January 9, 2009

News for contractors and the construction industry

§                                 Construction firms could see heavy job loss, says AGC
The Associated General Contractors this week said the construction industry could shed 30% of its jobs this year unless there is help from a federal stimulus package. "While the last few months have been difficult for the economy, they've been simply devastating for the construction industry," AGC CEO Steve Sandherr said. He noted that more than 75% of the group's members have experienced a decline in work projects. The group estimates that about 66% of construction firms will lay off workers this year. Reuters (1/8) , BusinessWeek/The Associated Press (1/8) , Journal of Commerce (Canada) (1/7) , Fox Business (1/8)

§                                 More than 2.5 million lost jobs in 2008: December's unemployment rate rose to 7.2%, the highest in 16 years, according to a Labor Department report released today. Almost 2 million of the 2.6 million jobs shed over the year were lost in the last quarter of 2008. The original job loss numbers from October and November were revised upwards. Reuters (1/9) , CNNMoney.com (1/9)

§                                 CityCenter delays Las Vegas hotel opening, cancels condo

§                                 CityCenter Holdings will postpone the opening of its Harmon hotel and spa in Las Vegas until late 2010 and will cancel the condominium portion of the project as part of an effort to reduce costs. CityCenter, a joint venture between MGM Mirage and Infinity World Development Corp., said the changes, along with other measures, will help reduce the cost of the project by $600 million. Postponing the opening will defer $200 million in construction costs. Other pieces of the massive project are still on track. Forbes/The Associated Press (1/7)

§                                 DOT chief approves extension of D.C. rail system to Dulles airport
The U.S. Department of Transportation approved a $5.2 billion plan to extend Washington, D.C.'s Metrorail system to Dulles International Airport. Approval by Transportation Secretary Mary Peters moves the project to a 60-day comment period, after which it will qualify for a $900 million federal transit grant. The extension will cover 23 miles and carry up to 60,000 people per day. "This is an important project and a long-term goal for this region to bring rail along the Dulles corridor," Peters said. The Washington Post (1/8)

§                                 Group hopes to build 6,745-room hotel in Las Vegas
A development group has asked commissioners in Nevada's Clark County for permits to build a a 6,745-room hotel, casino and retail complex. If the project moves forward, the hotel would be the largest in the world. Permits sought by the group would give it two years to break ground on the project or request an extension. Las Vegas Review-Journal (1/7)

§                                 Other News

·                                 Boston developer seeks permits for $900 million MXD towers
Boston Herald (1/8)

§                                 Contractors see weaker profits in 2009 as building demand shrinks
The construction industry will continue to feel pressure from the weakening U.S. economy in 2009, according to economic forecasts. A recent survey of contractors in western Michigan found 61% of respondents expect their profits to fall in 2009. Business Review Western Michigan (1/7)

§                                 Financing climate freezes development of new hotels
The construction pipeline of new hotels has shrunk as companies around the world struggle to secure financing, experts say. A third-quarter report by Lodging Econometrics noted the number of projects in the construction pipeline has declined from year-ago levels. In the U.S., there was a 4% drop in the number of projects between the second and third quarters in 2008, the first decline in five years. Experts noted that even the Middle East, which is considered a strong market, will experience weakness from the financing crisis. GlobeSt.com (1/8)

§                                 Other News

·                                 Column: Commodity plunge will send construction costs lower
Reed/ACP Construction Data (1/8)

§                                 Businesses should use fed database to check workers, S.C. says
South Carolina officials are urging employers to use a federal database to check the legal work status of their employees. The database, dubbed E-verify, allows companies to enter workers' names and Social Security numbers to verify if they are in the U.S. legally. Companies that use the system are presumed to be in compliance with state and federal immigration laws. The State (Columbia, S.C.) (1/8)

§                                 Oberstar will sponsor infrastructure legislation
House Transportation and Infrastructure Committee Chairman Rep. Jim Oberstar, D-Minn., plans to introduce the most extensive transportation package since the 1950s. "The American people sent us a clear message that they want to see their leaders take bold action to get our economy back on track and invest in our nation's future; a robust investment in transportation infrastructure accomplishes both of those goals." MinnPost (1/7)

§                                 Infrastructure stimulus supported by 94% of Americans:  U.S. News & World Report (1/8) , Reuters (1/8)

§                                 Roadblocks could delay Obama's planned infrastructure improvements
Several factors could delay or prevent the infrastructure improvements that President-elect Barack Obama's transition team sees as key to an economic recovery. Current limitations on the amount of private capital available, a sluggish permitting process and bidding laws that make it difficult to engage small contractors could all present roadblocks. "Without some change, particularly in public bidding laws, I fear there won't be as quick and as responsive a stimulus as is being forecasted," said Kris Nielsen, chairman and president of Pegasus Global Holdings. BusinessWeek (1/6)

§                                 STP Instructor Training Workshop
Register for AGC's Supervisory Training Program (STP) Instructor Training Workshop. This two-day event provides the skills essential to effectively instruct STP courses -- specifically how to teach adult learners, encourage interaction among STP participants and use the STP manuals to deliver a class. Participants will also learn how to incorporate visual aids into the curriculum and get the most out of the instructor materials. The course will be held Feb. 5-6 in Arlington, Va. Learn more and register!

§                                 Constructing an environmental management system
An environmental management system (EMS) can help you save money, make money and protect your market. This environmental tool -- designed to guide you step-by-step through the process of developing an EMS -- combines guidelines with a sample EMS and templates on CD for your company to customize. Both general and specialty contractors should take advantage of this opportunity to effectively manage their environmental risks and increase their competitive edge. 2004. To purchase copies visit www.agc.org/bookstore, item #3212.

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