The BCA of Atlantic County hot topics page features new and interesting topics that affect the construction industry. Scroll down to read our most recent Hot Topics.
Please Note: To view information for the topics below, click on a tab. To close the tab simply click on the tab a second time.
INDUSTRY NEWS
February 2012
NATIONAL | February 10, 2012
Construction Adds Jobs But Unemployment Rate Still High
Construction companies added 21,000 workers in January, but even with some growth in recent months (31,000 construction jobs added in December 2011), the additional jobs are a small part of the 1.5 million jobs lost in the recession. The unemployment rate still clocks in high, above 17%.
NATIONAL | February 3, 2012
148 of 337 Metro Areas Add Construction Jobs in December
Construction employment picked up in 148 out of 337 metro areas from December 2010 through December 2011, decreased in 128 and stayed level in 61. In New Jersey, Atlantic City-Hammonton lost 500 construction jobs over the course of the year, an 11% drop. Camden lost 700 jobs, a 3% decrease. Bergen-Hudson-Passaic stayed steady, as did Trenton-Ewing and Vineland-Millville-Bridgeton. Edison-New Brunswick picked up 3,700 jobs, an 11% increase, while Newark-Union picked up 1,900, a 6% gain. Overall, the state gained 700 jobs, a 1% increase, moving from a total of 129,400 jobs in December 2010 to 130,100 jobs by year’s end 2011.
NATIONAL | February 3, 2012
Construction Spending Up in December
Construction spending rose in December more than in any month in the previous four. Building outlays increased 1.5%, private construction spending rose 2.1%, public construction rose 0.5% and federal construction inched up 0.3%. Economists had predicted a much smaller increase in building outlays, especially as the Commerce Department had revised November spending down from an estimated 1.2% gain to an actual 0.4% increase.
January 2012
NATIONAL | January 26, 2012
More States Add Construction Jobs in December
Analyzing Labor Department statistics, AGC of America reports more states added construction jobs year-over-year – December 2010 through December 2011 – than during any other period since November 2007. Construction employment rose in 28 states and the District of Columbia for the year. However, over the month – November to December 2011 – 24 states lost jobs and 23 added jobs, reflecting the ongoing economic stress in the industry. New Jersey gained 700 construction jobs over the year, but lost 2,800 from November to December, ranking 26th out of the 50 states and DC. In the region, New York, Pennsylvania and Connecticut fared better than New Jersey for the year. Delaware fared badly, ranked at 50th with a loss of 1,100 jobs representing 5.6% of the state’s construction employment for the year.
NATIONAL | January 23, 2012
Senate and House End Labor Dispute That Hampered FAA Long-Term Deal
The labor issue – changing the current rules for labor union elections in airlines – stemmed from a National Mediation Board ruling that made it easier for Delta Airlines employees to unionize. House Republicans opposed the ruling allowing unionization to be decided by a majority of those who vote, a ruling that negated a long-standing rule stating eligible voters who opted not to vote would be counted as voting against unionization. In the deal, Senate Democrats agreed to require a public hearing before the National Mediation Board makes future rulings. The deal also changes the way union elections are contested if the first ballot doesn’t show a clear winner between two unions vying to organize in the airline. Rather than a runoff between the two unions, the two top options could compete in a second ballot, with one of the options being a “no union” choice. Also, the deal requires a 50% worker representation to seek an election or decertify a union, rather than the current 35% required to seek an election. The current funding authorization for the FAA ends January 31, and the new authorization bill make not make that deadline, but it is expected to pass in the near future, extending funding for multiple years rather than four months at a time.
NATIONAL | January 23, 2012
Construction Materials Prices Drop, But Don’t Help Contractors
While construction materials prices dropped a bit in December, down 0.2%, they were up 5.3% for the year. Set against that increase, the amount contractors charge for construction projects rose only 3.3% to 4.7% for the year, reflecting the continuing squeeze on margins. And the drop for some materials was not enough to offset significant increases over the year. Diesel fuel, for example, dropped 7.8% in November, but was up 20.2% over December 2010. Copper and brass mill shapes and steel mill products also dropped in price at year’s end, but the decreases came off record-high prices posted early in 2011. Looking at project prices by market segment, the index for new industrial building declined 0.1% in December and was up only 3.3% for the year; new office construction climbed 0.2% in December and 3.9% for the year; new warehouse construction remained unchanged in December, up 3.8% for the year; and new school construction rose 0.1% for December, up 4.7% for the year. To boost demand, AGC of America calls on the federal government to “set permanent tax rates and enact long-term infrastructure and investment measures.”
NATIONAL | January 12, 2012
Construction Unemployment Rises Sharply in December
After descending over several months to 13.1% in November, construction unemployment jumped to 16% in December, despite the addition of 17,000 construction jobs. By segment, nonresidential building construction lost 3,000 jobs, offset by residential building construction, which gained 3,000. Nonresidential specialty trade contractors added 20,000 jobs in December, while residential specialty trades lost 3,000. Heavy and civil engineering construction numbers remained unchanged for the month.
NATIONAL | January 6, 2012
Construction Spending Continues Slow Upward Trend
November 2011 ended with construction spending up for the third time in four months. Spending rose 1.2% to a seasonally adjusted annual rate of $807.1 billion, still only half the $1.5 trillion economists consider healthy. Private construction spending climbed 1% from October to November, reaching $522 billion, the highest level since December 2009. Spending on public construction climbed 1.7%, and federal construction spending rose 5.3%, the biggest gain since August. State and local government spending also rose, to the highest levels since January 2011.
NATIONAL | January 6, 2012
Construction Employment Drops in 146 Metro Areas and 24 States
November construction employment dropped in 146 of 337 metro areas, including three in New Jersey. Atlantic City-Hammonton lost 500 jobs (11%) from November 2010 to November 2011; Trenton-Ewing lost 100 (2%) and Vineland-Millville-Bridgeton lost 100 (4%). The Allentown-Bethlehem-Easton, PA, metro area, which is included in the New Jersey-Delaware-Maryland division, lost 800 jobs year-to-year (5%). On a state-by-state basis, 24 states lost construction jobs from November 2010 to November 2011. New Jersey lost 200 jobs from October to November 2011, but was up 1,400 jobs (a 1.1% gain) for the year.
December 2011
NATIONAL | December 11, 2011
Presidents Announce Green Building Investments
On December 2, 2011, current President Obama and former President Clinton announced a $4 billion investment in green building, with half coming from federal agencies over the next two years and half coming from the private sector. The $2 million from the feds will go toward hiring contractors to perform energy-efficiency and other upgrades on federal facilities, while the private monies will cover up to 1.6 billion square feet of commercial and independent property, including 300 manufacturing plants. According to the Office of Management & Budget, the investment won’t impose any cost on taxpayers. OMB also said the contracts will be awarded based on the highest return on investment, with the results publicly reported. Both the US Chamber of Commerce and the Political Economy Research Institute at the University of Massachusetts at Amherst estimate the initiative could create 35,000 to 50,000 jobs.
NATIONAL | December 5, 2011
Unemployment Rates Drops, Construction Loses Jobs
The US unemployment rate dropped to 8.6% in November, reflecting both an increase in jobs and an increase in the number of Americans who left the labor force. Construction, on the other hand, lost 12,000 for the month.
LOCAL | December 5, 2011
Philadelphia Commits to Hiring Union Labor
Philadelphia has committed to hiring union labor on city-funded construction projects while the building trades pledged to hire more city residents and minorities on jobsites. Announced by Mayor Michael Nutter on Tuesday, the news comes after decades of battle between city management and construction unions. Union labor will be used on jobs valued at $5 million or more; 50% of the hours on those jobs will be set aside for city residents, with 32% for minority males and 7% for females.
NATIONAL | December 5, 2011
NJ Workers Fared Better Than Most From Payroll Tax Cut
A White House analysis reports New Jersey workers benefited more than workers in any other state from the temporary cut in payroll taxes implemented last year and due to expire at the end of this month. On average, workers in New Jersey saved about $872, 22% higher than the national average because New Jersey has some of the highest-paid workers in the country. President Obama is pushing Congress to extend and increase the tax cut for 2012.
November 2011
LOCAL | November 22, 2011
Construction on AC’s Hard Rock Casino Slated for July 2012
Assuming financing and regulatory approvals come through, Hard Rock International will begin construction next July on the first Atlantic City “boutique” casino, a 200-room hotel/casino/entertainment venue that is estimated at $465 million and expected to create 2,000 construction jobs and 1,500 permanent jobs. The Hard Rock’s CEO, Jim Allen, told the state’s Casino Control Commission on Wednesday he anticipates the first phase of the Hard Rock will open in Spring 2014, and the second phase, a 650-room tower, will be under construction within two years after that. Planned for phase one is a rock-and-roll museum, a Hard Rock Café overlooking the ocean and an outdoor pool on the beach, complete with fire pits, barbecue and live entertainment.
NATIONAL | November 16, 2011
Operating Engineers President Vince Giblin Abruptly Retires
Vince Giblin, President of the International Union of Operating Engineers, unexpectedly announced his retirement at an executive board meeting yesterday morning. While his retirement is officially effective at year’s end, he immediately vacated his office and indicated his service is done. The board elected General Secretary-Treasurer Jim Callahan (originally from Local 15 in New York) to fill the remainder of his term, which ends in April 2013, while Second General Vice President Brian Hickey became general secretary-treasurer for the duration of the term.
NATIONAL | November 16, 2011
October Construction Employment Declines
Nationwide, construction lost 20,000 jobs from September to October, driving the industry's unemployment rate up 0.4% to 13.7% (compared to 8.5% for the country as a whole). AGC of America’s analysis points to a continuing decline in public-sector projects as the primary cause of the loss, exacerbated by slow growth in private-sector investments. Employment in the construction industry has only risen 0.2% since October 2010. Breaking out the employment figures, AGC’s Chief Economist Ken Simonson said the nonresidential construction sector actually lost 23,000 jobs, but the overall industry figure was reduced because the residential sector picked up 3,700 jobs.
LOCAL | November 16, 2011
SDA Posts First Phase of Design Standardization
SDA has released model systems and components to be used during construction of new facilities, including standards for roofing, HVAC systems, flooring, finishes and more. Posted on the SDA website, www.njsda.gov/Design/index.html, the “Materials and Systems Standards Manual” and “Construction Details Manual” represent the first phase of the NJSDA Model Schools Program, the Authority’s implementation of a uniform design approach to all public school facilities. The remaining two phases, “Kit of Parts” and “2011 Design Manual” are expected to be released soon.
LOCAL | November 3, 2011
New Jersey Loses 11,100 Jobs in September
New Jersey lost 5,800 jobs in the private sector and 5,300 in the public sector for a total loss of 11,100 jobs, based on a survey of employers. At the same time, the unemployment rate, based on a survey of state residents, dropped to 9.2% from August’s 9.4%, indicating some former workers reported they were not actively seeking jobs. Economists in the state point to Hurricane Irene and Tropical Storm Lee for disruption in the labor market. New Jersey lost a total of 269,000 jobs during the formal recession period, December 2007 through June 2009. Since September of last year, the state recovered 17,700 jobs. In an effort to boost further recovery, Gov. Christie proposed a “State Strategic Job Growth Plan” last week. The plan updates the 2001 state plan and features “Regional Innovation Clusters” that will foster job creation and economic development free from red tape.
NATIONAL | November 3, 2011
House Votes to Repeal 3% Withholding Tax
The House voted, by a margin of 405 to 16, to repeal the 3% tax withholding bill. It now goes to the Senate, which is expected to repeal it as well, as a majority of Senators already voted to repeal the tax measure.
October 2011
NATIONAL | October 21, 2011
Construction Statistics Reflect Slim Gains This Year
Construction employment rose by 26,000 workers, or 0.5%, in September, bringing the total number to 5,551,000, the highest level since April 2010 but up only 37,000, or 0.7%, from last September. The unemployment rate continued to drop, hitting 13.3%, again reflecting former construction workers no longer seeking work in the industry. In the 337 metropolitan areas tracked by AGC of America, construction employment rose in 146 and fell in 145 from August 2010 to August 2011, while the other 46 measured no change. Statewide, New Jersey noted a 5,500 increase in construction employment, up 4% year-over-year. Atlantic City-Hammonton, however, saw construction employment drop 10%, down 500 jobs from last August. In Vineland-Millville-Bridgeton, construction employment dropped by 100 workers, a loss of 4%. Edison-New Brunswick grew the most, adding 3,500 workers, a gain of 9% over last year. Across the country, non-residential building posted the strongest monthly and year-over-year numbers, gaining 2% in September, up 3.2% from a year ago. Construction spending in August, at $799 billion, rose 1.4% from July and 0.9% from August 2010.
NATIONAL | October 21, 2011
House Saves Fly Ash from Hazardous Designation
Long a favorite of construction managers and architects going for LEED certification on a project, fly ash was in danger of being regulated as a hazardous material by the EPA. But H.R. 2273, supported by AGC of America, passed in the House today, rescuing fly ash along with other coal combustion residuals and allowing for their continued benefit in construction. Fly ash is used in concrete to enhance performance, strength, durability and lifespan, and helps earn LEED credits as a construction practice that reduces and recycles waste.
NATIONAL | October 16, 2011
IRS Backs Off Worker Misclassification Enforcement
Last year the IRS was talking tough about employers who misclassified employees as “independent contractors,” citing the millions of dollars in tax revenues lost. Now the IRS has introduced a new initiative whereby employers can resolve misclassification issues by voluntarily reclassifying workers and paying small amounts to cover past payroll tax obligations. The Voluntary Classification Settlement Program, announced last month, requires employers to treat workers as employees and repay just over 1% of the wages paid to reclassified workers for the prior year. Employers pay neither penalties nor interest, and they won’t be audited on payroll taxes related to misclassified workers for prior years. However, for the first three years after employers join the program, they are subject to a six-year statute of limitations on payroll tax audits, rather than the usual three-year term. FAQs can be found on the IRS website, www.irs.gov.
LOCAL | October 7, 2011
Chicago Firm Chosen to Develop AC Master Plan
The Casino Reinvestment Development Authority must submit a master plan for Atlantic City’s Tourism District by February 1, 2012, only four months away. So the CRDA selected a firm it knows – Jones Lang LaSalle Americas of Chicago – to develop the master plan for $799,700. The CRDA originally hired the firm in 2007 for a $350,000 fee to study development options for the former Bader Field airport.
NATIONAL | October 7, 2011
Obama Moves to Expedite New Power Lines – Including New Jersey’s Project
The Obama administration moved this week to expedite the EPA approval process for seven proposed electric transmission lines in 12 states – including the North Jersey project we’ve been tracking in Hot Topics. The 145-mile, 500 kV line would run from Roseland into Pennsylvania, crossing through federal parkland at the Delaware Water Gap. Collectively, the projects in Arizona, Colorado, Idaho, Minnesota, New Mexico, Nevada, New Jersey, Oregon, Pennsylvania, Utah, Wisconsin and Wyoming are expected to create thousands of jobs and dramatically upgrade the power grid. The administration wants them to serve as pilot demonstrations of streamlined federal permitting and improved cooperation among various state and federal agencies. If the process works as planned, the New Jersey project could be approved by late next year.
NATIONAL | October 7, 2011
Construction Spending Up Slightly July to August
Construction spending went up 1.4% from July to August, which overall lifted it 0.9% over August 2010. While public-sector activity increased 3.1% for the month, it clocked in at 6.3% lower than August 2010. Private-sector spending, in contrast, increased only 0.4% month to month, but is up 5.6% over last year, a modest rise that reflected a jump in spending on power construction, offset by a decline in lodging construction.
September 2011
LOCAL | September 24, 2011
EDA Approves Financial Incentives for Newark’s Teachers Village
Estimated at $142 million, the Newark Teachers Village project can move ahead, thanks to approval from EDA on a package of financial incentives. According to EDA, approximately $5.265 million of the cost will be financed through a Redevelopment Area Bond (RAB). Also included in the financial plans is $22.75 million to be financed through a Qualified School Construction Bond (with $13 million to come from Newark and $9.75 million from the State), along with a variety of tax credits and grants. As we told you in a previous Hot Topic, Teachers Village will become a town within the city’s Central Ward, offering three charter schools, 242 housing units for teachers, a daycare center, and a retail section with businesses and restaurants. Teachers Village is scheduled for completion in 2014.
LOCAL | September 24, 2011
College of New Jersey Could Use Private Funds for Campus Project
First Montclair State University built a $211 million dorm using private funds in a public-private partnership allowed under the New Jersey Stimulus Act of 2009. Now, if the EDA approves, The College of New Jersey in Ewing will also bypass public-bidding laws and partner with a developer to build a $50 million “Campus Town.” The project would provide 216,000 sq.ft. of student housing and 80,000 sq.ft. for a bookstore, gym, restaurants and perhaps a drug store or convenience store, and would be completed by fall 2013.
LOCAL | September 24, 2011
Chemical Companies to Build $60 Million Plant in Princeton
Three chemical companies have partnered to form Natronx Technologies LLC in Princeton to produce and sell sodium-based chemicals used in pollution control. The new company plans a $60 million plant that can produce 450,000 tons of “sorbents” that help coal-fired utilities remove pollutants such as acid gases. Church & Dwight manufactures household products under the Arm & Hammer brand, FMC Corp. is an agricultural chemical company and TATA Chemicals makes industrial-use soda ash. The three partners predict the market for chemical sorbents will grow to between $200 and $400 million by 2015. The plant will be completed by the end of 2012.
NATIONAL | September 24, 2011
August Construction Starts and Employment Stats
The value of nonresidential construction starts in August rose a significant 19% above July’s starts. Broken down into segments, commercial starts were up 6.7% over the month before, and institutional starts rose 27% (primarily in healthcare facilities in Texas, California and Maine). Hotel construction surged 125% over July, warehouse construction grew 30% and store construction advanced 18%. Most of the jump is attributed to specific, large-value projects in states across the country, but none in New Jersey. However, while construction employment declined in 25 states in August and gained in 22, it remained steady in three, including New Jersey.
LOCAL | September 24, 2011
New Jersey to Get $7.7 Million National Emergency Grant
The US Department of Labor announced yesterday New Jersey will receive $7,795,700 in a National Emergency Grant to help with recovery efforts for damage caused by Hurricane Irene. Of that, $2,598,567 will be made immediately available to the New Jersey Department of Labor for distribution. The rest will be issued based on demonstrated need.
NATIONAL | September 15, 2011
House Votes to Extend FAA Funding
Yesterday, three days before deadline, the House voted to extend authorization – and therefore funding – for the Federal Aviation Administration for six months. The Senate is expected to pass its version of the bill this week. The House Transportation and Infrastructure Committee hopes to craft a long-term, i.e., four-year, authorization bill before the January deadline.
NATIONAL | September 15, 2011
E-Verify’s Self Check Expanded, Now in New Jersey
US Citizenship and Immigration Services announced that “Self Check” has been expanded to 16 additional states, including New Jersey. Self Check is a free online service of E-Verify that allows individuals to confirm their own employment eligibility – and start the correction process if they find errors. Self Check launched in March 2011 in Arizona, Colorado, Idaho, Mississippi, Virginia and Washington DC. As well as New Jersey, Self Check is now available to residents in California, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, Nevada, New York, Ohio, South Carolina, Texas, Utah and Washington. Self Check is also available in Spanish.
NATIONAL | September 10, 2011
Construction Employment Shows Mixed Trends In US and NJ
Construction employment totaled just over 5.5 million jobs in August, down 5,000 from July, up 4,000 over the year and 2.2 million (29%) below the April 2006 peak. In August of 2010, the unemployment rate hit 17%. A year later, it has fallen to 13.5%. But more troubling is the decline in the number of unemployed people who previously worked in construction – a drop of 329,000 – suggesting workers are leaving the industry. If they leave permanently, AGC of America Chief Economist Ken Simonson predicts future expansion will be harder to achieve. Nonresidential building and specialty trade contractors together shed 7,400 jobs in August and 5,400 jobs over the past 12 months. New Jersey added 2,600 construction jobs overall in July compared to July 2010, but the growth was uneven, with jobs added in Edison-New Brunswick and Newark-Union and lost in Atlantic City-Hammonton, Camden, Trenton-Ewing and Bergen-Hudson-Passaic over the year. Construction employment remained unchanged over the 12 months in Vineland-Millville-Bridgeton. Nationally, construction spending dropped 1.3% from June to July, and July’s total was nearly
August 2011
NATIONAL | August 12, 2011
July Construction Employment Improves
Across the country, July construction employment reached its highest level in 15 months, adding a net 8,000 jobs. The unemployment rate dropped to $13.6%, down from 17.3% in July 2010. Nonresidential building and specialty trade segments added 10,200 in July, reflecting an uptick in factory, power plant and hospital projects. The unemployment rate, which fell sharply in just two months, indicates that many construction workers have left the industry to find work elsewhere.
July 2011
NATIONAL | July 31, 2011
Update on Lead Renovation Rule
The US EPA will not expand the Lead Renovation, Repair and Painting rule to include lead-dust sampling and clearance testing, as the agency had originally planned. The expanded regulations would have placed undue burden on contractors to take costly steps to prove the absence of lead following completion of a project. As the rule stands, contractors are required to wipe down disturbed surfaces at the end of the job and match the result to an EPA-approved card to determine if lead dust is present.
LOCAL | July 31, 2011
FAA Shutdown Halts NJ Airport Construction Projects
The FAA was forced to furlough non-essential workers at midnight on Friday, July 22, 2011, when Congress failed to avert a funding shutdown. For New Jersey, that meant a halt to scheduled payments for construction projects at several airports in the state: Atlantic City International Airport ($171,000); airports in Hammonton, Lakewood, Ocean City and Toms River ($127,500 each); Millville Airport ($58,000); and Cape May Airport ($23,000). In total, $44.7 million in FAA funding for New Jersey projects was delayed, including work on the Next Generation Air Traffic Control System at the William J. Hughes Technical Center in Egg Harbor Township, where 639 of the state’s 651 furloughed FAA employees work.
NATIONAL | July 31, 2011
FAA Shutdown Costs 70,000 Jobs
AGC of America estimates the FAA shutdown will put 70,000 workers in construction and related fields out of work. The AGC analysis, commissioned from George Washington University, reports 24,000 construction workers and 11,000 service and supply workers immediately unemployed, with another 35,000 jobs expected to be lost in the broader economy due to the loss of construction work. Other job-loss estimates have also emerged since the shutdown last Friday at midnight, including 90,000 predicted by the Obama administration and 80,000 predicted by the Laborers’ International Union of North America. Given the impasse in Congress over the debt ceiling, construction workers are likely to be unemployed for weeks.
NATIONAL | July 14, 2011
Construction Employment Numbers Predict Disturbing Future
Nationally, construction employment totaled 5.5 million in June, down 9,000 from May and up 2,000 from June of last year. The unemployment rate, however, dropped to 15.6% from 20.1% last June, not reflected in new jobs and telling a tale of workers leaving the industry, perhaps through retirement, returning to school or finding jobs in other industries. AGC of America’s Chief Economist Ken Simonson does not see the unemployment rate drop as positive, stating “…the lack of hiring means that people are leaving construction…That will make future expansion all the more difficult.”
LOCAL | July 5, 2011
AC’s Steel Pier To Be Auctioned Off
Adding another chapter to its colorful history, the Steel Pier, directly across from the Trump Taj Mahal in Atlantic City, will be auctioned off on August 25, 2011, with a starting bid of $2.5 million. Former home to the Diving Horse, a high-wire motorcycle act, the Human Cannonball and the original Miss America Pageants in the 1920s, the Steel Pier hosted Big Band icons such as Guy Lombardo, Benny Goodman and Jimmy Dorsey, and a roster of headline entertainers that included W.C. Fields, Mae West, Charlie Chaplin, The Three Stooges, Bob Hope, Amos ’n’ Andy and Frank Sinatra. Currently it holds an amusement park with 24 rides, games, prize wheels and a food court, producing income on a lease through 2016. Because of the permits it has in place, the Steel Pier could become a mixed-use development with a hotel, casino, bar and restaurant, spa or luxury condos. CB Richard Ellis will handle the auction, scheduled for 12 Noon on that August Thursday at the Trump Taj Mahal.
June 2011
LOCAL | June 24, 2011
Hard Rock Seeks Boutique Casino Under New Law
As you know, BCANJ supported the initiative to create a pilot program for “boutique” casinos in Atlantic City, a program passed into law in January. Taking us one step closer to seeing the first such casino become reality, the Seminole Indian tribe filed documents with the state for an environmental permit to build a new “Hard Rock” casino on the Boardwalk, a $275 million project built in phases that would eventually offer 850 hotel rooms.
NATIONAL | June 24, 2011
AGC Calls Construction Job Growth “Sluggish” While Costs Rise
Across the country in May, 23 states gained construction jobs while 27 states lost construction jobs. Comparing May of last year to May 2011, nationwide construction employment remained the same. New Jersey lost 900 construction jobs in May, down 2,800 jobs compared to May 2010, a 2.1% drop. The US Department of Labor reports a total of 127,800 construction jobs in New Jersey for May 2011. AGC Chief Economist Ken Simonson reports the cost of materials rose at a rate “roughly double the perceived rate of general inflation.”
LOCAL | June 18, 2011
Campbell Soup Employee Center Earns LEED Silver
Campbell’s new Employee Center, an 80,000 sq.ft. addition to its World Headquarters in Camden, has earned LEED Silver certification from the US Green Building Council. The Center opened a year ago, and anchors a revitalization effort for Camden’s Gateway District. BCANJ member Torcon, Inc., of Red Bank served as general contractor on the project.
NATIONAL | June 8, 2011
AGC Safety Director Picked for OSHA Advisory Board
AGC of America’s Director of Safety and Health Services, Kevin R. Cannon, has been appointed to the US Department of Labor’s Advisory Committee on Construction Safety and Health for a two-year term. The committee reports to OSHA head David Michaels.
LOCAL | June 7, 2011
Robert Mulcahy Joins Casino Reinvestment Development Authority
Former president of the New Jersey Sports and Exposition Authority and former Rutgers Athletic Director Robert E. Mulcahy was approved by the Senate Judiciary Committee to serve on the Casino Reinvestment Development Authority. Mulcahy apparently will waive the $18,000 compensation.
NATIONAL | June 7, 2011
Construction Unemployment Rate Lower But Employment Numbers Same
May’s national construction unemployment rate dropped to 16.3% from April’s 20.1%, but the number of people employed in construction remained unchanged over the period, indicating that individuals may have found work in other industries or withdrawn from the labor force due to retirement, returning to school, giving up looking for construction work or other reasons. In the meantime, construction spending in April rose 0.4% over March, but still down 9.3% from April 2010.
May 2011
LOCAL | May 24, 2011
SOLD! Trump Marina Sale Approved
A Golden Nugget has come to Atlantic City, as regulators approved the $38 million sale of Trump Marina to Landry’s, owner of Nevada’s Golden Nugget casinos. Even more golden is the $150 million Landry’s owner Tilman J. Fertitta has proposed to revive the casino, which is now officially renamed the Golden Nugget Atlantic City. In addition to extensive renovations, plans could include a second hotel tower to expand the 740-room inventory.
NATIONAL | May 16, 2011
April PPI: Construction Inputs vs. Outputs Intensify Contractor Squeeze
The April PPI for inputs to the construction industry rose 1.4% over March, and 7.1% over April of last year, while the PPI for finished buildings rose much less, causing AGC of America’s Chief Economist Ken Simonson to describe the sharp rise as “further intensifying the ongoing cost squeeze on contractors.” PPI for new industrial buildings increased 0.8% for the month, 1% for the year; offices, 0.8% and 1.5%; schools, 1.1% and 1.6%; warehouses, 0.8% and 1.7%. Commodities that contributed disproportionately to the increase in inputs include diesel fuel, up 5.7% for the month, 42% for the year; copper and brass mill shapes, up 2.6% for the month, 14% for the year; steel mill products, up 2.2% and 13%; and aluminum mill shapes, up 2.8% and 9.1%. Finally, nonresidential construction starts jumped 12% in April over March, 14% above April 2010 levels.
NATIONAL | May 10, 2011
Final Regulations Issued on 3% Withholding Law
Yesterday the IRS released final regulations for the implementation of the 3% withholding law. The final regs delay the effective date until January 1, 2013. However, payments that were excluded under existing contracts will now be included after one year, so that all payments will be subject to the 3% withholding beginning January 1, 2014. AGC of America is continuing to work with its coalition partners toward full repeal of the 3% withholding requirement. For more information, visit AGC’s Legislative Action Center at www.agc.org.
NATIONAL | May 6, 2011
April Construction Employment Up Another Notch
April construction employment rose by 5,000 jobs, marking the third straight month of gains. The rise brought the total number of construction jobs to 5,524,000, down 29% (2,200,000 jobs) since the peak in April 2006. The April unemployment rate hit 17.8%, down from 21.8% in April 2010 but still higher than any other industry and double the national overall rate of 8.7%. Stimulus, military base realignment and flood prevention projects boosted jobs in heavy and civil engineering by 12,700 jobs in April, but all other construction segments lost jobs. Nonresidential building lost 1,200 jobs in April.
NATIONAL | May 3, 2011
March Construction Spending Up After Three-Month Decline
The US Commerce Department reported March construction spending rose 1.4% after falling for three straight months. But February’s spending was so low – the steepest decline in a decade – that the increase only put March spending at about half what economists consider healthy. Private construction increased 2.2%, reflecting a 2.6% rise in residential construction and a 1.6% increase in nonresidential spending. In the nonresidential category, factory construction and expansion led the rise with a 5.5% increase, followed by hotel/motel spending, up 4.7%, and office building, up 1.4%. Federal construction spending dropped 2%, state and local spending rose 0.3%.
April 2011
NATIONAL | April 21, 2011
March Construction Employment Falls in 27 States
The March figures are out, and the AGC of America analysis is again grim. Construction employment decreased in 27 states and the District of Columbia from February to March, and in 33 states for the year, March 2010 through March 2011. New Jersey lost 300 construction jobs in March and 3,300 for the year, ranking it #31 among the 50 states and DC (#1 being the healthiest state – Tennessee – in terms of construction employment). Among New Jersey’s neighboring states, Connecticut, Delaware, New York, Pennsylvania and Rhode Island all lost construction jobs in March, but over the year, Connecticut, Delaware and Pennsylvania gained jobs.
NATIONAL | April 18, 2011
Cost vs. Demand Squeezes Contractors
March figures showed the costs for key construction materials continued to rise while the prices contractors charged remained flat. Diesel fuel and metals prices packed the biggest punch. Diesel prices jumped 11% in March, 42.5% for the year from March 2010 to March 2011. Copper and brass mill shape prices actually dropped 6% in March, but were still up 17% over a year ago. Steel mill product prices rose 5.3% for the month, 15% for the year, and aluminum mill shape prices rose 1.9% for the month, 12% for the year.
AGC of America Chief Economist Ken Simonson noted, “Construction spending has sunk to 1999 levels, forcing contractors to keep bid prices down to win projects, despite huge price increases for key inputs. That steadily widening gulf threatens to put construction firms out of business and their employees out of work.” AGC urged federal officials to adopt a series of recovery measures outlined in AGC’s latest Blueprint for Economic Recovery, released last month.
LOCAL | April 14, 2011
More Revitalization Plans for AC
Atlantic City’s future looks even brighter following yesterday’s announcement of revitalization plans by the Casino Reinvestment Development Authority. The proposals include a new residential and commercial development near The Walk, housing for students and casino workers in “underused” sections of the city, consolidating government offices downtown to generate more economic activity, an arts district, and an “Eds and Meds” district of educational and medical facilities.
NATIONAL | April 11, 2011
New LEED Healthcare Standard Released
This week, the US Green Building Council announced the launch of its LEED standard for healthcare, LEED-HC. Released as a pilot in 2007, the standard is now finalized. According to the USGBC, more than 225 facilities have been certified to the standard and 1,176 are registered as LEED-HC projects. The rating system guides the design and construction of new buildings and major renovations of existing buildings, including inpatient, outpatient and long-term care facilities, medical offices, assisted living facilities and medical education and research centers.
LOCAL | April 11, 2011
NJ Construction Employment Still Bleak
AGC of America released its monthly analysis of metro area construction unemployment for February 2011 compared to February 2010 and, while New Jersey’s picture still looks grim, it improved over the January 12-month profile. The state lost 2,300 construction industry jobs this February compared to last, a 2% loss. Edison-New Brunswick lost the highest number of jobs this February, down 600 from last year, while Trenton-Ewing lost the highest percentage, 8%. Atlantic City-Hammonton and Bergen-Hudson-Passaic metro areas showed no change. Out of 347 metro areas across the country, Vineland-Millville-Bridgeton ranked lowest among the New Jersey group at 249.
NATIONAL | April 4, 2011
Construction Jobless Rate Improves, But Activity Drops
Nationally, the construction unemployment rate clocked in at 20% in March, down from February’s 21.8% and marking a third consecutive month of improvement. Building construction picked up 3,200 jobs. Also hopeful was the rise in architectural and engineering jobs, up 5,200 for March. But construction spending still continues to drop, down 1.4% in February, which put it at the lowest point since October 1999. Non-residential construction was the only sector to show an increase in spending, rising just under a percentage point.
March 2011
LOCAL | March 22, 2011
Revel Signs Labor Unions for Casino O&M
When the Revel Casino opens in 2012, operations and maintenance will be run by three labor unions. New Jersey Regional Council of Carpenters Local 623, Operating Engineers Local #825 and Painters and Allied Trades District Council 711 all signed contracts with Revel Entertainment Group
LOCAL | March 22, 2011
New Jersey Cities Get Federal Grants Totaling $7 Million
Sixteen New Jersey cities in three counties will receive $7 million from a federal “Small Cities” grant to be used to rehabilitate housing, build ramps for the disabled and improve public infrastructure. Lower Township will receive the largest slice, $700,000, which will be split between two projects. Located in Warren, Salem and Cape May counties, the other cities include Burlington City, Cape May City, Commercial Township, Dover, Egg Harbor, Gloucester City, Middle Township, Montague, Palmyra, Penns Grove, Riverside, Sea Isle City, Wildwood, Woodbine and Woodstown.
NATIONAL | March 14, 2011
Construction Unemployment Improves Slightly
Last February, construction unemployment was a skyrocketing 27.1%. Based on a March 2011 Bureau of Labor Statistics report, this February it came in at 21.8%. With a 33,000 gain in jobs, February showed a definite improvement over last year and a slight improvement over January 2011’s rate of 22.5%, when 22,000 jobs were lost. Non-residential building was the only sector to lose jobs in February, dropping 2,000. Construction industry unemployment still remains the highest by far of all US industries.
LOCAL | March 10, 2011
No School Construction Referendums This Month
The most recent school construction referendum date was set for March 8, but for the first time since the calendar of special elections was established in 2002, no school districts proposed a construction bond referendum. According to the New Jersey School Boards Association, the number of referendum proposals has been declining each year, and this month’s no-show reflects both the poor economy and a leveling-off of school enrollment.
November 2010
LOCAL | November 15, 2010
NJ Alliance for Action’s Construction Forecast Down 30%
Following its 26th Annual Construction Forecast Seminar, the New Jersey Alliance for Action released two-year public and private construction estimates totaling $25.2 billion, down $11 billion (30%) from last year’s forecast. The biggest hit was NJ Transit, which projected $4.7 billion last year, and only $320 million this year, reflecting the demise of the ARC tunnel project.
NATIONAL | November 15, 2010
FASB Postpones Release of Multi-Employer Plan Exposure Draft
FASB announced yesterday it would not release the proposed Exposure Draft on multi-employer plan disclosure until sometime in the second quarter of 2011. The Accounting Board had originally planned to release the draft by year’s end, but received “too much information to digest” in response to the draft. Bulletin #97-10 on the “Members Only” section of this website contains more details, and BCANJ will continue to keep members posted on developments.
LOCAL | November 3, 2010
AC Gambling Dollars Down But Other Spending Up
The Gaming Industry Observer, published by Atlantic City’s Spectrum Gaming Group, a casino consulting firm, reports gambling dollars spent on Atlantic City slot machines and card and roulette tables dropped 23% since 2007. But dollars spent on Atlantic City hotel rooms is up 21%, and money spent on food and drink is up 6%.
LOCAL | November 3, 2010
AC Airport Closer to Going International
Atlantic City International Airport’s planned $25 million terminal expansion can now proceed, after a three-panel judge rejected a legal challenge to the project. Under the direction of the South Jersey Transportation Authority, construction will take approximately 18 months and will expand the baggage-claim area to include a federal inspection station for US Customs Service processing.
LOCAL | November 3, 2010
Court Blocks Part of Fort Monmouth Redevelopment Plan
When Fort Monmouth closes next year, part of the proposed redevelopment plan on the 1,227-acre site called for housing. But a state appeals court struck down that part, citing three key reasons: 1) The planning authority didn’t consult with a housing authority committee as required by state law; 2) The plan doesn’t address housing needs based on such factors as the employment that would result from businesses that locate there; and 3) the plan leaves housing decisions to the three communities on which Fort Monmouth sits – Eatontown, Oceanport and Tinton Falls – rather than a regional plan as required by state law. The court’s decision could also affect similar plans in the Highlands, Meadowlands and Pinelands, covering 158 municipalities and as much as a quarter of the state.
LOCAL | November 3, 2010
NJ Community Health Centers Share $50 Million From Feds
Through the US Affordable Care Act, 20 New Jersey community health centers will share approximately $50 million for construction, renovation and expansion at federally qualified community health facilities. Three of the largest grants were awarded to Newark Community Health ($7.7 million to double the size of a Newark facility and revamp an East Orange site), Ocean Health Initiatives in Lakewood ($5.8 million) and Southern Jersey Family Medical Centers ($5.5 million). Southern Jersey Family has a mobile medical unit and eight facilities in Atlantic City, Burlington City, Pemberton, Hammonton, Pleasantville and Salem. Construction work on federally qualified community health facilities pays prevailing wage under federal Davis-Bacon Act rules.
NATIONAL | November 3, 2010
Bureau of Labor Statistics Releases Latest Construction Injury Data
On October 21, 2010, BLS reported non-fatal construction injuries and illnesses on the job were down 22% in 2009 (251,000 reported). More significant, the industry’s injury/illness rate dropped last year to 4.3 incidents per 100 workers, down from 4.7 in 2008.
LOCAL | November 3, 2010
Casino Group Invests in Aviation Tech Park
In a previous Hot Topic we told you of the South Jersey Economic Development District’s planned development of a “Next Gen” Aviation Research and Technology Park at the Federal Aviation Administration William J. Hughes Technical Center in Pomona. Now the Casino Reinvestment Development Authority has authorized $3 million toward construction of the first building on the 55-acre campus, a 5,000 sq.ft. laboratory estimated to cost $18 million. When it’s complete, the Next Gen Park will include seven buildings supporting research, testing and development of the “Next Generation Air Traffic Control System.”
LOCAL | November 3, 2010
NJ Charter Schools Can Apply for Low-Interest Bond Funding
Just like public schools, New Jersey Charter Schools can now compete for $30 million in low-interest bond funding from the state to finance new classrooms and other building construction. The deadline to apply is November 19, 2010, and NJ Economic Development Authority CEO Caren Franzini said EDA is looking for projects that are ready to build.
LOCAL | November 3, 2010
Fort Monmouth Economic Revitalization Authority Begins Work
The Fort Monmouth Economic Revitalization Authority approved bylaws and a budget of $1.52 million for the last quarter of this year, kicking off its job overseeing redevelopment of the 1,126-acre Fort Monmouth site. Sitting on the Authority board are three mayors – from Oceanport, Eatontown and Tinton Falls – whose townships share the location and contribute 10 % of the Authority’s budget. The other 90% comes from the federal government.
October 2010
LOCAL | October 22, 2010
NJ Business Action Call Center Open for Business
The state has opened a new Business Action Call Center in Trenton, intended to help businesses get answers to questions about state taxes, regulations, permits, business expansion and relocation and other related issues. Part of the Christie administration’s initiative to make the state more business-friendly, the call center opening was hosted by Lt. Governor Kim Guadagno. Business Action Center: 866.534.7789.
NATIONAL | October 4, 2010
President Obama Signs Small Business Jobs Act
On September 27, 2010, President Obama signed the Small Business Jobs and Credit Act (HR 5297), which immediately allows businesses large and small to write off 50% of the cost of depreciable property purchased during 2010. This provision is an extension of the bonus depreciation provision in the 2008 and 2009 economic stimulus acts. Expanding another provision of the previous stimulus acts, the new law increases the expense limitation under Section 179 expensing to $500,000 with a phase-out threshold of $2 million for 2010 and 2011.
LOCAL | October 1, 2010
Feds Award $13 Million for NJ Airport Projects
Eight New Jersey airports received more than $13 million from the Federal Aviation Administration for safety and environmental projects. Grants were awarded to Atlantic City International, Cape May County, Essex County, Millville Municipal, Newark Liberty International, Ocean City Municipal, Teterboro and Trenton Mercer airports. Trenton Mercer received the largest slice, $3.1 million to rehabilitate taxiways.
LOCAL | October 1, 2010
Stockton College Master Plan Approved
The New Jersey Pinelands Commission unanimously approved the Facilities Master Plan for Richard Stockton College of New Jersey. The plan permanently preserves more than 1,200 acres of Pinelands in Galloway Township, and allows the college to expand its physical plant.
September 2010
LOCAL | September 3, 2010
GOMES GAMING TO ACQUIRE RESORTS CASINO HOTEL IN ATLANTIC CITY
Gomes Gaming, Inc., has agreed to acquire Resorts Casino Hotel in Atlantic City from RAC Atlantic City Holdings LLC. Resorts changed hands last year when lenders took possession from Colony Capital, LLC.
Gomes, the CEO of Gomes Gaming of Margate City, has managed some 14 gaming properties across the country throughout his 30-year career in the industry, including Trump Entertainment Resorts and Steve Wynn. The current acquisition is subject to approval by the New Jersey Casino Control Commission.
The two hotel towers at Resorts include 942 rooms, 100,000 square-feet of gaming space, 45,000 square-feet of convention, ballroom and meeting space, 20,000 square-feet of retail space and eight restaurants. The property has some 10.5 acres available for expansion.
August 2010
LOCAL | August 23, 2010
Urban Transit Hub Act to Include Wind Mill
Governor Christie signed S2036/A2873 into law, expanding the Urban Transit Hub Tax Credit Program to include a wind-energy facility constructed within an eligible wind-energy zone. Specifically, the revised program allows a tax credit for construction of a wind mill in the South Jersey Port District. At $50 million, the minimum capital investment requirement for such projects remains the same as codified in the original program, but the minimum job requirement is more stringent, at 300 new full-time employees as opposed to 250 full-time employees.
NATIONAL | August 23, 2010
US Army Corps of Engineers Drops PLA Requirement
On August 18, 2010, the US Army Corps of Engineers called AGC of America to announce it was withdrawing a construction project requirement to submit an executed project labor agreement. AGC had expressed concern over the requirement and had initiated urgent appeals to the high-ranking officials in the Army Corps.
NATIONAL | August 11, 2010
July Construction Employment Drops 11,000 Jobs
Construction firms cut 11,000 jobs in July, according to the latest report from the Labor Department, setting unemployment in the industry at 17.3%, nearly double the national overall rate of 9.5%. July was the third consecutive month of job losses in construction.
July 2010
LOCAL | July 30, 2010
$270 Million in Facilities Grants Approved for Schools
In a news release on July 28, 2010, Governor Christie announced 177 school districts are eligible for $270 million in state funds to offset the cost of 740 capital maintenance and construction projects, estimated at $697 million. The grants represent about 40% of the cost of the projects, which would generate as many as 6,000 jobs during construction. A report on the allocations is posted on the NJ Department of Education website:
www.nj.gov/education/facilities/projectapplication/rod/aprod.pdf
NATIONAL | July 30, 2010
AGC of America Recommends Regulations Moratorium
AGC of America CEO Stephen Sandherr called for a one- to two-year moratorium on new federal regulations. Sandherr was a participant in an “America Speaking Out” event on July 16, 2010, hosted by Republican Congressmen. He also noted that private owners finance 70% of construction projects, stating the Bush tax cut should remain to ensure available capital. Sandherr’s moratorium suggestion was later reiterated by House Republican leader Rep. John Boehner (R-Ohio), who said a moratorium would send “a wonderful message to the private sector that they’re going to have some breathing room.”
LOCAL | July 30, 2010
New Jersey’s Industrial Market Improving
CB Richard Ellis’ Second Quarter 2010 New Jersey Industrial MarketView reports an improvement in the state’s industrial market, marked in 2Q10 by a steady stream of new leases and lease renewals and a “dramatic” improvement in sales activity. While availability increased “slightly” during the quarter, the negative figures were offset by a 127% increase in sales of industrial space, which reached 2.82 million square feet, in lease renewals of 3.43 million square feet, and in new leases of 3.8 million square feet. That activity is significantly higher than any quarter since the first quarter of 2008.
NATIONAL | July 20, 2010
Construction Starts Continue to Climb
Construction starts for the first six months of 2010, not counting residential, were up 13% overall compared to the same period a year ago, and June starts were up 2.9% over May. Reed Construction Data reports that, although the value of construction starts is still 25% below the pre-recession peak, it has now held steady for four months. By category, the value of commercial starts in June was down 0.4%, but institutional value was up 18.6% and non-residential building value was up 11%.
June 2010
NATIONAL | June 22, 2010
May Construction Unemployment Declines in Half the States
Construction employment declined from April to May in 25 states, and from May 2009 to May 2010 in 45 states. In New Jersey, another 700 jobs were lost in the past month. More than 10% of the state’s construction jobs – 14,100 – have disappeared in the last year, ranking New Jersey at 34 out of 50 states and the District of Columbia.
NATIONAL | June 21, 2010
May Construction Starts Up
For the third month in a row, construction starts increased, both year-over-year and by month. May construction starts, excluding residential, were up 9.8% more than May 2009, and up 16.3% over April 2010. While there is usually a seasonal gain in May, the numbers were slightly more than just the usual, and have remained steady for three consecutive months even allowing for seasonality. Breaking out the segments and comparing the first six months of 2010 over the same period in 2009, commercial building was down 6.6%, institutional building was up 9.7% and other non-residential building was up 3.4%. Jim Haughey, Chief Economist for Reed Construction Data, predicts starts will remain steady for several months and begin to rise at year-end.
NATIONAL | June 8, 2010
April Construction Numbers Surprisingly Strong
Nationally, April construction spending rose 2.7%, much higher than the 0.1% expected, representing the largest increase in construction spending since August 2000. Even the slim March spending figure was adjusted upward from 0.2% to 0.4%. Comparatively, however, the picture is still grim. This April’s spending is down 10.5 % from April 2009. Nonetheless, total private construction outlays rose 2.9% and nonresidential construction rose 1.7%. Increases were seen in the construction of hotels, factories, power plants, and communications, religious, healthcare and recreation facilities. Office and commercial construction fell, as did education and transportation building, but public construction rose 2.4%. All this faint good news encouraged Morgan Stanley to revise its second-quarter Gross Domestic Product forecast from 3.5% to 3.7%.
LOCAL | June 21, 2010
59 School Districts Awarded State Grants for Facilities Projects
SDA CEO Marc Larkins announced that 142 facilities projects at 111 schools in 59 districts will receive Regular Operating District grant funding, made available from the sale of $500 million in bonds by the NJ EDA. The grants, totaling $36.9 million, will cover at least 40% of the eligible cost for these projects, which have a total estimated cost of $77.5 million. For a list of schools and estimated project costs, visit http://www.njsda.gov/Archive/2010/05/05.24.10/nr_05.24.10.pdf.">www.njsda.gov/Archive/2010/05/05.24.10/nr_05.24.10.pdf.">http://www.njsda.gov/Archive/2010/05/05.24.10/nr_05.24.10.pdf. For more specific information on each project, visit www.njsda.gov and click on “School Projects” in the left navigation bar.
May 2010
LOCAL | May 4, 2010
Governor Announces $500 Million Bond Sale for School Construction
Governor Christie announced that proceeds from the sale of $500 million in new bonds will be used for school facilities projects in SDA Districts and to fund a continuation of the SDA grant program for Regular Operating Districts. Grants for Regular Operating Districts cover at least 40% of the cost of projects in non-Abbott districts. The state will sell taxable Build America Bonds, thus receiving a federal subsidy equal to 35% of interest payments.
NATIONAL | May 4, 2010
Feds Extend COBRA (Again) and Restore Long-Term Unemployment Benefits
On April 15, Congress passed, and President Obama almost immediately signed, a bill that extends the federal COBRA premium subsidies to employees who are involuntarily terminated through May 31, 2010. The previous COBRA extension covered employees terminated through March 31, 2010, continuing the 65% federal premium subsidy for up to 15 months for eligible individuals. In addition, the $18 billion jobless benefits bill restores unemployment benefits for the long-term unemployed, who can now reapply for long-term unemployment benefits and receive checks retroactively.
April 2010
LOCAL | April 14, 2010
BCA of AC Latest Labor Update – Read Bulletin #13-10
We encourage Members to read Bulletin #13-10, distributed April 14, 2010, outlining wage freezes for 2010 with the Laborers, Carpenters, Bricklayers and Dockbuilders, as well as trade-specific “market recovery” agreements for various types of projects and markets.
NATIONAL | April 8, 2010
“Green” Fly Ash Under Attack as Hazardous
Any contractor who has worked on a LEED project knows the fly ash in concrete helps garner points as a post-industrial recycled material. But the US EPA is about to publish a proposed rule that could designate fly ash as hazardous waste. The proposed rule is a response to the huge toxic sludge spill in Tennessee in late 2008, where fly ash and water spread over 300 acres, the worst spill of its kind in the US. Ironically, the use of fly ash in concrete, which increases constructability and durability, is considered environmentally responsible because it significantly reduces cement content and therefore cuts the carbon dioxide generated by cement production.
NATIONAL | April 8, 2010
New Jersey #3 in Jobless Claims at End of March
New Jersey clocked in at #3 among the 50 states with one of the largest increases in jobless claims for the week ending March 27, 2010. New Jersey’s jobless claims were up 1,715 due to layoffs in construction, transportation, warehousing and manufacturing. Only Texas and Oregon posted higher numbers.
NATIONAL | April 5, 2010
Construction Unemployment Dips In March
With construction unemployment at 27.1% and 2.4 million out of work, February 2010 marked one of the highest unemployment rates in history for the construction industry. But March figures look slightly less drastic. The most recent Bureau of Labor Statistics data measures construction unemployment at 24.9%, affecting 2.25 million construction workers.
March 2010
NATIONAL | March 24, 2010
Reed Data Releases State-by-State Construction Job Losses
New Jersey ranked #22 in the list of states that suffered significant construction job losses throughout the course of the recession, reports Reed Construction Data. From its peak construction employment of 178,300 in April 2006 through January 2010 (44 months), New Jersey lost 51,700 construction jobs, a 29% decline. Regionally, Delaware fared the worst, coming in at #10 with a 35.9% decline. Rhode Island ranked #19, with a 30.7% decline. The average decline across all states is 30.5%, a statistic that does not include February’s loss of 64,000 jobs nationwide. Further job losses are expected at least through mid-year.
NATIONAL | March 17, 2010
OSHA Extends Comment Period on Proposed Recordkeeping Rule
As we told you in the February Safety Update, OSHA has proposed reinstating a column on the Form 300 to allow employers to identify work-related musculoskeletal disorders. The proposal would not change existing requirements for recording such injuries. The comment period, scheduled to close today, has been extended to March 30, 2010, to account for the workplace shutdowns that occurred due to February snowstorms. The 15-day extension ensures a full 60-day comment period. Comments may be submitted electronically at www.regulations.gov.
LOCAL | March 17, 2010
Storm Fells Tower Crane at AC Construction Site
Howling winds and driving rain wreaked havoc across New Jersey, and gusts as powerful as 59 mph were enough to topple a tower crane at the Revel Casino construction site in Atlantic City on Saturday. The winds also blew out four stories of glass on the casino, and an Atlantic City police officer was injured when debris from the construction site smashed through the window of his police cruiser.
LOCAL | March 12, 2010
NJ’s January Unemployment Rate and Housing Starts Drop
The State’s January unemployment rate dropped just below 10%, to 9.9%, but stayed higher than the national rate of 9.7%. For the month, New Jersey lost 9,700 private-sector jobs, added 600 jobs in the public sector, and released its revision of 2009 data, indicating the State lost more jobs last year than originally calculated – 114,100, up from 90,100. Construction work, as we know, took a severe hit. But, while nonresidential building dragged in New Jersey, the slump in homebuilding was the worst on record, with only 12,235 building permits issued – a third of the 38,588 permits issued in 2005.
NATIONAL | March 9, 2010
Construction Job Losses Jump in February
Nationwide, the construction industry lost 64,000 jobs in February, a loss that pushed the unemployment rate to 27.1%, nearly three times the overall unemployment rate for the country.
LOCAL | March 5, 2010
National Park Service Extends Comment Period on Proposed Power Lines
An update to the Hot Topic posted February 17, 2010: The National Park Service, which had hosted three public hearings in mid-February on PSEG’s proposed 146-mile transmission line across New Jersey and Pennsylvania, has extended the public comment period until March 12. The Park Service is gathering the comments for use in its environmental impact statement.
NATIONAL | March 4, 2010
2009 Collective Bargaining Increases Lowest In 13 Years
In data collected by the Construction Labor Research Council, almost 10% of the collective bargaining settlements in 2009 reflected a zero increase, causing the average first-year increase in wages and fringe benefits to drop to its lowest point since 1996. At $1.23 – 2.8% – the average in 2009 was closing in on half that of 2008, when it came in at $1.95 – 4.6% – which had been the highest increase since 1999. The average second-year increase negotiated for multi-year agreements was $1.55 – 3.2% – in 2009, as compared to $2.25 – 4.7% – in 2008. Also notable in the negotiations: 49¢ of the $1.23 average first-year increase was designated for pension fund contribution increases. Settlements did not vary as much region-by-region in 2009, and more than half the agreements were negotiated for only a one-year term. Typically, about 40% are for three-year terms.
LOCAL | March 4, 2010
$160 Million Cancer Treatment Center Going Up in Somerset
Proton therapy, an alternative cancer treatment to X-ray radiation, is coming to Somerset County, in the first proton treatment facility in New Jersey and the New York metro area. ProCure Treatment Centers, Inc., of Indiana, Princeton Radiation Oncology and CentraState Health System of Freehold are collaborating to build a $160 million proton therapy treatment center in Franklin Township, with groundbreaking planned for April 7, 2010. The 60,000 sq. ft. facility, to be located at 101-103 Cedar Grove Lane, is expected to be open in 2012. The project will create 400 construction jobs and 100 permanent jobs, and New Jersey-based contractors will do the construction.
LOCAL | March 3, 2010
Bricklayers’ President John Flynn Retires
John J. Flynn, President of the International Union of Bricklayers and Allied Craftworkers, announced yesterday he will retire. Flynn had served as President since 1999. James Boland, previously Secretary-Treasurer, was sworn in as the new President.
LOCAL | March 1, 2010
Governor Proposes UI Fund Solutions
New Jersey’s Unemployment Insurance Trust Fund is insolvent, but Governor Christie doesn’t want an increased employer payroll tax to fund it. The automatic payroll tax increase would be as much as $683 per employee, and the Governor’s proposed suspension of the tax would give New Jersey employers vital relief during the recession. Instead, the proposed plan would impose an average payroll tax increase of $130 per employee, phase in any additional increases to allow employers to prepare for them in advance, reduce the maximum weekly unemployment benefit from $600 to $550, require a one-week waiting period before benefits can be claimed, make the “extended benefit” provision dependent on the continuation of 100% federal funding of benefit costs, and further call on the federal government to continue full funding for the extended benefit.
February 2010
NATIONAL | February 22, 2010
January Construction Stats: Good News & Bad
Reed Construction Data reports January 2010 construction starts, excluding residential contracts, totaled $24.1 billion, 20.1% higher than January 2009, and 6.3% higher than December 2009. In fact, the January starts were 30% higher than the monthly average for the first half of 2009. The value of the starts might have been even higher, but for the exceptionally bad weather experienced across much of the country. Of the January starts, non-residential buildings saw a 10% increase, commercial building jumped 47%, and institutional building increased 4%, with notable gains for nursing homes, libraries and museums, educational facilities and government offices. The bad weather could also be partially to blame for the construction unemployment rate, which hit an unprecedented 25% in January, representing more than 2.19 million construction workers who have been laid off since the recession began.
LOCAL | February 4, 2010
Gov. Christie Creates Panel to Fix NJ Gaming, Sports and Entertainment
Governor Christie’s Executive Order 11, issued today, creates an advisory commission to study and address the financial and structural challenges that are hurting New Jersey’s gaming, professional sports and entertainment industries. The seven-person New Jersey Gaming, Sports and Entertainment Advisory Commission, headed by Jon F. Hanson, a former chairman of the New Jersey Sports and Exposition Authority, will work without compensation under a June 30 deadline to fashion solutions for the issues outlined in Governor Christie’s Transition Subcommittee, including the ongoing financial viability of the NJSEA; advancing or resolving the stalled Xanadu project; improving the competitiveness of the Atlantic City gaming industry and promoting the city as a destination resort; ensuring that horseracing becomes financially self-sustaining; and proper scheduling of entertainment events at the IZOD and Prudential centers to ensure their mutual success.
LOCAL | February 2, 2010
Delaware River Dredging Finally A “Go”
After 30 years of wrangling, the Army Corps of Engineers finally got the go-ahead to start a dredging project that will deepen by five feet a 13-mile stretch of the Delaware River known as Reach C. The federal judge told opponents – Delaware, New Jersey and various environmental groups – that the rest of the proposed 102.5-mile dredging project also should proceed. New Jersey has a lawsuit to block the project pending in US District Court in Trenton.
NATIONAL | February 2, 2010
White House Calls for Army Corps Funding Cut
President Obama’s budget draft for fiscal 2011 proposes $4.81 billion for the Army Corps of Engineers, $630 million less than this year’s appropriations bill. That’s a 12% cut that slashes the construction budget from $2 billion to $1.6 billion.
January 2010
NATIONAL | January 18, 2010
Construction Unemployment Keeps Climbing
After a loss of 53,000 construction jobs in December, including 7,700 in the nonresidential building sector, unemployment in the industry reached 22.7%, the Bureau of Labor Statistics reports. That’s up sharply from 15.7% at the end of December 2008. Since the recession began two years ago, the construction industry nationally has lost 1.6 million jobs. More than 2 million workers were seeking jobs at the end of 2009.
LOCAL | January 12, 2010
AUTHORITY APPROVES $2 MILLION FOR ATLANTIC CITY RAIL
The Casino Reinvestment Development Authority approved an extra $2 million to keep a weekend rail service between New York and Atlantic City running for at least two more years Harrah's Resort, Caesars Atlantic City and Borgata Hotel Casino & Spa launched the train service last February. The current schedule of 18 trips will be reduced to 11.
NATIONAL | January 7, 2010
International Green Construction Code To Be Released In March
The first international code to address sustainable design and green construction practices for all commercial building types is due to be released in March, just in time for St. Patrick’s Day. Authored by the Sustainable Building Technology Committee, the International Green Construction Code is designed to offer flexibility to account for varying local and regional conditions, such as energy resources. It will apply to both traditional and high-performance buildings and both new construction and renovation. The Committee, which is comprised of code officials, sustainability experts, members of the International Code Council and other representatives from the architectural, engineering and construction communities, will seek public comment through August, followed by a second review, comment period and public hearings in 2011. Final publication is scheduled for the 2012 ICC Family of Codes.
NATIONAL | January 6, 2010
EPA Construction Site Stormwater Rules In Effect Next Month
In less than a month, the EPA’s rule on controlling stormwater runoff on construction sites goes into effect. The rule marks the first time the EPA has imposed national monitoring requirements and enforceable numeric limitations on stormwater discharge from jobsites. In effect February 1, 2010, and phased in over four years, the rule requires owners, developers and contractors whose projects cover from one or more acres to use “best management practices” to ensure that soil disturbed during construction doesn’t pollute nearby streams and rivers. In the initial phase, the rule also addresses sites that impact 10 or more acres, calling for the discharges to comply with specific limits. The rule tightens regulations over the four-year phase-in. For rule specifics, visit www.epa.gov/waterscience/guide/construction/.
LOCAL | January 5, 2010
New Jersey Economic Analysis
Wells Fargo Securities Economics Group has issued a point-by-point analysis of New Jersey’s economic status as of year-end 2009. Highlights include a review of unemployment figures, the housing market decline, the state’s financial crisis and population drain. The analysis reports a 9.7% unemployment rate, the highest in three decades, with pockets of even steeper unemployment in Cumberland and Atlantic counties that rank among the highest in the nation. The high unemployment rate has correspondingly resulted in decreased tax revenues, a significant budget gap and projections for budget shortfalls well into fiscal year 2012. Housing starts seem to have bottomed out but no growth is expected until late in 2010 or early 2011. And population in the state has only increased 3.2% in the last decade, about a third of the national population growth. Most notable, the median age of New Jersey residents, 38.7, is higher than the national average, and the percent of the population 65 and older is growing, which will adversely affect employment and economic growth. Overall, the analysis concludes that New Jersey’s economic recovery will lag about a year behind the nation’s as a whole. Any good news? Job loss is slowing, economic activity is picking up, New Yorkers are relocating here and home sales are posting positive gains. For a copy of the five-page report as a PDF file, please contact BCANJ at 732.225.2265 or e-mail dteall@bcanj.com.
December 2009
NATIONAL | December 15, 2009
Construction Starts Rose in November
Nonresidential building construction starts rose 16% in November over October, which should help stop the downward trend in construction spending. At the same time, construction materials orders, production and sales all dropped, and the numbers for the months leading up to October were also revised lower. The slump is a result of both the decline this year in nonresidential construction spending and the fact that some commercial building projects were suspended after work had started.
NATIONAL | December 15, 2009
Construction Equipment Shipments Hold Steady
From June through October, construction equipment shipments from US factories have held more-or-less steady, a sign the equipment market has reached bottom. The market fell 55% in four years, since early 2006, and is expected to continue to fall another 5% through Spring 2010, with no significant pickup through all of next year. However, beginning in June, shipments have averaged 6% higher every month than the numbers of May.
NATIONAL | December 14, 2009
E-Verify “Self-Check” Option Planned
Currently only employers can screen employee information to determine employment eligibility via the federal government’s E-Verify system, but the feds plan to add a self-check system for workers to screen themselves. Thus, workers could make sure of their status before applying for new jobs, a move the government hopes will help ease tension between opposing sides in the immigration debate.
NATIONAL | December 7, 2009
Construction Unemployment Still Climbing
While the national unemployment rate – and New Jersey’s – dropped a bit in November, the jobless rate in the construction industry went up nearly a point, from 18.7% in October to 19.4%. The only positive news is the number of jobs lost in November, 27,000, is less than the national average 63,000 lost monthly from May through October, and significantly less than the average 117,000 jobs lost monthly from November 2008 to April 2009.
New Jersey lost 21,700 construction jobs in the 12-month period from October 2008 through October 2009, a 13% drop. All of New Jersey’s largest metropolitan areas lost construction jobs, many in double-digit percentage points. For the most recent data, visit www.agc.org.
LOCAL | December 3, 2009
Pleasantville Redevelopment Project Set to Go
The Pleasantville City Center Redevelopment project now has a signed master developer's agreement between the city and River Development LLC of Red Bank, allowing the approval process for the project to begin immediately. The first of three phases is a $50 million mix of retail and residential, featuring 300 rental units targeted at Atlantic City casino workers and 20,000 sq.ft. of retail, expected to take two years to complete. Design of the other two phases will continue during construction of the first phase.
November 2009
NATIONAL | November 30, 2009
US Government to Allow ConsensusDOCS Contracts
The US Department of Agriculture's Rural Utility Service is the first federal agency to allow the use of ConsensusDOCS contract templates. The first jobs to be covered by the templates are for water construction projects worth up to $20 billion each year. The two ConsensusDOCS templates allowed are the Electronic Communications Protocol and the Contractor's Qualification Statement for Engineered Construction. According to AGC of America's Brian Perlberg, executive director of the ConsensusDOCS coalition, the federal government joins several other large-scale project owners in using the contract documents. South Dakota, Michigan and North Carolina, along with Habitat for Humanity, all now routinely use ConsensusDOCS.
NATIONAL | November 30, 2009
Union Contractors Urge Healthcare Bill Amendment
In mid-November, a consortium of union contractors pushed for an amendment in the Senate version of the national healthcare bill that would ensure construction industry employers that do not provide healthcare benefits would not benefit from a compliance-relief proposal for small businesses. As written, the proposed Senate bill would require all employers with 50 or more employees to provide healthcare coverage for their workers, or pay penalties. However, the union contractors group claims non-union contractors could fall into the small-business, less-than-50 workers category, and be exempt from providing coverage, gaining a competitive advantage. Therefore, the group wants a construction-specific amendment that exempts only construction companies with less than six employees and payrolls totaling $250,000 or less.
NATIONAL | November 24, 2009
EPA Rules to Reduce Construction-Site Pollution
The Environmental Protection Agency issued a final rule this week imposing management practices designed to reduce pollution on construction sites and therefore improve water quality. The EPA estimates the rule will cover nearly 82,000 homebuilders, commercial and industrial building contractors, and civil-engineering companies, and cost those builders $953 million in annual costs, at a time when the construction industry is suffering a terrible economic recession. The rule will be phased in over four years, and will require contractors and owners to use soil stabilization and erosion control. Contractors on sites that disturb 20 or more acres will be subject to federal monitoring and limits on stormwater discharge; that acreage parameter will eventually drop to 10 acres.
LOCAL | November 24, 2009
New Jersey's Stimulus Money Is Still Unspent
New Jersey's 'shovel-ready' county road projects are still ready, but the federal stimulus funds ' millions of dollars ' slated to pay for them won't be used until next year, according to a story in today's Star-Ledger. The reason? Detail-laden documentation. For example, cites John Reiser, Middlesex County's engineer and director of public works, 'one project required county workers to photograph sidewalks at 700 intersections to show construction would not adversely affect handicapped-accessible curb cuts.' Similar stories have emerged from Somerset, Morris and other counties across the state. But despite the delays, the State still expects bids to be out by March 2, 2010, the federal deadline, on the $625 million allocated to New Jersey
NATIONAL | November 3, 2009
Nonresidential Building Construction drops in September
In the latest figures from Reed Construction Data, jobsite spending on nonresidential building construction fell 1.6% in September. Since its peak in early 2008, spending for commercial buildings has fallen 34%, but RCD's Jim Haughey feels most of the deep decline is now over. However, Haughey expects no improvement in the market until well into 2010.
LOCAL | November 3, 2009
Atlantic City Walk to Expand
Plans for the next two phases of The Walk, the Atlantic City retail and entertainment project, were announced by the Casino Reinvestment Development Authority and Cordish Company, the Baltimore developer. With a November groundbreaking, phase 3 will include 45,078 square feet of new factory outlet space on Christopher Columbus Boulevard and Fairmount, Mississippi and Artic Avenues. Phase 3 could create as many as 400 construction jobs and 400 new permanent jobs; the Development Authority will provide a $9 million loan toward the project, while Cordish will fund the remainder of the $15 million development cost. Phase 4 will focus on Atlantic City Live, a restaurant and entertainment district with a capital investment expected to exceed $100 million
October 2009
LOCAL | October 20, 2009
Groundbreaking for Aviation Park in Egg Harbor Township
Ground was broken for the Federal Aviation Administration's Aviation Research and Technology Park, a seven-building project on 55 acres adjacent to the Atlantic City International Airport and the FAA's William J. Hughes Technical Center. Expected to create more than 2,000 jobs, the Park will be a high-tech aviation facility for research, development, testing, integration and verification of new technologies. Private firms will be able to enter into agreements with the FAA to conduct research projects. The Aviation Park is a non-profit corporation governed by a Board of Trustees, which will send out requests for Development Interest and Qualifications within the next 60 days.
|
