Archive for October, 2007

Construction Spending Rebounds

Wednesday, October 31st, 2007 by Sam Simon

The “experts” predicted a 0.4 percentage decrease in construction spending for the month of September. However, the Commerce Department reported today that spending on construction projects around the country rose by 0.3 percent.

The report also notes that spending by private builders on commercial structures climbed to an all-time high, as did spending by the government on public facilities in September.

Commercial construction is once again going strong and softening, well pretty much, negating the blow of the housing slowdown. Great news for our audience as the commercial industry continues to grow despite repeated predictions of a slow down.

Happy Holloween - Lift Industry Style

Wednesday, October 31st, 2007 by Sam Simon

I received an e-mail from Equipment Parts Wholesale that had images of carved pumpkins featuring lift equipment. I thought I’d share them as they were entertaining to me, and it’s Halloween. Plus I didn’t dress up so this is my way of feeling festive. Enjoy.

Quick note: Custom patterns and carvings were created (on a dark and stormy night!) by employees and family members of EPWparts.com. Special thanks to the MacFarland, Austin, and Tjerrild families.

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These patterns are available online for free at: www.EPWparts.com/images/patterns.pdf. For all of you looking for a racy pumpkin idea check out page 9 on this PDF file.

Business planning in today’s economy

Wednesday, October 31st, 2007 by Rebecca Wasieleski

This week saw a lot of news about economic predictions for the future. NPR ran a piece on the on the possibility of recession, with comments from the Wall Street Journal’s David Wessell. On the construction front, the Portland Cement Association (PCA) offered its Fall Economic Outlook, in which chief economist Ed Sullivan predicted cement consumption declines of 6.9 percent for 2007 and 2.5 for 2008. Sullivan’s outlook does not predict a recession, however he does suggest concrete contractors take “an extra dose of conservatism in strategic planning for 2008.”

Concrete Contractor’s “Business 101″ columnist Brad Humphrey, president of construction management consulting firm Pinnacle Development Group, offers a few tips to contractors organizing a strategic plan for an unpredictable year:

1. Clarify your “Unique Selling Proposition” (USP), that is, be more clear about what you represent to your market. Ask yourself, and maybe some of your loyal/long-term clients, who am I? What does my organization really represent to customers?

2. Work harder on your customer retention efforts such as increasing your number of customer contacts before, during, and after completing a project; documenting customer needs and wants and any changes that they request during a project; increase your quality of performance.

3. Look for ways to better utilize your workers – position your company to work more lean rather than carrying extra workers.

4. Look to lease equipment and facilities if expansion was part of your strategic plans.

5. Don’t panic and automatically give away discounts BUT look for incentives to get more work.

2008 Construction Outlook

Wednesday, October 31st, 2007 by Sam Simon

A new construction outlook report is now available and it is expecting a 2% decline in ‘08. This decline is overall U.S. construction spending and is mostly brought down by the continued struggles of the housing market as the dollar volume of single-family housing is expected to drop 3% as multi-family housing will slide 8% in dollars.

Commercial building is expected to fall 6% in dollar volume. This seems like a large decline, but what has to be kept in mind is recent history. The past few years commercial construction has gone through the roof and it is now leveling out to more of a natural growth rate. So year over year, yes the market is declining, but over a larger spectrum it is merely coming back to the average rate of growth.

On the positive side, institutional buildings and public works is expected to rise in ‘08, 4% and 3% respectively. The report believes that “transportation projects should continue to see moderate growth amid a renewed emphasis on infrastructure maintenance and upgrades, particularly in the aftermath of the I-35W bridge collapse in Minneapolis. Financing from public sources will stay generally supportive, and the growth of public-private partnerships also offers the potential for greater funding.”

This is interesting for the reason that a separate study found that “despite increased efforts, little progress has been made to reduce the percentage of structurally deficient and functionally obsolete bridges over the past year. This survey shows that across the nation the percentage of structurally deficient and functionally obsolete bridges improved by just .4% over the past year to 24.1%.”

So in spite of the initial push to upgrade obsolete bridges there has not been much physical progress. Hopefully this is due to a slow political process of appropriating the necessary funds for these repairs/rebuilds and next year’s number will show a significant increase and thus help support the transportation construction industry.

In total, an implied decline in the commercial construction industry should be viewed over a scope of at least five years and not just year to year as we were luck enough to experience a great boom for a year or two - which I once heard was as high as 18% above average - but are now coming back down to Earth and settling into the normal growth rate.

Connections…

Sunday, October 28th, 2007 by Allan Heydorn

Sometimes things kind of hang around in my mind, gestating, waiting to be written about, nudging me to get to them. If I’m not sure what to write I hold off, hoping to plug in to the idea I can focus on. It’s been that way for a couple of topics in recent days, so let’s give this a try and see where it leads.

My father-in-law died last week, age 87. He was one of a disappearing generation of people who for one reason or another came to the United States in hopes of improving his lot in life. Chester emigrated from Poland, via Germany, after World War II, having enlisted at age 19. He spent the bulk of the war as a prisoner working on a German farm replacing the farmer’s three sons who were fighting for Germany. Married shortly after the war and with a one-year-old daughter (my wife) he came to Chicago, sponsored and with a job, and raised two daughters. It’s a true American Success Story, similar to thousands of others, and he told us all a lot of stories.

He died shortly after I’d finished watching all the episodes of Ken Burns’ PBS documentary, The War. (I had recorded it on a DVR so I could watch it around baseball’s playoffs; Me, 1, Technology, 0.) I watched the series initially from a historical standpoint, but it gradually became much more than a history lesson. Despite years of American and World History in school I didn’t have a real sense of the chronology of The War. I didn’t realize Baatan was early, and I didn’t realize where the Allied African campaign fit, nor how the Allies moved through Italy. I didn’t realize the complexity of waging a war in several parts of the world simultaneously, and I didn’t realize why the Battle of the Bulge was called that. I did realize the sacrifices made, but this film helped me feel those sacrifices, much as I felt the sacrifices Chester (and his wife, Emily) made. Burns’ approach of tying The War narrative to four U.S. towns and their people brought the fighting and political aspects to a human and almost personal level, to a level much like Chester’s.

Last Monday I heard Bruce Springsteen and the E Street Band play at Chicago’s United Center. He has an uncanny ability to connect to his audience, with even people in the Bob Uecker seats standing, singing, pumping their fists in the air during “Badlands,” “Born To Run,” and “Thunder Road.” His connection is visceral, emotional. But that’s the public connection. The private connection, the more personal connection, is his view of the America he wants his three children to grow up in. He’s a firm believer in the United States as a “shining beacon on a hill,” a land of opportunity, and his songs, at least many of them, turn on that point. He believes in independence, freedom, individuality guided by collective goals and desires. He believes in the country Chester immigrated to, worked in, succeeded in, died in. He believes in the country that sacrificed its young men to defend its ideals in World War II, a believer in the country that Burns unveils in his documentary.

If you haven’t seen The War I highly recommend it. To be sure, it is a big investment (at some 15 hours) but the investment is minimal once you realize the story being told. If you haven’t seen Springsteen, I highly recommend his concerts, whether you approve of his politics or not as his connection to his listeners is based on something other than that.

You’ll just have to take my word about Chester.

NAHETS Goes Multimedia

Tuesday, October 23rd, 2007 by Sam Simon

The National Association of Heavy Equipment Training Schools now hosts a number of videos that look at construction equipment, safety and other applications. These videos allow those within the industry, as well as the general public to become more familiar, knowledgeable and aware of the various types of heavy equipment. In addition, videos also highlight the association along with it’s training and educational opportunities.

A catalog of the all the videos can be found at www.nahets.blogspot.com where the videos are listed and organized. The majority of the heavy equipment profiles run around 45 seconds and give a brief and insightful overview about each piece of equipment.

Also at the NAHETS blog you’ll find the results of a survey that asked “What is your favorite piece of equipment?” This is always a good topic of discussion at the tailgate of a truck. Mark me down for wheel loader. There’s something about running that bucket into a pile of material that makes me excited to jump up on the iron.

Use of Lignin as a Soil Stabilizer

Tuesday, October 23rd, 2007 by Sam Simon

An interesting bit of information for our road building audience from the Biotech Weblog: Using Lignin to Stabilize Soil and Build Better Roads.

As the push for use of alternative fuels in heavy construction equipment increases, a bi-product of one of those fuels may also become a new, cheaper part of the construction of roads and other infrastructure.

What a Week at ICUEE

Friday, October 19th, 2007 by Sam Simon

Despite rain, tornado watches and a diet consisting of catfish, fried flesh and deit soda, another successful ICUEE show was held in Louisville, KY - and what a show it was. As I crisscrossed the four outdoor lots and inside displays in the South Wing, I was shown a host of new equipment and emerging technologies that were creating a lot of buzz at the show.

Bobcat had two items on display that drew much attention. The first item being its V417 VersaHandler telescopic tool carrier (TTC). The fourth model in the VersaHandler line, this is the first one to offer the Bob-Tach attachment mounting system. The primary feature of this particular piece of equipment is that select attachments for large-frame skid-steer loaders (S220 – S330), compact track loaders (T250 – T320) and all-wheel steer loaders (A300) are approved for use with the V417. This is ideally suited for customers who already own a large-frame loader and are looking to get the most out of the V417.

But what was probably the centerpiece of the Bobcat booth at ICUEE was the Loader Radio Remote Control System. This system provides a solution for users who want to operate their loaders remotely. Operators can start the loader engine and operate the drive, lift, tilt and auxiliary hydraulic functions from approximately 1,500 feet away with the radio remote control transmitter. The transmitter joystick controls activate the loader’s joystick controls in the ISO control pattern.

Enabling the unit for unmanned operation has several market applications in the construction industry including concrete demolition, asphalt planning, firebreak construction, stump removal and many other uses. But what may be the most impressive feature of the Radio Remote Control System is how easily it can be attached or removed. The unit can be easily attached and disassembled within a matter of minutes so the loader can change from unmanned to manned operation without much work.

There were many more highlights from ICUEE and I will continue to bring those to you. If you came across anything interesting or noteworthy, please let us know and share your experiences from the show by posting a comment. Also, look for our video reports from ICUEE in our video network. We had the opportunity to capture a lot of the equipment in use and got a lot of great information from the product specialists.

The importance of routine maintenance

Friday, October 19th, 2007 by Rebecca Wasieleski

A well maintained equipment fleet contributes to safety and efficiency on the jobsite. Well maintained equipment will also last longer, saving you money in equipment repairs and allowing you to receive the best resale value on a machine if you should decide to sell it or trade it in.  ForConstructionPros.com offers a wide range of articles on equipment maintenance, including power trowelswork trucks, compact track loaders, tires, skid steers, and more.

Welcome from ICUEE

Monday, October 15th, 2007 by Sam Simon

I will be attending the ICUEE show this week and using this blog to relay information, experiences, voices and other interesting happenings. You can also check back to ForConstructionPros.com/VideoNetwork to see product highlights from the floor as the Video Network team will be capturing video from around the show - so make sure to look for that. Some of the companies we are scheduled to feature are: Caterpillar, Bobcat, Sage Oil Vac, VMAC, LoJack, Vermeer, Ditch Witch, Eaton and many more.

So if you’re attending ICUEE, have a good show. If not, stay tuned to this blog for first-hand reports from the show.