N. California College of Construction News Blog

See the Difference a Small College can Make!

October 22,2012

Posted by nahetsblog on October 21, 2012

JOBLESS CLAIMS HIT FIVE YEAR LOW

Being in the middle of any election cycle,and a Presidential one that is getting ugly the rumors had already started before the ink was dry on the morning papers. CONSPIRACY that is what the anti-OBAMA people are claiming now,the official percent went from 8.1 percent down to 7.8 percent.The 7.8 percent is nothing to brag about,but what makes that number so special is this is the first time since Barak Obama has been elected President that it has been below 8.0 percent and during the last Presidential race Barak Obama had promised everyone that he would make sure the unemployment rate would be below 8%during his first term in office and sure enough thirty days before election day it is 7.8 percent..

CATERPILLAR ADJUSTS FORECASTS

The worlds largest mining and construction equipment manufacturer has announced that its sales and per share profit for the year 2015 needs to be adjusted down about 12 percent in both categories,Caterpillar announced Friday that the gross sales and dollars per share net income were a little to optimistic,so they needed to correct them.Thirty days ago when they held a press conference and issued a press release making the 2015 forecasts I joked that the real reason they were so optimistic about their revenue and profits were to hide the 3% price increase across the board,which they announced at the same press conference,does anybody really care what Caterpillar thinks their dollars per share is going to be three years from now.I can remember a quip from the 1960’s that went something like this,"If General Motors catches the flu,the rest of the economy sneezes" that,s close I might be paraphrasing a little but you get my point.I know Caterpillar is one of the bellwether companies they use to measure the DOW Industrial Average,but do the other companies that make up the DOW Industrial forecast their sales and profits three years into the future,that 2015 sales/revenue forecast that Caterpillar made came on the coattails of China forecast that they were going to update,repair,modernize,fix all of their runways,bridges,railroad bridges and interstate highway system over the next ten to fifteen years and the total could be close to a trillion dollars,and OH by the way General Motors went b.k. four years ago and a whole bunch <millions of people> got stiffed some of the share holders or bond holders or vendors <depending on your classification> will get somewhere between zero and 33% of what they had coming.Their are some pundits that look at Caterpillars profitability as a reflection of the worlds economic health.

CALIFORNIA IS IMPROVING BUT STILL IS IN LOWER THIRD

Depending on which measuring stick you use,CA is one of the five worst states in regards to A) number of homes in the foreclosure process B) number of homes underwater C) percentage of homes at their all time high or within 2%D) All of the above.This could almost be the tail of two cities,it is the worst of times and it is the best of times.California has a huge disparity in wealth,their are areas that are doing terrible economically and you can drive thirty miles down the street and find areas that are doing way better than the average.Three out of the last six months CA led the nation in the number of new jobs created,two out of the last four months CA led the country in highest percentage of private/public money spent in major construction projects.

The National Association of Home Builders (NAHB) reported that out of the 337 largest metropolitan areas the construction employment went up in 191 of them went down in 88 of them and remained the same in the rest, the 57 % that saw an increase in construction employment is the third time in the last six months that the number of areas that saw an increase was above 50 % NAHB The Department of Labor said that their is not going to be hearings scheduled regarding the Keystone XL project until after the next president is sworn in.If that project is started before January 2014 I,ll eat my hat.

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