Industry News

// Company News

New Mixed C&D Facility Opens in Cleveland

Cleveland area demolition firm Baumann Enterprises has opened a mixed C&D materials recycling plant on 25 acres of land in Garfield Heights, Ohio, a municipality adjacent to Cleveland.

Throughout the summer of 2011 the Baumann Enterprises location has been accepting loads of C&D debris and scrap generated internally from the company's demolition jobs, including demo work being performed to make way for a new downtown casino.

Company president Bill Baumann says the company has opened the new plant as a way to minimize its hauling costs and to respond to its customers' greater demands for materials recycling.

"The nice thing about us is that as much as it would be nice to have other outside business coming in, we are pretty much self sufficient with our materials from our jobs. The nice thing about also being the demolition contractor is that I can feed my facility with our material."

As the facility ramps up, the company is likely to solicit materials from a wider range of sources, says Baumann.

The plant features a truck scale and several acres of outdoor storage and sorting space, where metals and aggregates can be separated from wood and lighter materials to be directed toward an automated sorting line that is under roof.

The sorting line, supplied by Powerscreen and Terex dealer Aggcorp, Westerville, Ohio, includes fingerscreen and trommel screen technology followed by several sorting stations where employees pick out recyclable metals and remove unwelcome contaminants from the clean wood fraction.

"We are running about 1,200 to 1,300 yards of mixed material a day through the plant with various products being involved with wood, brick, steel, nonferrous etcetera," says Sean Nowack, plant supervisor, Baumann's Recycling Center.

The variety of end products that will be created by Baumann's Recycling Center includes wood for mulch and fuel, crushed concrete and red brick, screened soils and fill materials, recyclable cardboard and mixed plastics.

The company also plans to open a small scrap yard on the property to purchase aluminum, brass and other types of scrap from contractors in the area.

A video report from Baumann's Recycling Center is available at www.cdrecycler.com/baumann-enterprises-video.aspx

A photo gallery of Baumann's Recycling Center is available at www.cdrecycler.com/baumann-enterprises-photo-gallery.aspx

 

// Asphalt Recycling

Illinois Governor Signs Law Allowing Recycled Roofing Shingles in Asphalt

Illinois Governor Pat Quinn has signed legislation allowing the Illinois Department of Transportation (IDOT) to start using asphalt made from recycled roofing shingles.

The new law also allows businesses to increase the amount of shingles used in asphalt production and requires IDOT to maximize the use of recycled materials in construction projects. The governor's office estimates the state will save more than $8 million annually through the new legislation.

House Bill 1326, sponsored by Rep. Daniel V. Beiser (D-Alton) and Sen. Dave Koehler (D-Peoria), allows IDOT to use asphalt made with materials from recycling facilities that process shingles, following regulations established by the Illinois Environmental Protection Agency. The law also directs IDOT to use recycled materials in its projects as much as possible. The agency must report the results of those efforts to the Illinois House and Senate Transportation Committees each year.

The new law also allows businesses that specialize in waste collection from construction and demolition sites to double the amount of shingles they can provide to recycling facilities for use later in the production of asphalt.

 

// Company News

Peña's Disposal Increases C&D Recycling Rate in California County

Peña's Disposal Service, based in Cutler, Calif., has increased the recycling rate of construction and demolition material for Tulare County, the company reports. When Peña's was awarded the contract to handle construction and demolition recycling for Tulare County, the recycling rate was 56 percent. Within the first three months of Peña's new contract, the rate increased to 82 percent, according to the company.

Anne Magaña, administrator of California's Consolidated Waste Management Authority (CWMA) attributes the significant increase in recycling to Peña's Disposal's aggressive approach to recycling.

CWMA is the agency responsible for providing required recycling reports to CalRecycle. This kind of improvement in recycling is noticed in Sacramento and "really helps us get closer to the state's overall rate for diverting waste from the waste stream and into recycling," Magaña says.

"We have been very impressed with what Peña's has been able to do," she adds. "We are faced with an overall state goal of 75 percent diversion rate by 2020, and what Peña's is doing with C&D, and their 20-year plan for expansion, will really help. Their plan puts it on the table as a challenge to others in the industry to plan ahead and be more aggressive."

The contract has also allowed Peña's Disposal to add 20 new jobs, according to its vice president Art Peña.

 

// Company News

Waste Management Acquires Oakleaf

Waste Management Inc. (WM), Houston, has closed on the acquisition of Oakleaf Global Holdings, Hartford, Conn., and its primary operations for $425 million. WM says the deal will bring together one of the largest networks of directly owned hauling, recycling, diversion and disposal assets with one of the largest managed third-party networks.

Oakleaf has a North American vendor network of 2,500 preferred haulers, and says it is North American's largest outsource firm for hauling, disposal, recycling and waste diversion services.

David Steiner, WMI president and CEO, says, "Acquiring Oakleaf advances our growth and transformation strategies of knowing more about our customers and how best to serve them, extracting more value from the material that we manage, and optimizing our operations. We substantially increase our national accounts customer base and further enhance our ability to provide comprehensive, best-in-class environmental solutions. In addition, Oakleaf's vendor hauler network expands our service footprint to new geographies and enhances customers' one-stop shopping for environmental solutions."

 

// Legal Issues

Nine People Charged in Illegal Asbestos Removal Case

Nine people were charged on Aug. 4, 2011, following a federal investigation into asbestos removal at a Buffalo, N.Y., housing complex slated to be demolished. Among those charged were two building officials for the city of Buffalo and a New York Labor Department inspector, the Associated Press reports.

Two companies contracted to remove asbestos from the site and monitor air sampling at the six-building Kensington Tower site were also charged.

According to the Associated Press, investigators found that workers for Johnson Contracting of WNY Inc. allegedly used a jackhammer to cut holes in the floors and dumped asbestos-containing debris through them with the intention of leaving the material on site while the eight-story buildings were demolished.

According to the report, each building contained an estimated 63,000 square feet of asbestos-containing material.

A second company, JMD Environmental Inc., Grand Island, N.Y., was charged with allegedly failing to conduct proper air sampling and filing false reports certifying that all asbestos had been removed. The two companies are charged with violating the federal Clean Air Act.

Crews are reportedly doing remedial work at the site to contain the material. Officials say the buildings currently do not pose a health threat.

As reported in the Buffalo News, test results from the U.S. Environmental Protection Agency showed no detectable amounts of asbestos or levels so low that they did not pose safety risks.

 

// Company News

Blackthorne Partners Acquires Wisconsin Pallet Firm

The Milwaukee-based private equity firm, Blackthorne Partners LLC, has purchased the assets of JPRS New Way, a Lannon, Wis., company that repairs and resells old pallets. With the acquisition, Blackthorne Partners has formed a new company called Pallet USA.

The private equity firm says it owns approximately 120 pallet companies in Wisconsin.

 

// Legislative Issues

Oregon DEQ Seeks Comments on Proposed Permit Modification for Recycling Facility

The Oregon Department of Environmental Quality (DEQ) is seeking comments from Oregon residents on Core Recycling's request to expand its operations in Portland and add material recovery activities to its business. The change would require a solid waste permit.

Core Recycling has operated a waste-hauling business since 1996. Currently, the company takes all waste directly to permitted solid waste disposal facilities and does not sort or store waste on site.

Under the proposed permit modification, Core Recycling plans to build a 6,000 square-foot pole building to house tipping and sorting operations. According to the DEQ, the facility would accept construction and demolition waste from specific contractors, and will not be open to the general public.

According to the DEQ, this will be the first solid waste permit for the facility, so a compliance history has not yet been established. Core is working with the City of Portland's Bureau of Environmental Services to determine whether a stormwater permit will be needed.

DEQ will schedule a public hearing if one is requested by 10 or more people, or by an authorized person representing an organization of at least 10 people.

DEQ may modify provisions in the proposed permit in response to comments received.

 

// Forecasts & Statistics

Construction Employment Reaches 15-Month High in July

An analysis of federal employment data performed by the Association of General Contractor (AGC) in August shows construction employment inched up by 8,000 jobs to a 15-month high in July but is far below its peak set in early 2006.

The industry unemployment rate fell from 17.3 percent a year earlier to 13.6 percent in July 2011, and the number of unemployed people who previously worked in construction shrank by nearly 400,000, according to Ken Simonson, the association's chief economist. However, Simonson says the July 2011 employment total of 5,532,000 was only 32,000 higher than in July 2010 and was almost 2.2 million or 28 percent below the record level of April 2006.

"It is encouraging that the construction industry has added 54,000 jobs—or 1 percent—since hitting bottom last January," Simonson says. "However, unemployed workers are leaving the industry at seven times the rate they are finding jobs in it, which suggests future expansion will be hard to achieve."

The construction economist mentions employment in heavy and civil engineering construction shrank for the third month in a row, by 400 jobs, although the July 2011 total was 21,000 jobs, or 2.5 percent, higher than a year earlier. Residential building and specialty trade employment dropped a combined 1,600 jobs in July and 11,700 jobs, or 0.6 percent, during the past 12 months. Nonresidential building and specialty trade contractors added a combined 10,200 jobs for the month and 22,400 jobs, or 0.9 percent, over 12 months.

"The shift in employment from heavy projects such as highways, military bases and levees to factories, power projects and hospitals will continue as government spending shrinks and the private sector gradually expands," Simonson predicts. "But overall job creation will remain sluggish at best unless single-family homebuilding also revives."

 

// Forecasts & Statistics

Survey Reveals Increase in Equipment Finance Activity

The equipment finance industry began to regain volume in 2010 following two years of decline, according to the 2011 Survey of Equipment Finance Activity (SEFA) released by the Equipment Leasing and Finance Association (ELFA) www.elfaonline.org, Washington, D.C.

The SEFA reported an overall 3.9 percent increase in volume in 2010. This modest growth follows two years of decline. In 2009, equipment lease and loan origination declined by 30.3 percent, while 2008 saw a more modest decline of 2.2 percent, according to the SEFA results.

The SEFA, which is based on responses from 108 ELFA member companies, covers statistical, financial and operations information for the $521 billion equipment finance industry.

Some key findings for 2010 as reported in the 2011 SEFA include:

• Captive equipment finance organizations saw the strongest increase in new business volume (11.3 percent). Independents saw their volume grow by 5.2 percent, reversing their significant 46.3 percent decrease in volume reported in the 2010 SEFA. Banks saw a slight decline (0.9 percent) in volume.
• From an asset perspective, agriculture, trucks and trailers and medical imaging/electronic devices saw increases in new business volume, while construction, energy and printing saw decreases.
• Pre-tax income and net income regained healthy margins.
• ROA and ROE were up.
• Total headcount decreased moderately, by 3.3 percent.
• Delinquencies and full-year losses (charge-offs) declined, following overall economic trends hinting of economic recovery.

 

// Legislative Issues

Airport Construction Projects Receive Temporary Funding Extension

The U.S. Congress enacted a new temporary extension to the aviation legislation on Aug. 5, helping restart billions of dollars worth of airport construction projects, according to the Association of General Contractors (AGC). The extension expires Sept. 16.

"The extension, however, does little more than put off the disagreements among lawmakers over the broader reauthorization of the FAA (Federal Aviation Administration), which has been stalled over labor issues as well as funding levels and subsidies to rural airports," the AGC states in a news release. The association warns that the FAA may face a similar shutdown threat when the extension expires.

AGC CEO Steve Sandherr and U.S. Transportation Secretary Ray LaHood held a news conference in New York City to get $2.5 billion worth of stalled airport construction projects restarted.

The projects were halted in late July after Congress failed to pass an extension to federal aviation legislation because of a dispute over proposed changes to airline union voting rules and subsidies for air service to rural communities. Without the legislation in place, the FAA was unable to fund billions of dollars worth of airport improvement projects.

AGC chief economist Ken Simonson told members of the media that the construction halt will cost 24,000 construction jobs, and threaten another 11,000 jobs in related construction supply businesses and 35,000 jobs in the broader economy.

AGC says it will continue to work toward passage of a multiyear FAA reauthorization bill.

 

// Green Building

PNC Plans to Build "World's Most Environmentally Friendly Skyscraper"

The PNC Financial Services Group, Pittsburgh, has announced plans to construct what it is calling "the world's most environmentally friendly skyscraper." The Tower at PNC Plaza will be located on the southeast corner of Fifth Ave. and Wood St., the same Pittsburgh intersection where PNC has been headquartered for more than 150 years. Once complete in 2015, the approximately 40 story building will serve as PNC's executive offices.

"The Tower at PNC Plaza is an exclamation point on our investment in downtown Pittsburgh, and it reflects our commitment to community, competitiveness and innovation, as well as the comfort and productivity of our employees," says James E. Rohr, chairman and chief executive officer of PNC. "When the Tower is complete, we will have invested more than $700 million in green buildings at the heart of the city."

At approximately 800,000 square feet, the Tower at PNC Plaza would be PNC's largest building in Pittsburgh. Tentative plans call for approximately 300 underground parking spaces, street level retail and green rooftops. Erecting the planned $400 million tower is expected to create 2,500 construction jobs, with 500 workers at a time on the site during peak periods.

"A headquarters facility is the cornerstone building of any company's portfolio, embodying company values and business ethics. PNC is making a strong statement by building their forthcoming headquarters to Leadership in Energy and Environmental Design standards," says S. Richard Fedrizzi, president, chief executive officer and founding chairman of the United States Green Building Council (USGBC). "This project is just another example of PNC's on-going leadership, setting a green building example for other large corporations through their application of LEED (Leadership in Energy and Environmental Design)."

PNC opened its first green building in 2000. At that time, the 650,000 square-foot PNC Firstside Center, on Pittsburgh's First Avenue, was the largest LEED-certified building in the world. In 2010, PNC opened Three PNC Plaza, on Fifth Ave. in Pittsburgh, one of the largest LEED certified mixed use buildings in the U.S. PNC, recently completed its latest green office building in Washington, D.C. LEED Platinum-certified PNC Place at 800 17th St. sits just blocks from the White House and serves as PNC's regional headquarters in the capital.

The Tower at PNC Plaza will feature a double glass facade to enhance energy efficiency by reducing cooling costs and allowing natural airflow to the building. Using advanced sensors and metering, a state-of-the-art, high efficiency heating and cooling system will deliver conditioned air to specific zones of the building, as needed. The building will be oriented to take advantage of sunlight in workspaces, reducing the need for artificial light during the day. The design team is also currently exploring fuel cells, solar panels, geothermal systems and other alternative power generation sources that will significantly reduce carbon emissions. The building's green rooftops will collect rainwater and channel it for use in other parts of the structure, as well as reduce the heat gain associated with traditional rooftops.

The project is being designed by the Pittsburgh office of Gensler. Pittsburgh-based PJ Dick will serve as construction manager and U.K.-based Buro Happold will be the engineering firm. Paladino & Company of Seattle serves as the green building consultant. Subsidiaries of PNC have acquired six properties, totaling approximately 31,000 square feet, on the site bounded by Fifth Ave., Forbes Ave. and Wood St. PNC will seek to acquire three others totaling approximately 6,000 square feet from the Urban Redevelopment Authority of Pittsburgh. Deconstruction of buildings on the site is expected to begin late in 2011, with construction scheduled to begin in the spring of 2012. PNC says re-usable materials from deconstructed buildings on the site will be donated to Pittsburgh-based non-profit building supply warehouse Construction Junction.

 

// Legislative Issues

Court Dismisses Lawsuit against USGBC

The United States District Court in New York City has dismissed in its entirety a lawsuit brought against the U.S. Green Building Council (USGBC). The lawsuit was filed by Henry Gifford and others. The court dismissed the suit holding that none of the plaintiffs in the action had alleged or could allege any legal interest to be protected by their lawsuit.

The initial suit was submitted to the United States Southern District of New York on May 6, 2011, and oral arguments were heard on July 26, 2011.

According to the USGBC, the Court dismissed the federal false advertising claims "with prejudice," meaning that the Court's dismissal of those claims is final and the plaintiffs are barred from filing a new suit based on those claims.

The ruling by the Court simultaneously dismissed plaintiffs' state law false advertising claims.

In a statement following the court decision, Rick Fedrizzi, president, CEO and founding chair of the USGBC, says, "This successful outcome is a testament to our process and to our commitment to do what is right. Thousands of people around the world use LEED because it's a proven tool for achieving our mission of transforming the built environment. We're grateful that the Court found in our favor so we can give our full attention to the important work before us."

The USGBC is an organization of 16,000 member groups, 79 local affiliates and 168,000 LEED professional credential holders. The group's mission statement is to provide a prosperous and sustainable future through cost-efficient and energy-saving green buildings.

To view the decision, click here (may need to register to view file) http://www.greenrealestatelaw.com/wp-content/uploads/2011/08/Gifford-dismissal-order-081511.pdf

 

// Conferences & Events

CMRA Announces 2012 C&D World Dates

C&D World, an industry conference that includes the Annual Meeting of the Construction Materials Recycling Association (CMRA), will be March 25-27, 2012, at the Nashville Convention Center.

Session topics to be covered will include an economic outlook at infrastructure spending in North America, C&D and plastics recycling and an explanation of changes to the LEED rating system.

The event also will also feature an exhibit hall providing information on products and services available from industry suppliers.

More information on the event as it draws closer will be made available at the CMRA's website at www.cdrecycling.org.

 

// Forecasts & Statistics

Construction Material Costs Outpace Other Producer Prices

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 July 14 by the Associated General Contractors of America (AGC), Washington, D.C. Association officials say the ongoing cost squeeze will put new pressure on construction firms to reduce staff and possibly close.

Ken Simonson, the association's chief economist, says, "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." Worse, prices are rising amid continued layoffs and construction spending levels that hit an 11-year low in May."

The producer price index for all construction materials inched down 0.1 percent in June but increased 8.3 percent over the past 12 months, whereas the index for finished goods fell 0.7 percent for the month (0.4 percent, seasonally adjusted) and climbed 7.0 percent over 12 months. Meanwhile, the price of finished buildings was unchanged in June and rose only 2.0 percent or less over the past year, depending on building type.

Simonson says outsized year-over-year price increases for construction were attributable to the indexes for diesel fuel and metals. The index for diesel rose 1.4 percent in June and 50 percent since June 2010. Among key metals, prices for copper and brass mill shape climbed 0.4 percent and 26 percent, respectively; aluminum mill shapes rose 0.4 percent and 17 percent; and steel mill products dropped 1.7 percent in the latest month but increased 7.0 percent from a year earlier.