Construction Equipment Owner

It was a good week for asphalt contractors and the transportation construction industry in general. President Obama signed a $17.6 billion job creation bill and Vice President Biden announced that 10,000 transportation projects have been put into action under the American Recovery and Reinvestment Act.

When ARRA was signed into law a year ago there were high hopes of an immediate boost in job-creating projects that would help alleviate the pain of a stubborn economic recession. But as the construction industry discovered, it took time to identify appropriate projects, obligate funding, award contracts and eventually put the actual construction phase in motion. The good news, however, is we’ll see a lot more activity this year with many projects now ready to get underway as the spring construction season gears up.

The Recovery Act was and is a positive shot in the arm for asphalt contractors and others in the the road building industry, especially as states struggle to find funding to match federal dollars and Congress continues to postpone reauthorization of a highway bill. The Recovery Act has indeed improved pavements across the country and either created or saved jobs.

The new jobs bill will keep the momentum in highway investment going as key legislative initiatives of the bill exempt employers from Social Security payroll taxes on new hires, fund highway and transit programs through 2010, extend tax breaks for businesses that spend money on capital investments (construction equipment), and expand the use of the Build America Bonds program that helps states and municipalities fund capital construction projects.

According to American Road & Transportation Builders Association (www.artba.org) President & CEO Pete Ruane, “The jobs bill will stabilize the federal highway and public transportation programs to help maximize employment and economic activity in the 2010 construction season.”

Ruane also encourages the transportation construction industry to continue efforts in pushing for a robust multi-year highway and transit authorization bill.

Here’s to more good weeks!

10,000 Recovery Act Transportation Projects Now Under Way
Vice President Joe Biden has announced that 10,000 transportation projects are now under way in all 50 states and the District of Columbia thanks to the American Recovery and Reinvestment Act (ARRA). This milestone comes just over a year after the Recovery Act was signed into law and as the spring construction season is getting into full swing.

Only 9 out of 337 Metro Areas Add Construction Jobs 
Construction employment continued to shrink in most American communities as 313 out of 337 metropolitan areas lost construction jobs between January 2009 and January 2010, according to a new analysis of federal employment figures released by the Associated General Contractors of America.

Jobs Getting Bigger, More Frequent
A year ago, contractors Truitt Sims and Steve Wiest existed week to week, wondering if another gig was around the corner. Often there was not. These days, Sims and Wiest can be found in southeast Atlanta renovating small foreclosure homes owned by investors. They fell into the niche about six months ago and have worked steady, 40-hour work weeks since.

Senator Asks for an End to Transportation Earmarks
Sen. Claire McCaskill (D-Mo) asked U.S. DOT Chief Ray LaHood to “work with me to put an end to this practice” of earmarking money in long-term federal transportation policy bills, reports Streetsblog.

Rental Business Prepares for Flooding
Businesses in low-lying areas near downtown Des Moines, including Star Equipment, are keeping a watchful eye on rising water in the Des Moines and Raccoon rivers, says the Des Moines Register.

Contractors make up a significant portion of your customer base, so it pays to know what makes them tick. At a recent tradeshow, we took an informal poll of attending contractors about what frustrates them the most about their rental suppliers. The results are interesting, and should give you some insight into what you might need to do to successfully serve these customers.

Among the responses we received were:

• “Being charged for items that should have been taken off rent and then having the rental company act as if it isn’t their fault they overcharged us.”
• “Hidden disclaimers.”
• “Poorly maintained or repaired equipment.”

See more responses in the video below.

Overall, our poll suggests that contractors are most concerned with equipment breakdowns. Not surprisingly, equipment that doesn’t perform as it’s intended to, or that breaks down at a critical time are major deal breakers.

Also interesting to note is that price plays a significant role in a contractor’s choice of rental suppliers. Despite what some rental companies want to believe, it’s not all about customer service.

What’s your take on what these contractors had to say?

Senate Passes Jobs Bill
The Senate sent a $18 billion job-creation package to President Barack Obama Wednesday, reports The Hill. The main provision of the bill is a new tax break for small businesses who hire new workers. The bill also includes new low-cost federal bonds for state and local government infrastructure programs, an extension of the highway trust fund for federal transportation projects and an extension of a tax break allowing companies to write-off losses due to depreciating equipment.

ARTBA Highlights Transportation Victories in Jobs Bill
“The jobs bill passed [yesterday] will stabilize the federal highway and public transportation programs to help maximize employment and economic activity in the 2010 construction season,” American Road & Transportation Builders Association (ARTBA) President & CEO Pete Ruane said regarding Senate passage of the jobs bill. To see a one-minute video of Ruane’s statement, click here.

NRCI Report Shows Construction Improving Slightly
FMI’s Nonresidential Construction Index report for the first quarter is 48.4, a slight uptick from the fourth quarter 2009 reading of 47.7. The improvement may be attributed to the panelists’ trust in a continuing upswing in the economy, says the report. Health care construction is the only construction market showing relative strength this year; most panelists predict improvements for next year, with the exception of the lodging and office markets.

Oberstar Proposes Federal Loan to Fill Highway Funding Gaps
The chairman of the House Transportation and Infrastructure Committee has proposed Congress authorize a four-year $130 billion transfer of funds from the general treasury to the Highway Trust Fund as a way to cover the projected shortfall in funding for the nation’s infrastructure projects, reports DC Velocity.

Website Focuses on Equipment Theft
The National Equipment Register (NER), a division of ISO Crime Analytics, is launching a new industry website intended to improve efforts to coordinate the fight against heavy equipment theft and offers a variety of free services to help equipment owners and their insurers combat the problem.

New Green Construction Code Unveiled
The International Code Council announced the release of Public Version 1.0 of the International Green Construction Code (IGCC) to regulate construction of new and existing commercial buildings. The code addresses site development and land use, including preservation of natural and material resources.

Delaware Gov. Proposes Clean Energy Jobs Act
Delaware Governor Jack Markell will introduce legislation to create the Delaware Clean Energy Jobs Act and says the effort would bring 1,000 construction jobs. The Act would facilitate the potential installation of approximately 300 MW of new solar photovoltaic systems by 2029 and installation of over 1000 MW of utility-scale generation.

Contractor Dies from Fumes in Building
A construction accident in Midland, TX, killed a man and severely wounded another. William D. Weeks, 46, was pronounced dead at the scene, and Jeffrey T. Wylie, 40, was transported to Midland Memorial Hospital after the two inhaled fumes while applying a sealcoat on the floor of a new facility.

Minnesota Gov. Chops $1B Construction Bill to $680M
Minnesota Governor Tim Pawlenty signed $680 million worth of public works projects into law after making 52 cuts that eliminated college buildings, civic centers, trails, transit improvements and other blueprints, says Bloomberg.com.

Panel to Examine Road Congestion
The Environment and Public Works Committee this week will examine the ongoing gridlock plaguing the nation’s roads and discuss ways to alleviate the congestion as part of the next full highway bill.

Construction Can’t Shake the Recession
According to this report at the Chicago Sun-Times, the construction industry remains mired in its worst downturn since the Great Depression.

Former United Rentals President & CFO Sentenced to Prison
John N. Milne, 50, of Westport, CT, has been sentenced to 27 months imprisonment, followed by three years of supervised release, for conspiring to falsify the books and records of United Rentals Inc. while he served as its chief financial officer, according to a release by the Federal Bureau of Investigation.

Housing Starts Sink
A report at the Wall Street Journal says home construction tumbled in February, with major snowstorms crippling business already hobbled by foreclosures. Housing starts decreased by 5.9% to a seasonally adjusted 575,000 annual rate compared to the prior month, the Commerce Department said Tuesday.

Senate Nears Agreement on Jobs Bill
Senate Democratic and Republican leaders were nearing an agreement Monday night that would put a $17.6 billion jobs bill on the floor Wednesday, says a report at The Hill. The jobs bill, passed March 4 on a 217-201 vote in the House, could be sent to President Barack Obama’s desk when the Senate clears the measure.

Earthmover Embarks on Fundraising ‘Road Trip’
In response to the ongoing needs in Haiti, JCB announces its Backhoe Across America charity drive, a national initiative in partnership with the American Red Cross. The coast-to-coast campaign features a JCB 3CX backhoe loader, which will travel from Georgia to California.

Caterpillar Mulls New U.S. Excavator Facility
Caterpillar says it will study whether it makes sense to move some of its heavy equipment manufacturing to the United States from Japan to free up capacity at its Japanese plants to meet growing demand in Asia. Such a move would signal that Caterpillar sees demand for construction equipment picking up in the North American market as well.
 

Where Should Contractors Start on Emissions Compliance?
Emissions regulations are a complex and dynamic subject. Between Federal and state regulations, contractors can feel like they’re chasing a moving target.
 

Road Bill Would Quickly Create Construction Jobs
The employment market for road construction crews in Nevada will improve swiftly and significantly if Gov. Jim Gibbons signs a bill that would allow the Regional Transportation Commission to immediately begin work on projects throughout the Las Vegas Valley, says the Las Vegas Review-Journal.

Industry Program Builds Houses for Domestic Violence Shelter
The Concrete Industry Management (CIM) program - a business intensive curriculum that awards students with a four-year Bachelor of Science degree in Concrete Industry Management - recently assisted a local domestic violence shelter near the California State University (CSU), building two houses in nine days.

California Projects May be U.S. Infrastructure Models
The Obama administration said that it is looking at projects in the Bay Area and Los Angeles as a model to build and repair hundreds of billions of dollars of rail, road, bridge, port and other projects as the nation’s infrastructure is crumbling and new federal funds are drying up.

It probably won’t surprise you to hear that the construction workforce is aging. According to a report by Occupational Health & Safety (”The Aging Worker in the U.S. Construction Industry”, ohsonline.com), the average age of construction workers in 2008 was 40.4 years, an increase of 4.4 years since 1985. The report adds that construction workers as a whole tend to stop working at an earlier age due to the physical demands of the job. Do the math, and this doesn’t bode well for worker availability in the years ahead.

The article goes on to suggest some potential “interventions” to keep construction workers active and productive longer. These include reducing work demands; improving the organization of the work; promoting worker health and function; and promoting workers’ professional competence. While such suggestions are valid, they tend to miss the point. The construction workforce will ultimately diminish over time as older employees exit the industry. There needs to be someone standing in line to replace them.

In the current economic environment - with construction unemployment broaching 28% - it may seem pointless to worry about a lack of available workers. But a recovery is inevitable (trust me, it will happen), and when it does come, you may find yourself scrambling to find enough trained employees who haven’t already shifted into other industries, or found homes among your competition.

And what about long term? Construction has historically had problems attracting new workers, and it’s only gotten worse. We’ve moved well beyond the “Nintendo generation” to a “Twitter nation” that’s accustomed to instant gratification, at their fingertips.  Very few of today’s youth want dirt under their fingernails or grease on their designer jeans.

The challenge the industry faces is how to appeal to a generation that is highly tech savvy and has a very short attention span. We need to find ways to educate youth about the variety of career choices available in this industry, and the advances in the technology being used to design and construct the nation’s roads, bridges, buildings and more.

Organizations such as the Associated General Contractors of America, Association of Equipment Manufacturers, Associated Equipment Distributors and others have worked for years to promote construction career opportunities to middle school and high school students (or younger, in some cases). You can take advantage of these programs to build your local workforce, whether it be through utilizing and distributing available educational materials or by acting as a program sponsor.

But there is more that can be done to reach today’s youth. Possibilities include:

• “tweeting” about your construction business, with regular updates on projects, as well as any available job openings;
• developing a Facebook page featuring project photos and videos, as well as information about career opportunities;
• hosting a “demo days” at your facilities to allow students to tour your facilities and get educated about the equipment and technology used in the construction process;
• participating in career days at schools, with job descriptions and perhaps examples of the systems and tools used to design and manage a construction project;
• giving guided tours of an active construction site to older students;
• working with local colleges and tech schools to develop training programs for equipment operators, construction managers, maintenance technicians, etc.;
• offering scholarships to graduating seniors seeking careers in a construction-related field.

With construction activity still slow, now is the time to initiate or expand these types of programs before increased business demand takes precedence. Check into your options and get started sooner than later. The productivity, safety and profitability of your business may one day depend on it.

Thousands of Stimulus-Funded Energy Projects Awarded

Onvia, Inc. is tracking 2,700 energy efficiency, renewable energy, and transmission upgrade projects kicking off in 2010 as a result of funding in the American Recovery and Reinvestment Act, signed into law a year ago. Worth billions, these projects will lay the foundation for a green economy that will fuel job and business growth for years to come.

U.S. Industry to Challenge Antidumping Duty Rates on Diamond Sawblades from China

The Diamond Sawblades Manufacturers Coalition (DSMC) has moved to lift a stay of its appeal of the dumping duty rates calculated by the Department of Commerce for certain Chinese producers and exporters of diamond sawblades, vowing to ensure that those duties are raised to reflect the actual level of dumping attributable to Chinese producers.

Contractors Fined $178,800 for Cave-in Hazards

Responding to a complaint of potentially unsafe conditions at a synagogue under construction, OSHA found that employees of Telsi Builders, Newton, MA, the project’s general contractor, and its concrete subcontractor, Ocean State Forms Inc. of Cumberland, RI, were working in excavations up to 14 feet deep that lacked protection against a collapse of the sidewalls.

NCCER and ACT Partner to Build Construction Industry Careers

ACT Inc. will apply its research and workforce readiness solutions to assist the National Center for Construction Education and Research (NCCER) in ensuring that prospective and current construction industry workers have the essential foundational skills to succeed in NCCER accredited training courses and on the job.

Firefighters Rescue Construction Workers

Four construction workers found themselves clinging for their lives when the drawbridge they were working on went up without warning, reports the Orlando Sentinel.

Must be spring, at least somewhere, because in the last week I’ve received three calls from contractors concerned about fly-by-night operators wedging their way into the market and stealing business. As I said the other day, it’s very difficult to prevent other businesses from doing business, but there are steps to take that will unlevel the playing field and put those types of business at a disadvantage.
1. Use a printed bid form that includes company name, address, phone number, insurance number, certification (if required), and website. Any fly-by-night operation isn’t going to have a pre-printed form with that type of information — most of their “bids” are verbal or scrawled by hand. Also, make sure to itemize your bid; fly-by-nights won’t do that, either.
2. Advertise. Only legitimate businesses spend money promoting themselves, so get your name out there in local newspapers and whatever other means is effective for you.
3. Write articles for local newspapers and websites. Those types of media are often looking for copy, and they are especially looking for expert copy. By writing an article and getting it published you position yourself as an expert and let people know you exist — you become reliable by implication.
4. Related to writing articles, don’t be shy about letting local media know what you’re up to. As part of the community you and your business are important, so let them know when you hire or promote an employee, buy a new piece of equipment, are working on a large or high-profile job, donate services to a charity, hold en event etc. But don’t make the mistake of sending in one press release and becoming disheartened if it’s not used. Persistence pays off and sometimes it’s simply right place, right time that gets you coverage. You can be sure any fly-by-night operators are not seeking press coverage.
5. Invite the public to your office and/or yard. Admittedly this can get a little dicey depending on the state of your facility, but if it’s a fairly nice operation that you wouldn’t mind showing off a little set up an open house or some other type of event to bring the public in. Alan Rose, Rose Paving, has hosted events like this several times and will be presenting a seminar at National Pavement Expo in 2011 that takes you step-by-step how to set up and run an open house successfully.
Whatever you do don’t hesitate to think outside the box when trying to attract local attention…any fly-by-night operations are working hard to fly under the radar before they head out of town, so by shining a spotlight on your business you make their work that much more difficult.