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CONSTRUCTION SPENDING LEVEL EDGES HIGHER

This press release comes from the Associated General Contractors website http://www.agc.org

Press Release Pearl_Station_Muscatine_HyBrand_3

CONSTRUCTION SPENDING LEVEL EDGES HIGHER IN APRIL AS SOARING RESIDENTIAL OUTLAYS AND MIXED PRIVATE NONRESIDENTIAL ACTIVITY OFFSET PUBLIC DECLINE

Date: June 3, 2013

Officials Call for Reinvigorating Construction Training in Schools, Rejecting Arbitrary Caps on Construction Workers in Immigration Legislation as Spending Trends Contribute to Localized Worker Shortages

Total construction spending registered a small gain in April but showed very mixed patterns among major segments, according to an analysis of new Census Bureau data by the Associated General Contractors of America. Association officials cautioned that a surge in certain project types and regions could leave the industry short of workers even while overall unemployment remains high.

“The report underscores patterns that have prevailed for several months: surging home and apartment construction, volatile private nonresidential activity and shrinking public investment,” said Ken Simonson, the association’s chief economist.”This uneven result is leading to selected materials cost increases and localized reports of worker shortages despite continuing hard times for many contractors and workers.”

Construction put in place totaled $861 billion in April, rising 0.4 percent since March and up 4.3 percent since April 2012. Private residential construction spending inched down 0.1 percent in April but jumped 19 percent from a year earlier. Private nonresidential spending climbed 2.2 percent for the month and 0.6 percent year-over-year. Public construction spending dropped 1.2 percent for the month and 5.1 percent over 12 months.

“New apartment and home construction were standouts again and should remain very strong for the rest of 2013,” Simonson said. “Growth has been more inconsistent among private nonresidential categories, reflecting reluctance of businesses to commit to investing in structures amid ongoing economic uncertainty. Meanwhile, there appears little prospect that public agencies will start investing in infrastructure any time soon.”

Over the past 12 months, the biggest jump in construction spending has occurred in new multifamily construction, which soared 3.4 percent for the month and 49 percent year-over-year. New single-family construction rose 1.4 percent and 39 percent, respectively. But overall residential gains were held down by a decline in improvements to existing structures of 3.3 percent for the month and 7.0 percent from April 2012.

The largest private nonresidential category, power construction—which includes oil and gas field and pipeline projects as well as power plants, renewable power and transmission lines—leaped 10.8 percent in April following a steep downward revision in the March estimate. Despite the one-month surge, power construction spending was down 2.8 percent since April 2012. The second-largest private segment, manufacturing construction, slumped 2.6 percent for the month but added 2.2 percent over 12 months.

Highway and street construction, the largest public category, increased 0.5 percent in April but slipped 3.4 percent from a year earlier, Simonson noted. The next largest public niche, educational construction, tumbled 4.4 percent and 13 percent, respectively, he added.

Association officials said the latest construction spending figures highlight the need to reinvigorate skills-based training programs in public schools and reject arbitrary caps on construction workers in proposed immigration legislation. “We need to make sure we have prepared workers in place to handle growing demand for construction,” said Stephen E. Sandherr, the association’s chief executive officer.

http://www.agc.org/cs/news_media/press_room/press_release?pressrelease.id=1349

Categories: Uncategorized

Construction Jobless Rate Drops to Nearly 5-Year Low

This is an interesting article I came across that you may enjoy. Construction Jobs

Construction’s unemployment rate fell in May to 10.8%, its lowest level since October 2008 and an improvement over April’s 13.2%, as the industry added 7,000 jobs last month.

The Bureau of Labor Statistics’ latest monthly employment snapshot, released on June 7, also states that construction’s May jobless rate was down from the May 2012 figure of 14.2%.

The BLS unemployment rates are not adjusted for seasonal differences.

BLS said construction’s job gains last month came in nearly all industry segments, paced by the residential special trade contractors sector, which picked up 4,600 jobs.

The heavy-civil engineering construction sector also posted positive results, adding 3,100 jobs. Anirban Basu, Associated Builders and Contractors chief economist, said, “Healthy job performance in this segment is often considered a leading indicator for a number of other construction segments.”

The exception to the upward trends was nonresidential building, which lost 2,600 positions in May.  Basu said the overall U.S. growth in jobs “has apparently been inadequate to foment robust nonresidential construction recovery.”

Ken Simonson, Associated General Contractors of America chief economist, said, “Although the monthly job gain in May was modest, both residential and nonresidential construction have been adding workers at roughly double the rate of the overall economy in the past year.”

Simonson said the rise in construction jobs over the past year plus the departures of some unemployed former construction workers from the industry “may lead abruptly to worker shortages in parts of the industry, such as welders and pipefitters.”

Architectural and engineering services, which BLS lists separately from its construction category, gained 4,900 jobs in May.

Over all, BLS reported, the U.S. economy added 175,000 jobs in May and the unemployment rate increased to 7.6% from April’s 7.5%.

This article was originally posted on 6-7-13 By Tom Ichniowski
http://enr.construction.com/business_management/workforce/2013/0607-construction-jobless-rate-drops-to-nearly-5year-low.asp
Categories: Uncategorized

Kent Corp – A Work in Progress

Kent Corp
Muscatine Journal
KENT CORP.
A work in Progress

MAY 23, 2013 9:00 AM • BY MIKE FERGUSON
MUSCATINE, Iowa – Work crews have begun moving dirt for a new multi-million dollar warehouse and distribution center in Muscatine’s industrial park that will serve as the distribution center for nearby Kent Corp.

The $18 million, 567,000-square-foot facility is being built by GSTC Logistics of Walford. The project is scheduled for completion by the first quarter of 2014, said Kevin Fields, executive vice president for Enterprise Services for Muscatine-based Kent Corp. It’s being built just north of Progress Park off 41st Street South, across from Curry’s Transportation Services, Inc.

“If it’s done sooner than that, that’s great,” Fields said.

The Muscatine City Council has scheduled a public hearing at 7 p.m. on Thursday, June 20, on a proposal to rebate an estimated $4.778 million of the construction cost through tax increment financing. On May 9, Gordon Sevig of GSTC Logistics told the city council he expects the facility will employ 29 people who will collectively earn about $1,129,000 annually. That equates to an average annual wage of nearly $39,000.

“We needed additional warehouse space because we don’t have the capacity to store it ourselves,” Fields said Wednesday.

Kent Corp. has been using GSTC’s transportation capabilities for 20 years, so “this is a natural extension for us,” said Fields. “It’s going to be great for us, great for their company, and for other local carriers, too.”

Kent Corp., the parent company of GPC, is signing a 10-year lease with GSTC Logistics, Fields said. The new center will have what Fields described as a “state-of-the-art warehouse management system, allowing us to better serve our growing customer base in the United States as well as customers worldwide.”
He said Kent Corp. had been considering a Muscatine location for a warehouse/distribution center for several reasons, including reduced transportation costs, accessibility to the nearby plant, easy access to U.S. Highway 61 and rail access. The facility will include a rail spur, he said.

The company plans to warehouse several of its products at the new warehouse, including maltodextrins (a food additive), starches and its World’s Best Cat Litter.

The warehouse will be up to food-grade standards. That means wood cannot be used in construction, because wood can splinter and splinters can’t be a part of food products.

“We have to use concrete around the outside so that rodents don’t get in,” Fields explained. “It’s an elevated standard for building construction. It reduces the risk of contamination.”

The facility is being constructed by Muscatine-area firms, Sevig said, including Hybrand Industrial Contractors and Heuer Construction.

Sevig praised Muscatine city officials for the speed and quality of their dealings with his family-owned business.

“Muscatine was probably the most friendly and easy to work with, about as good to us as anybody could be,” he said. “If they didn’t pick up the phone, about an hour or two later you’d get a call back with a really helpful answer.”

Greg Jenkins, interim president and CEO of the Greater Muscatine Chamber of Commerce and Industry, said he hopes the new facility will spur future development in the area.

“It’s a good project for the community,” he said.

Categories: Uncategorized

Seeding a New Kind of Concrete

This is an interesting development I came across, kinda fitting since we are in the heart of the corn belt.

Enjoy an interesting article!

Reinforced with husks?

Concrete with Corn?

Corn Husks & Concrete?

Corn Husks & Concrete?

Sunflower seed husks, a huge waste product of the vegetable oil and food industry, could be used as an environmentally friendly filler, or aggregate, for concrete according to Turkish researchers writing in the International Journal of Environment and Waste Management. The team demonstrated that the use of husks reduces the density of concrete as well as boosting the material’s resistance to cracking after exposure to icy then thawing conditions.

Engineers Can Burak Sisman and Erhan Gezer of Namik Kemal University in Turkey, explain how the accumulation of unmanaged wastes from the food industry, particularly in developing countries is becoming increasingly problematic. As such, researchers are hoping to find new applications for such waste in the creation of environmentally friendly materials and composites in the road-building and construction industries for instance. This is particularly pertinent given the rising cost and chronic shortages of conventional materials. Engineers are thus being challenged to convert industrial wastes to replacements for certain materials.

Concrete is perhaps one of the most energy and resource intensive materials and researchers have investigated and applied waste rubber, glass powder and paper waste sludge as alternative fillers and bulking agents. The addition of such materials can affect significantly the properties of concrete altering its strength, density and water resistance detrimentally in some instances.

The team has turned to the sunflower seed and more specifically its inedible husk as a possible alternative material for concrete. Turkey is the ninth largest sunflower producer in the world, generating almost a million tonnes of product from 584000 hectares, the bulk of which is used in the manufacture of sunflower oil in the Thrace region. The by-product is approximately 300000 tonnes of fibrous seed husk. The team has therefore experimented with different formulations of seed husk in a concrete mix.

They produced concrete samples with the lowest density could be classified as “lightweight.” Some samples had low compressibility suitable for construction use although higher husk content meant the resulting concrete could be used only for insulation applications. The team suggests that the sunflower seed concrete would be most suitable for the construction of agricultural buildings that are usually only one floor and do not to be as sufficiently load bearing as domestic or office buildings.

Inderscience (2013, April 25). Seeding a new kind of concrete. ScienceDaily. Retrieved May 14, 2013, from http://www.sciencedaily.com

Categories: Uncategorized

US Construction Up 1.2 Percent in February

In an article from the AP by Martin Crutsinger there is good news for construction in the U.S.

Getting better

Getting better

WASHINGTON — Spending on U.S. construction projects rebounded in February, helped by a surge in home construction, which rose to the highest level in more than four years.

Construction spending rose 1.2 percent overall in February compared to January, when construction had dropped 2.1 percent, the Commerce Department reported Monday.

Spending rose to a seasonally adjusted annual rate of $885.1 billion, which was 7.9 percent higher than a year ago.

The advance was led by a 2.2 percent rise in private residential construction, which climbed to an annual rate of $303.4 billion, the best showing since November 2008. Private nonresidential construction was up 0.4 percent while public construction rose 0.9 percent.

Construction spending is expected to keep growing this year, fueled by more homebuilding and broader improvement in the economy.

For all of 2012, construction spending increased 9.8 percent, marking the first annual gain after five straight years of declines. Construction spending is still well below healthy levels. But it is slowly coming back, led by a recovery in housing that looks to be strengthening this year.

Steady hiring and nearly record-low mortgage rates have encouraged more Americans to buy homes. More people are also moving out on their own after living with friends and relatives in the recession. That’s driving a big gain in apartment construction and also pushing up rents.

In February, spending on single-family construction rose 4.3 percent, helping to offset a 2.2 percent drop in apartment construction. Residential activity is now 20.1 percent above where it was a year ago.

The small 0.4 percent rise in nonresidential construction in February followed a 5.9 percent plunge in January. The February gains were led by a 4.8 percent rise in office construction and a 3.1 percent increase in health care, a category that covers hospitals and doctors’ clinics.

The 0.9 percent rise in public construction reflected a 1.1 percent increase in state and local government building. Federal construction dropped by 1.1 percent following a 2.1 percent decline in January.

In February, U.S. homebuilders requested permits for future construction at the fastest pace in 4 1/2 years. And they started to build single-family homes at the fastest pace in that time period.

With sales of new homes and previously owned homes trending higher, the increased demand has helped push home prices up. U.S. home prices rose 8.1 percent for the 12 months that ended in January, according to the Standard & Poor’s/Case-Shiller 20-city index. Prices rose in all 20 cities surveyed and eight markets posted double-digit gains.

Rising home prices are expected to encourage more people to put their homes on the market. The market has been held back by a low supply of available homes for sales.

Read more: http://business.time.com/2013/04/01/us-construction-up-1-2-percent-in-february-2/#ixzz2PKFq6aAR 

 

If you’re ready to start a new project, contact Hy-Brand Industrial Contractors to discuss how we can help you make it happen.

Hy-Brand Industrial Contractors can be reached at 563-262-8710.

Talk to Randy or Jim!

Categories: Uncategorized

Hy-Brand Industrial Contractors are on the web!

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Welcome to our new website.

How can we help?

How can we help?

It’s not fancy, but it will be functional.

Hy-Brand Industrial Contractors will be utilizing our website to provide you with helpful information in regards to industrial contracting. Please let us know if there is something you would like to see, or think would be helpful to you.

Looking forward to a great year!

Categories: Uncategorized