The Architecture Billings Index is derived from a monthly
“Work-on-the-Boards” survey and produced by the AIA Economics & Market
Research Group. Based on a comparison of data compiled since the survey’s
inception in 1995 with figures from the Department of Commerce on
Construction Put in Place, the findings amount to a leading economic
indicator that provides an approximately nine to twelve month glimpse into
the future of nonresidential construction activity. The diffusion indexes
contained in the full report are derived from a monthly survey sent to a
panel of AIA member-owned firms. Participants are asked whether their
billings increased, decreased, or stayed the same in the month that just
ended. According to the proportion of respondents choosing each option, a
score is generated, which represents an index value for each month. The
regional and sector data is formulated using a three-month moving average.
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have
worked with each other and their communities to create more valuable,
healthy, secure, and sustainable buildings and cityscapes. By using
sustainable design practices, materials, and techniques, AIA architects are
uniquely poised to provide the leadership and guidance needed to provide
solutions to address climate change. AIA architects walk the walk on
sustainable design. Visit
www.aia.org/walkthewalk.
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Demand For Consensusdocs Contract Documents Jumps Nearly 20 Percent In 2009
Despite Decline In Construction Activity
Use of Construction Documents Grows as More Private, Federal, State and
Not-For-Profit Project Owners Embrace the Standard Documents
Demand for ConsensusDOCS standard contract documents grew by nearly 20
percent in 2009 compared to the previous year despite significant declines
in construction activity, the organizations that developed the documents
reported. The jump in users comes as private, public and not-for-profit
owners have begun using the standard documents and getting positive results.
“Today’s market conditions are forcing people to reevaluate the outdated
model of drafting documents from scratch for every construction project,”
said Brian Perlberg, executive director of the ConsensusDOCS coalition.
“These documents offer an easier, faster and more efficient way to go from
concept to construction.”
The number of subscribers for ConsensusDOCS documents climbed from 3,291 at
the beginning of 2009 to 3,895 at the end of the year, an increase of over
18 percent, Perlberg noted. He added that in December 2009 alone, the
coalition saw a 28 percent increase in sales compared to the previous
December.
The growth occurred even though construction spending hit a six-year low in
2009. Perlberg noted that the jump in users was impressive given that demand
for competing standard contract documents was down significantly during
2009.
One factor driving growing demand for the documents is that public and
not-for-profits groups increasingly allow the use of ConsensusDOCS
documents. The federal government recently authorized the use of
ConsensusDOCS documents for up to $20 billion worth of Agriculture
Department projects. States like South Dakota, Michigan and North Carolina
have all recently allowed the documents as well. And not-for-profits,
including Florida Habitat for Humanity chapters, now routinely use
ConsensusDOCS contracts for key projects.
“In a year of little good news for the construction industry, it is
encouraging to be the exception instead of the rule,” said Perlberg. “Using
these documents will make it easier for owners and contractors to survive
and thrive during these difficult days.’
Offering a comprehensive catalog of more than 100 contract documents
covering all project delivery methods, ConsensusDOCS contracts are the first
and only industry standard contract documents written and endorsed by 23
leading construction organizations. For more information, visit
www.ConsensusDOCS.org.
ConsensusDOCS Media Contacts:
- Brian Turmail, The Associated General Contractors of America (AGC),
703-837-5310, turmailb@agc.org
- Greg Sizemore, The Construction Users Roundtable (CURT),
513-563-4131, gsizemore@curt.org
- Terry Cook, Construction Owners Association of America (COAA),
800-994-2622, coaa@coaa.org
- Dan Walter, Associated Specialty Contractors (ASC), 301-215-4520,
dgw@necanet.org
- David Mendes, American Subcontractors Association (ASA),
703-684-3450 x1335,
dmendes@asa-hq.com
- Gregory A. Howell, Lean Construction Institute (LCI), 303-655-8385,
ghowell@leanconstruction.org
- Richard Bright, Painting and Decorating Contractors of America (PDCA),
410-869-3253, rbright@pdca.org
- Thomas J. Soles and Rosalind P. Raymond, Sheet Metal and Air
Conditioning Contractors’ National Association (SMACNA), 703-803-2980
and 703-803-2996, tsoles@smacna.org and
rraymond@smacna.org
- Kathy Hoffman, National Association of Surety Bond Producers (NASBP),
202-464-1175, khoffman@nasbp.org
- Dean D’Ambrosi, Construction Financial Management Association (CFMA),
609-452-8000, ddambrosi@cfma.org
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AP Story On Stimulus-Funded Highway Work Is ‘Flawed’ Says Top Construction
Economist
Ken Simonson, chief economist for the Associated General Contractors of
America issued the following statement today in response to an Associated
Press story looking at the impact of stimulus-funded highway projects on
overall construction employment:
“While highway construction plays a significant role in shaping the nation’s
economic fortunes, it only accounts for five percent of the total domestic
construction workforce. And because of declines in the amount of state and
local funds invested in road work in 2009, the roughly $20 billion in
federal stimulus highway funds obligated in 2009 only contributed to a $4
billion net increase in highway construction activity last year. Meanwhile,
total construction spending declined by $137 billion between November 2008
and 2009 to a six-year low of $900 billion.
“As we cautioned the story’s two authors in advance, the fundamental
assumptions in today’s Associated Press story are flawed. It is virtually
impossible to measure the impact of $4 billion by looking at overall
employment figures for an industry experiencing a $137 billion drop in
activity – especially when only one in twenty construction workers stand to
benefit from those stimulus funds.”
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Garland Delivers
Rooftop Coating Solutions
The Garland Company, Inc., Cleveland, Ohio-based manufacturer and
distributor of high- performance solutions for the commercial building
envelope, recently released Garland Coating Solutions, a brochure providing
architects, building owners, and specifiers with an overview of the numerous
coating technologies available to enhance the performance and extend the
life of commercial roofs.
The brochure analyzes the cost-to-value benefits of using coatings to
enhance, restore, and maintain roofs, while helping customers differentiate
coatings solutions according to specific performance requirements, such as
reflectivity, chemical resistance, sustainability, moisture control, and
color retention. Joe Mellott, Garland’s director of technology, reports, “In
today’s economic environment, timely restorations offer a lot of
dollars-and-cents benefits by extending the service life of a roof before
eventual tear-off and replacement. The proactive use of protective coatings
to maintain and enhance roof surfaces can significantly reduce the long-term
costs of ownership for high-performance roofs.”
Founded in Cleveland in 1895, Garland has been employee owned since 1985.
Its Cleveland-based research, development, and manufacturing operations are
ISO-9001 certified. The company currently employs over 400 people, including
a field sales force of 200 across the U.S., Canada, and the U.K. For more
information, or to receive a free copy of Garland Coating Solutions, contact
your local Garland representative, call 1‑800‑321‑9336, or visit
www.garlandco.com.
Back to Industry News List
Nearly One In Four Construction Workers Are Unemployed As Industry Loses
Another 53,000 Jobs In December
With Construction Unemployment Now at 22.7 Percent, No Time to Single
Out Construction Industry For Higher Health Care Costs and Penalties, Trade
Group Says
Deteriorating demand for construction services continued to drag on the
economy as new federal figures show another 53,000 construction workers lost
their jobs in December and the industry’s unemployment rate climbed to 22.7
percent. The new employment data underscores the need to rethink health care
legislation that singles out small construction firms for new mandates and
fees, the Associated General Contractors of America noted.
“If it wasn’t for construction, our economic picture would actually be
getting slightly better,” said the association’s chief economist, Ken
Simonson. “Unfortunately, construction layoffs are dragging down the broader
employment picture.”
Simonson noted that outside of construction, nonfarm payroll employment rose
by 31,000, seasonally adjusted, in November and shrank by just 32,000 in
December. Construction, however, lost 80,000 more jobs in both months, he
added, while the industry’s unemployment rate, not seasonally adjusted, is
now more than double the all-industry rate.
According to the new federal employment figures, over 2 million construction
workers are currently unemployed and 934,000 construction workers lost their
jobs during the past 12 months alone. Simonson added that construction
employment declined by 0.9 percent between November and December and 13.7
percent between December 2008 and 2009.
The construction economist said falling demand for nonresidential
construction in particular was driving the sector’s job losses, with 34,900
nonresidential jobs lost in December. He noted that federal figures released
earlier this week indicate that construction spending declined by $137
billion between November 2008 and 2009 to a six-year low.
Association officials urged Congress to reconsider provisions in the
Senate-passed health care legislation that exclude small construction firms
from measures designed to protect small businesses from costly new
provisions. Small business employing between 5 and 49 people are not
required to pay fines for employees without health care insurance. However,
a last minute amendment added to the Senate bill requires small construction
firms to pay the fines.
“It is hard to understand the sense in singling out construction for higher
health care costs and penalties when the industry’s unemployment rate is
nearly double that of any others’,” said Stephen Sandherr, the association’s
chief executive officer. “For the vast majority of small construction firms
that already provide comprehensive health care, the Senate provision will
increase reporting costs, making it harder to retain and add staff.”
Back to Industry News List
Another Steep Decline in Nonresidential Construction Activity Projected for
2010
Modest increase in spending possible by 2011
Despite signs that the overall U.S. economy is beginning to improve,
nonresidential construction spending is expected to decrease by 13.4 percent
in 2010 with a marginal increase of 1.8 percent in 2011 in inflation
adjusted terms. Commercial and industrial projects will continue to see the
most significant decrease in activity. Thanks, in part, to federal stimulus
spending, institutional building categories will fare better over this
period. These are highlights from the American Institute of Architects (AIA)
semi-annual Consensus Construction Forecast, a survey of the nation’s
leading construction forecasters.
“When economies emerge from this prolonged recession, recovery for
nonresidential construction activity typically takes longer,” said AIA Chief
Economist, Kermit Baker, PhD, Hon. AIA. “Hardest hit will be the commercial
and industrial sectors with projected declines in the 20 percent range for
2010 in most building categories. Led by the healthcare market, the
institutional sector will see far less dramatic declines and should help
lead the construction industry into recovery in 2011.”
|
Market Segment Consensus
Growth Forecasts
|
2010
|
2011
|
|
Overall
nonresidential
|
-13.4
|
1.8
|
|
|
|
|
|
Commercial /
industrial
|
|
|
|
|
-24.3
|
-7.8
|
|
|
-23.5%
|
5.4%
|
|
|
-18.6%
|
11.8%
|
|
|
-17.2%
|
3.2%
|
|
|
|
|
|
Institutional
|
|
|
|
|
-12.9%
|
4.4%
|
|
|
-5.8%
|
2.0%
|
|
|
-5.6%
|
6.0%
|
|
|
-0.3%
|
2.5%
|
|
|
0.8%
|
-0.1%
|
About the AIA Consensus Construction Forecast Panel
The AIA Consensus Construction Forecast Panel is conducted twice a year with
the leading nonresidential construction forecasters in the United States
including, McGraw Hill Construction, Global Insight, Moody’s
economy.com, Reed Business Information, the Portland Cement Association,
and FMI. The purpose of the Consensus Construction Forecast Panel is to
project business conditions in the construction industry over the coming 12
to 18 months. The Consensus Construction Forecast Panel has been conducted
for 12 years.
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have
worked with each other and their communities to create more valuable,
healthy, secure, and sustainable buildings and cityscapes. By using
sustainable design practices, materials, and techniques, AIA architects are
uniquely poised to provide the leadership and guidance needed to provide
solutions to address climate change. AIA architects walk the walk on
sustainable design. Visit
www.aia.org/walkthewalk.
Back to Industry News List
New Structural-Connector Screws, LSCZ Stair-Stringer Connector and
DeckTools® Deck Design Software at International Builders’ Show
Simpson Strong-Tie is introducing several new products for homes and decks
in 2010. These products will be on display at the International Builders’
Show in Las Vegas, January 19-22 in booths C755 and C955.
Strong-Drive® SD Structural-Connector Screws – Booth C755
As an alternative to nails, the new SD structural-connector screw is the
only screw designed, tested and approved for use with some of the more
popular Simpson Strong-Tie® connectors. Why screws instead of nails? In
tight spaces and overhead applications, screws are easier to install than
nails and in some cases, achieve higher load ratings than 10d and 16d common
nails. In addition, the SD screw has a corrosion-resistant galvanized
coating so it can be used in interior and most exterior conditions.
LSCZ Adjustable Stair-Stringer Connector – Booth C755
The LSCZ connector offers a versatile, concealed connection between the
stair stringer and the carrying header or rim joist while replacing costly
framing. It is field slopeable to all common stair stringer pitches and is
suitable for either solid or notched stringers. The LSCZ installs with
hot-dipped galvanized nails or our new Strong-Drive® SD screws, has a ZMAX®
coating for additional corrosion protection, and can be used in interior and
some exterior applications, such as decks.
DeckTools® Deck Design Software – Booth C955
DeckTools™ sales, design and estimating software program for decks makes
it easy for deck builders and suppliers to create one-of-a-kind deck designs
right from their laptops. The 3D program allows users to customize nearly
every detail, from the deck shape and railings to material choices, while
quickly generating plans, proposals and material lists. The latest version
of the program, DeckTools Software 3.0, includes new features, such as
hardware solutions (Simpson Strong-Tie connectors and fasteners) and DWG and
DXF (CAD-compatible) file export. The software retails for $1895.00; IBS
attendees will receive 20% off the retail price if purchased at the show.
For more information about the software, visit the
DeckTools site.
For more information about these products and other new products for 2010,
visit our
new products page on our website.
In addition, Simpson Strong-Tie will feature the Strong Frame™ ordinary
moment frame, Anchor Systems products for cracked concrete, Quik Drive®
auto-feed screw driving systems, structural connectors and
corrosion-resistant fasteners in booth C755.
About Simpson Strong-Tie Company Inc.
For more than 50 years, Simpson Strong-Tie has focused on creating
structural products that help people build safer and stronger homes and
buildings. Considered a leader in structural systems research and testing,
Simpson Strong-Tie® products are recognized for helping structures resist
high winds, hurricanes and seismic forces. The company is one of the largest
manufacturers of connectors, fasteners, fastening systems, anchors and
lateral-force resisting systems in the world. Featured product lines include
Wood and Steel Strong-Wall® prefabricated shearwalls, Anchor Tiedown Systems
for multi-story buildings and Strong Frame™ moment frames. Specialty
products include Quik Drive® auto-feed screw driving systems,
corrosion-resistant fasteners and Simpson Strong-Tie Anchor Systems® -
anchors and fasteners for concrete and masonry. Simpson Strong-Tie is
committed to providing exceptional products and service to its customers,
including engineering and field support, product testing and training. For
more information, visit the company’s Web site at
www.strongtie.com.
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Construction Employment Declines In 324 Out Of 337 Cities As
Construction Spending Hits 6-Year Low, New November Data Shows
Construction Employment Down 36 Percent in El Centro, Calif., Up 12 Percent
in Harrisburg, Pa., As Construction Spending Drops 13.2 Percent Compared to
Last Year
Construction employment declined in 324 out of 337 metropolitan areas over
the past year as spending on construction projects dropped by over $137
billion in November to a 6-year low of $900 billion, according to a new
analysis by the Associated General Contractors of America of federal figures
released today.
“Private nonresidential construction is in freefall, with every category
except private power construction down sharply compared to a year ago,” said
Ken Simonson, the association’s chief economist. “Those cuts are causing
layoffs in virtually every part of the country for tens of thousands of
skilled construction workers.”
Simonson noted new Census Bureau figures released today show
developer-financed construction suffered the largest decline in spending
between November 2008 and November 2009. He added that private lodging
investments were down 46 percent; retail, warehouse and farm spending were
down 41 percent and private office construction investments were down 39
percent. A recovery in homebuilding may spark some improvement in retail
construction later this year, and higher education and hospital construction
may come back in the second half of 2010, the economist suggested.
Simonson noted that public construction benefitted from federal stimulus
funds, with a year-over-year increase of 2.7 percent. He predicted, however,
those gains will continue to be tempered by sharp cutbacks in projects
funded directly by states, local governments and school systems.
Simonson said the declines in investments were leading to sweeping industry
layoffs. El Centro, Calif., lost a larger percentage of its construction
work force (36 percent) from November 2008 to November 2009 than any other
metropolitan area according to the latest Bureau of Labor Statistics
figures. The agency includes mining and logging with construction in most
metro areas to prevent disclosure about industries with few employees,
Simonson noted.
Other areas experiencing sharp declines in construction employment during
the year include Kokomo, Ind. (31 percent); Wenatchee-East Wenatchee, Wash.
and Reno, Nev. (both 28 percent); and St. George, Utah and Grand Junction,
Colo. (both 27 percent).
Of the six metropolitan areas with an increase in construction employment
during the past 12 months, only two areas had gains of more than 100 jobs:
Harrisburg-Carlisle, Pa. (1,500 jobs, 12 percent gain) and Tulsa, Okla. (700
jobs, 3 percent gain.) Four metro areas had gains of 100 jobs each in
construction: Anderson, Ind. (6 percent); Columbus, Ind. (5 percent);
Bismarck, N.D. (3 percent) and Fargo, N.D., including nearby areas in
Minnesota (1 percent).
View the latest
construction spending figures, and view
latest metropolitan area construction employment figures.
Back to Industry News List
Late-Night Amendment To Health Care Legislation Adds New Costs, Regulatory
Burdens To Hardest-Hit Construction Industry
Amendment Will Increase Construction Unemployment, Hurt Small and
Family Business Owners, Top Construction Association Official Says
Without debate or advance notice, language was added to the Senate health
care legislation that singles out small construction firms for harsher
treatment than any other industry. Whereas most employers with fewer than 50
workers that do not offer health coverage are exempt from fines that apply
to larger employers, under the newly added provision construction firms
employing as few as five workers would be subject to health care coverage
fines. Stephen Sandherr, chief executive officer of the Associated General
Contractors of America, issued the following statement regarding the
late-night inclusion:
“Unconcerned that construction has endured more pain than any other sector,
supporters of the Senate health care bill appear poised to exclude the
industry from thoughtful measures designed to protect small businesses. With
construction unemployment already at 19.4 percent, nearly twice the national
average and higher than any other category, the Senate’s decision couldn’t
come at a worse time for contractors. It is impossible to understand the
wisdom of singling out small, mostly family-owned construction firms even
though the vast majority of them already provide comprehensive health
insurance. If Washington was looking for a way to push more construction
workers into unemployment lines, the late-night amendment to the health care
‘reform’ measure does just that.”
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First Integrated Green Construction Code Poised For 2010 Debut
Drafters of the International Code Council’s International Green
Construction Code (IGCC) are nearing completion of the first-ever integrated
green code for traditional and high-performance commercial buildings, set
for a public release in March.
“This will be the first time code officials, owners and designers will have
an integrated regulatory framework to put into practice that meets the goal
of greening the construction and design of new and existing buildings,”
according to Code Council CEO Richard P. Weiland. “Only a code that is
useable, enforceable and adoptable will have the capability of impacting our
built environment in dramatic ways.”
The IGCC is designed specifically to integrate and coordinate with the other
International Codes already being enforced by governmental code officials at
all levels. All 50 states and more than 20,000 U.S. jurisdictions use the
International Codes developed by the Code Council for safety and
sustainability. The International Codes also serve as the basis for
construction of federal properties around the world, and as a reference for
many nations outside the United States. The International Code Council is a
non-profit membership association dedicated to building safety, fire
prevention, energy efficiency, and sustainable building construction and
performance.
The IGCC’s unique drafting approach links the International Codes to a
public process bringing together diverse areas of expertise to create the
first integrated, regulatory framework for green commercial buildings. The
American Institute of Architects (AIA) and ASTM International are
Cooperating Sponsors. Other organizations with representation on the IGCC
drafting committee, known as the Sustainable Building Technology Committee (SBTC),
include the U.S. Green Building Council Green Globes Initiative along with
over a dozen others.
“We are not an industry or advocacy organization, but rather the same folks
who have written the building codes used throughout the United States and
around the world for decades,” said Code Council Board Member and SBTC Chair
Ravi Shah. “From the beginning of our code development earlier this year,
we’ve had 29 SBTC members and countless work group members from across the
spectrum of government, industry, non-profit and academia weaving their
views into a consensus code,” Shah said.
The Code Council’s unique consensus process invites continual public input
from all perspectives, culminating in a final approval from code officials
to ensure the best possible rate of compliance.
A critical element of the IGCC is that it is consistent and coordinated with
existing International Codes that span the spectrum of the industry from
building, to energy conservation, fire safety, plumbing, mechanical fuel gas
and existing buildings among others.
“Voluntary systems have led market transformation and paved the way for a
regulatory framework that includes specialized standards addressing highly
technical areas around installation and equipment performance,” Weiland
said. “And with our Cooperating Sponsors at the AIA and ASTM International
providing the essential perspective of the design and standards communities,
there is finally an option on the table that a local, state or federal code
official can actually use, enforce and adopt to impact the built
environment.”
The last drafting meeting of the SBTC will be in January in Austin, Texas.
The first public version of the IGCC will be published in March, which is
expected to inform many policy discussions currently underway. At the same
time the IGCC will undergo continual maintenance with the solicitation of
additional public comments thru hearings being conducted in August. The IGCC
will then go through another round of review, comments and public hearings
in 2011 for the publication for the 2012 ICC Family of Codes.
Information on activities about the IGCC is available for review at
www.iccsafe.org/igcc.
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Housing Downturn Resulting in Demand for More Infill and High-Density
Options
Greater emphasis for housing closer to public transportation and job centers
Consumer preferences for community design that once preferred areas removed
from metropolitan hubs is moving increasingly towards infill sites that have
greater access to public transportation options. Mixed-use developments
focused around denser is being favored in some cases over traditional
neighborhood design with homes close to the street, sidewalks and smaller
lots. These types of developments are still gaining in popularity, but at a
slower rate than recent years most likely as the result of the overall
economic challenges. Home exteriors with durability and low maintenance are
also proving to be more popular in recent years.
Billings at residential architecture firms remain weak, but remodeling
activity showing an improvement. These findings are from the American
Institute of Architects (AIA) Home Design Trends Survey for the third
quarter of 2009 that focused on community and neighborhood design.
“There is an extremely high level of inventories of unsold homes due to the
prolonged downturn in the housing market,” said AIA Chief Economist, Kermit
Baker, PhD, Hon. AIA. “That element and the fact that home energy and
transportation costs have risen in recent years has people rethinking living
options. Demand for homes in urban centers with greater access to
transportation, retail, commercial and employers has a tremendous appeal.”
Design strategy tailored towards access to public transportation and job
centers helps reduce sprawl, dependence on automobiles, encourages
sustainability and creates an overall more vibrant and healthy community.
AIA Home Design Trends Survey highlights
|
Popular Home Exteriors Features
|
2009
|
2008
|
|
Durable exterior materials
|
75%
|
73%
|
|
Sustainable roofing
|
47%
|
62%
|
|
Porches
|
53%
|
46%
|
|
Windows (number and size)
|
26%
|
33%
|
|
Tubular skylights
|
24%
|
n/a
|
|
Green roofs
|
21%
|
n/a
|
(% respond. report. popularity of feature “increasing” minus % report.
“decreasing”; Q3)
Housing market business conditions
The residential market continues to struggle. The national billings index
was 38 for the third quarter of 2008 (any score below 50 indicates a decline
in activity), the same as the previous quarter’s mark of 38. Inquiries for
new projects are 47 for the second consecutive quarter, but encouraging
compared to the score of 35 in the first quarter of the year.
|
Specific construction segments
|
2009
|
2008
|
|
Additions / alterations
|
27%
|
13%
|
|
Kitchen and bath remodeling
|
26%
|
8%
|
|
First-time buyer / affordable home market
|
-2%
|
-64%
|
|
Move-up home market
|
-29%
|
-57%
|
|
Townhouse / condo market
|
-43%
|
-49%
|
|
Custom / luxury home market
|
-48%
|
-30%
|
|
Second / vacation home
|
-70%
|
-66%
|
(% of respondents reporting sector “improving” minus % reporting
“weakening”; Q3)
About the AIA Home Design Trends Survey
The AIA Home Design Trend Survey is conducted quarterly with a panel of
500 architecture firms that concentrate their practice in the residential
sector. Residential architects are design leaders in shaping how homes
function, look, and integrate into communities and this survey helps to
identify emerging trends in the housing marketplace. Business conditions are
also monitored on a quarterly basis. Future surveys will focus on kitchen
and bath trends (February 2008), overall home layout and use (May 2008), and
specialty rooms and systems (September 2008).
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have
worked with each other and their communities to create more valuable,
healthy, secure, and sustainable buildings and cityscapes. By using
sustainable design practices, materials, and techniques, AIA architects are
uniquely poised to provide the leadership and guidance needed to provide
solutions to address climate change. AIA architects walk the walk on
sustainable design. Visit
www.aia.org/walkthewalk
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