'Gas Tax Holiday' not a good idea, ASCE claims
The nation’s roads and bridges are already overburdened and any “gas tax holiday” -- including the one proposed by Sen. Hillary Clinton -- would only delay much needed transportation projects, reports the American Society of Civil Engineers (ASCE).

A moratorium on the gas tax poses a significant threat to the U.S. economy, and could potentially increase the cost per driver caused by traffic congestion and poor road conditions. It will provide no tangible benefit to the American people, and any plan for restoring the $8.5 billion in lost transportation funding is unlikely.

“Under-investing in infrastructure for short-term gain will just further undermine our economy in the long run, and it is disappointing that some of our nation’s leaders don’t understand that,” says ASCE president David G. Mongan. “The American people are questioning what can be done in these difficult economic times, but a short-sighted proposal like Sen. Clinton’s is not the answer.”

Lost productivity and wasted fuel due to traffic congestion costs the average American motorist $710 a year -- nearly a full work week and more than 25 gallons of gas—and cars and trucks idling in traffic are one of the greatest contributors to carbon emissions. But, according to the U.S. Department of Transportation, every dollar invested in the nation’s highway system yields $5.40 in economic benefits in reduced delays, improved safety and lower vehicle operating costs. And, every billion dollars in federal highway construction spending generates more than 30,000 jobs annually.

For more information on ASCE’s Report Card for America’s Infrastructure and Action Plan for the 110th Congress, visit: www.asce.org/reportcard.

back to top

************************************************************

Inventors to show off concrete that bends
An improved, more environmentally friendly Engineered Cementitious Composite (ECC) is the star of the short course “Understanding and Using Bendable Concrete” set for June 24-26 at the University of Michigan in Ann Arbor, Michigan.

This new material bends but does not break because specially coated microscopic polymer fibers slide past each other instead of snapping under stress. Reducing the brittle nature of concrete opens a new world of possibilities for commercial construction and civil infrastructure by enhancing durability, safety, and sustainability.

The course will be taught by inventors Victor Li, E. Benjamin Wylie, Professor of Civil and Environmental Engineering at the University of Michigan, and Michael D. Lepech, Assistant Professor of Civil and Environmental Engineering at Stanford University. They will cover materials, applications, and economics of bendable concrete.

Applied using traditional methods, this advanced synthetic fiber-reinforced material offers unique properties. Able to bend like a metal, it is 500 more times resistant to cracking than regular concrete and is up to 40 percent lighter. It reduces or eliminates steel reinforcement, trims project cost, allows faster pre-cast or on-site construction, minimizes maintenance costs, and reduces environmental impacts.

Based on a study by the U-M School of Natural Resources and Environment’s Center for Sustainable Systems, using this composite to replace conventional concrete in some infrastructure applications can reduce life cycle costs by an estimated 37 percent, energy consumption by 30 percent, and carbon dioxide emissions (a major cause of global warming) by 39 percent.

More information about “Understanding and Using Bendable Concrete” and how to register is available at InterPro.engin.umich.edu/BendableConcrete or (734) 647-7200.

back to top

************************************************************

Red-hot steel, fuel prices send construction costs soaring
"Red-hot steel prices, combined with record diesel fuel costs, are making construction unaffordable," Ken Simonson, chief economist for the Associated General Contractors of America (AGC), recently. Simonson was commenting on the producer price indexes (PPIs) for March reported today by the Bureau of Labor Statistics (BLS).

"The PPI for inputs to construction industries—materials used in all types of construction plus items consumed by contractors, such as diesel fuel, soared 2.1 percent in March alone," Simonson observed. "That jump was propelled by a staggering 24 percent increase in diesel fuel costs and a 5.5 percent rise in prices for steel mill products.

"Unfortunately, there is worse to come," Simonson asserted. "Steel suppliers have been burning up the fax wires announcing huge price increases and canceling previous quotes. And the Energy Information Administration recently reported that the average price of highway diesel crossed the $4 per gallon mark in all regions for the first time, with a 10-cent increase in the national average just in the past week, to $4.05 per gallon. These figures won't show up in the producer price index until next month, but contractors are paying them now.

"Public agencies as well as private owners need to adjust to these realities," Simonson noted. "Too many of them are still assuming construction costs are rising no faster than the consumer price index (CPI), when in fact the PPI for construction inputs has gone up 6.5 percent in the past 12 months and 34 percent since steel prices first surged in December 2003. That is more than double the run-up in the CPI.

"Diesel prices are now more than 60 cents a gallon higher than the $3.44 average price for gasoline," Simonson added. "This puts a triple burden on contractors, who use diesel to power off-road equipment and construction trucks and also pay a fuel surcharge on the thousands of deliveries and backhauls at a large job site.

"As the highway paving season gets under way, asphalt prices also are poised to take off," Simonson concluded. "Asphalt at the refinery cost 13 percent more in March than a year ago. But many states and the federal government are running low on highway funds because motorists and truckers have been driving less. It is imperative that Congress pass additional funding in the next few months to keep highway construction funds flowing and not choke off funds with an ill-advised moratorium."

Click on www.agc.org/march08ppi for the March PPI tables.

back to top

************************************************************

ABC reports BLS employment data’s downward trend
The Associated Builders and Contractors (ABC) issued the following not-so-rosy commentary about the commercial construction outlook:

On April 4, 2008, the Bureau of Labor Statistics (BLS) released employment data for March and the data are sobering. Nonresidential construction employment is now clearly in decline, both from monthly and year-over-year perspectives. Nonresidential construction employment declined by 20,500 jobs in March compared to the prior month and is now down by 70,500 jobs over the past 12 months.

On a year-over-year basis, nonresidential building employment turned negative beginning in December 2007. By contrast, employment in residential building construction turned negative precisely one year earlier and the number of jobs supported by residential construction activities overall declined by 31,000 jobs in March on a monthly basis and by 285,500 jobs year-over-year. Total construction employment was down by 51,000 jobs on a monthly basis and down by 356,000 jobs compared to March 2007.

Job declines within nonresidential construction are broad-based. Industrial building construction generated a 5,900 employment decline on a monthly basis while commercial building employment decreased by 5,100 jobs. Heavy and civil construction employment was down by 35,000 jobs and is positioned to continue to decline, given the state of various government budgets.

Of course, construction is not alone in generating job declines among major U.S. sectors. Total U.S. nonfarm employment was down by 80,000 jobs in March, the worst one-month performance in five years. Construction, manufacturing, trade/transportation/utilities, information, finance and professional and business services all reported negative growth in March compared to February.

What this means
Given the ongoing risk aversion apparent in the financial services sector, the state of government budgets and the generally slow to non-existent growth in the overall economy, nonresidential construction activities are set to slow further in the months ahead. Bidders for private and government contracts alike will find their macroeconomic environment becoming increasingly competitive, something already happening in many geographic markets, with an associated squeeze on margins.

back to top

************************************************************

Commercial construction up 11 percent. but ABC projects the peak is past
The Associated Builders and Contractors (ABC) announces its analysis on the April 1 U.S. Department of Commerce report on the US construction market.

Despite another lackluster month for home building, nonresidential construction has risen 11 percent over the past year and was up slightly in February (0.1 percent) on a monthly basis. Of the 16 reported nonresidential sectors, 14 showed year-over-year gains, including lodging (44.8 percent), manufacturing (28.1 percent; supported undoubtedly by a weak dollar), and public safety (27.6 percent). The two nonresidential segments generating less spending were religious construction (down 11.8 percent) and water supply construction (off 10 percent; a decline unlikely to persist given the emergence of water shortages in many American communities). The majority of nonresidential subsectors also reported increased spending on a monthly basis.

Overall, total construction spending nationally in February 2008 was $1.122 billion on a seasonally adjusted, annualized basis. This represents a 0.3 percent decline from a month earlier and a 3.5 percent retrenchment from year-ago levels. As has been the case in recent months, the decline in construction spending is explained more than fully by America’s faltering residential sector, in which spending declined 18.6 percent over the past twelve months.

What this means
According to ABC sources, the long-predicted decline in nonresidential construction has yet to occur. That said, nonresidential construction spending is now roughly flat, and if credit market issues continue to roil the broader economy, the industry will likely have to deal with stagnant revenues or worse over the next quarter or more as ABC has suggested in prior reports. Given the increasingly difficult lending environment, ABC predicts that the peak of the nonresidential construction cycle is now well behind us, and the data will likely reflect significant reductions in overall construction spending in the year ahead.

back to top

************************************************************

American Society Of Safety Engineers announce new construction safety standard for pile installation and removal
To prevent injuries and illness among construction workers exposed to hazards associated with the installation and extraction of piles during construction and demolition operations, the American Society of Safety Engineers (ASSE) recently announced the approval of the new voluntary consensus standard “Safety Requirements for Pile Installation and Extraction Operations” (ANSI/ASSE A10.19-2008).

According to the standard, a pile refers to a concrete, steel or wood column, which is driven or otherwise introduced into the soil, usually to carry a vertical load or to provide lateral support. The ANSI/ASSE A10.19-2008 standard is one of a series of voluntary consensus standards that focus on construction and demolition operations. The American National Standards Institute (ANSI) approved the standard on March 24, 2008.

“Preventing injuries and illnesses among construction and demolition workers is the goal of the A10 standard committee,” said A10 Committee Chair Richard F. King, CSP, CRSP. “Voluntary national consensus standards, such as the A10.19 standard, offer a balanced perspective based on the insights of the final users and the opinions of professionals who work at all levels of public and private sectors in technology development, safety and health, manufacturing, training, financial analysis, personnel and academia.”

According to the 2006 Bureau of Labor Statistics (BLS) Census of Fatal Occupational Injuries Summary (CFOI), construction accounted for 1,226 fatal work injuries, the most of any industry sector. In addition the CFOI indicated that the two occupational groups, construction and extraction occupations and transportation and material moving occupations, together made up almost half of all fatal work injuries in 2006. Also, construction and extraction worker fatalities rose six percent in 2006.

The A10.19-2008 standard applies to employment and places of employment where workers may be exposed to pile installation and extraction operation hazards during construction and demolition operations. The piles referred to in the standard include piles made of hot and cold rolled steel, concrete, wood and composite materials. This standard does not apply to structural steel erection covered in ANSI/ASSE A10.13 or ANSI/ASSE A10.16 voluntary consensus standards.

The A10.19-2008 standard will be available soon in both print and electronic format. For more information on A10.19 or other ANSI/ASSE construction and demolition related safety standards, contact ASSE Customer Service at 847-699-2929 or visit ASSE’s Web site, www.asse.org.

back to top

************************************************************