P&Q Editors Blog

We've moved

2010-04-05T12:21:00.000-07:00

The P&Q Editors Blog is now housed directly on the Pit & Quarry web site. Visit www.pitandquarry.com and click the Editors Blog link, or go directly by clicking here. At the blog's new home, you'll have direct access to industry news, features, digital magazines, links and more. Thank you for your continued support. --Darren Constantino

Infrastructure = jobs

2010-04-01T10:56:00.000-07:00

It's always nice when the number crunchers help us make our point. A new study by Santa Monica, Calif.-based think tank the Milken Institute makes a compelling case for massive infrastructure investment, and more importantly, the connection between investment and jobs. The study, entitled "Jobs for America: Investments and Policies for Economic Growth and Competitiveness," says that U.S. infrastructure, once the envy of the world, is now strained and aging. Modernizing in multiple areas represents an opportunity to create thousands of jobs and jump-start the economy in the near term. The study analyzes the potential effects of 10 different infrastructure projects: highway and transit projects; broadband; offshore drilling and onshore exploration and development of oil and natural gas resources; drinking water and wastewater infrastructure; the smart grid; nuclear energy; renewable energy; the NextGen air-traffic control system; inland waterways; and clean coal. For every $1 billion invested in these projects, slightly more than 25,000 jobs are created, according to the study. The conclusion, the study says, is that "all the projects combined will create 3.4 million construction- and R&D-related jobs, which will generate an estimated $147 billion in earnings. Accounting for ripple effects across other sectors, the total impact will add up to 10.7 million jobs, $420.6 billion in earnings and $1.4 trillion in output." -- Mark S. Kuhar

Nothing but blue skies

2010-03-29T09:03:00.000-07:00

On December 3, 2009, a Portland Cement Association press release was headlined, “Harsh conditions in cement industry to persist in 2010.” The next day, a release went out with the headline, “Cement industry poised for unprecedented period of growth.” Well, what a difference a day makes. The news lately has been just like that. One day the sky is falling, the next day the sky is blue. For the aggregates industry, President Obama’s recent comments after signing the HIRE bill definitely reflected blue sky. “This jobs bill will maintain crucial investments in our roads and our bridges as we head into the spring and summer months, when construction jobs are picking up,” he said. Funding the Highway Trust Fund by way of another bill is helpful, but it is not a sufficiently funded replacement to SAFETEA-LU. Now that the contentious healthcare reform bill has been passed, Congress needs to make infrastructure investment more of a priority. If that happens, the sky will start getting very blue. -- Mark S. Kuhar

Environmental Summit

2010-03-25T12:30:00.000-07:00

The Michigan Aggregates Association (MAA) is sponsoring an Environmental Summit on April 15 at the Soaring Eagle Resort in Mount Pleasant, Mich. The purpose of the summit, held just prior to the MAA annual meeting, is to provide aggregate producers and their suppliers with the most up to date information and guidance on environmental regulations. Topics to be covered at the summit include air/greenhouse gas emissions; surface water (NPDES discharge, storm water, groundwater discharge); wetlands/inland lakes and streams; soil erosion; product storage (SPCC, waste, storage tank, etc.); homeland security; local permitting/zoning and property acquisition. There is no registration fee for MAA members. Advanced registration is required. -- Brian Richesson

Making the worst of it

2010-03-17T11:53:00.000-07:00

The sorry state of the nation’s highways has received its very own “worst of” list, courtesy of Reader’s Digest magazine. The publication looked at data from the Federal Highway Administration – such as highway and bridge conditions, as well as congestion and the rate of fatalities – to come up with the rankings. Montana was the state with the deadliest roads, followed in the top 10 by Louisiana, South Carolina, West Virginia, Arkansas, Mississippi, Kentucky, Wyoming, Alabama and Nevada. The list also included a ranking of “dreaded, dreadful and deadly” stretches of road that truck drivers and other veteran travelers complain about, including Interstate 5 in California, Pennsylvania roads “in general” and I-285 in Atlanta. And to be “fair and balanced,” the magazine noted some of the states with good roads. Kansas, Wisconsin, Montana, New Mexico, Utah, North Dakota, Wyoming, Nebraska, Virginia and Oregon round out the top 10 states that have the best roads in the country, according to the list. The magazine’s best bets for “safe, scenic and sensible” roads include I-70 through Kansas, I-40 across New Mexico and California and I-84 in Oregon. -- Mark S. Kuhar

Expanded program

2010-03-11T07:41:00.000-08:00

Are you traveling to Germany in April for Bauma 2010? Are you seeking a good lecture that will help you on the job? Organizers of the international trade fair for construction machinery, building material machines, mining machines, construction vehicles and construction equipment are highlighting the Bauma Forum. They say it will cover a more extensive and broad-ranging spectrum of themes than the first Bauma Forum in 2007, when about 60 speakers delivered lectures on mining, tunnel construction and processing technology. According to Exhibition Manager Georg Moller, during the preparations for the forthcoming edition of Bauma, exhibitors from other sections also proposed interesting themes, and these are now being included in the expanded program. The full program of events in the Bauma Forum is published on the fair´s web site at http://www.bauma.de/en/Forum. -- Brian Richesson

Good news and bad news

2010-03-05T06:28:00.000-08:00

U.S. construction equipment exports dropped more than 38 percent in 2009 compared to the previous year for a total $12.8 billion worth of machinery shipped to other nations, with declines of between nearly 30 to 50 percent for major world regions. South and Central America as well as Asia were among the regions experiencing the smallest 2009 yearly declines.

The good news is that overall, quarter-to-quarter declines steadily improved, ending with a fourth-quarter 2009 gain of 26 percent over the third quarter, according to the Association of Equipment Manufacturers (AEM). The AEM trade group consolidates U.S. Commerce Department data for off-road equipment with other sources into quarterly export trend reports.

Export sales to South America declined 29 percent in 2009 for a total of $2.4 billion compared to 2008. Central America took delivery of $1.3 billion worth of U.S. construction equipment, a 34 percent decrease, and exports to Asia dropped 35 percent in 2009, for a total of $2 billion.

Export business to Europe declined 51 percent to $1.5 billion in 2009, and construction machinery exports to Canada dropped 41 percent for a total of $3.7 billion.

Africa recorded purchases of $986 million worth of U.S. construction equipment, a drop of 29 percent, while exports to Australia/Oceania decreased 46 percent to $962 million for 2009.

The top buyers of U.S.-made construction machinery for 2009 were: (1) Canada – $3.7 billion, down 41 percent; (2) Mexico – $1 billion, down 28 percent; (3) Australia – $922 million, down 47 percent; (4) Chile – $763 million, down 16 percent; (5) Brazil – $513 million, down 29 percent; (6) China – $487 million, up 15 percent; (7) Colombia – $392 million, down 17 percent; (8) Belgium – 360 million, down 48 percent; (9) South Africa – $353 million, down 49 percent; (10) Peru – $319 million, down 20 percent; (11) Saudi Arabia – $238 million, down 44 percent; (12) Singapore – $214 million, down 48 percent; (13) Russia – $209 million, down 58 percent; (14) India – $181 million, up 55 percent; (15) Venezuela – $165 million, down 57 percent. -- Posted by Brian Richesson

Transportation construction a bright spot in 2009

2010-03-01T11:08:00.000-08:00

An analysis of U.S. Census Bureau data reveals that Transportation Construction put-in-place rose 17.7 percent from January 2009 to January 2010. Highway and Street Construction put-in-place rose 5.5 percent from January 2009 to January 2010. This points to the critical role that a sound infrastructure plays in the national economic picture. While some construction projects can be delayed or canceled, road construction must go on. Public Construction as a whole was up 2.1 percent year-over-year. Other areas seeing year-over-year increases were health care, office and general commercial construction. Total construction put-in-place was down 9.3 percent – more than $100 million – in 2009. -- Mark S. Kuhar

A pleasant surprise

2010-02-22T13:21:00.000-08:00

Walking the streets of downtown Cincinnati last week for the second AGG1 Aggregates Forum & Expo, we thought we were in the wrong city. The Queen City could have easily been mistaken for Cleveland, where our offices are located, 250 miles to the northeast. How else to explain the bitter temperatures, gusty winds and deep snowfall? Cincinnati's winters are often mild, and rarely does it battle the same wintry conditions as other Midwest cities. So the timing couldn't have been worse. On Monday, when education sessions kicked off NSSGA's all-in-one event, more than 8 in. of snow fell in parts of the city. With exhibits opening on Tuesday and continuing into Thursday, we couldn't help but wonder how much attendance would suffer. What a pleasant surprise to see the show floor over the next couple of days as attendees filled the aisles and visited company booths. The foot traffic was impressive. While conditions were sloppy and undesirable outside, business was heating up inside – definitely positive signs for the industry as it continues to recover from the recession. Show organizers reported afterward that AGG1 and the co-located World of Asphalt & Conference posted record numbers for registrants (more than 6,200); amount of exhibit space (more than 87,000 net sq. ft.); and number of education session tickets purchased (6,600). And they will try to build momentum in the coming years. Future AGG1 dates and locations were announced, with Charlotte hosting in 2012 and San Antonio in 2013. The show is idle next year as ConExpo-Con/Agg takes center stage in Las Vegas. -- Brian Richesson

Construction recession at end?

2010-02-12T07:17:00.000-08:00

According to Jim Haughey, an economist for Reed Construction Data, we may have reached the final phase of the construction recession. His observation is based on trends in developer-financed construction.

Total construction spending dropped 1.2 percent in December, but the level of spending in November was revised up. The upward revision for private construction spending more than offset the downward revision for public construction spending. This reverses the pattern in the last few months when private developer financed spending was revised down on late information about suspensions of previously started projects.

According to Haughey, if this reversal in trend holds, it signals the beginning of the final phase of the construction recession: The plunge in developer financed construction ends and the full impact of the recession finally reaches public construction. Note that office and retail construction spending increased slightly in December, while spending for highway and water/sewer projects fell significantly. Total private construction spending declined in December, but the drop was almost entirely in the unreliable measure of residential remodeling spending.

The Reed Construction Data forecast has been revised slightly down to now project a 12.2 percent drop in 2009, a 4.6 percent drop next year and a 6.2 percent recovery in 2011. Monthly jobsite construction spending is expected to continue falling into the winter before a turnaround in May or June. The cumulative decline since spring 2007 has now passed 22 percent with a further 1-2 percent fall expected. -- Posted by Mark S. Kuhar

Celebration in Michigan

2010-02-10T06:50:00.000-08:00

There’s cause for celebration in Michigan. The Michigan Aggregates Association (MAA) is celebrating 50 years of serving the aggregate industry this year. The association provides support to members on legislative, regulatory and legal issues that impact the industry. It also provides training and educational opportunities, while the MAA Foundation annually provides scholarships for college students who are studying in a field related to the aggregate industry. There are about 325 surface mines throughout the state that employ more than 8,000 people. A large number of aggregate mines are family owned and operated. Members of MAA will be invited to celebrate the anniversary during the summer meeting scheduled for July 15-18 at the Inn at Bay Harbor in Bay Harbor, Mich. -- Posted by Brian Richesson

Vulcan Materials announces 2009 results

2010-02-09T13:52:00.000-08:00

Vulcan Materials Co., the nation’s largest producer of construction aggregates, announced results for the fourth quarter and full year ended Dec. 31, 2009.

Fourth quarter 2009
• Net earnings from continuing operations were a loss of $13 million.
• Cash earnings from continuing operations were $67 million.
• Aggregates shipments declined 23 percent.
• Aggregates pricing increased 5 percent.
• Total contract awards for highways increased 13 percent in Vulcan-served states.

Full year 2009
• Net earnings were $30 million, including $19 million from continuing operations.
• Cash earnings were $369 million from continuing operations and $12 million from discontinued operations.
• Aggregates shipments declined 26 percent.
• Aggregates pricing increased 3 percent.
• Cash provided by operating activities was $453 million compared with $435 million in the prior year.
• Total debt was reduced by $810 million in 2009.

Commenting for the company, Don James, Vulcan’s chairman and CEO, said, “Continued weakness in private construction activity, uncertainty surrounding the timing and amount of either a formal extension or reauthorization of the multi-year federal highway program, and extremely wet weather suppressed momentum gained from stimulus-related construction. Nonetheless, we finished the year with strong cash generation.” -- Posted by Darren Constantino

Martin Marietta Materials announces 2009 results

2010-02-09T13:49:00.000-08:00

Martin Marietta Materials Inc. announced results for the fourth quarter and year ended Dec. 31, 2009. Items of note from the company's report included the following:

Fourth quarter 2009
• Net sales of $327.8 million, compared with $413.5 million for the 2008 fourth quarter.
• Heritage aggregates product line volume down 24 percent and pricing down 1 percent.
• Earnings from operations of $14.5 million, compared with $60.4 million for the prior-year quarter.

Full year 2009
• Net sales of $1.497 billion, compared with $1.860 billion for the prior year.
• Heritage aggregates product line volume down 23 percent and pricing up 2 percent.
• Earnings from operations of $187.6 million.

Ward Nye, president and CEO of Martin Marietta Materials, said, “In 2009, Martin Marietta Materials successfully navigated the most difficult economic environment we have seen in our industry since the Great Depression. However, because of our ability to achieve positive pricing growth and by maintaining our discipline and focusing on controlling the corporation’s costs, we were able to remain profitable and generate significant cash flows despite the 15th consecutive quarter of declining shipment volume.” -- Posted by Darren Constantino

The Sun rises

2010-02-01T14:03:00.001-08:00

In Washington, they may be a little behind the eight ball in understanding the importance of infrastructure investment, but up the pike in Baltimore, they seem to have a firm grasp on reality. An editorial over the weekend in the Baltimore Sun aptly addressed the nation's need for infrastructure investment. The paper opined: "This nation's transportation and public-works infrastructure is strained and deteriorating to an alarming degree. The U.S. has not kept up with needs, and for all the talk of the burden the budget deficit places on our children and grandchildren, this failure to keep our infrastructure in good repair may prove just as onerous. Perhaps it's not sexy to talk about asphalt and steel, concrete and catenary, but the construction industry has been hit harder than most sectors of the economy. Even the tens of billions committed by last year's economic stimulus pales in comparison to the unmet needs. ... Right now, states have 10,000 ready-to-go transportation projects valued at $79 billion waiting to be funded, according to the American Association of State Highway and Transportation Officials. Funding them creates real, not theoretical, private-sector jobs, many of them in small companies." Now that's calling a spade a spade. -- Posted by Mark S. Kuhar

Caterpillar predicts a better 2010

2010-01-29T09:11:00.000-08:00

Caterpillar expects 2010 sales and revenues to increase between 10 to 25 percent compared to 2009, according to its just-released 4th Quarter report.

"We continue to see signs of economic improvement, particularly in China and most developing countries," said Caterpillar Chairman and CEO Jim Owens. "We are also seeing signs of improvement in North America, Europe and Japan. We have seen a marked increase in demand for mining equipment – a result of continued strong commodity prices and growing confidence in economic recovery. We have also seen improvement in sales of aftermarket service parts, which is usually an early indicator of growing demand for machines and engines."

In addition to increased end-user demand, Caterpillar says its sales are expected to improve as a result of changes in dealer inventories in 2009. Dealers reduced new machine inventories by more than $3.3 billion and new-engine inventories by more than $600 million during 2009. This means Caterpillar’s sales in 2009 were below end-user demand by nearly $4 billion.

"We expect relatively little change in dealer inventories in 2010 and as a result, Caterpillar’s sales should be more in line with end-user demand," said Owens. "Dealer sales to end users are up, order rates are up, dealer inventories came down in 2009, and we’re seeing stronger service-parts sales.”

Caterpillar reports it is focused on increasing production levels at its plants and with its suppliers. The company expects higher production in 2010, and has already recalled more than 500 previously laid-off production employees.

“We expect 2010 will be a better year than 2009, and Caterpillar is in an excellent position to benefit from growth in the world economy,” Owens said. -- Posted by Mark S. Kuhar

Aggregates equipment sales slated for rebound

2010-01-21T12:14:00.001-08:00

Hopefully, construction-equipment manufacturers have an accurate crystal ball. According to the annual Construction Equipment Outlook 2010 survey of the Association of Equipment Manufacturers, respondents anticipate an increase in aggregates-equipment sales starting this year. Sales in the U.S. are expected to increase 5 percent in 2010, 14.8 percent in 2011 and a very healthy 20.3 percent in 2012. The survey forecast is based on washing equipment, screens, feeders, crushers and conveyors. Aggregates equipment sales in the U.S. will outpace Canada and the rest of the world for the next three years, the survey indicates. Key factors that survey respondents believe will influence equipment sales going forward include the state of the overall economy, credit availability, interest rates, consumer confidence, housing starts and highway funding levels. Other major factors are the strength of the U.S. dollar and international business. -- Posted by Mark S. Kuhar

A positive sign?

2010-01-21T06:17:00.000-08:00

The Commerce Department’s U.S. Bureau of the Census released data on new residential construction in December 2009. Permits jumped 10.9 percent in December, but starts decreased 4.0 percent. Permits have risen 31.1 percent and starts have advanced 16.3 percent from record lows in April.

“Despite the mixed performance at year-end, conditions remain favorable for growth in the coming months,” Commerce Secretary Gary Locke said. “Mortgage rates remain relatively low and the expanded homebuyers’ tax credit provides buyers with attractive opportunities in the coming months.” -- Posted by Brian Richesson

Help is rolling in

2010-01-18T11:21:00.000-08:00

With the island nation of Haiti devastated by a recent earthquake, equipment manufacturers and construction companies have joined the relief efforts. The U.S. military was on the scene early to help out, then corporate America jumped in to give tens of millions of dollars, and that total is growing.

Dozens of U.S. companies have already pledged more than $1 million each to international relief organizations working in Haiti. And, in addition to money, equipment suppliers and construction companies are donating much-needed equipment to help rebuild Haiti's infrastructure.

JCB, the world's third-largest manufacturer of construction equipment, is donating equipment worth $150,000 to help the disaster relief effort in Haiti. The gift of two backhoe loaders was announced by JCB Chairman Anthony Bamford in response to an appeal from relief agencies for foreign aid.

"The scale of the devastation is unimaginable, and it's heart-rending to see the human suffering caused by the disaster," Bamford said. "There is clearly a lack of equipment on the island, and I hope our gift of JCB machines will help in some small way to alleviate that suffering and in the rebuilding in the aftermath of the earthquake."

The earthquake damaged the port in Haiti, which has resulted in a number of logistical challenges for getting supplies into the country.

Other companies providing equipment include Caterpillar. The company said its dealers in Haiti are part of rescue and recovery efforts in the country and Cat is also in touch with relief agencies.

"We know from past experience with natural disasters in other parts of the world that our dealers and customers using Caterpillar equipment are typically among the first responders," the company said in a written statement. "We are currently assessing the situation to determine where we can be of greatest assistance." -- Darren Constantino

Highway construction expected to grow

2010-01-17T13:15:00.000-08:00

Driven by record federal investment in surface transportation, increased spending through the American Recovery & Reinvestment Act (ARRA) and continued easing in material prices, the highway construction market is expected to grow eight percent in 2010, according to ARTBA annual economic forecast.

ARTBA Vice President of Policy & Economist Alison Premo Black says the value of highway, street and bridge construction (from all sources) put in place should reach $90.5 billion in 2010, up from about $83.9 billion this year.

Black cautions, however, that the boost to the market could be temporary. Uncertainty over the reauthorization of the multi-year federal surface transportation bill and future growth of the overall U.S. economy, along with the end of stimulus funds, will determine if there is a “soft landing” in 2011 or a more significant downturn, Black said.

The association’s 2010 forecast takes into account current economic conditions, federal investment and state and local funding. The $41.2 billion in 2009 federal highway obligations, as well as the additional $26.7 billion available through the ARRA, will provide the foundations for growth in 2010. Although there are general concerns regarding state and local spending, states are expected to continue to provide matching funds for the traditional federal aid program investment and spend their ARRA funding.

“Despite the current economic environment and budget challenges, 38 states have increased the real value of their contract awards between January and October 2009 compared to the same time period in 2008,” Black noted. “The real value of contract awards for highways and bridges is nearly $50 billion so far, an increase of $5 billion and an important leading indicator for the 2010 construction season. -- Mark S. Kuhar

AP report stirs strong emotions

2010-01-16T13:03:00.000-08:00

Well, this could get ugly. NSSGA reports that the war brewing between the Associated Press (AP) and the transportation construction industry and its advocates, noted in the blog post below, is stirring strong emotions.

House Transportation and Infrastructure committee Chairman James Oberstar (D-Minn.) and Highways and Transit subcommittee Chairman Peter DeFazio (D-Ore.) were quick to take issue with an AP analysis, issued Jan. 11, that suggests that transportation infrastructure spending had no palpable effect on a region's unemployment rate and that overall construction jobs declined despite the cash infusion. Oberstar and DeFazio countered by saying that the report "flies in the face" of hard data showing that stimulus spending has created more than 760,000 jobs, including those added indirectly throughout the supply chain.

According to a quote from the American Highway Users Alliance, "The analysis failed to fully consider the number of jobs created and saved outside of the immediate vicinities of projects. It also failed to consider that the vast majority of the highway money will be spent in the coming months. By only looking at local employment, the study failed to recognize the positive effects of highway spending for materials suppliers, equipment makers and dealers, truckers and others.

"Of the 30,000 jobs sustained by each billion dollars in federal spending, about two-thirds are indirectly created in supporting industries or induced in totally different industries. In fact, nearly half of the jobs created by highway investments are induced. The AP report fails to consider that a large portion of the jobs are created far from an individual stimulus project's location but still benefit the country as a whole."

Further challenging the AP analysis, Alison Premo Black, senior economist of the American Road & Transportation Builders Association contended, "...but you don't create new jobs unless firms are already at full capacity, the investment going into the marketplace is significant and, most importantly, that the new funding is additive to a consistent baseline level of investment." -- Mark S. Kuhar

Touchy subject

2010-01-13T07:36:00.000-08:00

What side do you take? According to an Associated Press analysis, the $20 billion in President Obama’s first stimulus package obligated for roads and bridges has not made a positive impact on local unemployment rates, and it’s barely helped the construction industry. The article drew intense reaction from critics who say the results are not accurate. Those who spoke out against the analysis include Ray LaHood, transportation secretary; Rep. James L. Oberstar, D-Minn., chairman of the House Committee on Transportation and Infrastructure; and Ken Simonson, chief economist for the Associated General Contractors of America. – Posted by Brian Richesson

Heavy construction: slight increase

2010-01-12T04:49:00.000-08:00

According to Reed Construction Data Economist Jim Haughey, total construction spending dropped 0.6 percent in November and October spending was revised down slightly continuing the trend of downward revisions in recent months. More complete information is causing downward revisions as projects previously started are suspended or slowed due to financing difficulties or second thoughts about the need for the added space or facility capacity. October spending totals were revised lower for every nonresidential building category. Some of the revisions were significant. Some of the suspensions and slowdowns will be reversed in the next few months as the space demand outlook with time for the expected completion date.

85 percent of the decline in spending from October was in residential remodeling. New home and heavy construction spending increased slightly while spending for nonresidential building construction declined 0.7 percent. Overall, the November report was about as expected and has to be considered neutral. The initial remodeling estimate has proven to be very unreliable. It is not plausible that residential remodeling spending fell 3.8 percent in November. Expect this to be revised.

The Reed Construction Data forecast has been revised down slightly to now project a 12.4 percent drop in 2009, a 3.7 percent drop next year and a 6.5 percent recovery in 2011. Monthly jobsite construction spending is expected to continue falling into the winter before a turnaround in May or June. The cumulative decline since spring 2007 has now passed 22 percent with a further 1-percent fall expected. -- Mark S. Kuhar

An update from Michigan

2010-01-11T08:52:00.000-08:00

A presentation by Matt Johnson, director of government and community affairs for the Rio Tinto/Kennecott mine, highlighted the Michigan Aggregates Association’s (MAA) winter meeting.

Johnson spoke about the water ballot initiative that would restrict mining in Michigan and the permitting process for the Kennecott mine. Development of the Kennecott mine is under way, scheduled for nickel mining.

The mine would have a significant positive effect on employment in the Upper Peninsula while providing a much-needed natural resource, MAA said. The campaign, if successful, could stop production at the Kennecott mine and be detrimental to overall mining in Michigan, as it would restrict the ability for companies like Rio Tinto to mine, MAA added.

John Burch, of Warner Norcross and Judd, also gave an update on MAA’s amicus brief in Kyser v. Kasson Township. The case is important to the industry in protecting the “no serious consequences test” for aggregate producers. This case has been ongoing and is now being reviewed by the Michigan Supreme Court. A ruling on the case is not expected until spring.

The association presented Sen. Jud Gilbert, R-Algonac, with the 2009 MAA Legislator of the Year award, citing his dedication to transportation issues that impact the aggregate industry.

A presentation of a scholarship award was also made to Mark Phelps Jr. of Houghton Lake, Mich., who is studying chemistry at Michigan State University. The Michigan Aggregates Association presents scholarships annually to students who are studying in areas related to the aggregate industry. -- Posted by Brian Richesson

PCA: job losses not as severe as expected

2010-01-10T04:36:00.000-08:00

For many, the construction-industry job picture is cause for serious concern. The December 84,000-job-loss figure recently released by the Bureau of Labor Statistics (BLS) was more than projected, but a three-month data review suggests that labor conditions are improving at a pace better than expected, according to a recent report by the Portland Cement Association (PCA). The combination of BLS upward data revisions and better than expected job-market performance, PCA said, resulted in only 501,000 job losses during August-December 2009 versus an PCA-predicted 861,000.

“There is evidence that the job-creation process has already begun,” Ed Sullivan, PCA chief economist said. “Typically, extended work hours, overtime and temporary hiring precede job creation. November’s increase in the length of the average workweek—the first increase in 14 months—was unchanged in December at 33.2 hours. Furthermore, temporary employment continued to rise, as 47,000 positions were added in December.”

If the labor market sustains its better than expected performance from the fourth quarter, it could lead to a quicker healing of the underlying fundamentals surrounding construction, Sullivan said. -- Mark S. Kuhar

Calling on Congress in 2010

2010-01-03T06:17:00.000-08:00

The advocacy group Building America's Future and various stakeholders recently called on Congress to facilitate private investment, economic growth and the creation of jobs through transportation and infrastructure investments. The bipartisan group includes some high-profile members with strong words for Washington.

"A diverse group of organizations and elected officials are standing together to illustrate the support and urgent need for smart infrastructure investment to get our economy moving in the right direction," said California Governor Arnold Schwarzenegger, co-chair of Building America's Future.

"We would prefer to see Congress pass a fully reformed six-year transportation bill," said Pennsylvania Governor Ed Rendell, co-chair of Building America's Future. "We are urging Congress to front load some transportation investments now so states and cities can complete fix-it-first projects and improve the safety and efficiency of our roads, bridges and transit systems while at the same time creating jobs."

"Funding infrastructure projects that are in the pipeline and can be started in the next year is one of the most effective ways Congress can support job creation and economic growth," said New York City Mayor Michael Bloomberg, co-chair of Building America's Future. "But we have to go further, with long-term reform of how projects get built in this country. One way to do that is through creation of an independent, nonpartisan entity -- a national infrastructure bank -- that would fund our most vital needs based on merit, not politics."

"Transportation infrastructure investment is a proven job generator and the transportation resources provided by the American Recovery and Reinvestment Act are having an unprecedented impact in contributing to economic recovery," said T. Peter Ruane, President and CEO, American Road & Transportation Builders Association (ARTBA). "As such, transportation infrastructure should be a foundation of any job creation package under consideration." -- Posted by Mark S. Kuhar

President signs FY 2010 DOT spending bill

2009-12-31T06:05:00.000-08:00

Although there has been little movement on an infrastructure reauthorization bill, President Obama signed a FY 2010 DOT Appropriations bill on Dec. 16, according to NSSGA. The DOT spending bill served as an “omnibus” appropriations bill carrying six other spending bills with it. The bill funds highways at $41.8 billion and includes $650 million in additional highway funding for the states. This is an increase from $40.7 billion in 2009. Transit is funded at $10.73 billion in FY 2010, an increase of $602 million over 2009. The Airport Improvement Program (AIP), which funds improvements at airports, is funded at $3.5 billion including $500 million for “significant transportation project” grants in a wide variety of modes. In a speech earlier in December at the Brookings Institution, Obama noted that the White House is in the process of considering new ideas to accelerate the pace of private-sector hiring, with a major component of that being a boost in infrastructure spending beyond what was included in the American Recovery and Reinvestment Act economic-stimulus package passed last year. -- Posted by Mark S. Kuhar

USGS releases third-quarter production stats

2009-12-27T06:02:00.000-08:00

The USGS released its third-quarter production statistics, and although the double-digit year-over-year decreases are consistent with previous quarterly reports released this year, the numbers aren't quite as bad as some feared. An estimated 586 million metric tons (Mt) of total aggregates was produced and shipped for consumption in the United States in the third quarter of 2009, a decrease of 21 percent compared with that of the same period of 2008. The estimated production for consumption in the first nine months of 2009 was 1.45 billion metric tons (Gt), a 25 percent decrease compared with the same period of 2008.

Of the aggregates total, an estimated 335 Mt of crushed stone was produced and shipped for consumption in the United States in the third quarter of 2009, a decrease of 20 percent compared with that of the same period of 2008. The estimated production for consumption in the first nine months of 2009 was 852 Mt, a 24 percent decrease compared with that of the same period of 2008.

Of the aggregates total, the estimated output of construction sand and gravel produced and shipped for consumption in the third quarter of 2009 was 250 Mt, a decrease of 21 percent compared with that of the same period of 2008. The estimated production for consumption in the first 9 months of 2009 was 597 Mt, a 27 percent decrease compared with that of the same period of 2008. --Posted by Mark S. Kuhar

Equipment shipments stabilize

2009-12-21T02:46:00.000-08:00

Construction equipment shipments from U.S. factories have been stable for five months through October signaling the possibility that the bottom of the recession for the equipment market is near, according to Jim Haughey, Reed Construction Data. After a 55 percent fall in shipments since early 2006, another 5 percent decline is expected by spring. This final phase of the recession results from the pause in housing late in 2009 when the extension of the homebuyer tax credit was delayed and the slowdown in the flow of shovel ready stimulus spending.

Shipments have averaged 6 percent higher than orders since May. Although factory and dealer inventories are declining rapidly, the equipment inventory/sales ratio is still double the level typical of a normal market environment. This inventory overhang will restrain production and import increase until well into next year. It also signals that fleet managers still lack the confidence, credit or both to begin upgrading their aging fleets. No significant pickup in equipment shipments is expected until the end of 2010. Then an equipment-shipments gain of more than 20 percent is forecast from the end of 2010 to the end of 2011.

As high as this is this is sluggish for a volatile capital-goods market early in a recovery period. The 2011 surge in sales is far beyond additional capacity required for expanded construction activity. The surge will be primarily driven by the catch up to earlier postponed scheduled fleet upgrades.

Over the next year, equipment demand will rise strongly for single family site development and for exports. Demand will be up slightly for transportation facility, highway, bridge and water work. But equipment demand will continue to decline for power and energy related projects. Equipment demand will sink for six more months for nonresidential and multi family building work with some of the loss regained in the following six months. -- Posted by Mark S. Kuhar

Digging up the past

2009-12-17T07:07:00.000-08:00

A few weeks ago, Paul Vassalotti of Cross Plains, Wis., e-mailed to ask if we have photos available from a 1926 issue of Pit & Quarry. Vassalotti was searching for information about his great grandfather’s sand-and-gravel operation in Massachusetts – Riverside Sand and Gravel. We didn’t have the photos he was looking for, but he was nice enough to share some information about his search methods. My grandfather was also in the sand-and-gravel business, so I was happy to have these tips:

• Ask relatives and former employees. Both have yielded information for Vassalotti.
• Local library. He found a story about a 1930 fire at the plant. Many library web sites now make available access to databases and other useful information.
• City directories. He found information in these directories over several years.
• Registrar of deeds. Vassalotti researched all of the land purchases and was able to see when company land was bought and sold.
• City hall tax records. Shows the value of property and taxes paid.
• City hall building permits. He was able to find building permits that were still on file. This information helped date the building of plants.
• Incorporation papers. Found incorporation papers filed in Boston.
• Old property maps. He found maps of his great grandfather’s property.
• eBay. He purchased truck photos and a matchbook related to the company.
• Aerial photos. Vassalotti obtained aerial photos of the site from 1938, 1955 and 1957. The images were ordered from the U.S. Geologic Survey.
• Online searching. Try Google, Bing and other search engines. His great grandfather’s business was next to a train station. He found a train enthusiasts’ web site that had a photo of a train station with Riverside Sand and Gravel in the background.
• Google Books. Vassalotti found some information using this tool.
• Historical equipment associations. Members helped by sharing truck and plant photos of the operation.
• Pit & Quarry and other magazines. He found related articles from 1926.

– Darren Constantino

Controversial decision

2009-12-09T06:14:00.000-08:00

Stephen E. Sandherr, CEO of the Associated General Contractors of America, issued the following statement on Dec. 7 in response to the decision by the Environmental Protection Agency (EPA) that greenhouse gas emissions endanger public health:

"While the construction industry fully supports measures to improve our environment, the reality is today's EPA announcement will only make it harder to build the greener future our planet needs and our children deserve. Every single construction project in America is now likely to be put on standby until federal bureaucrats decide whether to grant Clean Air Act permits, making it even harder to construct efficient new buildings, cut polluting traffic or retrofit existing, inefficient buildings. At a time when the government is investing billions in construction activity to rebuild our economy, this decision will undermine the stimulus, cost thousands of construction workers their jobs and stifle economic growth for decades to come. The association and its 33,000 member companies urge the administration to rethink its misguided approach and plan to work closely with Congress to overturn this disastrous decision." -- Posted by Brian Richesson

Online safety training available in Spanish

2009-12-03T08:59:00.000-08:00

Caterpillar’s safety web site, safety.cat.com, is celebrating two years online, created with one purpose in mind: to promote jobsite safety, whether digging a trench for a small utility job in a residential neighborhood or handling tons of ore-bearing rock in the largest of mines. The safety goal of the site is simple, yet of crucial importance.

Among the newest resources at the site is Internet-based safety training, which helps employees understand and avoid jobsite hazards. More than 200 online training modules are available, many offered in English and Spanish.

Online Spanish-language modules are grouped into the following categories: construction, mining and heavy equipment; driver safety; environmental; general safety; Occupational Safety and Health Administration (OSHA) essentials; and supervisory safety. Courses in these categories include, for example, aerial-lifts for construction; hand- and power-tool safety; defensive driving – large vehicles; hearing conservation; confined-space hazards; fall protection; and OSHA 10-hour for construction. In all, nearly 70 courses are available in Spanish and range in duration from 20 minutes to more than two hours.

According to Cat, Spanish-language online training is a convenient, cost-effective means for allowing employees to learn the basics of jobsite safety at a pace that suits their schedules. The broad range of subjects addresses all levels of safety within a business, and the system permits managers to track employee progress. Ultimately, online training can serve as a solid base for enhancing or initiating a safety program within any organization.

Many Spanish-language courses start at less than $20, and registration is easy, Cat notes. Log on at safety.cat.com/training and follow the five-step tutorial. – Posted by Darren Constantino

Telephone blitz

2009-12-03T07:52:00.001-08:00

The Transportation Construction Coalition (TCC) is organizing a nationwide call-in on Dec. 10 to urge congressional action on a highway reauthorization bill. While Congress is embroiled in other high-profile issues, senators and representatives must be reminded about the need to address the expired highway and transit program authorization, TCC says. In visits by TCC members on Capitol Hill, members of Congress report they are not hearing from people at home.

TCC would like to blitz congressional offices with calls from constituents. To do this, a toll-free number has been set up to allow calls directly to the offices of senators and representative at (888) 448-2782. TCC is asking callers to make the following points:

• Huge transportation needs are not being met, including deficient bridges, deteriorating pavements, congested roads and safety hazards.

• The construction industry has an unemployment rate of more than 18 percent.

• Without the certainty of a long-term authorization bill, with increased funding levels, construction companies and material suppliers will be forced to lay off additional workers.

• Businesses will not invest in new equipment when there is so much uncertainty about the ongoing and future construction market.

• Congress must do its job and delay no longer. Pass a six-year transportation authorization bill now and provide the revenue necessary to increase funding to address the short-term need for jobs and long-term economic growth.

In addition, the TCC has set Dec. 10 for delivery of a letter to Congress signed by various organizations in each state urging action on a multi-year, surface transportation reauthorization. TCC is asking its members to encourage state-affiliated organizations or chapters to sign the letter and urge other business and civic groups to sign, as well. -- Posted by Brian Richesson

'Jello is made out of rock!'

2009-12-01T08:52:00.000-08:00

KBDJ, a Hays County limestone quarry in Austin, Texas, recently hosted 120 fourth graders from Bridgepoint Elementary School, who learned the importance of mining and the environment. The event is a good example of how a quarry develops a relationship with its community.

“Jello is made out of rock!” said student Rebecca Quilkey after learning that limestone not only is used to build roads, but can be found in many other everyday items and food.

This is the second year the school has taken a field trip to the site.

“The kids love it because it is so hands-on and they get to see the rock quarry,” said teacher Susan Bigham. In class, the students have been learning about the Edwards Aquifer and its recharge zone, which includes the quarry land, she said.

According to KBDJ President Jill Shackelford, “We love to educate the students on the importance of mining and the environment. We like to use this site as an outdoor classroom and let them get hands-on with what they have been learning in the classroom. This shows that mining and conservation can coexist.”

Student field trips to the site helped KBDJ win certification earlier in November as a Corporate Lands for Learning program by the Wildlife Habitat Council (WHC). Since June 2007, KBDJ has hosted educators and schoolchildren and conducted environmental programs and projects at the quarry site. Previously, WHC in 2008 recognized KBDJ and its parent company for creating a Wildlife at Work program.

While at the site, the Bridgepoint Elementary students donned hard hats and gazed into the quarry pit; examined native habitat and planted wildflower seeds with the assistance of Hill Country Conservancy staff; learned about air quality and the Edwards Aquifer from representatives of the Texas Commission on Environmental Quality; and looked into a cave, one of the sensitive geographic features located on the site, with help from a Barton Springs/Edwards Aquifer Conservation District staff member.

The students also enjoyed a pizza lunch and were allowed to gather samples of the rock quarried on the site to take home, along with a goodie bag that included a T-shirt and rock identification kit

“I think that it was pretty cool that I got to get my own rock,” said student Amanda Elswick. “I hope we get to come back next year because it’s a really cool place to come to.”

-- Posted by Brian Richesson

Enhanced experience

2009-11-25T08:34:00.000-08:00

Apparently, the 2010 World of Asphalt Show & Conference is the place to be.

Leading U.S. and worldwide industry organizations, including U.S. government agencies, are lending their support to the show. Industry events have also chosen to co-locate with the show, offering additional networking and education opportunities for attendees and exhibitors.

World of Asphalt will be held Feb. 15-18, 2010, at the Duke Energy Convention Center in downtown Cincinnati. Leading industry manufacturers and suppliers will unveil and discuss their latest technologies and product innovations on the show floor, complemented by industry-focused education programs.

New World of Asphalt co-locations include the Flexible Pavements of Ohio Annual Meeting and the Plantmix Asphalt Industry of Kentucky Winter Training School (Covington, Ky.). The American Road and Transportation Builders Association is returning as organizer of the National Traffic Management and Work Zone Safety Power Workshop.

The 2010 AGG1 Aggregates Forum & Expo is co-locating with the 2010 World of Asphalt after a successful inaugural co-location in 2009. The National Stone, Sand & Gravel Association (NSSGA), AGG1 show owner, is again holding its annual convention with the events.

The World of Asphalt hosts two prestigious industry events: the Asphalt Pavement Alliance’s (APA) Asphalt Pavement Conference and the People, Plants and Paving Training Program.

Helping to develop the APA conference is the U.S. Federal Highway Administration, Ohio Department of Transportation and American Association of State Highway and Transportation Officials, as well as the APA alliance partners: the Asphalt Institute, National Asphalt Pavement Association (NAPA) and state asphalt pavement associations.

Industry direction for the People, Plants and Paving Training Program is provided by the program sponsors: NAPA along with the Asphalt Emulsion Manufacturers Association, Asphalt Recycling and Reclaiming Association and International Slurry Surfacing Association.

Show participants can also take advantage of a National Institute of Occupational Safety and Health workshop on major hazard risk assessment, sponsored by NSSGA. -- Posted by Brian Richesson

TCC survey addresses transportation issues

2009-11-21T03:27:00.000-08:00

The Transportation Construction Coalition (TCC) which consists of 27 industry associations and labor organizations, held a press briefing Nov. 13 on the results of a survey of transportation contractors. Nearly 70 percent of the more than 500 survey respondents reported receiving stimulus-funded contract work this year. Sixty-three percent, however, also reported that they had to lay off permanent employees over the past year due to adverse business conditions. Further, 44 percent of transportation contractors who responded to the survey said that they anticipate having to lay off permanent employees next year, while only five percent plan to hire new non-seasonal personnel.

NSSGA President and CEO Joy Wilson said that the need to fix our infrastructure is akin to having a "hole in America's roof." She said, "We have to fix the roof just as a homeowner has to maintain and replace a 50-year-old home's infrastructure. Congress needs to improve our surface transportation system or it risks losing any gains from the stimulus and the very viability of the system long-term becomes questionable."

According to Ken Simonson, chief economist for the Associated General Contractors, "While one-time investments in transportation infrastructure like the stimulus help...contractors know there's nothing after the stimulus except for depleted state and local coffers."

Ron DeFeo, chairman and chief executive officer of Terex Corp., asserted that if the current uncertainty over funding of the transportation program continues, further job losses will follow. Fewer than 20 percent of the contractors said that they plan to purchase new construction equipment or trucks in 2010.

TCC continues to push Congress to act on a multi-year surface transportation authorization bill as soon as possible. With action on a well-funded, multi-year bill appearing not to be possible before the current continuing resolution funding the highway bill expires on Dec. 18, TCC is pushing Congress to pass a six-month extension during which time action on a multi-year bill could be completed with focused political will. -- Posted by Mark Kuhar

Behind the scenes

2009-11-18T08:17:00.000-08:00

Seven senators and leaders of several key committees signed a letter addressed to Senate Majority Leader Harry Reid, D-Nev., and Senate Minority Leader Mitch McConnell, R-Ky., requesting they help extend the current surface transportation program for six months. Dated Nov. 17 on U.S. Senate Committee on Environment and Public Works letterhead, the text reads:

Dear Majority Leader Reid and Minority Leader McConnell:

One of the best ways to spur job creation and economic recovery is through infrastructure investment. That is why a longer term extension of the surface transportation program is so important to maintaining our nation's vital bridges, roads, public transportation and other related infrastructure, restoring our economy and creating good jobs for American workers.

In July, the Committee on Environment and Public Works, the Committee on Commerce, Science, and Transportation, and the Committee on Banking, Housing and Urban Affairs each reported an 18-month extension of the surface transportation program prior to the expiration of the 2005 surface transportation bill, the Safe Accountable, Flexible, Efficient Transportation Equity Act: a Legacy for Users (SAFETEA-LU), with bipartisan support.

We believe a multi-month extension of SAFETEA-LU is the best solution. It would give states the certainty they need to plan and contract for transportation infrastructure projects. The Department of Transportation estimates that every $1 billion spent on transportation and matched by the states supports approximately 35,000 jobs. It would also give the Department of Transportation's highway safety agencies the certainty they need to continue implementing safety-critical programs that keep motorists safe on our roads.

SAFETEA-LU expired at the end of September and, unfortunately, there was objection to floor consideration of the bipartisan legislation extending these important programs. This necessitated two short term extensions to the surface transportation program, attached to Continuing Resolutions. Short term extensions mean less money is available for states, and do not provide states the certainty they need to keep crucial transportation projects moving forward.

On a bipartisan basis, we have decided to move forward with a 6-month extension. Unfortunately, a small number of Senators continue to object and will not allow an extension to be considered by the Senate without a cloture vote.

We urge you to file cloture on the motion to proceed on the 6-month extension and dedicate the time necessary to complete this important legislation, so we can put Americans back to work and keep our economy moving.

Sincerely,

Barbara Boxer – Committee on Environment and Public Works
James M. Inhofe – Committee on Environment and Public Works
Chris J. Dodd – Committee on Banking, Housing and Urban Affairs
Richard C. Shelby – Committee on Banking, Housing and Urban Affairs
John D. Rockefeller – Committee on Commerce, Science and Transportation
Kay Bailey Hutchison – Committee on Commerce, Science and Transportation
Max Baucus – Committee on Finance

-- Posted by Brian Richesson

Mark your calendars

2009-11-16T07:39:00.000-08:00

Here's a comprehensive schedule of construction conventions upcoming in the next five years. The AEM Construction Conventions Calendar for 2010-2015 provides the tentative time and place of more than 40 allied construction-organization meetings, as well as overseas expositions and AEM-run exhibitions. The PDF includes hyperlinks to the web sites of the event organizers. -- Posted by Brian Richesson

Rally focuses on SAFETEA-LU reauthorization

2009-11-07T07:23:00.000-08:00

A caravan of bulldozers and other construction equipment displaying huge banners paraded through the streets of Washington last week to send a message to lawmakers that they must act now to stop the job bleeding in the construction-equipment industry. Start Us Up USA! campaign organizers, joined by House Transportation & Infrastructure Committee Chairman Jim Oberstar (D-MN) and other allies, also staged a rally on the National Mall against a backdrop of idle construction equipment and a sea of orange flags to emphasize the 550,000 jobs lost in the industry and to encourage the federal government not to delay enactment of multi-year highway legislation.

"Across the country, time is running out for the men and women of this industry as job losses continue to mount and prevent a broader economic recovery," said Toby Mack, president and CEO of the Associated Equipment Distributors (AED). "New transportation funding is a critical component to spurring a recovery of the construction equipment industry nationwide and improving our nation’s infrastructure," added Dennis Slater, president of the Association of Equipment Manufacturers (AEM), who along with AED, is co-sponsoring the Start Us UP USA! campaign.

While recession abates for some sectors of the U.S. economy, the construction equipment industry remains stalled in a deep depression, according to Mack and Slater. In fact, eight percent of all jobs lost during the recession – or two out of every 25 – can be traced to this ailing industry, according to an economic report released just last month by IHS Global Insight. AEM and AED largely blame the downturn in their sector, in part, on the uncertainty surrounding the future of the highway program and a scarcity of new federal investment in needed transportation improvements that would benefit the public and strengthen our nation’s competitiveness.

The current law – SAFETEA-LU – that funds the majority of the nation’s transportation investments expired on October 31, and Congress and the administration have yet to move on a new multi-year reauthorization bill. Leaders in the Start Us Up USA! campaign are calling for enactment of a new transportation bill before the spring construction season begins in early 2010. -- Posted by Mark Kuhar

Fighting the flu

2009-11-03T06:46:00.000-08:00

Are you in need of a video that will help raise awareness of the H1N1 flu and reinforce basic behaviors to prevent the disease from spreading? Convergence Training has announced the launch of its new H1N1 Flu – Swine Flu Awareness Video, which it believes will do just that. With a shortage of H1N1 vaccines and President Obama’s recent declaration of a national emergency, the company said it has developed a video that’s appropriate for nearly any audience. Known for its use of 2D and 3D graphics and distinct visual style, Convergence Training is offering this video for purchase and download in flexible, easily-sharable formats to encourage broad distribution of the training. The video is available to purchase and download online at www.H1N1Video.com and on YouTube at www.youtube.com/kdellavalle. A DVD will be available soon. -- Posted by Brian Richesson

Construction starts steady in September

2009-10-30T08:48:00.000-07:00

According to Reed Construction Data's Jim Haughey, construction starts fell only 1.5 percent in September from August after adjusting for the large seasonal decline typical at the end of the summer. This is consistent with the the company forecast indicating that starts will slip very slowly lower into the winter and that construction spending will dip slightly more by year-end.

After seasonal adjustment, non-residential building starts fell 1 percent in September from August, heavy project starts fell 17 percent and residential starts rose 2 percent. The residential gain was mostly for single-family construction. The housing recovery will continue at a more modest pace for the rest of the year. The large drop in the heavy market was largely sharp cutbacks after an August surge in the stimulus funded highway and water markets. Stimulus funded starts are expected to peak soon. But expect a rebound in the relatively low September starts totals before the peak is reached.

September non-residential results are the closest to the expected trend in late 2010. The decline was held to 1 percent by a 16 percent seasonally adjusted surge in retail starts which is likely to be reversed in the coming months. However, retail will be the first commercial market to recover because the recession began early in this market.

The economic environment is clearly improving for residential construction with massive federal pump priming, most of it directed to housing or consumer income support. It is not yet known if Congress will continue these subsidies into 2010 in the face of a $1.4 trillion budget deficit. If not, the economic environment for housing will worsen sharply. But the environment continues to worsen in non-residential markets.

The environment will be approximately steady in public non-residential markets with the spending of delayed building stimulus funds offset by cutbacks in state and local government capital spending forced by under-budget tax collections. The environment will continue to decline in private non-residential markets due to large and still rising space surpluses in commercial markets and near record high overcapacity in facility markets, especially in the energy field. -- Mark S. Kuhar

Restoring The Big House

2009-10-29T06:50:00.000-07:00

Lafarge is scoring big with the University of Michigan.

High-performance Tercem 3000 blended cement supplied by Lafarge is playing a key role in the $226 million renovation and expansion of Michigan Stadium in Ann Arbor. The three-year construction project, which began after the last home game in 2007, includes preservation of the existing historic structure as well as stadium enhancements that will improve the game-day experience for University of Michigan Wolverines fans.

Known as the “Big House,” the University of Michigan football stadium is the fourth largest stadium in the world. The current renovation and expansion project, which has been phased so that home games and commencement ceremonies can continue as planned, involves replacement of bleachers, widening of seats and aisles, the addition of 83 luxury boxes and 3,200 club seats, and the construction of a new press box, restrooms, concession areas and concourses. Seating capacity will top 108,000 when the newly renovated stadium is complete.

Although work on the project will continue until the beginning of the 2010 football season, some major construction milestones already have been reached – including the removal of the existing bowl floor and replacing it with concrete containing Tercem 3000 blended cement from Lafarge’s terminal in Detroit. This highly automated cement terminal contains an on-demand blender capable of producing precisely proportioned custom blends of cementitious products quickly, efficiently and with great accuracy. Clawson & Killins Concrete Companies and Walker Parking Consultants agreed that allowing Lafarge to custom blend Tercem 3000 would enable them to produce a concrete containing excellent uniformity, finishability and superior hardened properties.

Tercem 3000 is a high-performance blend of slag cement, silica fume and Portland cement. It is precisely formulated for high strength, improved durability and superior placing and finishing qualities. It provides significant performance benefits, including improved 28-day strengths, reduced permeability, improved rheology and pumpability of concrete (especially in hot weather), reduced concrete bleeding, as well as improved resistance to alkali-silica reaction.

Tercem 3000 delivers environmental benefits as well. Production of Tercem 3000 uses less energy and reduces carbon dioxide emissions compared to conventional cement manufacturing, the company said. Using materials reclaimed from steel-making and silicon metals operations, it is recognized as a “recovered” product by the U.S. Environmental Protection Agency and can help projects earn points toward certification under the LEED Green Building Rating System of the U.S. Green Building Council. -- Brian Richesson

Smart solutions

2009-10-27T07:04:00.000-07:00

It’s one thing to improve roads, highways and bridges across the nation, quite another to do so in a timely, cost-effective and innovative way.

From the seven North Carolina bridges replaced in 45 days to the Utah highway that reduced commuters’ drive time from 42 to 16 minutes, a new report released by the American Association of State Highway and Transportation Officials highlights 50 projects nationwide that showcase smart transportation solutions by state transportation departments.

The projects were entered in a competition to find America’s best projects, delivered on-time, on-budget and with innovative management. “What we found from examining the entries is that the states are applying creativity, accountability, efficiency and cost-effectiveness in delivering the transportation improvements their communities need. As a result, delays are shorter, projects are faster and taxpayers get more for their investments,” said John Horsley, AASHTO executive director.

The report, “Smart Solutions: 50 Ways America Just Got Better,” highlights success stories of state DOTs across the nation from the 2009 America’s Transportation Awards competition. The contest is sponsored by AASHTO, AAA and the U.S. Chamber of Commerce.

The projects nominated for the America’s Transportation Awards contest were completed early and under budget, sought innovative methods to solve problems, relieved seriously congested vital corridors, improved public safety, enhanced economic growth, rebuilt after and prepared for disasters, achieved sustainable solutions, supported tourism and engaged the community.

Among the techniques used to make good projects better are: creative contracting, financial incentives and disincentives for contractors, innovative construction techniques, strategic traffic management, intelligent transportation systems, dogged attention to schedules, innovative financing, intergovernmental cooperation and constant communication.

“It is critical that our transportation systems receive the funding necessary to keep America moving,” Horsley said. “But even more important is that our state and local governments use that money to deliver projects that quickly meet the needs of our communities in the most cost-effective and efficient manner.”

Featured projects from 33 states demonstrate the breadth of successful transportation investments – from work on interstate corridors that eased congestion and used fast-track construction techniques, to efforts that enhanced public safety by improving roads and raising public awareness.

Download the 27-page report at www.transportation1.org/SmartSolutions. Learn more about the competition at www.AmericasTransportationAward.org. -- Brian Richesson

Highway bill = jobs, better roads and bridges

2009-10-26T06:11:00.000-07:00

Dennis Slater, president of the Association of Equipment Manufacturers, has written a very compelling op-ed about fully funding a new highway bill. The piece follows:

America and Minnesota need better roads and bridges, and Minnesota Representative Jim Oberstar, Chairman of the House Transportation and Infrastructure Committee, is the champion for quick passage and full funding of a highway bill that would provide money for infrastructure improvements. What we haven’t heard enough about is how a fully-funded federal highway bill could help us get out of the economic downturn by creating jobs, as we will see in a moment.

Are improved roads and bridges important to residents of the North Star State? A research group, The Road Information Program (TRIP), recently issued a report entitled “Future Mobility in Minnesota: Meeting the State’s Need for Safe and Efficient Mobility;” (see www.tripnet.org.)

According to the report, the cost of crumbling infrastructure to each Twin Cities motorist is $1,501 each year. This cost derives from poor road conditions, lost time and fuel from traffic congestion, and the expense from traffic crashes. Think about the opportunity cost. Besides car repairs, how else could you spend $1,501? Perhaps a small portion of those savings could be used to pay to improve roads and bridges.

And Minnesota leads the nation with the highest share of urban roadways considered congested during peak travel time – 76 percent.

About $65 billion will be needed during the next 20 years to achieve state priorities for safety, mobility and infrastructure preservation, but the Minnesota DOT estimates that only $15 billion will be available. The $50 billion gap means bridges and roads will go without maintenance and continue to jeopardize safety.

As is always the case with transportation issues, there is more to building better roads and bridges than the very important matters of time and safety for US drivers. There is also global economic competitiveness.

Funding gaps as the one described above put Minnesota and the rest of the US at a disadvantage in the global marketplace. Emerging markets seem to “get it,” even if we don’t. According to research issued late last year, China invests nine percent of its gross domestic product (GDP) in infrastructure versus 0.93 percent for the US. In August The Economist said China's stimulus package (reportedly $586 billion) is at least 13-15 percent of its GDP, and possibly 18 percent. The US “$787 billion stimulus package amounts to 5.5 percentage of its GDP,” and only $27 billion has been designated for transportation infrastructure. If the US is going to remain the world’s economic leader, our investment in roads and bridges will have to increase accordingly.

Now, about those jobs. With a national unemployment rate of nearly 10 percent, workers would only benefit from infrastructure investment. Many experts contend that infrastructure investment is superior for creating jobs and economic stimulus. A recent study by the USDOT estimates that for every $1 billion invested in US infrastructure, nearly 35,000 jobs are created, and a University of Maryland analysis demonstrated that every $100 invested in infrastructure returns $350 to the economy.

By funding the highway bill, Congress would actually be funding a jobs bill that would help keep one vital manufacturing sector operating in the US.

The companies my association represents in the construction equipment manufacturing industry are experiencing a depression, not a recession. Upwards of 40 percent of those working in this manufacturing sector have lost their jobs in this downturn, so this industry needs a fully-funded highway bill now.

The simplest way to explain the importance of the federal highway bill to the construction equipment industry is this: a fully-funded highway bill will promote significant long-term funding and planning for serious construction projects, such as new bridges, new roads and other infrastructure improvements. Long-term planning means construction contractors have market certainty and can afford to buy new equipment. The more the bill is postponed, the harder it is for contractors to bid and plan for significant long-term construction projects, which leads to additional job losses.

Washington had an opportunity with the stimulus package earlier this year to adequately fund badly needed infrastructure improvements. Unfortunately, DC’s leadership did not choose to spend stimulus dollars to improve our failing infrastructure, or build it as is the case in China. As often happens with Washington, things have not turned out as promised.

However, by funding the highway bill, Washington would send the right signal by helping a vital manufacturing industry. By fully-funding a federal highway bill, Congress would boost US economic well-being and competitiveness. Washington needs to hear that the country needs the shorter extension, and that all infrastructure funding options must be considered: Toll roads, user fees, a gasoline tax, public private partnerships, bonds, sales, etc.

A legislative deadline for the highway bill is looming on October 31. Congress must either decide in favor of a long-term plan to improve our neglected roads, that creates thousands of good paying sustainable jobs, or to stay in a holding pattern. Congress can put the construction industry back to work, or it can continue to delay much-needed legislation. Americans deserve quick action by Congress to provide the needed funding for safe and efficient roads, bridges and highways. -- Mark S. Kuhar

See for yourself

2009-10-23T07:26:00.000-07:00

To build anticipation for AGG1 next February and to showcase the host city of Cincinnati, NSSGA created the "C for Yourself" getaway for two. Contest winners and their guests spent a weekend there, staying at the NSSGA Annual Convention hotel and exploring the Queen City. Their experiences served as a preview for the entire industry. Winners were Melissa McClary, environmental specialist for The Melvin Stone Co. in Sabina, Ohio, and Rob Rebel, senior engineer for Knife River Corp. in Bismarck, N.D. Check out their blog to see photos and learn more about Cincinnati. -- Brian Richesson

Spreading the word

2009-10-20T10:42:00.000-07:00

In the September/October issue of Stone, Sand & Gravel Review, the History Channel's summer documentary about "The Crumbling of America" is explored. The article credits the documentary for spreading the word about the sorry state of our nation's infrastructure more than any other media outlet since the 2007 Minneapolis bridge collapse. A couple of unsettling numbers mentioned in the article: At the beginning of building the Interstate Highway System, in 1956, the United States spent 12.5 percent of its budget on infrastructure. That number has fallen to 2.5 percent today. Experts also state that 160,000 of America's 600,000 bridges are structurally deficient or obsolete. That number comes to mind when reading another recent article, in The Post-Star (Glens Falls, N.Y.), about the Lake Champlain Bridge being closed indefinitely due to problems with its foundation. The bridge crosses Lake Champlain between Crown Point, N.Y., and Chimney Point, Vt. Just how many more bridges should be shut down right now? According to the American Society of Civil Engineers, $2.2 trillion will be needed over the next five years to bring the nation's infrastructure back to an acceptable level. Hearing about all of this makes you wonder why Congress continues to delay reauthorization of the nation's highway program. -- Brian Richesson

Construction starts predicted to climb

2009-10-17T04:47:00.000-07:00

McGraw-Hill Construction, part of The McGraw-Hill Companies, released its 2010 Construction Outlook, which forecasts an increase in overall U.S. construction starts for next year. Due to improvement for housing from extremely low levels and broader expansion for public works, the level of construction starts in 2010 is expected to climb 11 percent to $466.2 billion, following the 25 percent decline predicted for 2009.

“The U.S. construction market in 2010 will be helped by growth for several sectors, following three straight years of decline that brought total construction activity down 39 percent from its mid-decade peak,” said Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction, addressing more than 300 construction executives and professionals at the 71st annual Outlook 2010 Executive Conference in Washington D.D. “The benefits from the stimulus act will broaden in scope, lifting not just highway construction but also environmental public works and several institutional structure types. With continued improvement expected for single family housing, after reaching bottom earlier this year, the overall level of construction activity should see moderate expansion in 2010.”

Highlights of the 2010 Construction Outlook include:
• Single family housing for 2010 will advance 32 percent in dollars, corresponding to a 30 percent increase in the number of units to 560,000 (McGraw-Hill Construction basis).
• Multifamily housing will improve 16 percent in dollars and 14 percent in units, after steep reductions in 2008 and 2009.
• Commercial buildings will drop 4 percent in dollars, following a steep 43 percent drop in 2009. The weak employment picture will further depress occupancies, making it even more difficult to justify new construction.
* Institutional buildings will begin to stabilize after losing momentum in 2009. Square footage will retreat another 2 percent after sliding 23 percent this year. The dollar amount of construction for this sector will edge up 1 percent, helped by a growing amount of energy-efficiency upgrades to federal buildings and continued strength for military buildings.
• Manufacturing buildings will drop 14 percent in dollars and 3 percent in square feet, hampered by the substantial amount of slack manufacturing capacity.
• Public works construction is expected to rise 14 percent, given more wide-ranging strength across all project types.
Electric utility construction will slip 3 percent, continuing to settle back after a record high in 2008. -- Mark S. Kuhar

Respect for the road

2009-10-14T07:45:00.000-07:00

Rough, bumpy roads are noticeable and extremely annoying, with the constant jarring of the car providing an unsettling driving experience. But have you ever noticed when a road is in great condition and offers a smooth, comfortable, enjoyable ride? Asphalt, the online magazine of the Asphalt Institute, has announced a new project, FavoriteRoad.com, where drivers can share photos and stories of their favorite roads. The web site is scheduled to launch in early November. Check out the article that explains this interesting concept. -- Brian Richesson

Your concerns

2009-10-12T09:05:00.001-07:00

This is a busy time for the aggregates industry. A lot is happening on political, economic and legislative fronts. A lot of issues are at play. We recently surveyed our readers to see what issue has the potential to impact their aggregate operation the most. Still a top concern at 36 percent was more aggressive MSHA enforcement, followed closely at 31 percent by expiration of the highway bill. Overhaul of the health care system (12 percent), expansion of the Clean Water Act (10 percent) and changes to card-check legislation (10 percent) also received votes. I'd love to hear more about these topics and how they concern your operation specifically. I'll list your answers in a future blog post. Please e-mail me, and make sure to vote in our current Pit & Quarry survey. -- Brian Richesson

Study: Machinery demand to increase 5.3 percent per year

2009-10-02T07:49:00.000-07:00

World demand for construction machinery is projected to increase 5.3 percent per year through 2013 to $140 billion, according to a study by The Freedonia Group Inc., an industry research firm. This represents a moderation from the 2003-2008 pace, reflecting a slowdown in worldwide economic and construction expenditure growth. Nonetheless, gains in the global construction equipment market will still be quite healthy.

The developing Asia construction equipment market, including India, China, Indonesia and South Korea, will experience the fastest growth through 2013. China alone will account for one-third of all new global product demand between 2008 and 2013. North America is projected to be the second fastest growing market. In the United States (where demand will advance from a weak 2008 base), sales of construction equipment will be fueled by a surge in residential construction activity.

Ongoing industrialization efforts in many developing countries will continue to sustain high levels of road and infrastructure-related construction. Loaders, which are extremely versatile, will post above-average gains as global nonbuilding construction and mining activity expands. -- Darren Constantino

Reauthorization update

2009-09-22T03:52:00.000-07:00

With the clock ticking toward the expiration of SAFETEA-LU, talks continue on both sides of Capitol Hill regarding the length of an extension since completion of work on a multi-year bill by Sept. 30 is unlikely, according to NSSGA. House Transportation and Infrastructure committee Chairman Jim Oberstar (D-Minn.) continues to push his bill and wants a short-term extension, reportedly three months, in which to complete work on a multi-year reauthorization. It is possible a short-term extension could be offered as early as next week under suspensions requiring a two-thirds vote of those present and voting and allowing no amendments. Congressional staff say the Senate, with the administration, wants an 18-month extension and could act on such a proposal next week. The two bills would then have to be reconciled by a conference committee.

In an effort to keep pressure on Congress to act on reauthorization, the Freight Stakeholders Coalition held a news conference on Sept. 14 saying that Congress should extend the surface transportation law only as long as needed to get a six-year reauthorization finished. The group said that an 18-month extension is too long to wait for the jobs a reauthorization bill would create. The American Trucking Association spokesman contended that the gasoline tax is still the best way to fund highway projects and would be a strong source of revenue for the next 15-20 years and is still the most fair and efficient way to fund the program. -- Mark S. Kuhar

Follow the leader

2009-09-21T13:40:00.001-07:00

With the official launch of our Twitter page last week, Pit & Quarry entered the era of social media. Social networking sites such as Facebook, MySpace and Twitter aren't just for teenagers and friends wanting to keep in touch. They are also for businesses and media outlets trying to reach their audiences in a variety of ways. That's our aim with the Twitter page, which you can access at http://twitter.com/pitandquarry. If you already have your own Twitter account, just follow us and you'll start to receive news and blog headlines as they are posted. It's just another avenue to stay current on the happenings and opinions of the aggregate industry. And it's free. Also, just a reminder that if you'd like to see your company's news make its way to Pit & Quarry's web and print pages, please e-mail me at brichesson@questex.com. -- Brian Richesson

Steady climb ahead

2009-09-18T11:52:00.000-07:00

Where are we heading? If you asked that question at the beginning of this year, the answer was simple: The road ahead was a straight drop off. There were fears of a depression and major bank failures. Since that time, a lot has changed. The stimulus bill was passed just before our industry's inaugural AGG1 show in March. The show was a success, and a few industry insiders told me passage of the stimulus prior to the show definitely helped attendance.

The spring and summer continued to be difficult times for most aggregate producers, and there has been no great turnaround yet. But all signs are suggesting we've reached the bottom of the hill, and the road ahead is a long, slow rise. Yahoo Finance recently posted an article entitled Aggregate Producers Positioned for a Recovery in 2010.

The author expects aggregates demand "to gradually trend up starting in 2010. By that time, we expect stimulus spending on roads and infrastructure and a recovery in residential construction to drive growth in demand for construction materials." Yahoo Finance says Vulcan Materials and Martin Marietta are both well positioned to benefit from this recovery.

And while some producers have already benefited from stimulus dollars, the author estimates "about 60 to 70 percent of the $28 billion in stimulus allocated for road work will be spent in 2010, and this boost in federal spending will offset a slowdown in state and local spending." -- Darren Constantino

Queen City tour

2009-09-15T06:12:00.000-07:00

Are you wondering what to expect from Cincinnati, which is hosting the next AGG1 Aggregates Forum & Expo, the World of Asphalt Show & Conference and the NSSGA annual convention in February 2010? NSSGA is providing a sneak peak of the Ohio city with four weekend package giveaways starting Sept. 20. Click here to find out more. I like this opportunity NSSGA is providing – for perception of the Queen City, if nothing else. With Pit & Quarry Magazine based in Cleveland, about a four-hour drive from Cincinnati, we know how brutal Ohio winters can be. Granted, there is a big difference between Northeast Ohio and Southwest Ohio, but any February day in the Buckeye State has the potential to be extremely cold and snowy. Cincinnati is an attractive city and deserves a visit (see for yourself at www.cincyusa.com). NSSGA is on the right track by having contest winners preview the city and report on their experience. Most likely, they will give rave reviews – at least before the snow starts flying. -- Brian Richesson

Construction spending: slight decline

2009-09-11T03:45:00.000-07:00

Construction spending dipped in July. The small July decline offsets a small rise in June. Slightly larger monthly declines are expected into the winter, according to Jim Haughey of Reed Construction Data. He expects a 3-4 percent decline by the end of the winter on top of the 10 percent fall in the last year and the 20 percent drop since March 2006. The gains in the residential market will not be enough to offset declines in the nonresidential market.

Much of the recent strength in housing has been the temporary boost from new home sales tax credits and a questionable reported rise in remodeling spending. Housing spending will continue to rise but the pace will be modest.

Offsetting the residential gains, the decline is accelerating in nonresidential markets. Spending at institutional building sites rose through June then fell for the first time in this cycle in July. Monthly declines will continue into the winter. Heavy construction spending has been stalled for three quarters but a mild dip is expected well into 2010 driven by unresolved problems with highway funding and a sharp drop in power project starts. -- Mark S. Kuhar

Highway bill talking points

2009-09-10T03:53:00.000-07:00

AEM released the following to help the industry deal with highway fund reauthorization questions.

Industry Talking Points: Why We Need A Multi-Year, Comprehensive Highway Bill
* The economy may be in a recession, but the construction and manufacturing industries are in a depression.
* Congress must pass a long-term, comprehensive federal highway bill now. Funding “shovel ready” projects or a simple extension won’t work. Only long-term planning will spur demand for new equipment.
* Reliable, strong infrastructure and a healthy manufacturing sector are inseparable – both are vital to our nation’s future. We cannot afford to wait any longer.
* Comprehensive infrastructure investment is critical to saving jobs in manufacturing, and indeed, saving U.S. manufacturing and the U.S. economy.
* Employment in the manufacturing sector has declined by 4 million jobs in the past 10 years, and is suffering severe losses in the current recession. Every one of those jobs supported family, community, countless other businesses, and critical government services.
* A recent study by the University of Massachusetts-Amherst found that roughly 18,000 new jobs would be created for every $1 billion in new infrastructure spending on the nation’s transportation, energy, water systems, and public schools.
* Manufacturing is the critical economic engine of our past, present and future. Manufacturing—
• creates good jobs with good wages and benefits,
• strengthens and grows the middle class;
• creates the economic wealth needed to fund things like health care reform, green energy and environmental protections;
• manufacturing is the strongest driver of innovation – our nation was built on manufacturing innovation and it’s the only thing that will keep our nation strong and healthy.
* Greater infrastructure spending is the most effective way to generate employment in the U.S. It will attack the gross deficiencies in our nation’s infrastructure and contribute to longer-term economic growth, particularly for our manufacturing base.
* A 21st century infrastructure system makes U.S. manufacturing – and thus the U.S. – competitive in the world. We have fallen behind and that slide must be halted and reversed. -- Mark S. Kuhar

Stimulus assessment

2009-09-03T03:43:00.001-07:00

There is an excellent assessment of the highway stimulus program on CNN Money. The article says, "The government promised $27.5 billion in stimulus funds to help fix the nation's crumbling roads and bridges as part of a broader effort to save jobs. The effort is working...sort of. Nearly three-quarters of the funding has gone to short-term, road paving projects rather than longer-term work like repairing bridges and building new highways. Furthermore, jobs that paving projects create or save last for a shorter duration than other types of road construction. It's not that the plan is entirely missing the mark, but there is a balancing act going on between fast-acting and long-lasting stimulus." Click HERE to read the rest. -- Mark S. Kuhar

Summer lessons

2009-09-02T07:23:00.000-07:00

School is in session.

Teachers gathered for the Illinois Association of Aggregate Producers’ (IAAP) “Illinois Teachers Workshop: Rocks, Minerals & Mining in Today’s Society” earlier this summer in Carbondale, Ill. The annual opportunity allows teachers to refresh their knowledge of earth science and learn about the importance of various minerals and aggregates.

Thirty-seven elementary and high school teachers attended lectures and participated in hands-on activities presented by government, industry and academic professionals and took advantage of the opportunity to meet individuals working in the aggregates industry.

During the workshop, teachers hunted for fossils at a rock outcropping in Vienna, Ill., and observed mining operations, crushed stone processing and asphalt production at Southern Illinois Stone’s Buncombe Quarry. Anna Quarries offered the opportunity to witness a shot.

Hands-on activities such as cookie mining and layer cake core drilling allowed teachers to experience fun and exciting ways to engage students in learning about geological processes and mining economics. Other seminars helped to illustrate the connection between the products we use today and the raw material source. Each activity teachers experienced helped them to explore Illinois geology, fossils, aggregate mining or minerals in our everyday lives.

This was the 13th year for the workshop, an educational initiative of the IAAP Public Information and Education Committee. Becky Kazmierski of H.H. Holmes Testing Laboratories Inc. chairs the committee. -- Brian Richesson

Materials markets stabilizing

2009-08-28T08:58:00.000-07:00

According to Reed Construction Data, the materials market appears to be stabilizing this summer after a 28 percent fall in production over three and a half years. Sales were approximately steady in June and production fell only 0.1 percent in July when orders rose 1.4 percent. Inventories held by manufacturers have been dropping since November and have now fallen enough — with steep production cuts — to push the month end inventory/sales ratio to 1.43 from a peak of 1.52 in December and January.

Reed Construction Data cautions that The Census Bureau indexes for construction materials are overstating the recent improvement in the market. The indexes are constructed by dividing the use of materials between construction, manufacturing and other end markets. This allocation uses the historical shares of purchases of steel, plastics, glass and other materials by each end market. The Census Bureau has no specific information, for instance, on the share of steel production shipped to the construction market.

Production of materials specialized to the residential market will pick up progressively in the second half of 2009. Recovery in nonresidential markets will come early next year. -- Mark S. Kuhar

Worldwide challenge

2009-08-25T09:04:00.000-07:00

The Construction Challenge is returning in 2009-10 – on a bigger and better scale.

The Association of Equipment Manufacturers (AEM) and Destination ImagiNation (DI) have announced the continuation of the AEM event. The Construction Challenge, a career-education initiative, will return for the 2009-2010 season in a new format that will allow it to reach a larger audience than before.

Destination ImagiNation is a creative problem-solving program. It is offered in more than 30 countries, and every year more than 100,000 students participate in the program worldwide. Through its “Challenge A - DIrect DIposit,” thousands of participating teams will be exposed to construction-related subject matter in 2009-2010.

“We want to make sure we continue to reach participants with creative problem solving and information about construction careers,” said Rusty McCarty, president of DI.

The winning teams will advance from regional tournaments (held March 2010) to affiliate tournaments (held April 2010) and then on to global finals (held late May 2010). And while attending advanced tournaments, the teams will also have the opportunity to interact with AEM representatives and learn about careers in the construction industry.

“Our Construction Challenge was created as a platform to educate students and the public about rewarding, interesting and lucrative career opportunities. We want to attract even more young people to continue providing the innovation needed for our quality of life,” said Dennis Slater, president of AEM. “While our nation’s leaders are planning for the creation of millions of jobs, we are focused on what we can do to help develop this growing skilled workforce.&rdquo

The AEM Construction Challenge program offers an opportunity for students, teachers, parents and community leaders to learn more about teamwork, creative problem solving and rewarding industry career paths, as well as building an awareness of the impact of infrastructure on our quality of life. Because the equipment manufacturing industry needs to fill more than 1 million new jobs by 2012, AEM partnered with DI in 2007 to develop the AEM Construction Challenge as an industry-wide effort to motivate young people to consider joining the industry. -- Brian Richesson

Cement forecast adjusted

2009-08-21T05:25:00.000-07:00

Bureaucratic delays in releasing funds coupled with long lags between outlays and construction activity for American Recovery and Reinvestment Act (ARRA) projects will lead to very little stimulatory impact on cement consumption in 2009, according to the most recent economic forecast from the Portland Cement Association (PCA).

PCA expects total cement consumption to decline 22 percent during 2009 to 75 million metric tons. The meeting of total ARRA obligations in 2010 combined with the beginning of a sustained pick-up in the residential sector will contribute to a 10.9 percent increase in total cement consumption in 2010, followed by a 13.1 percent gain in 2011.

“The letting of ARRA dollars has been slower to develop than expected,” Edward Sullivan, PCA chief economist said. “A sustained and dramatic escalation of outlays must occur if a sizeable increase in highway construction is going to materialize in 2009.”

The public construction sector, which typically accounts for 50 percent of cement consumption, also is hampered by large state deficits caused by a perfect storm of adverse economic conditions and job layoffs, leading to declines in state tax revenue. Sullivan expects as jobs are created and consumer spending returns, public construction spending will rebound, but not until 2011.

“The residential sector has largely run its course as a significant cause of cement consumption declines and will start to be a strong contributor to growth in late 2010, early 2011. Nonresidential construction will continue to be a drag until then end of 2011,” Sullivan said. -- Mark S. Kuhar

Quarry run

2009-08-13T06:30:00.000-07:00

Here’s a pretty unique community event that Graniterock hosts each year at its A.R. Wilson Quarry in Aromas, Calif. The company’s Rock & Run benefiting the Aromas School will be held at 8 a.m. Sept. 13 at the quarry. A 10K run and 5K walk/run winds through the historic granite quarry. Runners will see the working quarry face, the ancient granite deposit, the specialized processing equipment and the natural surroundings. There will be awards for each of the top finishers in several categories, and the trophies will be as unique as the course. The trophies will be made from materials from the A.R. Wilson Quarry. Graniterock welcomes runners and walkers of all ages to come and enjoy a unique setting while raising money for a local school. Race-day registration is available, and runners also may register at www.graniterock.com or www.active.com. -- Brian Richesson

The view from Don James

2009-08-12T02:37:00.000-07:00

While Vulcan Materials reported a quarterly earnings drop, it's top executive sees light at the end of the tunnel. Commenting on the state of the industry, Don James, Vulcan’s chairman and chief executive officer, stated, “While our current results reflect the volume effect of the prolonged recession, we are encouraged by the increased level of bid activity by state transportation departments as well as the significant increase in highway construction contract awards reported in May and June. The increased level of bid activity and contracts awarded demonstrate that funding provided by the federal economic stimulus plan, or American Recovery and Reinvestment Act, is working its way into the economy. We expect construction activity referable to these contract awards to begin in the second half of 2009 and to provide a meaningful contribution to overall aggregates demand in 2010. " -- Mark S. Kuhar

Crucial time for construction

2009-08-10T07:22:00.000-07:00

Stephen Sandherr, CEO of the Associated General Contractors of America, released a statement on construction industry challenges:

"Construction employment fell by 76,000 jobs last month, seasonally adjusted," said Sandherr, in reference to employment numbers released Aug. 7 by the Bureau of Labor Statistics. "Meanwhile, the last 12 months have seen 1,053,000 construction workers lose their jobs, emphasizing the negative impact the current economy is having on the construction industry in particular. Currently, 18.2 percent of construction workers are unemployed, nearly double the 9.7 percent overall unemployment rate, or 9.4 percent seasonally adjusted. While it is clear that the stimulus has helped prevent even greater job losses, it is apparent that the construction industry is suffering from low demand for commercial facilities, dwindling orders for new office buildings, declining state and local revenue, and the current economic conditions as a whole, including tight credit markets.

"These job figures clearly point toward the continued need for investment in the construction industry. With stimulus funds slowly being spent, it is critical that both Congress and the administration focus on hastening the disbursement of these funds, particularly for non-transportation stimulus construction projects. It is crucial that the stimulus money quickly finds its way into the industry, or thousands more construction workers will lose their jobs." -- Brian Richesson

Highway Trust Fund to stay solvent

2009-08-07T02:33:00.000-07:00

NSSGA reports that last week, the House and Senate approved an infusion of $7 billion into the Highway Trust Fund in order to keep in solvent through the end of the fiscal year on Sept. 30. The House passed the bill (H.R. 3357) on July 29 by a vote of 363 to 68. The Senate followed, passing the solvency measure on July 31 by a vote of 79 to 17. The bill also extends unemployment insurance and increases the authority for the Federal Housing Administration's two main mortgage-assistant programs. President Obama has said that he will sign the legislation.

Before clearing the measure, the Senate defeated two amendments that proposed funding the HTF solvency fix with untapped economic stimulus funds. An amendment offered by Sen. Kit Bond (R-Mo.) to repeal the $8.7 billion rescission of unused funds scheduled to take effect at the expiration of SAFETEA-LU also was defeated. The rescission originally was agreed to when there was a substantial balance in the HTF, but there are not expected to be unused funds at the expiration of the current law, which means the rescission would result in additional cuts in the program.

Senate Environment and Public Works Chairman Barbara Boxer (D-Calif.) agreed with Bond that the rescission should be repealed and promised to include the language in an extension of the law that she anticipates the Senate will consider in September.

H.R. 3357 will transfer $7 billion from the General Fund of the Treasury to the Highway Trust Fund, which is expected to run short in August. House Transportation and Infrastructure committee Chairman James Oberstar (D-Minn.) wanted a $3 billion solvency fix to keep pressure on lawmakers to pass a multi-year comprehensive surface transportation reauthorization bill. The administration sought an 18-month, $20 billion extension of the current law. Ultimately, all agreed on a clean, $7 billion infusion of funds that should keep the HTF solvent until the end of the fiscal year and perhaps beyond. -- Mark S. Kuhar

Fatality #8

2009-08-06T04:15:00.000-07:00

On May 1, 2009, Jose E. Salazar, a dredge operator at a Texas sand and gravel operation, age 59, was fatally injured when he became entangled in one of two positioning winches on a dredge. He was attempting to hand guide the cable onto the winch while it was rewinding.

The accident occurred, according to MSHA, because management had not established adequate policies and safe work procedures for performing maintenance on the dredge. The winch was not taken out of service when the winch control lever functions reversed following the installation of a new winch cable. The winch was not shut off before maintenance was performed.

This was the eighth fatality this year in the metal/nonmetal segment of the mining industry. -- Mark S. Kuhar

Road to 6,000

2009-08-04T06:24:00.000-07:00

According to the U.S. Department of Transportation, the nation's stimulus program has met a milestone.

The widening of congested U.S. 60 – or Grand Avenue – northwest of downtown Phoenix this week became the 6,000th highway project funded by the American Recovery and Reinvestment Act.

The $44.5 million project will widen the route between state Route 303 and 99th Avenue, which serves an estimated 45,000 vehicles daily, from four lanes to six. In addition, intersections and medians will be improved, and turn lanes will be built at the intersections. When completed, the project will greatly relieve one of Phoenix’s most congested corridors and help to reduce greenhouse gases in the area.

Unlike other areas of the Phoenix metropolitan area, which can accommodate high volumes of traffic with access to interstate highways, the area near Sun City, El Mirage, Peoria and Surprise – a vital link between Phoenix and Las Vegas – has no major road other than Grand Avenue. As a result, the volume of daily commuters and commercial truck traffic contribute heavily to local congestion.

Of the nearly $27 billion available for highway projects through the Recovery Act, Arizona’s share is $520.9 million. To date, Arizona has funded 135 projects totaling $307.8 million. Nationwide, states have funded more than 2,400 projects for more than $17 billion. -- Brian Richesson

Housing: market on the mend

2009-07-27T03:04:00.000-07:00

According to Reed Construction Data, national housing starts in the second quarter just ended were +2.5 percent versus the first quarter of this year. Regionally, on the same quarter-to-quarter basis, there were increases in the Northeast (+14.8 percent), West (+13.9 percent) and Midwest (+9.6 percent). The only decline came in the South (-6.6 percent). However, the size of the market in the South is still way bigger than in any of the other regions (i.e., more than double the next biggest market, the West).

Single-family starts were +18.0 percent in second-quarter 2009 versus the first-quarter. Multi-family starts, however, were -30.3 percent. Multiple-unit construction is traditionally more volatile. Also, it is a lot smaller percentage of total starts than the single-family category.

Reports by various housing agencies indicate that home prices are down, affordability is up, mortgage rates are low and foreclosed homes as a percentage of total sales are on the decline. The market for new housing is gradually picking up, with a number of hurdles to be crossed along the way. These include a jobs market that is still in decline, credit tightness that is limiting access to funds and an excess of unsold home inventories. -- Mark S. Kuhar

‘Meet Your Member’ month

2009-07-23T05:49:00.000-07:00

Do you wonder what approach to take when it comes to contacting your elected officials? Or how your relationship with them can help your aggregate operation? NSSGA’s grassroots advocacy program, Aggregates in Action (A2), will be holding a webinar at 11 a.m. on July 28 in preparation for NSSGA’s “Meet Your Member” month. This August, the aggregates industry is encouraged to bring members of Congress to their facilities and discuss important legislative issues. NSSGA Government Affairs Committee Vice Chairman Robert Dugan of Granite Construction, who also serves as the Pacific West A2 Regional co-chair, will present how to most effectively communicate with elected officials and build strong and lasting relationships with them. You can register online for the webinar here. The cost of the webinar is $50 per site location for NSSGA members ($100 for non-members). NSSGA said this is a great investment that will pay dividends going forward. -- Brian Richesson

Changing of the guard

2009-07-20T07:32:00.000-07:00

As you’ve probably already heard, President Obama has nominated Joe Main to be assistant secretary of labor for Mine Safety & Health – the head job at MSHA. The confirmation of Main could lead to major changes at the agency. For 22 years, Main served as administrator of the Occupational Health and Safety Department for the United Mine Workers of America. He’s currently self-employed as a mine-safety consultant.

Main is a strong advocate for miners, and was very outspoken in his opposition to President Bush’s appointment of Richard Stickler to head MSHA. Main reportedly wrote a letter to Pennsylvania Gov. Tom Ridge at the time, pointing out that the coal operations Stickler managed were among the most-cited in the country for violations.

Pit & Quarry Safety Columnist Carl Metzgar said of Main: “There is no one in labor or management more interested in the safety of the individual miner. He has the knowledge to enhance miner safety if his efforts are not frustrated by the entrenched bureaucracy.”

In a prepared statement, the National Stone, Sand and Gravel Association said, “NSSGA believes that Mr. Main’s background in coal mining should afford him awareness of the differences that exist between coal and aggregates production. NSSGA will reinforce the specific characteristics of aggregates businesses in the U.S.”
Word on the street is that an MSHA with Main at the helm will be a 180-degree change from the agency’s policies during the Bush administration. Stay tuned. --Darren Constantino

Housing starts surge in June

2009-07-17T08:28:00.000-07:00

Initial construction of U.S. homes and applications for building permits both surged in June, according to government figures reported today. Housing starts rose to a seasonally adjusted annual rate of 582,000, up 3.6 percent from a revised 562,000 in May, according to the Commerce Department. Economists were expecting housing starts to increase to an annual rate of 524,000 units. Single-family housing starts were especially strong, up 14.4 percent on a month-over-month basis. It was the biggest surge in that measure, considered the core of the housing market, since December 2004. --Mark S. Kuhar

Quarry Days

2009-07-16T08:03:00.000-07:00

It’s refreshing to see a community actually embrace its quarry and understand the importance of the materials it produces. That’s been happening in Dell Rapids, S.D., for the past 22 years in celebrating Quarry Days and aggregate producer L.G. Everist.

The celebration features a number of events, including a golf tournament, tractor pull, baseball game, entertainment at the historic amphitheater, a parade, car show, fireworks and any other activity designed to inspire summer fun. About 3,000 people attend the event daily during the weekend, and this year’s attendance seemed even higher, according to Dell Rapids Chamber of Commerce Coordinator Lorretta Mattern.

How much does the chamber of commerce embrace the quarry? According to the chamber’s web site, “The quarry is a ‘must see’ when you come to Dell Rapids. Located in the southeastern part of town, you can't miss it.”

The mine has its own railway, and Quarry Days allows visitors to take a train ride through the quarry. Let's hope other communities get on board and develop these types of close relationships with their corporate partners. -- Brian Richesson

Spending bill approved

2009-07-15T11:46:00.000-07:00

Late on July 13, the Transportation, Housing and Urban Development Appropriations Subcommittee unanimously approved the $123 billion THUD spending bill for FY '10. Of the total, the U.S. Department of Transportation would receive $75.8 billion, $8.6 billion more than last year. The full appropriations committee is scheduled to consider the THUD bill on July 17 in anticipation of having it on the House floor by the end of the month. The big winner was the high-speed rail program, which received $4 billion, substantially more than the $1 billion the president requested. However, the secretary of transportation is given the authority to transfer $2 billion to a national infrastructure bank, if one is authorized by Congress before the end of FY '10.

Highways
The Federal Highway Administration would receive $41.1 billion under the bill, matching the administration's request and $400 million above last year.

Aviation
The Federal Aviation Administration would receive $9.3 billion for operations, $2.92 billion for facilities and equipment account and $3.5 billion for the Airport Improvement Program. The operations account is set to receive $300 million more than last year. The F&E program would get $183 million more while the AIP is flat-lined.

Transit
The Federal Transit Administration would get $8.343 billion under this bill, an $82 million increase over last year. The New Starts Program would see an $18 million bump from last year to $1.827 billion.

Highway Trust Fund
Despite the looming bankruptcy of the Highway Trust Fund, the spending bill provides no funds to shore up the account. In regard to this, the subcommittee's chairman, John Olver (D-Mass.), said, "While it is neither this committee's making nor this committee's responsibility to fix, the uncertainty surrounding the solvency of the trust fund hinders this bill's ability to provide more than modest increases in many transportation infrastructure programs."

The subcommittee, in keeping with tradition, did not release details of the spending bill, but only the programmatic numbers. These details will be released after the full committee approves the spending bill.

Source: NSSGA -- Mark S. Kuhar

Federal relief

2009-07-08T06:42:00.000-07:00

Aggregate producers in some states could reap the benefits of a federal emergency relief program.

The federal government is making more than $200 million available to 15 states across the nation to cover costs incurred to repair roads and bridges damaged by a variety of natural emergencies and catastrophic events, U.S. Secretary of Transportation Ray LaHood announced.

“Restoring transportation routes is vital for communities recovering from disaster,” LaHood said. “It is the first step to getting people's daily lives back on track.”

Under the Federal Highway Administration's emergency relief program, the $200 million will go to the 15 states, American Samoa, the Virgin Islands and federal lands agencies to pay for damages caused by storms, flooding, hurricanes and other disasters and events. The states are Alabama, Alaska, Arkansas, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, New Hampshire, New York, North Carolina, North Dakota, Tennessee and Washington.

Kentucky and Washington will receive $27 million and $24 million, respectively, for winter storms in January 2009. Louisiana will receive $16 million to pay for Hurricane Gustav damage.

The funds will reimburse states to fix or replace highways, bridges and other roadway structures such as traffic signals and signs, guardrails and lighting. Also eligible are costs associated with detours, debris removal and other immediate measures necessary to restore traffic flow in impacted areas.

The 2009 Continuing Appropriations Act and the 2006 Department of Defense Appropriations Act both provide additional funding for the FHWA program, which Congress annually authorizes at $100 million. The program reimburses states for the repair or reconstruction of federal-aid highways that were damaged in disasters and catastrophic failures. -- Brian Richesson

Industry pushes reauthorization

2009-07-08T03:52:00.000-07:00

On the morning after the Highways and Transit subcommittee approved a $500-billion surface-transportation reauthorization bill, representatives of transportation and construction-materials groups gathered in the Transportation committee room to hear from Chairman James Oberstar (D-Minn.). Sen. George Voinovich (R-Ohio), Senate highway subcommittee chairman, Rep. Peter DeFazio (D-Ore.) and full committee senior Republican, Rep. John Mica (Fla.), joined Oberstar as he gave a lengthy review of events leading up to the unveiling of the current bill.

Oberstar said that the surface transportation bill has always passed because of industry support and exhorted meeting participants to do everything they can to build support for the bill. The Obama administration has floated a proposal, supported by some in Congress, to delay reauthorization for 18 months. Voinovich said that he opposed the idea. The members of Congress present agreed that the time to act was now and that they are working together to advance the bill. They asked for industry's support to accomplish this goal.

NSSGA is asking the industry to petition representative and senators to:

* Complete action on a multi-year reauthorization bill as soon as possible;
* Urge members of the House Ways & Means and Senate Finance Committees to make generating sufficient revenue for a $450 billion reauthorization bill a priority;
* Tell the bipartisan leadership of the House and Senate action on a reauthorization bill this year is critical to promoting economic recovery and job creation; and
* Preserve the solvency of the Highway Trust Fund immediately. -- Mark S. Kuhar

On behalf of the industry

2009-07-02T09:06:00.000-07:00

Don James, president and CEO of Vulcan Materials Co., and John Keating, president and COO of Oldcastle Materials East Region, testified recently during Senate and House hearings on Highway Trust Fund and economic stimulus package issues.

James, speaking before a Senate Environment and Public Works Committee hearing, urged Congress to address the anticipated trust fund shortfall immediately and then pass a multi-year reauthorization bill. He spoke to the adverse impacts on businesses of uncertainty caused by short-term extensions of the program. He was joined on the panel by Jack Basso of the American Association of State Highway Transportation Officials and Kathy Ruffalo, member of the National Surface Transportation Infrastructure Financing Commission, who joined in urging the committee to move immediately to shore up the HTF and then pass a multi-year reauthorization bill.

Keating testified before a House Transportation and Infrastructure Committee hearing on the economic stimulus. Keating said Oldcastle is seeing positive impacts from the economic stimulus funds, but the momentum that is starting to be felt by road builders will be lost if Congress fails to act on a multi-year reauthorization bill. -- Brian Richesson

Oberstar introduces $500 billion highway bill

2009-06-29T03:43:00.000-07:00

According to NSSGA, House Transportation and Infrastructure committee Chairman Jim Oberstar (D-Minn.) unveiled his six-year $500 billion surface transportation reauthorization bill on June 17, calling it a "transformation bill" and saying extensions of the current law are not acceptable. Senior committee Republican John Mica of Florida said that he had worked closely with Oberstar and supported the effort to move a bill. Oberstar and Mica were joined in support of the bill by Highways and Transit subcommittee Chairman Peter DeFazio (D-Ore.) and senior subcommittee Republican John "Jimmy" Duncan (R-Tenn.).

Just prior to Oberstar's issuance of the blueprint of his reauthorization bill, U.S. Department of Transportation Secretary Ray LaHood urged him to refrain from proceeding with a long-term reauthorization and join with the administration to support an 18-month extension of the current law. Oberstar declined and indicated he intended to proceed on a six-year reauthorization.

After a meeting with House Speaker Nancy Pelosi (D-Calif.) on June 19, Oberstar said that she endorsed moving forward on his reauthorization bill. Mark-up is scheduled to begin on June 24 in the Highways subcommittee, but members are being asked to hold amendments until later.

The 774-page bill, The Surface Transportation Authorization Act of 2009, was issued on June 22 and NSSGA , as well as its TCC and ATM coalition allies, are still analyzing it. Clearly, however, the Oberstar proposal creates several new entities that could prove challenging to expeditious highway and bridge projects, including creation of an Office of Intermodalism with a new Undersecretary of Intermodalism charged with establishing a mode-neutral program to provide congestion relief, expanding mobility and accessibility and developing a National Transportation Strategic Plan.

In the Federal Highway Administration, the Oberstar bill creates an Office of Livability intended "to bring focus and leadership to move alternative modes of transportation forward and improve the livability and sustainability of the nation's communities." Also, an Office of Expedited Project Delivery is created by the bill and an Office of Public Benefit, Tolling Requirements and Public Private Partnership Requirements.

STAA guarantees $350 billion over six years for highways and highway safety, which amounts to nearly a 50 percent increase over the $234.1 billion that SAFETEA-LU provided. This is $87 billion more than the Congressional Budget Office calculated using SAFETEA-LU numbers as a baseline assumption for the years 2010-2015. The overall price tag of $450 billion for STAA is a 57 percent increase from the $286.6 billion over the course of SAFETEA-LU, and then $50 billion added for high speed rail is the last part of the Oberstar plan. A joint hearing of the Ways and Means subcommittees on Select Revenue Measures and Oversight to discuss funding options to pay for the bill is scheduled on June 25 with Oberstar scheduled to appear.

DeFazio has suggested that a "contingent" increase in the gasoline and diesel fuel user fees be passed, similar to one recently enacted in his home state of Oregon. Such an increase would go into effect only after two consecutive quarters of economic growth, thereby alleviating concerns over raising taxes in the midst of a recession. Mica said that he will put forward his own financing plan that does not raise taxes, but would provide financial support for $900 billion over six years.

The bill condenses all of the existing highway formula programs into four - Critical Asset Investment, Highway Safety Improvement, Surface Transportation and Congestion Mitigation and Air Quality Improvement.

The bill seeks to streamline the approval process for projects, address congestion in metropolitan areas, improve the movement of freight and place a focus on projects deemed to be of "National Significance." In addition to the contemplated $450 billion level of the bill, an additional $50 billion in non-guaranteed funding authorization and guaranteed loans will be made available to develop high-speed rail corridors via a National Infrastructure Bank. -- Mark S. Kuhar

Extend an invitation

2009-06-23T06:25:00.000-07:00

What’s the best way to build a relationship with your state representative? Invite him or her to your mine to learn about what you do every day. A little time spent hosting a visit becomes an excellent way to increase your lawmaker’s understanding of the aggregates industry and your company’s importance in the community, according to the Illinois Association of Aggregate Producers (IAAP).

Brian Dockery of RiverStone Group Inc. in Moline, Ill., formed this idea while speaking with State Rep. Rich Myers during the recent IAAP Central Region grassroots meeting in Peoria. Dockery heard from the IAAP staff and from Myers about the importance of educating lawmakers. Myers worked on the family farm just across the road from a quarry but knew little more about its operation beyond the rock products he had purchased. What he did understand was that his limited knowledge of aggregate mining was more than many of his colleagues in the statehouse. Once the invitation was extended, Myers happily accepted.

On June 8, Myers toured the Tennessee Quarry in Tennessee, Ill., with company employees Harvey Fuelling, Duane Harsell, Randy Little and Dockery, along with Shawn McKinney from the IAAP. Following the Tennessee mine tour, Myers joined employees of the RiverStone Group for a tour of the Valley Quarry and a meeting at the cabin located on a private lake in the reclaimed portion of the mine.

Want to build a relationship with your lawmaker by inviting him or her to your mine or business? Give them a call and extend an invitation. “It’s that easy,” Dockery says. -- Brian Richesson

PCA: New reg proposal threatens growth

2009-06-18T01:00:00.000-07:00

A proposed hazardous air pollutant regulation for the cement industry undermines the balance between environmental protection and economic viability, according to statements the Portland Cement Association (PCA) is issuing this week at a series of public hearings. Last month the U.S. Environmental Protection Agency (EPA) announced amendments to the national emission standard for hazardous air pollutants (NESHAP) for the portland-cement manufacturing industry. It requires new emission standards for mercury, total hydrocarbons, hydrochloric acid and particulate matter.

The regulations, as published, are based on a new approach to setting regulatory standards that results in excessively stringent and costly requirements, PCA said. If adopted, the standards would undermine the stability of the domestic cement industry, endangering thousands of jobs. Industry studies have shown the new guidelines could lead to forced closure of plants, creating hardship in cities throughout the country.

“Pushing cement production to other countries would ‘OPEC’ the industry and make the U.S. dependent on cement imports,” said Andy O’Hare, PCA vice president for regulatory affairs. “In addition, because these countries have fewer regulations global emissions of mercury and carbon dioxide could actually increase.”

U.S. cement production and its related industries employ tens of thousands of Americans and produces a product that is absolutely essential to many of the infrastructure construction projects identified by the Obama administration and Congress as important to the nation’s economic recovery. To meet expected demand, the U.S. will need to produce 30 percent more cement by 2020.

“If this rule is adopted, domestic cement supply will be constrained and investments in cement capacity expansion avoided, causing the stimulus package to advance fewer projects with less jobs created,” O’Hare said. “A reasonable rule – building on the good record of current regulatory programs and setting achievable standards based on demonstrated achieved emissions control strategies – would not act at cross-purposes to economic recovery.” -- Mark S. Kuhar

Martin Marietta steps up

2009-06-17T07:31:00.000-07:00

Mergers and acquisitions have been short on supply lately, but Martin Marietta Materials has acquired three quarries plus the remaining 49 percent interest in an existing joint venture from CEMEX. The purchase price for the assets of the three quarries plus the 49 percent interest was $65 million. Estimated mineral reserves are 255 million tons. The quarry operations are located at Fort Calhoun, Nebraska; Guernsey, Wyoming; and Milford, Utah. Guernsey and Milford are rail-connected quarries while Fort Calhoun ships material via barge on the Missouri River in addition to its local and long-haul truck market in Nebraska. The 49 percent interest purchased relates to the Granite Canyon, Wyoming, quarry where Martin Marietta is the operating manager. Granite Canyon is a major supplier of railroad ballast serving both the Union Pacific Railroad and Burlington Northern Santa Fe Railway. Aggregate shipments in 2008, including the partial interest only in Granite Canyon, were 3.3 million tons.

Commenting on the acquisition, Stephen P. Zelnak, Jr., Chairman & CEO of Martin Marietta, stated: "We are pleased to be able to add this set of quarries to our western operations as well as being able to purchase the minority interest at Granite Canyon. These operations are a very good fit with our Western business and will enable us to pursue growth via additional rail and water transport possibilities. Financially, we expect the acquired operations to be modestly accretive in 2009 with increased contributions as the economy improves."

Ward Nye, President & COO, further commented: "In addition to enhancing our existing logistical network, these new quarries provide attractive product synergies. Ballast and rip-rap are notable in stimulus and other construction projects critical to the rebuilding of U.S. infrastructure. The sites also strengthen our position as a premier stone supplier to the railroad industry. We will substantially complete the integration of these new operations into our existing business within a matter of days." -- Mark S. Kuhar

Home construction leaps forward

2009-06-16T06:18:00.000-07:00

Warm weather has brought us some sunny news. According to the U.S. Department of Commerce, construction of new homes surged in May by the largest amount in three months, providing an encouraging sign that the nation's deep housing recession was beginning to bottom out.The Commerce Department says that construction of new homes and apartments jumped 17.2 percent last month to a seasonally adjusted annual rate of 532,000 units. That was better than the 500,000-unit pace that economists had expected and comes after construction had fallen in April to a record low of 454,000 units.In another encouraging sign, applications for building permits, seen as a good indicator of future activity, rose by 4 percent in May to an annual rate of 518,000 units.-- Mark S. Kuhar

Positive signs

2009-06-15T11:57:00.000-07:00

There are signs that indicate a positive turn in the economy, according to the Indiana Mineral Aggregates Association. The Indiana Department of Transportation has done a good job of spending its stimulus money, the association said in its June newsletter. It has let $240 million, and it plans to spend the remaining $200 million with three lettings scheduled in June. This does not count another $200 million that was pushed out to local governments to spend. Indiana also could be in line for additional stimulus money unspent by other states, the association said. -- Brian Richesson

Aggregates production down as expected

2009-06-09T04:53:00.000-07:00

According to USGS, an estimated 343 Mt of total aggregates was produced and shipped for consumption in the United States in the first quarter of 2009, a decrease of 27 percent compared with that of the same period of 2008. The estimated annual output of aggregates produced for consumption in 2008 was 2.36 Gt, a 17 percent decrease compared with that of 2007. The production numbers come as no surprise, and are not as severe a drop as many had feared.

An estimated 205 million metric tons (Mt) of crushed stone was produced and shipped for consumption in the United States in the first quarter of 2009, a decrease of 25 percent compared with that of the same period of 2008. The annual output of crushed stone produced for consumption in 2008 was 1.35 billion metric tons (Gt), a 16 percent decrease compared with that of 2007.

The estimated U.S. output of construction sand and gravel produced and shipped for consumption in the first quarter of 2009 was 138 Mt, a decrease of 30 percent compared with that of the same period of 2008. The estimated annual output of construction sand and gravel produced for consumption in 2008 was 1.01 Gt, an 18 percent decrease compared with that of 2007. -- Mark S. Kuhar

Construction sneaks up

2009-06-01T13:29:00.000-07:00

More signs that there is a light at the end of the tunnel. U.S. construction spending unexpectedly posted its biggest increase in eight months in April, advancing for a second straight month as the private sector put money into both residential and nonresidential projects, according to the U.S. Commerce Department. The Commerce Department said spending on construction projects rose 0.8 percent in April from March, the biggest increase since August. Spending climbed a revised 0.4 percent in March, previously reported as a 0.3 pecent rise. Analysts polled by Reuters were expecting a 1.3 percent decline in overall construction spending in April. Private construction spending jumped 1.4 percent in April from March, the biggest advance since August. Private residential construction rose 0.7 percent, also the biggest increase since August, after declining 3.6 percent in March. Spending on public construction fell slightly in April after increasing 1 percent in March. . -- Mark S. Kuhar

Set on safety

2009-05-27T08:44:00.001-07:00

Rohrer's Quarry in Lititz, Pa., has been expanding its operation and offering more than crushed stone, concrete and related products. The third-generation, family-owned company has gotten into other businesses, such as drilling, fleet services and safety services. The latter part of the company is named Complete Safety Solutions, which provides safety training and materials solutions for mining and construction. Courses are offered in five main fields – new miner introduction, Mine Safety & Health Administration annual refresher, first aid/CPR/AED, fire extinguisher and safety committee training. In addition, Complete Safety Solutions partners with compliance training company Eduwhere to offer online courses. Rohrer’s Quarry has its own training facility, where it’s not uncommon to have multiple companies represented in any given class. Complete Safety Solutions aims to keep class sizes small while using "hands-on, engaging methods" to provide effective training. The company also will travel and conduct training at a client's site. -- Brian Richesson

Transportation policy proposal introduced

2009-05-21T03:18:00.000-07:00

According to NSSGA, Sens. John Rockefeller (D-W.Va.), chairman of the Senate Commerce committee, and Frank Lautenberg (D-N.J.), chairman of the Commerce Surface Transportation subcommittee, introduced legislation last week that lays out several major goals they would like to see integrated into the upcoming surface transportation reauthorization. The goals of the Surface Transportation Policy and Planning Act (S. 1036) mirror several of the key elements of Transportation for America proposal, which is very focused on transit. The bulk of reauthorization is jurisdictional to the Senate Environment and Public Works committee. The Commerce committee has jurisdiction overall on the Department of Transportation matters, safety issues, freight railroad and trucking concerns.

The legislation calls for a plan that addresses all modes of transportation and includes efficiency, environmental and trade factors. The bill focuses on the following goals:
• Reducing per capita vehicle miles driven each year;
• Halving vehicle-related fatalities by 2030;
• Reducing carbon dioxide emissions from motor vehicles by 40 percent by 2030;
• Lowering per capital surface transportation delays each year;
• Increasing the percentage of critical infrastructure in a state of good repair 20 percent by 2030;
• Raising public transportation usage each year;
• Increasing the proportion of non-road multimodal freight transportation by 10 percent by 2020; and
• Reducing both passenger and freight per capita delays at international entry points each year.

The bill is intended to give some guidance to the House Transportation and Infrastructure committee, which has taken the lead in the reauthorization process.
-- Mark S. Kuhar

Heavy lifting ahead

2009-05-15T12:57:00.000-07:00

While the stimulus package has begun to deliver much-needed financial help for road repairs and road-building projects, the heavy lifting remains, says Kenneth Simonson, chief economist for the Associated General Contractors of America (AGC).

Simonson made a visit on May 15 to downtown Cleveland, where he spoke at the Cleveland Association for Business Economics’ annual meeting.

Asked afterward specifically about the aggregates industry, Simonson said the stimulus bill is helping the highway sector more than the AGC expected several months ago – a plus for aggregate producers and the role they play in supplying materials for infrastructure projects – but a greater challenge lies ahead in the form of getting a highway authorization bill passed. The current legislation expires in September.

“I’m very pessimistic about that being done anytime soon,” Simonson said. “Congress and the president have so many other priorities they look to be putting ahead of the highway bill that I think it’s going to be tough to get that done, just from a scheduling standpoint.

“Perhaps even more important is the difficulty of finding a funding source,” Simonson added. “The president for now has ruled out a gas tax, even though we’ve had this huge drop in gas prices, and evidently he wants to discourage use of petroleum-based fuel. You would think the gas tax would be a natural for this administration to propose. The AGC thinks the gas-tax increase does need to be part of the funding for the highway trust fund for a long time to come."

For once there was some optimism surrounding the residential construction market. Simonson believes low interest rates, tax credits for first-time homebuyers and falling house prices boosting buyers’ loan-qualification chances all will help single-family construction. Multi-family housing won’t be so lucky.

“It’s likely to start late this year in selected single-family homebuilding markets and spread more widely through 2010,” he said. “There’s certainly plenty of uncertainty as to whether the homebuyers will come flocking back."

Simonson, however, doesn’t foresee an “across-the-board” upturn in non-residential construction projects until 2011. He predicts non-residential construction spending to decline 3 to 9 percent in 2009, and total construction spending to decline 1 to 7 percent this year.

“Beyond the highway sector, building construction is generally in for major contraction over the rest of this year,” he said. -- Brian Richesson

Paving the way

2009-05-14T07:35:00.000-07:00

Earlier this week, the Transportation for America coalition unveiled its detailed plan to restructure the nation’s transportation program.

Developed in consultation with teams of transportation professionals, public officials and stakeholders, The Route to Reform outlines a renewed vision for the federal program as well as ways to pay for it.

To highlight key features of the proposal, the coalition convened transportation industry experts from across the country for a panel discussion in the House Transportation Committee Room on Capitol Hill.

In the blueprint, Transportation for America recommends Congress include four critical reforms in the upcoming transportation authorization bill:

• Articulate a national vision, objectives and performance targets for the national transportation program and hold state and local transportation agencies accountable for demonstrable progress toward goals, including safety, efficiency, environment, health and equity.

• Restructure and consolidate federal programs for greater modal integration, with a focus on completing the second half of the national transportation system, providing more transportation options for all Americans and creating seamless transportation systems that meet the unique needs and connect metropolitan regions, small towns and rural areas.

• Empower states, regions and cities with direct transportation funding and greater flexibility to select projects, using carrots and sticks to incentivize wise transportation investments and in return require demonstrated performance on meeting national objectives.

• Reform how we pay for the transportation system and create a fund that would achieve balanced allocations of federal funds in a portfolio of rail, freight, highway, public transportation and non-motorized transportation investments.

A copy of the entire plan can be found at http://t4america.org/blueprint. -- Brian Richesson

Relief in California

2009-05-12T11:20:00.000-07:00

Aggregate producers take note. One of California's major construction companies is putting stimulus funds to use. The CEO of Sukut Construction said public money is the driving force today in the construction industry. Seventy percent of the Santa Ana-based firm’s jobs are now on government-funded projects, triple what they were in 2005-06, when a substantial portion came from homebuilders, said company CEO/President Mike Crawford. The $3.6 billion in federal stimulus funds for California's highway and transit construction and billions of dollars in state construction bonds means the 420-employee firm, which had been downsizing, is now hiring employees to bid on new work. “Without the stimulus, we likely would have continued to suffer from this downturn that has plagued the construction industry,” Crawford said. Sukut hopes to get contracts for $50 million to $100 million in public infrastructure projects for which it will need about 150 to 180 more people, Crawford said. It will add union-scale staff to its firm and subcontract for the rest. The contracts bring about two to three years of work to the employee-owned Sukut, which has built the infrastructure for freeways, wastewater treatment facilities and landfills throughout California. -- Brian Richesson

Infrastructure drives job creation

2009-05-12T03:23:00.000-07:00

Construction companies nationwide are reporting that the stimulus bill passed last February is making it possible to hire new workers, according to information gathered by the Associated General Contractors of America. The early information provides the first glimpse into how federally funded infrastructure and construction projects can help improve overall economic conditions, the association added.

“Early reports indicate that the infrastructure piece of stimulus is beginning to do exactly what was intended, put construction workers back on the job,” said Ken Simonson, chief economist for the Associated General Contractors of America. “As today’s employment report shows, however, construction is still one of the hardest-hit industries in terms of job losses.”

Simonson said that as more and more stimulus-funded projects are awarded, a growing number of member companies are reporting adding new jobs or rehiring laid off employees. He said, for example, that Loch Sand and Construction Company in Missouri had recently rehired 15 workers it laid off last year after receiving a stimulus-funded interstate reconstruction contract. Adolfson & Peterson Construction in Minnesota has begun hiring new workers after winning a contract to build a new laboratory in Northern Minnesota with stimulus funding provided by the U.S. Department of Energy, the economist added.

Simonson also noted that many contractors, like Slack and Company in Texas, were cancelling planned layoffs because of new stimulus funded work. Noting that an estimated 85 percent of construction companies said they would cancel layoffs or add new employees with the stimulus, he said stimulus funds were keeping a bad business environment from getting substantially worse for many firms.

Simonson said that the latest U.S. Department of Labor employment report for April shows that 110,000 seasonally adjusted jobs were lost in construction, accounting for more than one-fifth of total job losses. He added that the industry’s 18.7-percent unemployment rate is more than double the national average. Sadly, all five construction categories—residential and nonresidential building and specialty trade contractors, and heavy and civil engineering construction—shed workers last month and for the past 12-month period, Simonson noted.

“It’s tempting to imagine how much worse today’s jobs report would have been without the stimulus,” Simonson said. -- Mark S. Kuhar

Vulcan sees some light

2009-05-06T03:30:00.000-07:00

The past doesn't necessarily represent the present. Vulcan Materials Co., which has seen two months of stock gains emerge from the latest run on Wall Street, reported a net loss for the first quarter of $32.8 million or $0.30 per share, compared to net income of $13.9 million or $0.13 per share for the year-ago quarter. Net sales for the first quarter fell 26 percent to $567.90 million from $771.76 million in the same quarter last year. Commenting on the company's outlook for 2009, Company President Don James sees some light at the end of the tunnel before 2009 turns to 2010. "Broad-based economic weakness and extremely tight credit markets continue to hamper private construction activity and add to uncertainty in projecting demand for our products, he said. "Our revised volume outlook for the full year assumes lower aggregates demand in all major end markets, offset somewhat by incremental demand starting in the second half of 2009 from the first of the economic stimulus projects." -- Mark S. Kuhar

ConExpo-Con/Agg reigns

2009-05-05T13:23:00.000-07:00

Have you experienced ConExpo-Con/Agg firsthand? I did last year, attending the triennial construction event in Las Vegas, and I came away impressed. You hear about the size and scope of such an event, but it's hard to imagine the extent until you see it up close and personal. So it comes as no surprise that ConExpo-Con/Agg topped Tradeshow Week’s list of the 200 largest trade shows in the United States. The annual directory, which is released each April, features a listing and analysis of the 200 largest trade shows in the United States and the 50 largest trade shows in Canada. Shows are ranked by net square feet of paid exhibit space. ConExpo-Con/Agg, held last March, was the largest trade show ever held in North America, according to Tradeshow Week, measuring a record-breaking 2.2 million net sq. ft. It also had 2,184 exhibiting companies and 111,273 professional attendees. The 2011 event is scheduled for March 22-26 in Las Vegas. -- Brian Richesson

Feedback from NSSGA's AGG1 event

2009-05-05T08:50:00.000-07:00

Pit & Quarry's Washington Correspondent Mark Riso recently discussed the National Stone, Sand & Gravel Association's AGG1 Aggregates Forum & Expo with NSSGA President and CEO Joy Wilson. Riso asked about the feedback NSSGA has received regarding the show, and Wilson provided the following examples.

• “The aggregates and asphalt industries are integral to each other, so the co-location of AGG1 and World of Asphalt gave attendees access to the whole spectrum of products and services ‘from rock to road,’ as we like to say,” said Rick Feltes of Lafarge and NSSGA’s AGG1 Management Committee chairman.
• Exhibitors at the show had very positive feedback on both the quality of the people they were able to meet with at their booths and the intimacy that allowed them to do more than just try to get a lead from a passerby. Bill Wetta of Dredging Supply Co. said, “It was one of the best shows I’ve been to in years. I’m confident that the leads I got at the show are going to develop into business for the company.” McCroy Sauls from Sauls’ Seismic said, “I go to shows regularly and never see the kinds of business development I experienced at AGG1.”
• Producers in attendance also felt that the quality of the exhibitors and the time they had to talk gave them a great return on their investment. “I spent hours talking to exhibitors about issues and situations that were important to me and that they could help address. The show felt busy, but it didn't feel rushed,” said Scott Alexander of Johnson Materials.
• “The mood on the show floor was cautious, yet positive,” said Sara Truesdale, Association of Equipment Manufacturers show director. “We know this is a difficult economic environment, but our attendees are looking ahead and preparing for the future. They knew they’d find the education, networking and products they need to succeed through this year and beyond to an upturn.” -- Darren Constantino

Looking ahead to 2010

2009-05-05T00:01:00.000-07:00

Although all market segments and all regions are expected to record significant declines in cement consumption during 2009, stimulus-program-related spending and a stabilizing economy in 2010 will lead to stronger gains, according to the most recent economic forecast from Portland Cement Association (PCA). PCA expects cement consumption to decline 17 percent during 2009 to 77 million metric tons. Viewed in context of 10 percent and 15 percent declines in 2007 and 2008, respectively, this reflects a peak to trough drop in volume of nearly 45 million metric tons—the worst in U.S. history. However, the weakness is expected to be concentrated during the first half of 2009, and by 2010 with a stabilizing economy and job creation, consumption will grow seven percent to a level of 83 million metric tons.

“Weakness in near-term cement consumption will largely stem from declines in the private sector in residential and non-residential construction,” Edward Sullivan, PCA chief economist said. “By the second half of 2010, stimulus spending should enter a phase that includes more traditional infrastructure projects that carry higher cement intensities.” In addition, Sullivan expects housing starts to stabilize in the second half of 2010, although nonresidential construction, which will drop more than 27 percent in 2009, will continue to decline in 2010.

According to PCA, the potential for a large volume increase in cement consumption for 2011 could be amplified by enactment of a new surface transportation law. The current law expires September 30, 2009. With the Obama Administration’s commitment to infrastructure improvement as well as the likelihood that unemployment will be at extremely high levels at the time of the legislation’s negation, a large increase in infrastructure spending is expected to be incorporated. This will contribute to cement consumption reaching 97 million metric tons by the end of 2011 should the legislation be enacted in a timely manner. -- Mark S. Kuhar

Already five aggregate-industry deaths in 2009

2009-04-29T08:34:00.000-07:00

With not even a third of the year behind us, the Mine Safety & Health Administration (MSHA) is reporting that five fatalities have occurred in the nonmetal mining sector -- a pace that would double the total industry deaths of 2008. Three of the five fatalities involved “falling/sliding” material.
The National Stone, Sand & Gravel Association (NSSGA), in its latest e-newsletter, noted that one of the recent fatalities occurred when electrical work was being done. NSSGA also provided some MSHA advice regarding electrical work, and it’s worth repeating here:
• Be trained and knowledgeable in the task.
• Be trained on all electrical test and safety equipment necessary to test and ground the circuit being worked on.
• Use properly rated personal-protection equipment, including arc flash protection such as a proper hood, gloves, shirt and pants.
• Positively identify the circuit on which work is to be conducted.
• De-energize power and ensure the circuit is visible.
• Place your lock and tag on the disconnecting device.
• Verify that the circuit is de-energized by testing for voltage using properly rated test equipment.
• Ensure all electrical components in the cabinet are de-energized.
• Ground all phase conductors to the equipment grounding medium with equipment that is properly rated. -- Darren Constantino

Quarry marks Earth Day

2009-04-27T04:06:00.000-07:00

Eight middle school-aged students from Grace Academy, a private school in Georgetown, Texas, plunged their hands and their shovels into mounds of dirt to commemorate Earth Day by planting trees and wildflower seeds at KBDJ, a limestone quarry in Hays County. “What better way to celebrate Earth Day than by getting a little dirty?” said KBDJ President Jill Shackelford. “KBDJ is thrilled that Grace Academy traveled to the quarry to learn more about the local environment and take an active role in improving it.”

During the field trip, the students also got an up-close look at a working rock quarry and saw the steps KBDJ has taken to protect the environment and wildlife on the quarry site. “I thought it was just going to be a rock quarry,” said eighth grader Kristen Klein. “It’s much more than that.” Added Ashton Murphy, who is in ninth grade, “We’re currently studying the age of the Earth in school, so the quarry pit allowed us to see the different layers and colors of the Edwards limestone formations.”

Hays County Commissioner Karen Ford, also a member of the Clean Air Force of Central Texas, visited the event to encourage the students and to give them information on regional efforts to ensure Central Texans breathe clean air. “We’re working very hard to get the word out about what people can do to keep the air clean,” Ford told the students. “Trees help clean the air, so thank you for being here.”

With help from quarry staff and a backhoe donated by Texana Machinery, the students planted three live oak trees, which they named “Grace,” “Faith” and “Love,” at the quarry entrance along FM 967. The trees came from the tree farm at Texas Disposal Systems, and KBDJ worked with the Hill Country Conservancy to pick the appropriate type of tree to plant. Students also planted a mix of wildflowers at the quarry site, which included Black-eyed Susan, Mexican Hat, Prairie Coneflower, Indian Blanket, Lemon Mint, Bluebonnet, Plains Coreopsis and Clasping Coneflower. -- Mark S. Kuhar

Fatality #4

2009-04-24T03:34:00.000-07:00

On April 7, a 36-year-old supervisor with 15 years of experience was fatally injured at a sand and gravel dredging operation. It was the fourth metal/nonmetal fatality of the year. The victim was attempting to connect the 4160 volt cable for the dredge to load side terminals in the electrical panel when he came into contact with energized 4160 volt line side terminals. This is the fourth fatality reported in calendar year 2009 in the metal and nonmetal mining industries. As of this date in 2008, there were five fatalities reported in these industries. This is the first electrical fatality in 2009. There were no electrical fatalities for the same period in 2008. -- Mark S. Kuhar

Stimulus praise

2009-04-23T05:59:00.000-07:00

In a statement released by the Associated General Contractors of America, CEO Stephen E. Sandherr praised the stimulus package and its effect on funding projects and putting people back to work. "Our member companies involved in highway and transit construction have been pleased with the speed with which the federal government and its state partners have been able to move in identifying and awarding stimulus-funded projects," Sandherr said. "Indeed, our member companies have consistently cited the transportation program as a model for being able to quickly and effectively fund projects in a way that puts construction workers back to work promptly while restoring America's aging infrastructure. Given the extremely challenging economic environment our contractors are operating in, with significant declines in private-sector construction activity, it is hard to imagine how much worse conditions would be if not for the stimulus. The bottom line is our members are eager and anxious to get to work rebuilding America's economy, and the stimulus is helping them do just that." -- Brian Richesson

World construction demand sinks

2009-04-21T05:24:00.000-07:00

Construction activity is now falling quickly around the world, increasing the downward pressure on construction costs, according to Reed Construction Data. The construction decline is much deeper in many developing countries where investment, which includes construction, is a much larger share of the economy than it is in the U.S. Through March, U.S. GDP has dropped about 4 percent while investment spending has fallen 12 percent. Investment spending has already plunged more than 20 percent in several Asian and Middle East markets, which have experienced more frequent shutdowns of construction projects already underway than have occurred in the U,S.

World GDP fell at a 5 percent annual pace in the 4th quarter of last year and continued to decline at about the same pace through the winter. The International Monetary Fund (IMF) projects world GDP will fall as much as 1 percent this year, the first worldwide decline in 60 years. The IMF outlook foresees stable or slightly rising economic growth by the end of the year but a relatively sluggish recover in 2010. World construction activity is unlikely to return to the peak 2008 level until 2011 at the earliest.

The consequence is weak pricing for the resources used in construction. This occurred first in materials. The materials price surge that occurred in mid-2008 has now been fully reversed. Materials price indexes are likely to slip slightly lower later this year before rising modestly next year. Price declines for other project resources are harder to measure but have now begun. This includes design and contractor bidding where more competition has forced discounting. Prices for new construction equipment appears to have had little impact so far but used equipment prices are falling at a double-digit pace.

It also includes labor. Construction hourly wage gains abruptly slowed from more than 4 percent (annual rate) to below 2 percent in the last three months even though few union contracts have yet been re-negotiated in this weaker construction economic environment. Expect the pullbacks in professional fees, contractor margins and skilled labor rates to persist will into next year long after materials prices have begun to recover. Many union locals will have to anguish over contractor demands for wage concessions before the contract expires. -- Mark S. Kuhar

AEM head pens op-ed piece

2009-04-15T06:35:00.000-07:00

Association of Equipment Manufacturers President Dennis Slater wrote an interesting article last month in the Argus Leader newspaper of Sioux Falls, S.D. It's worth checking out and even passing along to others. Slater does a good job of putting infrastructure spending, specifically for roads and bridges in South Dakota, into perspective. He points out that South Dakota's roads and bridges are deficient – as TRIP, a national transportation research group, reported – and must be improved to enhance the economic health and quality of life in the state. (There is a similar TRIP report about Idaho's roads, highways and bridges.) The federal stimulus package will provide a boost to improving roads and bridges in South Dakota, Slater writes, but it's not the end-all solution. Therefore, every funding option must be considered, and South Dakotans should recognize the benefits of paying for these projects. "You get what you pay for," Slater writes. -- Brian Richesson