Construction Equipment Owner

NCCER and NAWIC have partnered to bring construction businesses a leadership academy which provides women with the opportunity to elevate their careers and management roles within the construction industry.This will consist of a three-day program that provides women with the opportunity to network with fellow peers from around the country. The academy will also have a series of lectures, team building and group activities, and will reinforce skills learned and provide participants with the tools to become effective leaders.

Topics include:

• Powerful language skills
• Leadership and management styles
• Conflict resolution
• Gender-based power in business
• Problem-solving techniques
• Negotiating techniques
• Time management

Tuition: $1495 - includes lodging, all meals, course material, transportation, and activities.
Click Here to Register

The headline is a little grave so let’s start the post with a quote from ABC Chief Economist Anirban Basu on what the outlook for nonresidential construction as it’s a little more sunny: “…there were a number of positive indications in this GDP report, including evidence of a rebound in consumer spending,” adds Basu. “Consumers are apparently more confident than they appear, and this confidence translated into higher consumption of durable goods. This suggests that the ongoing recession may end just as many economists predict – during the latter stages of 2009.

“For commercial and industrial construction contractors, this represents the report’s only bright spot .Nonresidential construction spending continues to be decimated by both the lack of available financing, and the lack of appetite for risk related to real estate development and investment.

“Once the broader economy begins to recover more fully, nonresidential contractors can expect revenue opportunities to become more apparent after a typical one to two year lag.”

Now the hard numbers which are a little more unnerving:
Commercial and industrial investment fell an alarming 37.9 percent during the first quarter of 2009, according to the U.S. Commerce Department’s April 29th release on the gross domestic product (GDP). Contributing significantly to the plunge in nonresidential fixed investment was a 44.2 percent annualized decline in output related to the construction of nonresidential structures.

The first quarter’s decline follows a loss of 9.4 percent during last year’s final quarter. Investment in equipment and software was down 33.8 percent during the quarter following a 28.1 percent annualized decline during the fourth quarter of 2008. Real residential fixed investment declined 38.0 percent in the first quarter of 2009 following a 22.8 percent annualized loss during the previous quarter.

However, consumer spending increased 2.2 percent after declining 4.3 percent during the prior quarter. This is largely attributable to an improvement in sales of durable goods, which were up 9.4 on an annualized basis after declining 22.1 percent during the prior quarter. Exports were hammered, down 30.0 percent during the first quarter. However, the decline in imports was even more dramatic falling 34.1 percent. Meanwhile, government spending was down 3.9 percent during the first quarter due in part to a decline in national defense outlays.

Overall, real gross domestic product fell 6.1 percent during the first quarter of 2009 following a 6.3 percent decline during the previous quarter. The first quarter of 2009 represents the third consecutive quarterly decline of GDP.

About a five minute video recapping the 2009 Work Truck Show

I had a chance to talk with a couple of pavement consultants the other day, and they both report the world has changed from their perspective.

Both consultants work extensively for commercial clients, many of whom have locations spread across the country. The consultants evaluate parking lots, develop bid specs, and in some cases screen contractors and oversee work.

One national property management company has put a halt on all pavement maintenance work for the time being. The consultant explained it’s not that the firm doesn’t believe in pavement maintenance — just that they’re tightening their belt as much as possible. That’s a big chunk of work lost at least for the time being. Luckily for this particular consultant his company also works in the public sector and has already been awarded some projects as a result of the federal stimulus package, so 2009 is shaping up to be a good year.

The other consultant has seen a major shift in the way one of the corporations he works for is handling its properties. The consultant works for a major corporation that managed virtually all its properties centrally. In 2008, however, many of the properties were franchised, and much of the decision-making became fragmented at the local level. Probably good for local contractors, not so good for this consultant.

But he does still work for the parent company, and he has a number of other national accounts who not only are not cutting back on pavement maintenance but are actually ramping up some work. So 2009 is looking fine, though different, for him.

Ron Black, owner of the consulting and training firm The Mentor Group, joins the Construction Business Podcast to talk about the construction project management fundamentals and how to best implement these processes that will lead to success in your business. Ron also addresses standards and regulations in project management and their importance.

Guest:

Ron Black
Contact: ronblack@thementorgroup.com
Link: www.thementorgroup.com/
Book: The Complete Idiot’s Guide to Project Management with Microsoft Project 2003

 Fundamentals of Construction Project Management [10:17m]: Play Now | Play in Popup | Download (354)

Equipment Connection Podcast Sponsored By:

We’re back with another episode of the Equipment Connection podcast. During this show we will be speaking with Del Carver, area director, Terex North America Compact Equipment to talk about Terex Construction’s new dedicated compact equipment line. We will also be joined by Keith Rohrbacker, Construction Equipment Product Manager with Kubota Tractor Corp. Kubota has recently introduced a couple of new compact excavators and Keith will discuss the technology and features of these units.

Terex Compact Equipment Line	Kubota KX080-3 Excavator
Kubota U17 Compact Excavator Line	Kubota KX121-3 Super Series Blade Options

E-mail the Equipment Connection Podcast

 New Compact Construction Equipment [11:09m]: Play Now | Play in Popup | Download (162)

Did the other shoe just drop?

Analysts have been warning for months that the housing slump created by tight lending practices (on the heels of ridiculous lending practices) would eventually spill over into the commercial property sector. Well, that happened big time yesterday when General Growth Properties filed Chapter 11 to reorganize its operation — and it will probably have to sell some properties.

One of the largest mall owners in the country, General Growth owns more than 200 shopping centers in 44 states, including many high-profile locations such as Chicago’s Water Tower Place and the Grand Canal Shoppes at The Venetian in Las Vegas (neither of which require much pavement maintenance).

But many of their other holdings do include parking lots. And while this Chapter 11 filing doesn’t necessarily mean pavement maintenance work for General Growth will disappear, it does mean more attention will be paid to monies spent.

For pavement maintenance contractors this filing should be a caution: Make sure you know who you are doing the work for and who will be paying the bill. Hopefully General Growth will be the last property owner to be in this financial bind, but I wouldn’t bet on it.

In 2009 Turner Construction Company will commemorate it’s 20th anniversary of building in Kansas City. In its beginnings, Turner Construction started with a staff of six and has grown into one of Kansas City’s largest construction firms employing more than 100 full-time employees and serving the four-state region of Missouri, Kansas, Nebraska and Iowa.

Quick Stats

• Turner’s Kansas City office completed $213 million of construction in 2008
• Company currently has the highest level of work underway since the office was established
• Turner is constructing a $40 million renovation of the University of Kansas Allen Fieldhouse, $22 million of renovation work for the Olathe School District and the new $16 million Odessa Elementary School
• Turner has also constructed some of the most significant projects in the region, including:
• New Arrowhead Stadium and Training Facility for the KC Chiefs
• Bartle Hall Original Expansion
• Liberty Memorial Expansion
• University of Kansas Anderson Family Football Complex
• Kansas Speedway
• Branson Convention Center
• Briarcliff Hilltop Office Building
• Kansas City Power and Light District Parking Garage
• Kansas Life Sciences Innovation Center at the University of Kansas Medical Center
• Pat Roberts Hall-Kansas State University BioSecurity Research Institute
• University of Kansas Allen Fieldhouse Renovation
• Johnson County Adult Detention Facility Expansion

AEM’s Construction Challenge program for teens that focuses on workforce development in the construction industry was recently named to the "Associations Advance America" 2009 honor roll. This is a nation awards competition presented by the American Society of Association Executives (ASAE) and the Center for Association Leadership, Washington, D.C.

Partnering with Destination ImagiNation, AEM puts on the Construction Challenge which is a program made up of creative problem solving designed to engage teens through a hands-on, educational experience. The overriding intent offers an opportunity for students, teachers, parents and community leaders to learn more about the rewarding careers available in the construction industry.

As this industry is facing a severe workforce shortage in the near future, programs such as this are extremely important and it’s good to see the hard work of those who put this program on and have participated in it being recognized. I had an opportunity to see the first ever finals at CONEXPO-CON/AGG & IFPE 2008 and from my vantage it did seem the participants were taking away great value from being part of the Construction Challenge.

The 2009 AEM Construction Challenge will hold its finals competition May 20-23, 2009 during the Destination ImagiNation Global Finals in Knoxville, Tennessee. More than 50 student teams from across the U.S. and Toronto, Canada will participate after earning top honors in Challenge regional competitions held in early February. More than 2,000 high school and middle school students comprising 300-plus student teams participated in the regional competitions, held simultaneously in 15 cities.

Like many cities that experience multiple freeze-thaw cycles, Chicago has a pothole problem and it has a pothole problem every year. And each year newscasts feature film of potholed streets and car-eating potholes, and each year the city attracts attention (meaning politicians get lambasted) for not repairing potholes quickly enough. No news there.

But this year there’s been some news: First there was Kentucky Fried Chicken’s offer to repair $5,000 worth of potholes on Chicago streets provided KFC could stencil an ad on top of each pothole when they’re done. KFC did the work in its hometown of Louisville, KY, and made the offer to five cities total. Chicago said “thanks but no thanks.”

More recently some city residents took the matter into their own hands — and repaired the potholes on their streets using eight bags of a pre-mixed cold product they bought for $100 and a 250-lb. push roller borrowed from a neighbor to fill 15 holes. Not very economical considering the city spends $100 per ton on a high-performance cold patch, but also not very safe to have residents working in the street.

The city reports its crews fill between 3,000 and 5,000 potholes a day and have filled 300,000 potholes since the beginning of December and urges residents to be patient…but they are “considering” corporate sponsorship of its repair operations.