Industry News

Contractors Skeptical About Recovery

Nearly 90 percent of contractors say there will be no recovery in 2010 as part of a new national construction hiring and business outlook forecast released Jan. 21 by the Associated General Contractors of America (AGC), Arlington, Va. As a result, many  contractors doubt that they’ll be able to hire new staff this year, the report says.

“Unfortunately for the industry and for our economy, this year's construction outlook is far from positive,” says Stephen E. Sandherr, CEO of the AGC. “As long as the construction industry remains mired in its own depression, broader economic and employment growth will continue to lag.”

The AGC says the outlook, which is based in part on survey responses from nearly 700 construction firms submitted in late December 2009 and early January 2010, shows that privately funded construction activity is likely to decline even further this year. Indeed, 64 percent of responding contractors expect demand for new manufacturing facilities will decline, while 71 percent expect demand for new retail, warehouse and lodging facilities will drop.

As a result, 81 percent of firms report already having to cut profit margins in their bids just to stay competitive, and another 10 percent say they are now submitting bids so low they will actually lose money on the projects.

Sandherr adds that many construction firms are uncertain that they'll be able to add staff following a year of record layoffs. In 2009, 73 percent of firms said they laid off employees, averaging 39 layoffs per firm. For 2010, 60 percent of firms say they are unsure whether they will be able to add new staff or be forced to make further cuts.

One of the relatively few bright spots for the industry was the federal stimulus. Thirty-one percent of contractors say they were awarded stimulus-funded projects.

California Introduces Statewide Green Building Standards Code
Gov. Arnold Schwarzenegger has announced that the California Building Standards Commission (CBSC) has unanimously adopted the mandatory Green Building Standards Code (CalGreen) requiring all new buildings in the state to be more energy efficient and environmentally responsible, according to a press release from the CBSC.
The CBSC says the new code is the first of its kind in the United States.

Taking effect on Jan. 1, 2011, these comprehensive regulations are designed to achieve major reductions in greenhouse gas emissions, energy consumption and water use to create what the agency calls “A Greener California.”

“Today’s action lays the foundation for the move to greener buildings constructed with environmentally advanced building practices that decrease waste, reduce energy use and conserve resources,” says Schwarzenegger.

CalGreen will require that every new building constructed in the state reduce water consumption by 20 percent, divert 50 percent of construction debris from landfills and install low pollutant-emitting materials. It also requires separate water meters for nonresidential buildings’ indoor and outdoor water use, with a requirement for moisture-sensing irrigation systems for larger landscape projects and mandatory inspections of energy systems (e.g., heat furnace and air conditioner) for nonresidential buildings of more than 10,000 square feet, the CSBC says.

The California Air Resources Board estimates that the mandatory provisions will reduce greenhouse gas emissions (CO2 equivalent) by the equivalent of 3 million metric tons in 2020.

More information is available at www.bsc.ca.gov/CalGreen.

Waste Management Acquires C&D Recycling Company
Waste Management, Houston, has acquired Milwaukee-based City Wide Recycling LLC in a move designed to expand the recycling services it provides to construction and demolition contractors.

City Wide Recycling developed what it calls southeastern Wisconsin's largest and only automated processing facility for recyclable debris collected at construction and demolition job sites, says John Kelly, Midwest group recycling director for Waste Management.

The plant, which began operation in late 2006, takes in mixed loads of scrap materials from job sites, sorts the materials by type and prepares them for shipment to manufacturers that can use the reclaimed plaster, wood, masonry, plumbing, wiring, soil, rock, cardboard, plastics and other materials.

“Wisconsin contractors are committed to recycling, and Waste Management is committed to helping our state build green,”Kelly says. “Promoting building site recycling is a natural extension of the services we provide to other transporters and our own customers.”

City Wide founders John Hansen and Eric Konik will become consultants to Waste Management, helping the company grow its construction-sector recycling services around the country, Kelly says.

“We're working to increase recycling by continually developing new opportunities that we can offer our customers,” Kelly says, pointing to initiatives such as Waste Management’s recycling of mixed paper from residences, investments in electronics andfluorescent lamp recycling and new technologies that sort mixed recycling loads.
In 2008, Waste Management opened a $23 million plant in Germantown, Wis., to sort mixed loads of recyclable containers, paper and cardboard collected by Waste Management and other haulers from homes and businesses in eastern Wisconsin. The new technology is designed to boost recycling 20 percent or more.

Florida Seeks 75 Percent Recycling Rate by 2020

The Florida Department of Environmental Protection (DEP) has released a report with recommendations to achieve a new statewide recycling goal of 75 percent within 10 years.

The Energy, Climate Change and Economic Security Act of 2008 established this new goal and directed the state’s DEP to submit a comprehensive program to achieve it by Jan. 1, 2010.

“The 75 percent recycling goal is the highest of any state,” says DEP Secretary Michael Sole. “It will be a challenge to achieve, but it can be reached through partnerships among state government, local governments, trade organizations, schools, businesses and industries as well as the people of Florida.”

The information and recommendations in the report were developed based on research and contributions of more than 500 stakeholders who participated in four public workshops. A wider range of ideas were submitted through e-mails and the DEP’s Web forum, which the agency says received nearly 12,000 visits.

Currently, Florida reportedly collects for recycling 28 percent of its solid waste.

The report outlines initial steps low in financial impact but high in recycling value in order to make the report practical in today’s economic climate. Some of the recommendations include:

Require state agencies to meet  the 75 percent goal;

Require that all unlined con struction and demolition debris  disposal facilities be  modified to incorporate a Materials Recovery Facility;

Apply the new recycling goal to counties with a population greater than 100,000 and to cities with a population greater  than 50,000;

Require commercial recycling  in large counties and cities to  include multi-family residen tial units such as apartments,  condominiums, institutional  facilities, schools and hospitals.

The full report is available at www.dep.state.fl.us/waste/recyclinggoal75.