June marked the third consecutive decline in revenue at U.S. architecture firms as measured by the Architecture Billings Index (ABI). As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the June ABI score was 46.3, almost a full point from a 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 52.6 in May.
“This seems to be a case of not thinking it can get any worse – and then it does,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “While a modest turn around appeared to be on the way earlier in the year, the overall concern about both domestic and global economies is seeping into design and construction industry and adding yet another element that is preventing recovery. Furthermore, the threat of the federal government failing to resolve the debt ceiling issue is leading to higher borrowing rates for real estate projects and should there actually be a default, we are likely looking at a catastrophic situation for a sector that accounts for more than ten percent of overall GDP.”
Key June ABI highlights:
◦Regional averages: West (51.7), Northeast (47.5), South (47.3), Midwest (44.6)
◦Sector index breakdown: mixed practice (51.5), commercial / industrial (50.0), multi-family residential (49.6), institutional (45.9)
◦Project inquiries index: 58.1
About the AIA Architecture Billings Index
The Architecture Billings Index (ABI), produced by the AIA Economics & Market Research Group, is a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction spending activity. The diffusion indexes contained in the full report are derived from a monthly “Work-on-the-Boards” survey that is sent to a panel of AIA member-owned firms. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended as compared to the prior month, and the results are then compiled into the ABI. These monthly results are also seasonally adjusted to allow for comparison to prior months. The monthly ABI index scores are centered around 50, with scores above 50 indicating an aggregate increase in billings, and scores below 50 indicating a decline. The regional and sector data are formulated using a three-month moving average. More information on the ABI and the analysis of its relationship to construction activity can be found in the White Paper Architecture Billings as a Leading Indicator of Construction: Analysis of the Relationship Between a Billings Index and Construction Spending on the AIA web site.
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. Members adhere to a code of ethics and professional conduct to ensure the highest standards in professional practice. Embracing their responsibility to serve society, AIA members engage civic and government leaders and the public in helping find needed solutions to pressing issues facing our communities, institutions, nation and world. Visit http://www.aia.org/.
Read More
Wednesday, July 20, 2011
Monday, May 16, 2011
Transportation Contractors Offer Bleak Market Assessment in Latest ARTBA Survey
Transportation contractors continue to deal with a very challenging economic environment that is impacting employment and capital spending decisions, with more than half of survey respondents saying they are working below 75 percent of capacity.
“We cannot continue working day-to-day without long-term planning,” said one contractor in the American Road & Transportation Builders Association’s (ARTBA) latest “Quarterly Market Conditions” report. According to another: “It’s worse than ever before in my lifetime. Many competitors have closed their doors. We have been in a four-year downturn with no hopes of turning things around. Most left are just clinging to stay open.”
Fifty percent said they have fewer workers on payroll, while just 13 percent say they have more. Project backlogs, a key indicator of market stability and performance, are down with 56 percent reporting less work in the queue. Similarly, overall capital spending is lower at 49 percent of firms while profit margins are down at 61 percent of companies. And 74 percent say materials costs are climbing.
Contractors are very concerned about the continuing congressional delays over reauthorization of the six-year highway/transit investment bill. “We need a long-term transportation spending package,” said one. Another said his firm is putting capital spending and hiring until the highway/transit bill is passed.
Expectations for the market in the remainder of 2011 are also low. “If I don’t pick up some contracts soon, I will have to shut down operations,” shared one industry executive.
Full results can be found at www.artba.org/contractorsurvey.
For 108 years, ARTBA has represented the U.S. transportation design and construction industry before Congress, the White House, federal agencies, news media and general public.
NRMCA Issues 2011 Progress Report on Concrete Industry Sustainability
The National Ready Mixed Concrete Association has published the NRMCA 2011 Sustainability Report to communicate the ready mixed concrete industry’s progress toward meeting sustainability goals. In 2009, the U.S. ready mixed concrete industry established a vision, strategies and goals toward sustainable concrete manufacturing and construction (download the NRMCA Sustainability Initiatives atwww.nrmca.org/sustainability).
At the same time, the concrete industry was experiencing the worst economic downturn in its history and unprecedented regulatory changes. However, despite these challenges, the industry has re-dedicated itself to upholding the principles of sustainable development by establishing programs to help meet the aggressive goals it set for itself in 2009. The NRMCA 2011 Sustainability Report describes how the industry has invested millions of dollars in cutting edge research, new education and training programs, new personnel and plant certifications, and codes and standards advocacy to establish concrete as the sustainable material of choice for building and infrastructure projects and lower its environmental footprint.
“The ready mixed concrete industry understands the role it can play in reducing the environmental impact of construction through product and process improvements,” said NRMCA President Robert Garbini.
“It’s inspiring to see our members respond to the challenges of sustainability both in terms of how concrete is used in construction but also how the product is manufactured,” added Lionel Lemay, NRMCA’s senior vice president of sustainability. “The industry is truly concerned about the environment demonstrated by the investments it has made in research, education and measurement.”
Founded in 1930, the National Ready Mixed Concrete Association’s mission is to represent the entire ready mixed concrete industry through leadership, promotion, advocacy, education and partnering. NRMCA represents over 1,500 manufacturers of concrete and 50+ state affiliate organizations. Approximately 85% of NRMCA’s members are classic American family-owned small businesses.
Thursday, March 24, 2011
Architecture Billings Index Shows Nominal Increase
During the first two months of 2011 the Architecture Billings Index (ABI) is not exhibiting the strength of business conditions that were seen in the final quarter of 2010. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the February ABI score was 50.6, up slightly from a reading of 50.0 the previous month. This score reflects a modest increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 56.4, compared to a mark of 56.5 in January.
“Overall demand for design services seems to be treading water over the last two months,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “We’ve been preaching patience and cautious optimism for a full recovery because there continues to be a wide range of business conditions for architecture firms that are also influenced by firm size, practice specialties and regional location. We still expect the road to recovery to move at a slow, but steady pace.”
Key February ABI highlights:
◦Regional averages: Midwest (55.3), South (50.1), West (49.1), Northeast (46.4)
◦Sector index breakdown: commercial / industrial (55.0), mixed practice (51.3),
◦multi-family residential (49.7), institutional (48.9)
◦Project inquiries index: 56.4
About the AIA Architecture Billings Index
The Architecture Billings Index (ABI), produced by the AIA Economics & Market Research Group, is a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction spending activity. The diffusion indexes contained in the full report are derived from a monthly “Work-on-the-Boards” survey that is sent to a panel of AIA member-owned firms. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended as compared to the prior month, and the results are then compiled into the ABI. These monthly results are also seasonally adjusted to allow for comparison to prior months. The monthly ABI index scores are centered around 50, with scores above 50 indicating an aggregate increase in billings, and scores below 50 indicating a decline. The regional and sector data are formulated using a three-month moving average. More information on the ABI and the analysis of its relationship to construction activity can be found in the White Paper Architecture Billings as a Leading Indicator of Construction: Analysis of the Relationship Between a Billings Index and Construction Spending on the AIA web site.
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. Members adhere to a code of ethics and professional conduct to ensure the highest standards in professional practice. Embracing their responsibility to serve society, AIA members engage civic and government leaders and the public in helping find needed solutions to pressing issues facing our communities, institutions, nation and world. Visit http://www.aia.org/.
Read more at ConcreteExecutive.com
“Overall demand for design services seems to be treading water over the last two months,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “We’ve been preaching patience and cautious optimism for a full recovery because there continues to be a wide range of business conditions for architecture firms that are also influenced by firm size, practice specialties and regional location. We still expect the road to recovery to move at a slow, but steady pace.”
Key February ABI highlights:
◦Regional averages: Midwest (55.3), South (50.1), West (49.1), Northeast (46.4)
◦Sector index breakdown: commercial / industrial (55.0), mixed practice (51.3),
◦multi-family residential (49.7), institutional (48.9)
◦Project inquiries index: 56.4
About the AIA Architecture Billings Index
The Architecture Billings Index (ABI), produced by the AIA Economics & Market Research Group, is a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction spending activity. The diffusion indexes contained in the full report are derived from a monthly “Work-on-the-Boards” survey that is sent to a panel of AIA member-owned firms. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended as compared to the prior month, and the results are then compiled into the ABI. These monthly results are also seasonally adjusted to allow for comparison to prior months. The monthly ABI index scores are centered around 50, with scores above 50 indicating an aggregate increase in billings, and scores below 50 indicating a decline. The regional and sector data are formulated using a three-month moving average. More information on the ABI and the analysis of its relationship to construction activity can be found in the White Paper Architecture Billings as a Leading Indicator of Construction: Analysis of the Relationship Between a Billings Index and Construction Spending on the AIA web site.
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. Members adhere to a code of ethics and professional conduct to ensure the highest standards in professional practice. Embracing their responsibility to serve society, AIA members engage civic and government leaders and the public in helping find needed solutions to pressing issues facing our communities, institutions, nation and world. Visit http://www.aia.org/.
Read more at ConcreteExecutive.com
Caterpillar Outlines Aggressive Investment Plans for Analysts at CONEXPO-CON/AGG Trade Show
Caterpillar Inc. (NYSE: CAT) Chairman and CEO Doug Oberhelman and members of the company’s Executive Office updated analysts today on Caterpillar’s significant long-term growth opportunities and investments being made around the world to position the company to satisfy growing demand from customers. The meeting with analysts and institutional investors took place at the CONEXPO-CON/AGG trade show in Las Vegas, Nevada, the international showcase for the construction industry. At the show, Caterpillar is displaying nearly 40 machines, a wide variety of work tools, technology solutions, engines and components comprising three different exhibits totaling 60,000 square feet.
With worldwide machine demand already near the prior peak less than two years after the bottom of the worst recession in decades, and with more growth expected in the coming years, Caterpillar is focused on ramping up production and adding capacity around the world while maintaining a sharp focus on controlling costs.
“With business continuing to improve around the globe, we’re confident in our ability to deliver our 2012 goals and are focusing the company on our targets for 2015,” said Caterpillar Chairman and CEO Doug Oberhelman.
Caterpillar also outlined its new organizational structure with Group Presidents Rich Lavin and Steve Wunning discussing the growth opportunities and investments in Caterpillar’s machine businesses. Group President Gerard Vittecoq talked to analysts about growth and investment in the company’s power systems business.
“By 2015, we will have made $5 billion in investments to increase production capacity at existing and new Caterpillar facilities to support customers in every region of the world, including plans to nearly triple machine capacity across our operations in Asia,” said Oberhelman. “This is in addition to more than $10 billion in investments announced in 2010 for three significant acquisitions—Electro-Motive Diesel, Inc., Motoren-Werke Mannheim Holding GmbH (MWM) and Bucyrus International, Inc. Together, these moves represent Caterpillar’s commitment to leadership in support of our growing base of customers and to expand our products and services,” Oberhelman added.
At the meeting, Caterpillar’s Group President and CFO Ed Rapp outlined the company’s “portfolio management” approach to targeting investment opportunities.
“We’re focusing our resources on the key industries that offer the best sales and profit growth potential over the long-term and that fit our strategic profile—in other words, great growth opportunities that fit well with the strengths of Caterpillar,” Oberhelman said.
In 2010, Caterpillar updated the strategy and streamlined the organization to better serve customers, stockholders and employees.
“With the opportunities we see around the world, we have a very bright future,” said Oberhelman. “We also have a strong financial position and a strategy that focuses on helping our customers win. Our employees and leaders are moving at full speed and are ready to go to achieve our 2015 targets.”
About Caterpillar:
For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2010 sales and revenues of $42.588 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at: http://www.caterpillar.com/.
Read More at ConcreteExecutive.com
With worldwide machine demand already near the prior peak less than two years after the bottom of the worst recession in decades, and with more growth expected in the coming years, Caterpillar is focused on ramping up production and adding capacity around the world while maintaining a sharp focus on controlling costs.
“With business continuing to improve around the globe, we’re confident in our ability to deliver our 2012 goals and are focusing the company on our targets for 2015,” said Caterpillar Chairman and CEO Doug Oberhelman.
Caterpillar also outlined its new organizational structure with Group Presidents Rich Lavin and Steve Wunning discussing the growth opportunities and investments in Caterpillar’s machine businesses. Group President Gerard Vittecoq talked to analysts about growth and investment in the company’s power systems business.
At the meeting, Caterpillar’s Group President and CFO Ed Rapp outlined the company’s “portfolio management” approach to targeting investment opportunities.
“We’re focusing our resources on the key industries that offer the best sales and profit growth potential over the long-term and that fit our strategic profile—in other words, great growth opportunities that fit well with the strengths of Caterpillar,” Oberhelman said.
In 2010, Caterpillar updated the strategy and streamlined the organization to better serve customers, stockholders and employees.
“With the opportunities we see around the world, we have a very bright future,” said Oberhelman. “We also have a strong financial position and a strategy that focuses on helping our customers win. Our employees and leaders are moving at full speed and are ready to go to achieve our 2015 targets.”
About Caterpillar:
For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2010 sales and revenues of $42.588 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at: http://www.caterpillar.com/.
Read More at ConcreteExecutive.com
Wednesday, March 23, 2011
Navistar Introduces New International WorkStar with Sloped Hood Option, Enhanced Interior Features
At a press event at this week’s CONEXPO-CON/AGG construction industry trade show, Navistar today introduced several new features for its International® WorkStar® line of severe service trucks. Along with an all-new high visibility sloped hood option, the new WorkStar model will also include a completely refined interior with ergonomic enhancements and improved driver comfort features.
“Together with the improved visibility and interior enhancements, the WorkStar provides an added level of comfort and convenience that allows these vocational truck drivers to do their jobs safely and effectively.”
The new sloped hood option on WorkStar provides best-in-class visibility for the driver. In addition, a strong vocational “mega-bracket” design inspired from the International PayStar® 5900 Set-Back Axle (SBA) supports the radiator and front-end. Following are the key product features for the International WorkStar 7600 with high visibility sloped hood option:
Navistar, Inc.’s International® brand commercial trucks rank “Highest in Customer Satisfaction among Vocational Segment Class 8 Trucks and Heavy-Duty Truck Dealer Service”—the only two categories recognizing the Class 8 truck industry this past year—according to the J.D. Power and Associates 2010 Heavy-Duty Truck Customer Satisfaction Study (SM) released last summer. The 2010 Heavy-Duty Truck Customer Satisfaction Study is based on responses from 1,682 primary maintainers of 2009 model-year Class 8 heavy-duty trucks. The study was fielded in February and March 2010. For more information about the study, visit the J.D. Power and Associates press releases at http://businesscenter.jdpower.com/news/pressrelease.aspx?ID=2010102.
“Together with the improved visibility and interior enhancements, the WorkStar provides an added level of comfort and convenience that allows these vocational truck drivers to do their jobs safely and effectively.”
“With the new sloped hood, WorkStar is now available in a comprehensive range of specifications to meet the diverse needs of our vocational truck customers,” said Jim Hebe, Navistar’s senior vice president, North American sales operations. “Together with the improved visibility and interior enhancements, the WorkStar provides an added level of comfort and convenience that allows these vocational truck drivers to do their jobs safely and effectively.”
- 113” BBC for maximum maneuverability on the worksite
- Provides best-in-class visibility for the driver
- Features heavy-duty 150,000-pound tow hooks
- Available in 4×2 and 6×4 axle configurations
Will also be available for REPTO and transmission mounted PTO applications
In addition to the high visibility sloped hood option, the International WorkStar also features a completely redesigned and refined interior designed with the construction customer in mind. The new WorkStar interior features:
- Easy-to-read ivory gauges or chrome bezel black gauges on instrument panel
- Premium rosewood trim on the dashboard and instrument panel
- An ergonomic center panel for easy access to auxiliary truck and body control switches
- Hands-on steering wheel controls for enhanced driver safety
- Easy-to-clean vocational floor mats and vinyl interior panels throughout the cab to improve durability
- A new back-wall pocket provides additional storage for the driver
“From our no-hassle MaxxForce Advanced EGR emissions technology and new products like the TerraStar™ and TerraStar 4×4 to the integration of Continental Mixers, we continue to focus on meeting the needs of construction customers,” Hebe added. “We are committed to delivering innovative, best-in-class products that move the construction market forward.”
Navistar, Inc.’s International® brand commercial trucks rank “Highest in Customer Satisfaction among Vocational Segment Class 8 Trucks and Heavy-Duty Truck Dealer Service”—the only two categories recognizing the Class 8 truck industry this past year—according to the J.D. Power and Associates 2010 Heavy-Duty Truck Customer Satisfaction Study (SM) released last summer. The 2010 Heavy-Duty Truck Customer Satisfaction Study is based on responses from 1,682 primary maintainers of 2009 model-year Class 8 heavy-duty trucks. The study was fielded in February and March 2010. For more information about the study, visit the J.D. Power and Associates press releases at http://businesscenter.jdpower.com/news/pressrelease.aspx?ID=2010102.
John Deere Introduces New Dump Truck
John Deere, a leading machinery manufacturer introduced a new articulated dump truck at the 2011 ConExpo-Con/Agg Show in Las Vegas, NV.
The company designed the 460E with input from customers. Many of those customers requested the new ADT, as the line is known, feature easy-to-use controls and enhanced productivity.
“Customers asked for an ADT with a larger capacity for big hauling jobs,” according to Mark Oliver, ADT product marketing manager for John Deere Construction & Forestry. “So we worked with them to develop a truck that was purpose-built to reliably handle a 46-ton payload. This joint effort will help big earthmovers move more material faster and more efficiently.”
A 460E engine is a 13.5 liter motor. It is certified to comply with emissions standards outlined under U.S. Interim Tier 4 criteria, akin to additional John Deere farm equipment. For the sake of the driver’s knowledge, the ADT also includes a scale.
“An on-board scale lets the operators of both the ADT and loading tool know when the dump body is loaded to capacity by the use of an external light bar that is visible to both operators,” the product marketing manager said. “This system lets them know the instant they have a full load, eliminating guesswork and saving time.”
Read More at ConcreteExecutive.com
The company designed the 460E with input from customers. Many of those customers requested the new ADT, as the line is known, feature easy-to-use controls and enhanced productivity.
“Customers asked for an ADT with a larger capacity for big hauling jobs,” according to Mark Oliver, ADT product marketing manager for John Deere Construction & Forestry. “So we worked with them to develop a truck that was purpose-built to reliably handle a 46-ton payload. This joint effort will help big earthmovers move more material faster and more efficiently.”
A 460E engine is a 13.5 liter motor. It is certified to comply with emissions standards outlined under U.S. Interim Tier 4 criteria, akin to additional John Deere farm equipment. For the sake of the driver’s knowledge, the ADT also includes a scale.
Read More at ConcreteExecutive.com
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