President Obama, continuing to stump for a follow-up round of economic-recovery actions, has proposed letting companies write off the costs of their 2011 capital expenditures in that year, instead of spreading the deductions over a longer period of time. In announcing the "expensing" plan in a speech in Parma, Ohio, on Sept. 9, Obama said that "this will help small businesses upgrade their plants and equipment and will encourage large corporations to get off the sidelines and start putting their profits to work in places like Cleveland and Toledo and Dayton." He also repeated the call he had made two
Is construction accounting headed for a troublesome shake-up? A proposed new rule aimed at aligning financial reporting by construction firms with other industries could bring sweeping changes to long-held, generally accepted accounting principles. Critics warn the new rule could significantly raise administrative costs, open the door to financial manipulation and dampen surety credit. The Financial Accounting Standards Board (FASB), which is the designated private-sector organization in the U.S. that establishes financial accounting and reporting standards, and the International Accounting Standards Board have released a draft standard to create a single revenue-recognition standard across multiple industries, including construction. “The idea is
President Obama’s Labor Day call for a new transportation infrastructure program could move public-works spending closer to the national political debate’s front burner. So far, Obama and White House officials have offered only an outline that doesn’t specify how much they want to spend or precisely how the program would work. Photo: Ap/pablo Martinez Monsivals If the framework were converted to detailed legislative language, it would face a tough path on Capitol Hill this year. For one thing, Obama’s plan quickly drew harsh blasts from congressional Republicans. Moreover, the Hill is on a tight schedule: Only about three weeks remain
Slide Show Construction’s unemployment rate edged downward in August, to 17.0% from 17.3% in July, but unemployment in the industry still remains higher than a year ago and more than double the 2008 level, reports the Bureau of Labor Statistics. BLS says construction added 19,000 jobs in August but that 10,000 of those workers were returning to the job following a strike in July. So far, construction’s jobless rate has been higher than last year in every month except July.
Construction's unemployment rate moved down slightly in August but remains highest among all industries. Construction's unemployment rate edged downward in August, to 17.3%, from 17% in July, but it was slightly worse than the August 2009 level, reports the U.S. Labor Dept.'s Bureau of Labor Statistics. BLS's latest monthly look at the nation's employment picture, released on Sept. 3, says that construction added 19,000 jobs in August, but noted that 10,000 of the jobs gained were workers who returned after a strike in July. Although BLS doesn't say so, it's likely that some or most of those workers were involved
Obama administration officials say the home weatherization program funded by the American Recovery and Reinvestment Act is making gains. Vice-President Joe Biden went to Manchester, N.H., on Aug. 26 to announce the 200,000th home to get energy-efficiency upgrades under the program. "We've hit the accelerator on the weatherization program," Biden said in a statement. He added that the goal is to weatherize 600,000 homes using the economic-stimulus act funding. Biden said more than 80,000 homes are undergoing energy-efficiency improvements this summer, compared with 3,000 in summer 2009. According to the Dept. of Energy, as of Aug. 20 it had awarded
California Transportation Director Cindy McKim says that if the current budget impasse continues through the end of August, “transportation-fund cash balances may be depleted, resulting in potential suspension of ongoing construction projects.” McKim says that if the logjam extends into September, the department would have to stop or delay the start of $3 billion worth of transportation projects, plus delay contractor payments on $9.5 billion worth of current construction. “The absence of fiscal year 2010-11 budget authority has an immediate result of restricting Caltrans’ ability to initiate construction projects, award contracts and make payments to vendors,” says McKim. The fiscal
U.S. Bureau Of Labor Statistics. Construction Unemployment Rate For February. Construction’s unemployment rate is starting to ease back from record-high levels. In July, the industry’s unemployment rate slipped to 17.3%, down from 20.1% the previous month and down from 18.2% in July 2009, according to the Bureau of Labor Statistics. However, construction employment remains at a 14-year low, says BLS. Part of the improvement was the nearly 10,000 construction workers who returned to work after being on strike earlier in the year, says BLS. Given the drop in employment, the recent decrease in the jobless rate reflects workers who have
Despite a sharp increase in house sales in June, the monthly pace of sales was still the second lowest on record, according to the U.S. Dept. of Commerce. June sales rose to an annual rate of 330,000, up from a record low of 267,000 in May. The rebound in the housing market hit a wall when tax credits for buyers ended in April.
New construction starts in June dropped 3% from the previous month to a seasonally adjusted annual rate of $385.7 billion, according to McGraw-Hill Construction’s latest release for construction starts. Overall, the market is down 4% from the first half of last year, despite a 23% increase in the residential market. While that market is rebounding from historic low levels, the nonresidential building market has plummeted 15%, including declines of 29% for commercial buildings and 54% for manufacturing work. The nonbuilding market has dropped 10% from a year ago.
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