May 9, 2013

U.S. construction employment climbs in 152 metro areas, finds AGC

WASHINGTON, D.C.

Construction employment in the United States increased in 152 out of 339 metropolitan areas between March 2012 and March 2013, declined in 126 and was stagnant in 61, according to a new analysis of federal employment data released May 2 by the Associated General Contractors of America. Association officials noted that many metro areas are adding jobs as construction spending increased 4.8 per cent, or $38.9 billion, during the same time frame.

“Today’s figures on employment by metro area and construction spending nationally in March highlight the uneven and fragile recovery that construction is experiencing,” said Ken Simonson, the association’s chief economist. “The totals are up on a year-over-year basis, and should continue to improve during the remainder of 2013, but not every sector or region will do well.”

Pascagoula, Miss. added the highest percentage of new construction jobs (47 per cent, 1,700 jobs). Dallas-Plano-Irving, Texas (12,000 jobs, 11 per cent) added the most jobs.

The largest job losses were in Chicago-Joliet-Naperville, Ill. (-2,700 jobs, -3 per cent). Monroe, Mich. (-19 per cent, -500 jobs) lost the highest percentage. Simonson noted that national construction spending in March 2013 was 4.8 per cent higher than in March 2012, but down 1.7 per cent from a month earlier. Only private residential construction spending grew in both time periods, rising 0.4 per cent for the month and 18 per cent year-over-year. Private nonresidential spending retreated 1.5 per cent from the February level, but increased 2.8 per cent from March 2012.

“For the rest of the year, the best performing categories are likely to be multifamily housing, power and energy, manufacturing, warehouses and private transportation while most public segments will continue to languish,” Simonson added.

“For the year as a whole, I expect both residential and private nonresidential construction spending to top 2012 totals by 10 to 15 per cent, while public construction will slip two to five per cent.”

Home builders struggling to find enough construction workers

The real estate bust drove many workers out of the construction industry. Luring them back, or training new skilled laborers, is no easy task.

By Alana Semuels and Alejandro Lazo, Los Angeles Times

May 8, 2013

The real estate bust idled hundreds of thousands of construction workers. Now, with housing on the mend, builders are hiring again.

Trouble is, many workers aren’t coming back.

Years of sporadic employment drove many from the industry. Incomes aren’t what they used to be. Laid-off workers remember the sting of lost livelihoods; some have had enough of boom and bust.

Former house painter Alan Schaffer has hung up his paintbrush to pursue a degree in business administration. The Riverside County resident says he’s looking for a livelihood that’s stable.

"I love construction, I love building," said Schaffer, 45. "But I can’t have a job that pays me $50,000 one year and zip the next. I need to be more financially secure."

With home prices surging in Southern California and across the country, builders are again seeing big opportunities. Housing starts and new-home sales are up. But even as California unemployment remains stuck above 9% — among the highest in the nation — construction companies say they’re struggling to find enough qualified workers to keep up with demand for new homes.

"We’re starting to see spot shortages of labor," said John Nunan, president of Unger Construction, a commercial building contractor that does work in Northern California.

Many experienced union workers retired during the slowdown, he said. Others found new careers. Now many contractors, especially in the Bay Area, where construction is booming, can’t find all the workers they need. Nunan said the plumbing contractor he’s working with in a job in Sonoma, for example, is having a hard time hiring plumbers.

Part of the problem is pay. Workers’ earnings in the construction industry fell more sharply — and are now recovering more slowly — than those in many other industries. Hourly pay for construction workers, adjusted for inflation, was $11.22 in 2012, down 3.1% from 2009.

Normally, worker shortages push up wages. But builders say they can’t match what they paid before the recession. Costs for building materials are rising. So are land prices in many areas.

Many laborers are grateful just to be working again. Still, hard hats such as Danny Fregoso, a supervisor at Joseph Holt Plastering Inc. of Corona, can’t help but miss the fat paychecks that accompanied the housing bubble.

During the best of times, Fregoso said he made about $26 an hour, while entry-level workers were making about $17 or $18. These days he’s earning about $16 an hour.

"We used to make a lot more money," said Fregoso, working recently at the six-story Jia Apartments project in Los Angeles’ Chinatown. "We all took pay cuts, then a lot of them left and found other jobs better than this one."

Although housing is surging in most Western states, construction employment is still well off its peak.

In California, construction employment plummeted 42% to 544,700 workers in September 2010 from a peak of 945,100 in February 2006. The industry has since rebounded to 620,400 workers, up 14% from its bottom.

It’s much the same in Nevada and Arizona, where construction employment fell by more than half from the peak. Construction sites are stirring again, but workers aren’t rushing back.

Stagnant wages aren’t helping lure workers to job sites in Arizona’s brutal desert heat, said Brett Jones, vice president of operations at the Arizona Construction Assn. Both young and experienced workers are staying away, he said.

Arizona’s tough new immigration laws, passed in 2010, aren’t helping matters either, advocates contend. The U.S. Supreme Court later found parts of that legislation unconstitutional. Still, thousands of Latinos have left the state.

Meanwhile, the flow of migrants north from Mexico and Central America has slowed substantially, in part because of tougher enforcement along the U.S.-Mexico border.

The U.S. construction industry depends heavily on Latino labor. At the height of the boom, Latinos made up one-quarter of the U.S. construction labor force; most of them were foreign-born, according to the Pew Hispanic Center in Washington.

"The workforce has gone somewhere else," said Richard Usher, who runs an insurance company for construction firms and is also co-founder of Arizona Employers for Immigration Reform. "They had to feed their families."

Some older workers have left the industry as well.

When the housing market crashed, Timothy Wagner, a New Jersey painting contractor with two decades of experience, called it quits. He had grown weary of putting his body through all the bending and climbing that painting entailed. To put two daughters through college, he took a six-week truck-driving course, and now he pilots a big-rig.

"It’s so much nicer to know that I’m getting paid every week," said Wagner, 43. "There were so many times I was late on bills because I was waiting to get paid."

Construction has always been a cyclical business. In past recessions, skilled tradesman could hang on for a year or two until work started up again. Often slowdowns were regional, meaning workers could move to new cities. But the most recent housing bust was so severe, long and widespread that the construction labor market suffered unusual damage.

"The problem, frankly, was those skilled workers — and that whole labor pool — was not able to remain unemployed for five years," said Mike Winn, chief executive of the California Builders Assn.

The bust has also left behind a perception of construction as an inherently unstable line of work, industry representatives said.

"There’s been pretty consistent news coverage about the fact that there are no jobs in construction," said Brian Turmail, a spokesman for the Associated General Contractors of America. "More broadly, we have a message that says: ‘If you want to be successful, you have to go to college.’"

Turmail and his association want to see a pipeline for training skilled construction workers, with schools like those for other skilled trades. Some states, including Alabama, Georgia and Missouri, have recently heeded this call and founded programs to encourage workers to go into construction.

Dean Word, a Texas construction contractor, says many of his workers are lured away by higher wages in the fast-growing energy sector. Many oil companies pay $2 to $3 an hour more than what construction employers pay.

"The oil field is paying a premium for any labor that will pass pre-employment physicals — it’s a pretty good wage for people that meet their requirements," Word said. "That’s tough for us to compete against."

May 3, 2013

Construction employment in San Antonio rose 5 percent in March

General contractors in San Antonio added 1,900 employees to their payrolls between March 2012 and March 2013, according to Arlington, Va.-based Associated General Contractors of America (AGC).

The San Antonio/New Braunfels metropolitan region had 40,200 construction employees last March. A year later, that number had risen 5 percent to 42,100 workers.

That’s the same percentage by which employment figures went up in February as well.

In February 2012, the greater San Antonio construction industry had 40,000 workers. By February 2013, that number had risen 5 percent to 41,900 workers.

AGC’s breakdown for the Texas metros shows that all but two cities saw employment numbers rise between March 2012 and 2013. Employment numbers decreased 1 percent in the Beaumont/Port Arthur area. Meanwhile, employment numbers were unchanged in the Sherman/Denison area.

Corpus Christi added the highest percentage of new construction jobs at 18 percent.

The Dallas/Plano/Irving metro added the highest number of jobs — 12,000 between March 2012 and 2013.

Construction Employment Increased Annually In 152 Metro Areas

Construction employment levels are reported below by the Associated General Contractors of America:

Construction employment increased in 152 out of 339 metropolitan areas between March 2012 and March 2013, declined in 126 and was stagnant in 61, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials noted that many metro areas are adding jobs as construction spending increased 4.8 percent, or $38.9 billion, during the same time frame.

“Today’s figures on employment by metro area and construction spending nationally in March highlight the uneven and fragile recovery that construction is experiencing,” said Ken Simonson, the association’s chief economist. “The totals are up on a year-over-year basis, and should continue to improve during the remainder of 2013, but not every sector or region will do well.”

Pascagoula, Miss. added the highest percentage of new construction jobs (47 percent, 1,700 jobs) followed by Fargo, N.D. (21 percent, 1,300 jobs); Merced, Calif. (19 percent, 300 jobs); Anchorage, Alaska (18 percent, 1,500 jobs); Corpus Christi, Texas (18 percent, 4,000 jobs) and Salinas, Calif. (18 percent, 700 jobs). Dallas-Plano-Irving, Texas (12,000 jobs, 11 percent) added the most jobs. Other areas adding a large number of jobs included Houston-Sugar Land-Baytown, Texas (8,500 jobs, 5 percent); Baltimore-Towson, Md. (7,700 jobs, 12 percent) and Los Angeles-Long Beach-Glendale, Calif. (7,500 jobs, 7 percent).

The largest job losses were in Chicago-Joliet-Naperville, Ill. (-2,700 jobs, -3 percent) and Northern Virginia (-2,700 jobs, -4 percent); followed by Cincinnati-Middletown, Ohio-Ky.-Ind. (-2,600 jobs, -7 percent); Detroit-Livonia-Dearborn, Mich. (-2,300 jobs, -14 percent) and Raleigh-Cary, N.C. (-2,200 jobs, -8 percent). Monroe, Mich. (-19 percent, -500 jobs) lost the highest percentage. Other areas experiencing large percentage declines in construction employment included Rockford, Ill. (-18 percent, -700 jobs); Bellingham, Wash. (-15 percent, -1,000 jobs) and Pocatello, Idaho (-15 percent, -200 jobs).

Simonson noted that construction spending nationally in March was 4.8 percent higher than in March 2012, but down 1.7 percent from a month earlier, according to new Census Bureau data. Only private residential construction spending grew in both time periods, rising 0.4 percent for the month and 18 percent year-over-year. Private nonresidential spending retreated 1.5 percent from the February level, but increased 2.8 percent from March 2012. Public construction activity dropped 4.1 percent and 5.4 percent, respectively.

“For the rest of the year, the best performing categories are likely to be multifamily housing, power and energy, manufacturing, warehouses and private transportation while most public segments will continue to languish,” Simonson added. “For the year as a whole, I expect both residential and private nonresidential construction spending to top 2012 totals by 10 to 15 percent, while public construction will slip 2 to 5 percent.”

Construction awaits an employment boost

Construction employment declined in three of the state’s four major metropolitan areas over the year ending in March, but a spate of recent project announcements is expected to turn those numbers around.

"The numbers basically seem like the industry is responding in fits and spikes to the recovery," said Scott Norvell, executive director of Master Builders of Iowa, which represents the state’s construction industry.

Construction employment in Greater Des Moines dropped 2 percent over the year ending in March, to 12,100 from 12,300. The largest decline was in the Quad Cities, which lost 700 jobs over the period. The only gain was in the Council Bluffs and Omaha area, where 1,600 jobs were added.

Norvell said the start of construction of a fertilizer plant in southeast Iowa combined with Principal Financial Group Inc.’s renovation and the building of a $300 million Facebook Inc. data center in Altoona will cause a spike in construction employment.

Two of the projects alone are estimated to create 4,500 jobs. The nitrogen fertilizer manufacturing plant near Wever would need 2,500 construction workers and the Facebook project would require 2,000.

"The real question is whether this is just another spike or is it what you can look at as a longer-term recovery," Norvell said. "We think the jury is still out on that."

Still, efforts by the Iowa Economic Development Authority to bring new business to the state should pay off in commercial construction, which will lead to gains in home building and the overall economy, Norvell said.

One drag on construction employment will be a lack of skilled workers, many of whom left the industry during the recession and have not returned. The recession interrupted training sessions that were underway. In addition, the industry has an aging workforce.

April 14, 2013

Report: Pascagoula has highest construction job gain in United States
Read more here: http://www.sunherald.com/2013/04/09/4581256/report-pascagoula-has-highest.html#storylink=cpy

Pascagoula tops the list of metropolitan areas where construction employment increased between February 2012 and February 2013, according to a new analysis of federal employment data released Tuesday by the Associated General Contractors of America.

Pascaguola added the highest percentage of new construction jobs with 51 percent or 1,800 jobs, according to the data.

Construction employment increased in 158 out of 339 metropolitan areas during that time frame, declined in 132 and was stagnant in 49.

Pascagoula is followed by El Centro, Calif. (23 percent, 300 jobs); Anchorage, Alaska (22 percent, 1,800 jobs), Fargo, N.D. (20 percent, 1,200 jobs) and Merced, Calif. (20 percent, 300 jobs).

Houston-Sugar Land-Baytown, Texas (13,200 jobs, 8 percent) added the most jobs.

Other areas adding a large number of jobs included Dallas-Plano-Irving, Texas (10,700 jobs, 10 percent); Los Angeles-Long Beach-Glendale, Calif. (8,500 jobs, 8 percent) and Fort Worth-Arlington, Texas (7,200 jobs, 12 percent).

Association officials noted that the rebound in construction employment in many parts of the country is taking place despite a 17 percent decline in public sector construction spending during the past four years.

Flagler ranked No. 20 in nation for construction job growth

Flagler County last month had the second-best growth in construction employment, percentage-wise, in Florida and tied with three other metro areas for the nation’s 20th best growth, according to a new national report.

In February, an estimated 900 workers were employed in construction-related jobs in the "Palm Coast metro area" — i.e., all of Flagler County — for a year-over-year net gain of 100 jobs, according to data compiled by the state Department of Economic Opportunity.

Flagler’s 13 percent net gain was just barely beat out by the Fort Lauderdale-Pompano Beach-Deerfield Beach metropolitan area, which recorded a 14 percent increase in February for a No. 17 national ranking, according to a report Tuesday from the Associated General Contractors of America.

Volusia County, despite its year-over-year net gain of 300 construction jobs in February, tied with 17 other U.S. metro areas for the nation’s 98th best growth (seventh best in Florida) because its percentage gain was only 4 percent.

Debi Peterson, executive officer for the Flagler Home Builders Association, said she was pleased Flagler County ranked so high in the Association General Contractors’ list of the nation’s fastest-growing metro areas for construction employment, but said she takes such news with a grain of salt because of the county’s relatively small population.

Flagler has 96,000 residents compared with 497,000 in Volusia, according to the state Department of Economic Opportunity.

"Whenever anything happens (in Flagler), it’s a bigger deal numbers-wise than in Volusia," Peterson said.

She added, however, that several area builders have been reporting an increase in work in recent months.

In the first three months of the year, 89 building permits were issued in Flagler for new homes, up from 50 in the first quarter last year, said Jason DeLorenzo, director of government affairs for the Flagler Home Builders Association.

"It’s looking pretty solid," he said of new home construction activity locally.

Jim Landon, Palm Coast city manager, said his city last week alone received building permit applications for 12 new homes from area builders, matching the total number the city issued the entire month of April last year.

"Our whole effort here in Palm Coast has been (growing) one job at a time," Landon said.

Lori McMullin, a spokeswoman for the Center for Business Excellence, the workforce development board for Flagler and Volusia counties, said construction employment was up for both counties in January as well, with Volusia having a year-over-year net gain of 400 jobs and Flagler a net gain of 100.

"In both counties, we’re starting to see (construction employment) on the rise," McMullin said. "It’s not a drastic increase, but it is an industry to watch."

Read more here: http://www.sunherald.com/2013/04/09/4581256/report-pascagoula-has-highest.html#storylink=cpy

Construction Employment Reaches 3 Year High

Construction industry employment climbed for the tenth consecutive month in March, as the sector added 18,000 jobs and surpassed 5.8 million employees for the first time since September 2009, according to an analysis of new government data by the Associated General Contractors of America. Association officials cautioned that the industry may soon experience both layoffs for some skilled trades and shortages of others, unless policy makers boost infrastructure investment and allow importation of needed workers.

Marine Wing Support Squadron 171 Heavy Equipment Operators

Marine Wing Support Squadron 171 Heavy Equipment Operators

Heavy equipment operators from capitalized on the opportunity to practice using their heavy equipment at the Haramura training area near Hiroshima during Exercise Thunder Horse, March 17-22, 2013.

MARINE CORPS AIR STATION IWAKUNI, Japan -

The Marines practiced digging 14-foot trenches and individual fighting positions in an open field near the main campsite.

“The techniques from the training weren’t just meant for practice,” said Staff Sgt. Jose Camberos, MWSS-171 heavy equipment operations chief. “It gives the Marines an understanding of how their equipment works and the ways to move dirt. When the Marines leave the schoolhouse, they don’t get the opportunity to dig anti-tank ditches and fighting positions.”

Along with combat-oriented digging, Marines earned experience assisting others digging trenches around tents with backhoes instead of using entrenchment tools.

“Digging the trenches helped me to get a better feel for the backhoe,” said Lance Cpl. Austin Blodgett, MWSS-171 heavy equipment operator. “It added valuable stick time, which is when we get behind the controls and earn time practicing.”

With extended periods of rain throughout the training, mud and clay made operations more difficult for the Marines. It escalated to the point where even vehicles with all terrain tracks were getting stuck.

“Earth-moving is very specific when it comes to the material,” said
Camberos. “If the material is too dry, it will crumble away. If it’s too wet, vehicles tend to get stuck. We had the dozer get stuck, and that rarely happens.”

Aside from moving dirt and mud, Camberos also explained what his concept of the training was truly about.

“What I mainly look for when I train them in earth moving is the Marines understanding what they’re doing and not just moving dirt,” said Camberos. “If Marines don’t know the correct process for digging a fighting position, it would become a counterproductive process.”

With the Haramura training ground providing conditions for valuable teaching periods, the Marines leave not as experts, but more experienced in their profession.

March 26, 2013

Construction Employment Expands in Two-Thirds of States in January

Construction employment expanded in two-thirds of all states in January as the industry showed signs of emerging from a six-year slump, according to an analysis by the Associated General Contractors of America of Labor Department data. Association officials cautioned however that the industry’s recovery remains fragile and that current and looming federal budget cuts threaten to drag down construction employment in numerous states.

“These results show that contractors are finding work in more parts of the country than they have for many months,” said Ken Simonson, the association’s chief economist.

From January 2012 to January 2013, 24 states and the District of Columbia added construction jobs, 25 shed workers and one – Wisconsin – had no change. D.C. jumped to the top ranking for percentage of new construction jobs (9.4 percent, 1,200 jobs); followed by North Dakota (9.0 percent, 2,500 jobs); Hawaii (8.0 percent, 2,300 jobs); Alaska (7.2 percent, 1,200 jobs) and Washington (6.0 percent, 8,200 jobs).

Texas (28,500 jobs, 5.0 percent) added the most new construction jobs over the past 12 months, followed by California (17,600 jobs, 3.0 percent) and Washington.

Among states losing construction jobs during the past year, Arkansas lost the highest percentage (-10.5 percent, -5,100 jobs), followed by Rhode Island (-8.0 percent, -1,300 jobs); Montana (-7.2 percent, -1,700 jobs) and South Dakota (-6.4 percent, -1,400 jobs). Illinois lost the most jobs (-9,800 jobs, -5.0 percent), followed by Virginia (-7,500 jobs, -4.2 percent); Ohio (-5,200 jobs, -2.8 percent) and Arkansas.

Simonson noted that 34 states and Washington D.C. added construction jobs between December and January, while employment slipped in 14 states and held steady in two states. Wyoming had the largest percentage increase (4.6 percent, 1,000 jobs); followed by New York (4.2 percent, 13,000 jobs). New York added the largest number of jobs, by far—probably reflecting recovery work from Hurricane Sandy.

Alaska and South Dakota had no change in construction employment over the month, while 14 states lost jobs, with Arkansas having the steepest percentage drop (-5.0 percent, -2,300 jobs); followed by Kansas (-4.0 percent, -2,200 jobs). Arkansas lost the largest number of jobs for the month; followed by Kansas and Pennsylvania (-2,200 jobs, -1.0 percent).

“Construction spending has been rising for two full years but contractors have been cautious about adding workers until they knew the upturn would last,” Simonson said. “In 2013, both residential and private nonresidential construction should rise enough to offset a further slowdown in public work, and contractors will be looking for more workers.”

Association officials said the cuts in federal funding for construction triggered both by the sequestration that took effect earlier this month and by spending bills now advancing in Congress would fall hardest on construction employers in states that have a large federal government presence.

Planning, teamwork corrects heavy equipment spill

Rachel Dove-Baldwin

Staff Writer

22 MINE ROAD — A piece of heavy machinery owned by Coal-Mac came off of a flat-bed transport truck turning onto 22 Mine Road from U.S. 119 and ended up on its side, where it remained for two days until a plan was implemented to place it right side up.

According to information provided by Mingo County Emergency Services Director Jerrod Fletcher, the accident occurred at approximately 10 a.m. on Friday and was cleaned up Sunday afternoon around 4 p.m. The Caterpillar 993K front-end loader, weighing almost 295,000 lbs., suffered cosmetic damage after coming off the side of the flat bed as the truck turned onto 22 Mine Road. The driver for J.P. Technical Services that was transporting the machinery to the mine site relayed that it felt like an earthquake had occurred when the in loader slammed onto the pavement and said it sounded like a sonic boom. No one was injured in the mishap.

Four large dozers and two cranes had to be brought to the location to help put the 993K upright. One lane of U.S. 119 was blocked for a period of time while the pieces of large machinery attempted the operation. Cables had to be hooked to the in loader from various directions to pull it from its side and place it back on its wheels.

Fletcher asked to say a special thank you to Chris Sykes and Jeremy Blankenship from Coal-Mac, along with everyone else at the scene, for all the assistance man power and equipment they supplied.

“It took some planning, quite a few pieces of heavy equipment and teamwork to get the job done, but we were successful,” commented Fletcher.

CA Board Seeks 8.6 Billion High Speed Rail Bonds

The project eventually is supposed to link Northern and Southern California with trains traveling up to 220 mph.

THE AP REPORTS TODAY: The California High-Speed Rail Authority voted Monday to issue nearly $8.6 billion in taxpayer-approved bonds to build the nation’s first bullet train as the state rushes to begin construction in July.

Officials are now on track to sell $3.7 billion of the bonds. That includes $2.6 billion for high speed rail and another $1.1 billion for improving existing commuter rail systems in Northern and Southern California.

Lawmakers appropriated the $3.7 billion last year, but the Legislature would have to act again to appropriate the remainder of the $8.6 billion before the entire amount can be issued.

The six-member board authorized selling the bonds on a 5-0 vote, without debate and with one member absent. Timing of the sale will now be set by the governor, attorney general and state treasurer, though the first opportunity to sell the bonds will be this fall, said Tom Dresslar, spokesman for Treasurer Bill Lockyer.

“It’s another step towards the process of breaking ground on the nation’s first high speed rail system in California this summer,” authority Chairman Dan Richard said after the vote.

The project still must withstand lawsuits that have court hearings in coming months. They include a hearing April 19 over the project’s environmental impacts, while a May 31 hearing will consider whether the funds meet the requirements set by voters when they approved the high speed rail program in 2008.

Adverse rulings in those lawsuits could stall the bond money, though Richard said groundbreaking can proceed using $3.

3 billion in federal matching funds.

The first full segment of the $68 billion rail line will run from Madera to Bakersfield. The project eventually is supposed to link Northern and Southern California with trains traveling up to 220 mph.

Contractors have submitted bids to design and build the first $1.8 billion, 30-mile stretch of track. The bids from five international design teams will be opened later this spring, Richard said. The authority also is in the process of negotiating to buy land for the project’s right of way.

“Everything about this project is ambitious,” Richard said, but he predicted the authority will meet its construction timetable.

Interest payments on the entire amount would cost the state an estimated $700 million a year for 35 years, but at least the $175 million in annual debt payments on the initial bonds would come from fees paid by commercial truckers, not from the state’s general fund, Richard said. He said it is not clear if the overweight fees from truckers would cover the entire amount.

Not all the bonds will be sold at once, said state Department of Finance spokesman H.D. Palmer. “In fact, you don’t want to sell them all now – it would be like drinking out of a fire hydrant.”

Several speakers challenged the timing of the authorization during the board’s public comment period, asking why the board was acting on the bulk of the bonds approved by voters now when it could be years before the money is needed. Kevin Dayton, a public policy consultant from Roseville, questioned whether the board was rushing to beat the outcome of the lawsuits attempting to block the railroad.

“That’s the obvious question that comes up,” Dayton said. “I think it’s reasonable to assume they’re very worried about it.”

But Richard said the board was merely being efficient by authorizing all the bonds now, so it would not have to revisit the issue in coming years.

The authority would have to comply with a court order no matter what steps it has taken, he said, and state officials are unlikely to issue the bonds until they are satisfied that they will not be blocked by the courts.

“We have to resolve those issues before the court and we are very confident about that,” Richard said. “I think until those matters are resolved, I’m not sure the treasurer would go forward with this.”

Contractor Survey on 2013

Construction News Pro survey results of contractors across US:

"How do you think the 2013 construction economy will compare to 2012?"

Here’s what you said:

• 53% Better than 2012
• 34% The same as 2012
• 14% Worse than 2012

March 17, 2013

New Equipment Watch Quarterly Report Offers Data on Heavy Equipment Auction Market Trend

EquipmentWatch, a leading construction research company and database information products provider, unveiled a quarterly benchmark report “Heavy Equipment Auction Market Trending.” The report, targeted to auctioneers, original equipment manufacturers, statisticians, equipment analysts and economists, offers analysis of auction activity by price, region, manufacturer and equipment type.

The first report covers Sept. 1 through Nov. 30, 2012. Key report findings include:

• Total sales for the heavy equipment auction market increased from the previous quarter, however the sales numbers represented a downward trend compared to the previous year;
• Western Canada and the Southeast United States represented the largest regions by volume of equipment sold during this period. The largest increase year over year was in Central Canada;
• Crawler-mounted hydraulic excavators topped the list of heavy construction equipment types sold at auction. The average age of all construction equipment recorded was about 12 years;
• Caterpillar equipment led all manufacturers in terms of volume sold, followed by Deere, Komatsu, Volvo and Bobcat.

The report is focused on data analyzed in context using data drawn from EquipmentWatch’s “The Last Bid” database of more than 1.3 million records. “The Last Bid” is an authoritative guide to current auction values for used heavy equipment and trucks. Regions were selected based upon the Bureau of Economic Analysis standards and the 4-region Canadian model.

“For 15 years, our data has provided key metrics to the heavy equipment auction marketplace,” said Garrett Schemmel, director, brand management, EquipmentWatch. “This new series of reports offers a comprehensive view of the industry, and also serves as a leading indicator of market activity. As the first and only company to offer verified analyzed intelligence, we recognize the value of this data to the industry to deliver unprecedented insights to inform buying decisions.”

To access the new equipment auction trend report, go to: brian.deweyor (770) 618-0201.

EquipmentWatch, owned by Penton Media, serves more than 15,000 professional, high-volume users of construction and lift-truck data. Its online and print products are used in decisions surrounding the purchase, valuation, operation and disposal of equipment. For nearly 50 years, EquipmentWatch has served contractors, equipment manufacturers, dealers, lenders and insurers and government agencies involved in large infrastructure construction.

Penton’s Equipment Watch Introduces A New Industry Benchmark: "Heavy Equipment Auction Market" Quarterly Trending Report

First in a Series of Equipment Intelligence Reports to Inform Equipment Buying Decisions

By Penton

NEW YORK, March 14, 2013 — /PRNewswire/ — A new quarterly benchmark report for the construction equipment industry, "Heavy Equipment Auction Market Trending," was unveiled today by Penton’s EquipmentWatch, the world’s leader in heavy construction research, and the leading provider of database information products for the construction equipment industry.

Targeted to auctioneers, original equipment manufacturers, statisticians, equipment analysts and economists, the report is the first in a new series of verified industry intelligence studies designed to establish more robust benchmarks for the equipment auction marketplace.

"Heavy Equipment Auction Market Trending" is the latest Penton initiative to innovate data and workflow tools for its user markets. Other recently launched workflow tools include Penton’s Source ESB electronic parts digital sourcebook and Trusts & Estates Plus, an iPad app featuring exclusive content from wealthmanagement.com.

"For 15 years our data has provided key metrics to the heavy equipment auction marketplace," said Garrett Schemmel,Director, Brand Management,EquipmentWatch. "This new series of reports offers a comprehensive view of the industry, and also serves as a leading indicator of market activity. As the first and only company to offer verified analyzed intelligence we recognize the value of this data to the industry to deliver unprecedented insights to inform buying decisions."

The "Heavy Equipment Auction Market Trending" report analyzes activity by price, region, manufacturer and equipment type, thereby providing a quick snapshot of industry trending by all major metrics. Key report findings include:

• Total sales for the heavy equipment auction market increased from the previous quarter, however represented a downward trend when compared year over year.
• Western Canada and the Southeast United States represented the largest regions by volume of equipment sold during Fall 2012. The largest increase year over year was seen in Central Canada.
• Crawler mounted hydraulic excavators topped the list of heavy construction equipment types sold at auction. The average age of all construction equipment recorded was around 12 years.
• Caterpillar equipment led all manufacturers in terms of volume sold, followed by Deere, Komatsu, Volvo and Bobcat.

The report is focused on data collected between September 1, 2012 and November 30, 2012, and analyzed in context using data drawn from EquipmentWatch’s "The Last Bid"™ database of 1.3+ million records. "The Last Bid" is an authoritative guide to current auction values for used heavy equipment and trucks. Regions were selected based upon the Bureau of Economic Analysis standards and the 4-Region Canadian model.

Industry professionals interested in accessing the new equipment auction trend report will find it here: brian.dewey or 770.618.0201.

About EquipmentWatch EquipmentWatch is the trusted source for heavy equipment and material handling equipment data, produces the leading database information products for the construction equipment industry and is the world leader in heavy construction research. EquipmentWatch serves more than 15,000 professional, high-volume users of construction and lift-truck data. Our online and print products are valuable tools in decisions surrounding the purchase, valuation, operation, and disposal of equipment.

For nearly 50 years, EquipmentWatch has served contractors, equipment manufacturers, dealers, lenders and insurers, and government agencies involved in large infrastructure construction.

About Penton For millions of business owners and decision-makers, Penton makes the difference every day. We engageour professional users by providing actionable ideas and insights, data and workflow tools, community and networking, both in person and virtually, all with deep relevance to their specific industries. We then activatethis engagement by connecting users with tens of thousands of targeted providers of products and services to help drive business growth. Learn more about our company at www.penton.com.

Penton is a privately held company owned by MidOcean Partners and U.S. Equity Partners II, an investment fund sponsored by Wasserstein & Co., LP.

Read more here: http://www.sacbee.com/2013/03/14/5262409/pentons-equipmentwatch-introduces.html#storylink=cpy

March 13,2013

January Nonresidential Construction Materials Project Prices Turn Up

03/13/2013 by Bernard M. Markstein

Overview
Prices for inputs used in nonresidential construction turned up after three months of decline. Prices for cement, energy, energy-related products, and wood products were among the main drivers sending the index higher. Higher energy prices are now working their way through various product prices. A slowdown in federal construction projects due to budget cuts, which include the current sequestration, and a general slowdown in nonresidential construction should put some downward pressure on building materials prices. At the same time, increased residential construction activity is providing upward pressure on prices. In general, over the course of this year, expect prices to rise roughly in line with or slightly faster than overall inflation. Better than expected growth would result in building materials prices increasing at a faster rate.

Construction Materials Inflation
The Producer Price Index (PPI) for materials and components used in construction rose 0.5% on a seasonally adjusted (SA) basis in January after rising 0.2% in December according the Bureau of Labor Statistics (BLS) and was the sixth consecutive monthly increase. The index was up 2.7% on a not seasonally adjusted (NSA) year-over-year basis and was up 9.3% since January 2010. Meanwhile, prices for raw materials used in construction or to produce products used in construction rose 0.1% after increasing 0.2% in December. The index was up 2.8% from January 2012 and was up 6.9% from January 2010.

An index that measures inputs used in nonresidential construction (excluding capital equipment) advanced 0.6% (NSA) in January after declining 0.3% in December. January’s increase ended a string of three consecutive monthly declines. The index was up 0.8% from January 2012.

The BLS began reporting a new index that captures the change in the cost of constructing health care buildings. The index includes material costs, labor and equipment costs for installation, as well as including a margin for overhead and profit. Since this is a new index, only limited historical data are available at this point. Because of this, seasonally adjusted numbers are not available. The new index has been added to the table below.

US Construction-Related Price Indexes
Percent Change
Monthly from Previous Month NSA data unless otherwise indicated			3-Month Moving Average from Previous Month NSA data unless otherwise indicated			Year-over-year NSA data			3 Years Ago NSA data
Jan-13	Dec-12	Nov-12	Jan-13	Dec-12	Nov-12	Jan-13	Dec-12	Nov-12	Jan-13
Composite Indexes (Exclude capital equipment)
Construction Materials* (Unprocessed materials)	0.1	0.2	0.0	0.1	0.2	0.0	2.8	2.7	2.5	6.9
Materials and Components for Construction* (Processed goods)	0.5	0.2	0.1	0.3	0.2	0.2	2.7	2.7	2.4	9.3
Inputs to Construction (Residential and Nonresidential) (Includes inputs to maintenance and repair)	0.7	-0.1	-1.1	-0.2	-0.5	-0.2	1.3	1.3	1.0	11.4
Inputs to New Construction	0.7	-0.1	-1.0	-0.1	-0.5	-0.2	1.5	1.5	1.2	11.5
Inputs to Residential Construction	0.7	0.1	-0.7	0.0	-0.3	-0.2	2.1	2.0	1.7	11.4
Inputs to Nonresidential Construction	0.6	-0.3	-1.3	-0.3	-0.7	-0.2	0.8	0.8	0.6	NA
Inputs to Commercial Construction	0.6	-0.1	-0.7	-0.1	-0.4	-0.1	1.3	1.1	0.9	NA
Inputs to Industrial Construction	0.4	-0.2	-1.0	-0.3	-0.5	-0.2	0.6	0.8	0.7	NA
Inputs to Heavy Construction	0.6	-0.3	-1.6	-0.4	-0.8	-0.3	0.6	0.7	0.5	NA
Inputs to Maintenance and Repair	0.7	-0.3	-1.2	-0.3	-0.6	-0.2	0.4	0.0	-0.3	11.1
Inputs to Nonresidential Maintenance and Repair	0.7	-0.3	-1.3	-0.3	-0.6	-0.2	0.2	-0.2	-0.7	10.8
Inputs to Res Maintenance and Repair	0.7	0.0	-1.1	-0.2	-0.6	-0.2	1.6	1.7	1.4	12.2
(Indexes include installation and overhead)
New Warehouse Building Construction	1.0	0.0	0.0	0.3	0.1	0.1	2.9	2.6	2.5	8.0
New School Building Construction	0.3	0.0	-0.3	0.0	0.0	0.0	0.9	1.1	1.2	6.9
New Office Construction	0.4	0.0	0.0	0.1	0.1	0.1	0.9	1.3	1.3	5.3
New Industrial Building Construction	0.5	0.0	0.1	0.2	0.2	0.1	1.3	1.4	1.2	5.5
New Health Care Building Construction	0.6	-0.1	-0.1	0.1	0.0	0.0	NA	NA	NA	NA
Other Related Indexes
PPI Finished Goods*	0.2	-0.3	-0.4	-0.2	-0.3	0.2	1.4	1.3	1.5	9.4
PPI Finished Goods less food and energy*	0.2	0.1	0.2	0.2	0.1	0.1	1.8	2.0	2.2	6.6
CPI Urban Consumer*	0.0	0.0	-0.2	-0.1	0.0	0.2	1.6	1.7	1.8	6.3
CPI Urban Consumer less food and energy*	0.3	0.1	0.1	0.2	0.1	0.1	1.9	1.9	1.9	5.2
Production Index: Construction Supplies*	-0.1	1.0	2.5	1.1	1.1	0.9	2.0	2.7	3.5	19.4
Retail Sales: Building & Equipment Supplies*	0.3	0.3	1.2	0.6	0.0	0.8	5.7	-0.2	5.4	25.9
*Seasonally-adjusted data for percent changes for monthly and 3-month moving average data NSA = Not seasonally adjusted, NA = Not Available Source: Producer Price Index (PPI) – Bureau of Labor Statistics; Production Index – Federal Reserve Board; Retail Sales – Census Bureau

Construction machinery prices were up 0.3% (SA) in January, the same as December’s increase. Construction machinery rental rates also rose 0.3% (NSA) following a jump of 1.1% in December. Despite a recent shift in the preference away from purchasing construction equipment to renting equipment, on a year-over-year NSA basis, rental rates have increased at a slower rate than the rate of increase for purchase prices — 1.5% versus 4.0%. Meanwhile, rental rates were up 4.5% since January 2010 while purchase prices were up 10.0%. Nonetheless, we still expect rental rate inflation to generally exceed equipment purchase price inflation over the course of this year.

To increase coverage of items commonly used in commercial construction projects we have added coverage of the PPI for “Air-conditioning, Refrigeration; and Forced Air Heating Equipment Manufacturing” to the table below. This index reflects changes in prices that are charged by producers, or to look at it another way, what most buyers (in this case, builders) pay.

US Construction-Related Price Indexes
Percent Change
Monthly from Previous Month NSA data unless otherwise indicated			3-Month Moving Average from Previous Month NSA data unless otherwise indicated			Year-over-year NSA data			3 Years Ago NSA data
Jan-13	Dec-12	Nov-12	Jan-13	Dec-12	Nov-12	Jan-13	Dec-12	Nov-12	Jan-13
Assembled Equipment
Hand and Edge tools	0.6	-0.3	0.0	0.1	0.0	0.6	2.7	2.8	3.2	3.8
Power Hand Tools	0.6	0.2	0.2	0.3	0.1	0.1	1.5	1.3	1.4	3.5
Appliances*	-0.6	0.6	-0.9	-0.3	0.3	0.1	2.2	4.0	3.7	6.6
Furnaces	-2.0	1.0	-0.2	-0.4	0.5	0.1	-0.6	2.1	0.5	4.3
AC; Refrigeration; and Forced Air Heating Equip. Mfg.	-1.2	1.3	0.8	0.3	0.6	0.1	1.3	2.2	0.8	6.5
Construction Machinery*	0.3	0.3	0.6	0.4	0.5	0.3	4.0	3.8	4.1	10.0
Construction Machinery Rental (incl. oilfield equip.)	0.3	1.1	1.0	0.8	0.4	0.4	1.5	0.1	0.6	4.5
Construction equipment rental and leasing	0.0	0.7	1.4	0.7	0.7	0.9	0.6	-0.4	1.8	4.4
Oilfield and well drilling equipment rental and leasing	1.7	3.5	0.0	1.7	0.0	-1.1	5.7	4.0	-0.4	8.4
Trucks over 14,000 Ibs. GVW	0.6	0.3	0.5	0.5	0.1	0.0	2.1	2.2	1.8	8.0
Metal Doors, Sash and Trim	0.1	-0.1	0.0	0.0	0.0	0.0	1.8	1.8	2.0	9.7
*Seasonally-adjusted data for percent changes for monthly and 3-month moving average data NSA = Not seasonally adjusted, NA = Not Available Source: Producer Price Index (PPI) – Bureau of Labor Statistics

Cement and Concrete
Cement prices shot up 1.8% (NSA) in January, their largest monthly increase in almost four years, after no change in December. Prices were up 3.6% from January 2012 but were down 2.2% from January 2010.

Prestressed concrete products prices rose a more modest 0.6% after edging up 0.1% in December. On a year-over-year basis, prices were up 0.6%, and they were up 2.5% from January 2010. Precast concrete products prices rose 0.3% in January after surging 1.6% in December. Prices were up 2.5% from January 2012 and were up 7.2% from January 2010.

US Construction-Related Price Indexes
Percent Change
Monthly from Previous Month NSA data unless otherwise indicated			3-Month Moving Average from Previous Month NSA data unless otherwise indicated			Year-over-year NSA data			3 Years Ago NSA data
Jan-13	Dec-12	Nov-12	Jan-13	Dec-12	Nov-12	Jan-13	Dec-12	Nov-12	Jan-13
Construction Commodities
Dimension Stone	1.9	0.0	0.1	0.7	0.0	0.1	2.8	1.3	1.6	3.2
Cement	1.8	0.0	0.2	0.7	0.0	0.0	3.6	3.4	3.6	-2.2
Construction Sand, Gravel & Crushed Stone*	0.2	0.1	0.0	0.1	0.2	0.0	2.9	2.3	2.1	6.2
Softwood Plywood	4.3	1.2	-3.6	0.6	-1.2	-0.4	20.9	19.6	21.0	36.2
Hardwood Lumber	1.9	0.2	0.2	0.8	0.5	0.4	4.0	1.6	1.7	8.2
Softwood Lumber*	6.7	2.1	5.1	4.6	1.7	1.2	24.8	17.3	13.7	30.5
Other Commodities
Industrial Natural Gas*	0.0	1.4	0.9	0.7	1.3	0.9	-1.6	-5.0	-8.2	-18.1
Plastic Resins & Materials	1.6	-0.7	-0.6	0.1	0.5	0.3	3.0	3.5	2.3	22.5
Insulation Materials	2.0	0.1	-0.5	0.5	-0.4	-0.7	5.4	5.1	5.1	17.9
Iron & Steel Scrap	0.3	0.9	11.9	4.1	0.0	-0.8	-19.9	-15.5	-11.0	9.6
Iron Ore	-3.6	0.0	0.1	-1.2	1.7	0.3	-8.9	-3.8	1.2	23.7
Copper Ores	1.9	-2.6	-4.4	-1.8	-2.3	0.9	-2.0	1.6	1.3	11.0
Copper Base Scrap*	-0.4	2.0	-0.6	0.3	1.1	1.9	1.2	0.9	-0.7	14.5
*Seasonally-adjusted data for percent changes for monthly and 3-month moving average data NSA = Not seasonally adjusted, NA = Not Available Source: Producer Price Index (PPI) – Bureau of Labor Statistics

Energy and Related Products
Diesel fuel prices continued their recent upward movement, increasing 0.9% (SA) in January after soaring 2.6% in December. Despite the recent surge, diesel prices were down 1.0% (NSA) from January 2012 but were up 39.0% from January 2010.

Industrial natural gas prices were flat in January, a bit of a reprieve following five months of increases, including December’s 1.4% (SA) jump. Still, industrial natural gas prices were down 1.6% from January 2012 and were down 18.1% from January 2010. Natural gas remains a considerable bargain relative to oil.

Plastic resins and materials prices also shot up, increasing 1.6% (NSA) in January after decreasing 0.7% in December. Prices were 3.0% higher than in January 2012 and were 22.5% higher than in January 2010.

Surprisingly, asphalt prices declined dramatically for the third consecutive month and the seventh month out of the last eight months, plummeting 6.0% (NSA) in January after falling 2.0% in December. Prices were 10.6% lower than in January 2012 but were 16.2% higher than in January 2010. However, asphalt roofing prices rose 0.9% in January following a 1.1% drop in December. Prices were up 0.7% from January 2012 and were up 7.5% from January 2010.

Plastics pipe prices moved 1.9% (NSA) higher in January after no change in December. They were up 10.2% from January 2012 and were up 27.3% from January 2010. Plastics plumbing fixtures prices however, tumbled 2.7% after advancing 0.3% in December. That left prices down 1.2% from January 2012, but up 3.8% from January 2010.

US Construction-Related Price Indexes
Percent Change
Monthly from Previous Month NSA data unless otherwise indicated			3-Month Moving Average from Previous Month NSA data unless otherwise indicated			Year-over-year NSA data			3 Years Ago NSA data
Jan-13	Dec-12	Nov-12	Jan-13	Dec-12	Nov-12	Jan-13	Dec-12	Nov-12	Jan-13
Manufactured Materials
Gypsum Products	11.8	-0.3	0.4	4.0	-0.2	-0.5	20.4	14.0	14.9	30.1
Petroleum refineries	1.0	-2.4	-8.3	-3.4	-4.5	-1.9	-4.7	-3.2	-3.8	29.5
Diesel Fuel*	0.9	2.6	-9.1	-2.1	-1.5	-0.3	-1.0	1.8	-4.0	39.0
Asphalt	-6.0	-2.0	-7.5	-5.2	-2.2	-2.4	-10.6	-2.5	3.2	16.2
Asphalt paving mixture & block mfg.	0.5	-0.2	0.0	0.1	-0.1	-0.3	3.2	4.0	4.5	16.5
Asphalt shingle and coating materials mfg.	0.4	-0.9	-0.5	-0.3	-0.8	0.1	0.3	-0.2	1.6	10.1
Asphalt Roofing	0.9	-1.1	-0.5	-0.2	-1.1	0.0	0.7	-0.6	1.4	7.5
Paint	1.1	-0.4	0.0	0.2	-0.1	0.0	0.5	10.1	10.5	15.7
Plastic Construction Products	0.2	0.2	0.4	0.3	0.3	0.3	4.0	4.7	4.5	11.5
Plastics Pipe	1.9	0.0	0.6	0.8	1.0	1.3	10.2	12.4	11.8	27.3
Plumbing Fixtures	-2.7	0.3	0.1	-0.8	0.1	0.1	-1.2	2.1	1.7	3.8
Vitreous Plumbing Fixtures	0.6	0.6	-1.1	0.0	0.3	0.1	0.9	1.7	1.1	5.9
Ceramic Tile	-0.9	0.4	-0.5	-0.3	0.6	0.0	-0.5	0.7	0.4	-1.3
Flat Glass	0.4	-0.7	0.3	0.0	-0.1	0.3	2.2	1.0	2.3	2.0
Steel Mill Products	-0.1	0.9	-1.3	-0.2	-0.8	-0.6	-8.3	-7.9	-9.1	12.9
Steel Pipe and Tube*	-2.5	0.7	-0.4	-0.8	-0.2	-0.3	-8.8	-6.1	-6.7	20.1
Hot rolled bars, plates & structural shapes	0.5	1.6	-2.0	0.0	-0.7	-0.6	-9.8	-9.6	-12.0	15.0
Extruded Aluminum rod, bar and other shapes	3.4	-0.5	-0.7	0.7	0.5	0.4	0.7	-3.4	-5.1	5.6
Architectural Metalwork	0.3	-0.1	0.2	0.1	0.0	-0.1	0.9	0.5	0.6	7.3
Metal Plumbing Fixtures*	0.0	0.2	0.0	0.0	0.2	0.3	1.3	1.7	1.6	5.6
Builders’ Hardware	-0.5	-0.6	0.4	-0.2	-0.1	0.2	-0.2	0.5	1.2	7.7
Sheet Metal Products	-1.5	0.0	0.0	-0.5	0.0	0.0	-2.1	-0.5	-1.4	5.6
Copper and Copper Products	1.2	1.3	-3.6	-0.4	-0.3	0.7	0.6	0.2	-1.7	5.7
Copper and Brass Mill Shapes	0.6	1.5	-3.3	-0.4	0.2	0.9	2.9	1.0	-0.9	-2.1
Nonferrous Pipe and Tube	2.6	-0.8	-1.5	0.1	0.2	2.4	3.5	-1.7	-1.1	2.0
Building Brick	-1.3	0.1	-0.2	-0.5	0.0	-0.1	-1.8	-2.9	-3.4	-7.8
Ready Mix Concrete*	0.3	0.2	0.0	0.2	0.2	0.1	2.3	2.3	2.4	2.3
Concrete Block & Brick	-0.2	0.6	-0.3	0.0	0.2	0.0	0.8	1.5	0.8	1.5
Prestressed Concrete	0.6	0.1	-0.1	0.2	0.0	-0.3	0.6	-0.2	-0.2	2.5
Precast Concrete Products	0.3	1.6	-0.2	0.5	0.4	-0.2	2.5	2.6	1.3	7.2
Concrete Pipe	0.7	0.6	-0.7	0.2	0.7	0.5	5.0	4.3	3.2	6.4
Engineered Wood Products	2.1	2.3	1.2	1.9	1.3	1.4	15.1	12.5	9.7	20.5
Wood Kitchen Cabinet and Countertop Mfg.	1.0	0.3	-0.1	0.4	0.2	0.1	2.9	2.0	1.7	5.9
Millwork (window, door, cabinet)*	1.1	0.2	0.0	0.4	0.1	0.1	2.5	1.5	1.2	7.1
Wood Window and Door Mfg.	1.4	0.3	-0.1	0.5	0.1	-0.1	1.8	0.5	0.3	9.8
Metal Window and Door Mfg.	0.1	-0.1	0.0	0.0	0.0	0.0	1.9	1.9	2.1	9.2
Laminated Plastics	0.3	-0.1	-0.1	0.0	-0.1	0.0	0.9	0.6	0.7	6.3
Nonresidential Electric Lighting Fixture Mfg.	-0.1	0.4	-0.2	0.1	0.1	0.0	0.4	0.4	0.1	6.2
*Seasonally-adjusted data for percent changes for monthly and 3-month moving average data NSA = Not seasonally adjusted, NA = Not Available Source: Producer Price Index (PPI) – Bureau of Labor Statistics

Copper and Copper Products
Copper ores prices jumped 1.9% (NSA) in January following two months of sharp declines, including a 2.6% plunge in December. Prices were 2.0% lower than in January 2012, but were 11.0% higher than in January 2010.

Copper base scrap prices fell 0.4% (SA) in January after surging 2.0% in December. Prices were 1.2% higher than in January 2012 and were 14.5% higher than in January 2010.

Prices for copper and copper products rose 1.2% (NSA) in January following a 1.3% increase in December. Prices were up 0.6% from January 2012 and were up 5.7% from January 2010.

Copper and brass mill shapes prices advanced 0.6% in January after increasing 1.5% in December. Prices were up 2.9% from January 2012, but were down 2.1% from January 2010.

Other Metals
Steel mill products prices slipped 0.1% (NSA) in January after increasing 0.9% in December. Prices were down 8.3% from January 2012, but were up 12.9% from January 2010. Hot rolled bars, plates, and structural shapes prices rose 0.5% in January after jumping 1.6% in December. Nonetheless, prices were 9.8% lower than in January 2012, but were 15.0% higher than in January 2010.

Extruded aluminum rod, bar, and other shapes prices surged 3.4% (NSA) in January after declining 0.5% in December. Prices were up 0.7% from January 2012 and were up 5.6% from January 2010.

Series Changes
The index for “Wood Kitchen Cabinets” has been discontinued by the BLS. We have replaced it with the index for “Wood Kitchen Cabinet and Countertop Manufacturing.” We also added three more price indexes that are likely to be of interest to commercial builders, “Wood Window and Door Manufacturing,” “Metal Window and Door Manufacturing,” and “Nonresidential Electric Lighting Fixture Manufacturing.” The indexes appear in the table above.

Softwood Lumber and Gypsum
Demand for softwood lumber and gypsum products is largely determined by single-family housing construction activity. The improving single-family housing market has been pushing demand for these materials higher.

The PPI for softwood lumber rocketed up 6.7% (SA) in January after increasing a strong 2.1% in December and a robust 5.1% in November. Prices were 24.8% higher than in January 2012 and were 30.5% higher than in January 2010.

Canadian softwood lumber exports to the U.S. are regulated by the Softwood Lumber Agreement (SLA). Each month the level of exports permitted and any relevant export fees are determined by where the average price of softwood lumber over a specified four week period prior to that month falls within a four tier regime. The categories, from most restrictive to least restrictive and the related prices determining which category is in force for the month, are as follows.

• The first category is for an average price of $315 per thousand board feet or lower
• The second category is for an average price of $316 to $335
• The third category is for an average price of $336 to $355
• The fourth category is for on an average price of $356 or higher and eliminates all restrictions and fees on Canadian softwood lumber exports to the United States

There has been significant variation in the price of softwood lumber over the past several months. Increased single-family construction activity has been sufficient to drive prices for softwood lumber high enough to result in tier 4 — no restrictions on Canadian exports — for the first three months of the year. Reed Construction Data estimates that average prices that determine the relevant category for April have been high enough to ensure that no export restrictions will be in force for that month. The table below summarizes recent average prices and the resulting tier (category).

Average Prices to Determine SLA Canadian Softwood Export Restrictions
2012		2013
November	December	January	February	March	April
Average Price	$326	$334	$357	$385	$395	$416*
Tier	2	2	4	4	4	4*
Source: Foreign Affairs and International Trade Canada *Reed Construction Data estimate

In 2011, six gypsum producers sent letters indicating they would raise prices 35% in January 2012. But the December 2012 PPI was up less than half that amount (14.0%) from December 2011.

Although only partially successful with their 2012 price increase, last year several gypsum producers announced price increases of 25% to 30% effective at the beginning of this year. The early indications are that this time gypsum producers are recording some success. January gypsum prices jumped 11.8% and were 20.4% higher than in January 2012. Since January 2012 they were up 30.1%.

Outlook for Construction Materials Prices
The U.S. economy flattened in the fourth quarter of last year due to a few special circumstances, such as a sharp reduction in defense spending, that are not likely to be repeated. There are already indications that the first quarter of this year will report improved growth.

Meanwhile, the politicians are wrangling over how to resolve various budget issues even as sequestration began this month. It is estimated that if sequestration is left in place, it will lower real (inflation-adjusted) gross domestic product (GDP) growth by 0.5%, not healthy, but not a disaster either. Bigger threats are not enacting a federal government budget before the end of this month and expiration of the temporary federal debt ceiling in mid-May. Although nothing is certain in this political climate, it is likely that something will be done about both, if only extending the current deadlines. Recent reports that discussions are underway regarding these issues raise hope that a longer-term, more reasonable solution will be reached.

Europe has been muddling through its problems, although many European countries have fallen into recession. Slower growth in Europe is a drag on U.S. exports of construction machinery and products to Europe.

Despite these and other economic challenges, the Reed Construction Data forecast is that recession is avoided, the economy continues to grow at a moderate pace, and nonresidential construction activity will advance modestly this year and pick up speed next year. There will be moderate upward pressure on construction materials prices as some of the impediments to growth are removed or reduced. The outlook is for 2013 building materials prices inflation to proceed at roughly the same pace or a little faster than overall inflation.

If the U.S. economy outpaces our forecast of real (inflation-adjusted) gross domestic product (GDP) growth of 2.5% for the year, there will be greater construction activity and faster materials price inflation. Faster growth in the rest of the world would also mean higher construction materials prices. Significantly higher energy prices for a sustained period would contribute to a faster rate of increase in building materials prices, but would also be a drag on economic growth, eventually hurting construction activity and limiting building materials price increases.

My Top 2 Stocks: Caterpillar and Oracle

By Nichole Seghetti

This month, we Fools are discussing our top two stock holdings. Today I’ll address the reasons I bought my stocks, how they came to become my largest holdings, why I continue to hold them, and whether I still like the stocks for investors today.

Caterpillar (NYSE: CAT )
Roughly one-third of the world’s population lived in urban areas in 1950, and more than half of us currently inhabit cities. By 2030, cities and towns of the developing world will make up 80% of urban humanity. Urbanization is fueling demand for the building blocks of modern society. As a result, we’ll need more natural resources, like metals and materials, to build everything from power lines to buildings. And, in order to build out infrastructure, earthmoving and construction will be required.

I bought Caterpillar and metals and mining conglomerate BHP Billiton (NYSE: BBL ) to potentially profit from this trend. I bought Caterpillar, in particular, for both its product and geographic diversification. As the world’s largest manufacturer of earthmoving, construction, and mining equipment, the company derives nearly 60% of sales internationally.

Emerging markets account for a decent slice of Caterpillar’s sales today, and they’ll likely become a much larger part of revenues over the long term. Caterpillar will benefit from a continued rebound in the U.S. housing market, and its purchase of mining equipment maker Bucyrus sets it up nicely for growth long term.

I bought both Caterpillar and BHP Billiton in the midst of the financial crisis, as the construction and building industry was coming to a screeching halt. From the time I bought Caterpillar in 2009, it’s grown more than 33% on average annually and has become one of my largest holdings. While I expect Caterpillar to experience short-term headwinds, especially as growth in developing markets slows and demand for commodities cools off, I’m in it for the long haul. And I still like the stock for investors looking to get in today.

Oracle (NASDAQ: ORCL )
The first tech stock I ever bought was Applied Materials (NASDAQ: AMAT ) . I had just graduated from college, was living in Northern California, and had a close friend who worked at the Silicon Valley semiconductor equipment maker. I had a bit of success with Applied stock and thought I’d dabble into more tech stocks.

I bought Oracle in 1998. The world’s second largest software company and the leading provider of software for information management, Oracle’s competitive advantages are its recurring revenue business model, high customer retention, and synergies from acquisitions.

Oracle’s solid long-term track record is largely thanks to founder and CEO Larry Ellison. He adheres to a philosophy of being either No. 1 or No. 2 in a market. If the company can’t achieve that, it’ll either exit the market altogether or leverage its strong balance sheet to acquire a company that will help it get to a market-leading position.

As a result, Oracle has completed billions of dollars in acquisitions during the past few years. The company continually receives criticism for its spending spree. But I think most of the acquisitions have dovetailed nicely into the rest of the company’s products, augmented profits, and increased shareholder value.

For example, last month, Oracle announced it would acquire communications tech firm Acme Packet (NASDAQ: APKT ) , a leader in next-generation networks. With this acquisition, Oracle will complete a missing link of its overall solutions. Because the company offers an entire solution suite, it’s likely the newly acquired customers will add even more of Oracle’s software and services.

I rode Oracle through the tech bubble, suffered through the tech bust, and have held on to it ever since. While the stock has brought on a few headaches over the years, I believed in its long-term prospects. And I like the direction Oracle seems to be heading in. From the time I bought the stock nearly 15 years ago, it’s returned 17% on average annually. It pays to buy and hold, even when holding is tough to do.

Foolish bottom line
In addition to being leaders in their respective fields, these industry titans enjoy enormous scale and true staying power. Both Caterpillar and Oracle remain companies that I like for investors today and that I intend to hold for many years.

Caterpillar and Oracle are my top two stock holdings, but our co-founder Tom Gardner recently revealed his top two stocks as well. For the names of that surprising pair of companies, just click here.