N. California College of Construction News Blog

See the Difference a Small College can Make!

June 21,2012

Posted by nahetsblog on June 25, 2012

One of the bright spots of our dismal economy is the price of gasoline is going down,The national average so far in June has been $3.47 per gallon.With the price of oil hovering around $80.00 per barreland the reserves at a twenty one year high and consumption going down their is no reason for the price to go up.Usually in an election year the price of gas tends to up the closer we get to the November elections,this time it is doing just the opposite from what the pundits predicted.

Caterpillar Inc. and Westport Inc. have joined forces to start installing natural gas powered engines into their equipment,the company has agreed to absorb all of the R and D costs associated with this joint venture.The five largest heavy equipment manufacturers had a 14 percent increase in sales in the first quarter of 2012,even though the first quarter of 2011 was one of the worst in the last five years any increase is better than not.

Since February 2012 the state of Texas has had a 6 percent increase in construction and mining employment ,that equates to 43,800 jobs,that is the best four month increase that they have had in the last six years.Out of the largest 337 metropolitan areas 171 saw an increase in construction employment,119 saw a decrease and the rest stayed about the same. Calgary Alberta is still looking for all kinds of help in the oil fields,Their is a shortage in all of the skilled labor jobs anyone who has graduated from a heavy equipment school or completed a heavy equipment training program that was approved as an on-the-job training is needed.The Dept. of Labor estimates that the current pay for the blue collar skilled labor jobs is between $50,000 and $100,000 and that does not include any overtime.

The economy has been in yoyo mode now for five years going on six,and the Fed is forecasting no change expected this year,the Federal Reserve failed to deliver another stimulus package,the last time they invested 267 billion the long term interest rates did not go down as was expected,some of the economist are saying "the feds influence is waning " no one knows if that is true or not ,the average thirty year fixed rate is %3.71,that is the lowest it has been since the G.I. Bill following the second world war. The thirty year rate usually runs hand in hand to the ten year T-Bill rate and that is expected to remain unchanged.Being an election year the chances of any meaningful bills getting passed is close to nil,every member of the house ,one third of the senate and the President are in full reelection mode,now until the first Tuesday following the first Monday of November Washington D.C. is on cruise control.

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