Federal agency procurement officers are breathing a bit easier after a mad dash to obligate their remaining American Recovery and Reinvestment Act dollars by Sept. 30, the deadline for committing many stimulus-act construction dollars. Agencies have seen bids on ARRA-funded projects come in well below initial estimates, opening opportunities to redirect those savings to thousands of additional projects. A White House report, released on Oct. 1, says eight agencies were able to fund more than 3,000 additional projects beyond their original projections. Those agencies include the Depts. of Defense, Interior, Labor, Transportation, Veterans Affairs, the Environmental Protection Agency and the
The Obama administration unveiled a long-term restoration plan on Sept. 28 that calls for a dedicated fund to be set up to pay for long-term recovery and restoration of the Gulf Coast. The restoration plan was written by Navy Secretary Ray Mabus at the request of President Obama. Chief among its recommendations is a call for Congress to dedicate a significant amount of any civil penalties obtained from responsible parties for the Deepwater Horizon oil spill into a Gulf Coast Recovery Fund to go toward the long-term cleanup and restoration of the Gulf. The plan also recommends that Congress authorize
By its nature, the construction industry is an optimistic group. However, by the end of the “summer of recovery,” firms’ rosy view that better times were right around the corner has been tested and found wanting. Major contractors, engineers, subcontractors and construction service firms have concluded that the industry recession will last for the foreseeable future and that they need to be prepared to hold on for as long as it takes. + Image Related Links: Economics: With Margins Cut to the Bone and No Demand, Costs Are Left With Nowhere To Go Cement: New EPA Regs Pose Cost Problems
The recession wasn’t supposed to last this long nor be this deep. Federal stimulus spending was meant to return us to prosperity as opposed to just diverting financial disaster. But taking a few steps back from the precipice may be the best our stimulus money could buy. The trillion-dollar construction market of a few years ago now appears to have been an illusion, and an $800-billion annual market may be the new reality. In the pop of a bubble, a fifth of the construction market may have evaporated, leaving the industry to make drastic adjustments. + Images Related Links: Market:
Recession has not been good for the construction industry, but it’s helping to keep workers’ compensation rates down, say insurance and contractor executives. In the year that ended last June, 28 states filed for rate decreases, while nine filed for increases, says Peter Burton, senior division executive for state relations for the National Council on Compensation Insurance. Related Links: Economics: With Margins Cut to the Bone and No Demand, Costs Are Left With Nowhere To Go Market: More Bad Economic News Dims Industrys Confidence Cement: New EPA Regs Pose Cost Problems Labor: Wage Settlements Are Between A Rock and a
For construction labor, the pain brought on by the recession is being felt in the paycheck. While unemployment remains historically high and contractor backlogs evaporate, most workers see limited increases in wages and fringes, and many are seeing wages frozen or even cut. Photo: Tudor Van Hamptom for ENR Dwindling profits leave little room for firms to reward workers. Related Links: Economics: With Margins Cut to the Bone and No Demand, Costs Are Left With Nowhere To Go Market: More Bad Economic News Dims Industrys Confidence Cement: New EPA Regs Pose Cost Problems Insurance: Recession and Politics Impact Workers Comp
The multi-unit housing sector saw an uptick in starts and building permit activity in August, adding a boost to the otherwise slumping market. Last month, construction began on 13,900 units in buildings with five or more units, according to the U.S. Commerce Dept. That is the highest number of starts since February 2009. Despite the rise in activity, the sector is still down year-to-date, with 67,000 units started in the first eight months of 2010 compared to 74,400 during the same period in 2009. Building permit activity suggests the sector could see some improvement in the future. Applications for 84,500
Cement prices could increase substantially within the next few years because of new regulations from the federal Environmental Proection Agency as well as the state of California’s regulations requiring substantial reductions in CO2 and hazardous air-pollution emissions from domestic cement plants. + Image Photo: put photo credit here photo caption here Related Links: Economics: With Margins Cut to the Bone and No Demand, Costs Are Left With Nowhere To Go Market: More Bad Economic News Dims Industrys Confidence Insurance: Recession and Politics Impact Workers Comp Labor: Wage Settlements Are Between A Rock and a Hard Place Complete Report For now,
The Senate has approved a package of provisions aimed at helping small businesses, including $12 billion in tax breaks and a $30-billion federal fund to stimulate banks to provide more loans to small firms. The measure next goes to the House, which is expected to approve it. The bill also has the support of President Obama. The measure was approved Sept. 16 on a 61-38 vote, as Republicans George LeMieux (Fla.) and George Voinovich (Ohio) joined Democrats in voting for the bill. Key provisions in the bill include a $30-billion Small Business Lending Fund, through which the Treasury will buy
RSS
