Construction costs again outpaced other producer prices in June, but contractors remained unable to recoup the costs through higher bid prices, according to an analysis of producer price index figures released in mid-July by the Associated General Contractors of America. Association officials said the ongoing cost squeeze would put new pressure on construction firms to reduce staff and possibly close down. “Despite a one-month dip in the prices of some key materials in June, construction costs rose on a year-over-year basis at the highest rate since 2008,” said Ken Simonson, the association’s chief economist. “Worse, prices are rising amid continued
Following declines in new business volume in 2008 and 2009, the equipment finance industry began to regain volume in 2010, according to the 2011 Survey of Equipment Finance Activity (SEFA) released in July by the Equipment Leasing and Finance Association. The survey reported an overall 3.9% increase in volume in 2010, compared to a significant 30.3% decline reported in 2009 and a 2.2% decline reported in 2008. The SEFA, based on responses from 108 ELFA member companies, covers key statistical, financial and operations information for the $521-billion equipment finance industry. “Through 2010, the equipment finance industry showed gradual but steady growth,”
A recent verdict in Denver exonerating Xcel Energy Inc. of criminal charges involving five painter deaths in 2007 sets the stage for the forthcoming trial against Santa Fe Springs, Calif.-based contractor RPI Coating Inc. and RPI executives, Philippe Goutagny and James Thompson. A federal jury on June 28 found Minneapolis-based Xcel not guilty of 10 workplace safety charges related to a deadly powerplant fire. In a rare occurrence for Occupational and Safety Health Administration violations, Xcel and local subsidiary, Public Service Co. of Colorado, had faced criminal charges carrying up to $5 million in combined fines, plus the threat of
June marked the third consecutive decline in revenue at U.S. architecture firms as measured by the Architecture Billings Index. As a leading economic indicator of construction activity, the ABI reflects the approximate nine- to 12-month lag time between architecture billings and construction spending. The American Institute of Architects reported the June ABI score was 46.3, almost a full point below the reading of 47.2 the previous month. This score reflects a continued decrease in demand for design services (any score above 50 indicates an increase in billings). However, the new projects inquiry index was 58.1, up sharply from a mark of
Post-show attendee and exhibitor surveys recently unveiled from CONEXPO-CON/AGG and IFPE 2011, held in March, confirm that the shows are vital business tools connecting buyers and sellers. Show management sayu they will use the survey data in future planning "to offer even more value at the next edition of the co-located exhibitions. " Among the results from the post-show surveys:• Why buyers attended the shows: for CONEXPO-CON/AGG, 89% of attending contractors and 91% of attending producers had a “buying influence” for products at the shows; 73% of IFPE attendees also had a “buying influence,” which is above the manufacturing/industrial exhibition average.
Have you ever driven past a billboard that would cause an accident if anyone actually read the whole thing or wished that a salesperson would stop blabbering about how perfect their product or service is? Worse yet, have you ever sat through a presentation that features a bunch of PowerPoint slides being read to you by the speaker? The advertiser, salesperson and speaker all missed the opportunity to reach and influence their target audiences. Time and money are wasted. Productivity suffers. It’s probably time for an “extreme messaging makeover.” Five Ways to a Makeover 1. Focus on One Big Idea. We’re bombarded
No matter which news source you follow, the story is the same: economic recovery for the construction industry is trailing behind other sectors. As a result, contractors are searching for every possible means to lower bidding costs to win more jobs. Many merit-shop contractors may not be aware of how to use the flexibility afforded by wage determinations on projects to which the Davis-Bacon Act applies. About the Davis-Bacon ActHere’s a brief primer on Davis-Bacon:• Applies to all contracts funded in whole or in part with money from the American Recovery and Reinvestment Act of 2009 (also referred to
Over the last few years, small- and medium-sized builders have been hit hard by the recession and an ailing real estate market, causing many in the industry to resort to “survival mode,” cutting back on marketing, staff and overhead costs in an effort to weather the storm. A majority of these contractors have slashed prices to reduce inventory and are executing a duck-and-cover approach to management. While this seems intuitive, it is not a strategic approach that lends itself to long-term viability. In actuality, savvy builders should do the opposite, by investing time, money and resources into their company
Do your employees trust you? The brutal truth is—probably not. It may not be fair, and you may not want to hear it, but chances are that previous leaders have poisoned the ground on which you’re trying to grow a successful business. Make no mistake: Unless you and all the leaders in your organization can gain the trust of your employees, performance will suffer. And considering how tough it is to survive in today’s business environment, that’s bad news for your company. Before a team can reach its full potential, leaders must act in ways that transcend employees’ fears of
The recent completion of a streetscape renovation of Fillmore Plaza in Denver’s Cherry Creek North Business Improvement District allows the plaza to be easily converted from a special events venue into an open street for limited vehicle traffic. Courtesy of Design Workshop The new Fillmore Plaza serves as the gateway to Cherry Creeks popular retail and dining district. The plaza redesign is the final improvement of The New North, the districts privately funded, 16-block, $18.5-million streetscape project. Other key goals of the project were to increase pedestrian “dwell time” and establish the area as a citywide destination for multiple activities.
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