Construction Industry News

Construction shows, Heavy Construction equipment, Engineering News

Saturday, November 03, 2007

Booming Construction Industry Backed by Strong Economy to Boost Growth in Indian Construction Chemicals Markets

Construction chemicals, which were almost non-existent in the Indian construction industry around ten years back, are gaining increasing importance. Surging construction activity and 100 per cent FDI in real estate are giving a fillip to the construction chemicals markets in India, which grew by an estimated 24.1 per cent in 2006. Any company that realises the importance and potential of this nascent market – projected to grow at a compound annual growth rate (CAGR) of 21.9 per cent from 2007 to 2013 – can capitalise on considerable growth opportunities.

New analysis from Frost & Sullivan, Indian Construction Chemicals Markets, finds that the market revenue was estimated to be Rs 10.0 billion in 2006 and is likely to reach Rs 40.0 billion by 2013.

If you are interested in more information on this study, send an email to Remi Chaterjee/ Nimisha Iyer, Corporate Communications, at frost.com with your full name, company name, title, telephone number, fax number, and email address. Upon receipt of the above information, we will contact you.
"The Indian Government’s approval for allowing 100 percent FDI in the real estate sector has given a major boost to the already fast growing construction industry,"
note Frost & Sullivan Industry Analyst Dominic Britto.
"Construction chemicals accounts for only 2 percent of overall construction costs, but the benefits are in multiples; rising awareness about such advantages coupled with the growth in the construction industry is set to drive the Indian market for construction chemicals."
The construction industry is the key end user of construction chemicals that includes construction of infrastructure, industries, as well as commercial and residential buildings. Construction chemicals are also used for repair and maintenance of these structures and comprise around 11 per cent of the total demand. Rising awareness, changing lifestyles and, most importantly, the increasing spending power of end users will be the key drivers in the sustained expansion of the Indian construction chemicals market...

Full story: newswiretoday.com

Construction Industry Showcase

SOUTH Coast Workplace Learning and the NSW Board of Vocational Education and Training conducted a construction industry showcase at Bega TAFE last Friday, for Years 10 and 11 students from Bega and Eden High Schools and Lumen Christi Catholic College who are, or will be studying construction as a vocational subject for their Higher School Certificate.

The aim of the event was to develop the relationship between these students and the construction industry in the local area and provide them with some hands-on activities as well as the opportunity to speak with local tradesmen and apprentices about their work.

Students also gained an appreciation of the significance of structured work placement, and further developed their understanding of the various career options in the construction industry.

Frank Arsego from Ozhelp, an organisation which aims to assist in the maintenance of the social welfare of apprentices in the construction industry, was the keynote speaker.

Apprentices Josh Caves and Jake Lord were interviewed in front of the students and gave an insight into their experiences as apprentices.

Full news: yourguide.com.au

Earthquake law sends shudders through construction industry

The new building rules – rushed into law after a scandal over faked quake-resistance data that erupted last year – have, overnight, created a crisis for commercial, residential and public works construction projects across Japan.

Housing starts in Japan plunged by 44 per cent in September, continuing a slump that began with a 43 per cent fall in August. Commercial building starts nosedived by about 25 per cent in September as the new law and a lack of information caused confusion among construction companies.

The grim figures were released on the day that the Bank of Japan finally admitted what analysts had been saying for months: that Japan has not managed to beat deflation. The central bank also revised down its growth forecasts for this financial year and for fiscal 2008, acknowledging the possibility of a negative quarter of growth in the present quarter and a return to technical recession

Mired in delays, and the risk that existing projects will be “disapproved” by the Government, building companies and property developers have stopped building anything.

Hiroshi Shiraishi, an economist with Lehman Brothers, said that the law had effectively destroyed an entire segment of the economy. Construction represents about 3.5 per cent of Japan’s gross domestic product and a knock-on effect is expected in many sectors as demand for furniture, construction materials and home and office fittings dissolves. Describing the law as “ridiculous”, Mr Shiraishi said that the move was “a big mess and typical of a Government that sets policy and makes laws with no consideration of the macro-economic impact”...

Full article: business.timesonline.co.uk

Tuesday, June 21, 2005

Construction industry welcomes long-awaited tool to project labour requirements

OTTAWA, June 21 /CNW Telbec/

A first-of-its-kind forecasting model released today by the Construction Sector Council (CSC) indicates a growing need for a mobile workforce able to move between provinces, industries and sectors to keep pace with the increased demand for skilled trades.

The model creates an assessment of demand for 38 trades and occupations
in every province, from 2005 to 2013.
"This industry has long needed a sophisticated economic forecasting tool like this to help us with the why, where and when of on-time, on-budget project planning,"
says Tim Flood, CSC business co-chair and president of
John Flood and Sons Ltd.
"These projections are an excellent starting point for analysis that can be refined with updated information - a new sharp tool for the risk management tool box."
Working with the CSC and senior economists, the model was developed with
input from owners, contractors, labour groups and government representatives
from all provinces, and from all sectors of the industry who have brought
unique and relevant information to the table. The result is a national summary
and 10 provincial "Construction Looking Forward" reports for use by industry
stakeholders.
"These forecasts will go a long way to ensure the continued growth of a major, multi-billion dollar industry that is a barometer for Canada's economy,"
says Bob Blakely CSC labour co-chair and director of Canadian
Affairs for the Building and Construction Trades Department, AFL-CIO.
"They will help guide human resource planning and policy, training curriculums, career planning, and more,"
he adds.
"Bringing together such a large network of stakeholders with key information like major projects, workers' age demographics, and available training is a groundbreaking initiative for the construction industry. This type of detailed forecasting would not have been possible without the significant contribution of more than 100 different construction industry partners."
The national summary forecast was released June 21. It can be viewed at
www.csc-ca.org. Funding for this project was provided by the Government of Canada's Sector Council Program.

The CSC is a not-for-profit, independent labour/business partnership organization established in 2001, to address the current and future human resource needs of the construction industry in Canada.

Full version newswire.ca

Wednesday, June 01, 2005

Canadian Construction Industry 2005 - 2009 Forecast

The strong growth witnessed in the Canadian construction industry in 2004 is expected to continue for at least the next two years, according to figures released by Informetrica Ltd. in November 2004. The Gross Domestic Product (GDP) - which represents the value of all production - of the construction industry grew by 3.5% in 2004. In 2005, GDP growth is expected to reach 4.0%, and 3.0% in 2006. However, starting in 2007 and continuing for several years thereafter, economic growth in the construction industry is expected to cool, with GDP expected to grow by only 1.9% in 2007, 1.4% in 2008, and 1.1% in 2009.

Furthermore, following three consecutive years of the residential construction sector vastly outperforming the non-residential sector, 2005 is expected to witness equally strong growth for both sectors. In 2004, residential construction GDP shot up by 7.8%, while non-residential construction GDP grew at a much weaker pace of 1.3%. In 2005 however, residential GDP is expected to dip slightly to 4.1% growth, while non-residential GDP will strengthen to 4.0% growth. A similar trend is expected in 2006, with growth forecast to average 3.0% for the residential sector and 2.9% for the non-residential sector.

All figures have been prepared by Infometrica Ltd. Full version

Monday, May 30, 2005

Industrial reform will drive Australia's construction industry

The Master Builders Australia has backed the Federal Government’s industrial relations reform.

MBA chief executive Wilhelm Harnisch said Australia’s productivity will be boosted by the industrial relations reforms announced yesterday by the Prime Minister.

“The building industry will benefit significantly from urgently needed labour market flexibility.

“The building and construction industry is one of the largest employers in the Australian economy with a record 810,000 people currently employed,” Harnisch said.

He said because of the relatively labour-intensive nature of the sector, the construction industry’s low level of international exposure and low use of information and communication technologies, improvement in productivity in the industry must come through the more efficient and flexible operation of the labour market.

“The building and construction industry suffers from illogical and unproductive practices, such as the rigid way in which unions want to impose a 36 hour week, reflected in the current virulent Queensland industrial campaign mounted by the CFMEU.

“The industrial relations system needs flexibility at the level of agreement making, but with robust enforcement where participants fail to meet appropriate standards of behaviour expected from all Australians,” he said.

Master Builders supports the Government’s commitment to restoring the rule of law in the building and construction industry.

“Flexibility with an appropriate safety net in place does not disadvantage workers. Such a system enables workplace arrangements to be tailored to the individual building site or workplace to increase productivity at the micro-level. Small increases in productivity can compound over time and increase the prosperity of nations.

MBA executive director Graham Cuthbert said the introduction of stronger laws will help curb and end the building and construction industry’s lawlessness.

“ Queensland commercial builders, particularly in the Brisbane CBD, are facing intense pressure as a result of, what we determine to be, unlawful industrial action.

“ Queensland’s current enterprise bargaining agreements officially expire on October 31 2005 but building unions are pushing for new agreements to be signed now before the proposed reforms are passed by the Senate,” Cuthbert said.

The MBA said it has advised its members to resist union pressure to break their current enterprise bargaining agreements arguing that any company that agrees to a new agreement for the sake of short term industrial peace will be signing their own commercial death warrant in the long term. However, Cuthbert said it was tough for some members to resist.

“Unlawful industrial action places intense pressure on head contractors and sub contractors to give in to industrial demands or face severe cost penalties due to delays in completing projects.

“For example on Monday May 9, 23 commercial building projects in south east Queensland were subject to a strike in support of the CFMEU and BLF claim for a nine day working fortnight.

“We estimate that collectively these projects lost the equivalent of almost 20,000 man hours at a cost of over $1 million dollars.

“Tougher laws to prevent unlawful industrial action combined with the introduction of greater freedom and flexibility for employees and employers to negotiate workplace agreements will ensure a fairer balance between business needs and looking after employee rights,” Cuthbert said.

By Kathryn O’Meara / May 27, 2005

Singapore's construction industry 2005

The construction industry is set for a turnaround within three years as development of Singapore's integrated resorts gets underway, says the Singapore Contractors Association.

In the meantime, major players are actively tapping on huge overseas markets such as the Middle East to grow their businesses.

But some appear to shy away from China and India.

The construction industry is on the road to recovery with an estimated 5 to 10 percent growth this year and some key players have been actively venturing overseas to boost their bottomline.

The association says the Middle East market can offer returns of up to 20 percent but contractors are less optimistic about India and China.

There are concerns about operating in these countries as business dealings can be rather complicated.

Simon Lee, Executive Director, Singapore Contractors Association, said: "Sometimes we don't know the designer, developer. Being a small member along the value chain, we may be exposed to more risks. If we go in a group, we take the project right from the beginning, say even at the development stage, that means we do have a certain amount of control so that minimises the risks."

Such difficulties aside, the association says the Singapore brand and expertise are valued abroad.

Not only do overseas markets recognise the brand as representing a high standard of construction, they also find that Singapore firms offer better rates than Western contractors.

But to venture abroad, contractors need to have the financial muscle to take on projects in those markets.

So the Contractors Association says only the big players can afford to do so.

The majority of local contractors will still be focusing their resources on the Singapore market.

Even though construction firms are now faced with a shrinking local market, the association says there is still potential for growth.

It expects the industry to recover in 3 years time with many contractors hopeful of participating in the construction of two integrated resorts worth some S$5 billion. - CNA /ch


By Derek Cher, Channel NewsAsia / 10 May 2005

Thursday, May 26, 2005

JLG Industries Gets a Healthy Lift

No doubt about it cyclical businesses can move quickly. When times are bad, they are really bad, and when business picks up, it can often do so in a flash. And now that commercial-construction activity is on the upswing, JLG is seeing a strong lift in its business.

Sales for the third quarter climbed 59% on U.S. sales growth of 54% and overseas growth of 75%. All of the company's margins were strong, and net income grew by more than 160% from the year-ago level. Growth in earnings per share didn't quite match up, thanks in large part to an equity offering that added to the share count, though it was still more than double the year-ago level and ahead of estimates.

JLG has made these strides despite high steel costs that it hasn't been able to recover entirely. Even though net unrecovered steel costs declined sequentially - from just under $27 million to just over $8 million -- that still constitutes a meaningful hit to earnings.

In my analysis, there's no doubt that JLG is benefiting from an upturn in the worldwide commercial-construction market. In particular, JLG continues to see strong rental-fleet refreshment as construction activity picks up.

Similar to what we've seen with heavy-machinery specialist Caterpillar, farm-machinery expert Deere, and mining-equipment leader Joy Global in their respective sectors, an awakening of the commercial-construction sector has given the renters the cash flow that allows them to replenish their fleets and update their product offerings.

Company executives, to their credit, are using this boom to clean up the balance sheet. Not only are receivables and inventory levels looking better, but the company also cut net debt by about $230 million and exited the quarter with a net debt-to-total capital ratio of 12% - the best ratio for the company in quite a while...

By Stephen D. Simpson, CFA
May 25, 2005

Monday, May 16, 2005

Las Vegas companies vie for qualified construction workers

By Alana Roberts
LAS VEGAS SUN

One might call the Las Vegas Valley's construction industry an employee's market.

It took DeShante Sherman, of Ontario, Calif., only four days to find a job in the Las Vegas Valley's bustling construction industry.

After moving here three weeks ago Sherman, 30, was able to land a job as an entry-level engineering technician with engineering firm Geotechnical & Environmental Services Inc., a job that requires no experience because the company is offering paid training.

He said with his experience in construction masonry work he's not walking into the job completely cold. However, he said he never would have considered the position if the company wasn't offering to train workers.

"Actually it wasn't the field I wanted to work in but it's a real interesting field and it has a lot of opportunities for advancement and I chose to pursue it," Sherman said. "I know exactly what they're doing, but I never thought about pursuing what they're doing."

The job includes testing asphalt, concrete, masonry and soil to determine if a particular site and the materials are suitable for construction. The workers also test to determine whether the building is being built in accordance with the architectural specifications and if it adheres to the laws of a particular municipality.

"Everything that is usually built is tested in some way, " Greg DeSart, president of GES, said.

Sherman said since graduating from Westwood College in Upland, Calif., a year and a half ago with an associate's degree in computer science, he hasn't been able to find a job in that field.

"Well, the jobs are really hard to find in California," Sherman said. "I was trying to get out of the construction field. I'd been sending resumes for the last year and a half. I got no responses. Then the cost of living is really high. There's more opportunities here."

It may be a good market for workers, but it's every company for itself when it comes to finding qualified employees, DeSart said.

He said GES, which has about 50 employees, has resorted to training people with no experience because of the difficulty in finding workers who are trained and have the various certifications needed in the various jurisdictions the company performs work in.

"What we decided to do is we put an ad in the paper that said, 'Entry-level positions, will train,"' DeSart said. "Probably 50 (applied). Before that we would run an ad for a certified inspector every other week. We would get one resume a month."

DeSart said Sherman is one of six entry-level engineering technicians and two entry level driller's assistants the company hired at the beginning of May at $10 an hour. He said the company plans to hire four more entry-level engineering technicians in June and one or two driller's assistants.

The workers will train exclusively for three months and then will receive on-the-job training. He said as the workers earn certifications they'll also earn raises.

"We're saying, 'We're going to give you a career.' They don't have to have an education," DeSart said. "What I told them is in five years they could be doubling their salary."

An experienced person with the needed certifications in the same position can command between $20 and $30 an hour, DeSart said.

As the Las Vegas Valley's construction industry has gained 15,500 new jobs at a growth rate of 19.2 percent between March of this year and last, DeSart is one of many companies in the construction industry that are dealing with what is considered an acute shortage of workers.

"We've gone through growth cycles before, but the growth of the construction growth cycle is mind-boggling with 20 percent," Jim Shabi, an economist with the Nevada Department of Employment, Training & Rehabilitation, said. "I just don't think anybody in their right mind would forecast growth by 20 percent. We're amazed. We keep upping our forecast and reality keeps beating our forecast."

With all of that growth, Steve Holloway, executive vice president of the Associated General Contractors Las Vegas Chapter, said the shortage is driving wages higher. The median wage for construction and extraction occupations is $18.21, according to DETR.

"The only way you can combat it is to pay higher wages and either steal those workers or supervisors or engineers from one of your competitors or recruit them from outside Southern Nevada," Holloway said. "The problem with bringing them here (is) the cost of housing is not allowing a lot of companies to do that. I've spoken to several companies where they've hired an estimator from Chicago, St. Louis or Phoenix and brought them here for the interview and then the worker looked around and couldn't find a home he could get into and left and went back to where he came from."

He said before home prices were rising, workers were coming from areas of the country where the economy was more depressed than that of Southern Nevada's. He said now that construction has picked up across the country there are less people willing to move here.

Holloway said the labor shortage is being felt among both union and non-union contractors.

But Pat Schlosser, vice president and Southern Nevada area manager for union contractor Clark & Sullivan Constructors Inc., said so far the company hasn't experienced any difficulties. However, he said the company is only doing the amount of work it can handle.

"We have pulled back on our horns in performing work," Schlosser said. "If somebody's out there being a glutton for work trying to do everything he can, he's going to find himself in a real bad corner. I always like the phrase, 'It's like standing at a buffet, you don't want to bloat yourself."'

Jim Sala, director of organizing for the Southwest Regional Council of Carpenters, said the union has seen major growth among its ranks. He said membership in the union's three Southern Nevada unions is reaching 8,000 and there are currently 1,259 apprentices involved in the union's four-year training program.

"We have in the last four years tripled the number of apprentices we have in our program," Sala said. "We've grown quite a bit. We've also increased our minority participation."

Sala said although there is a tremendous amount of growth the union is able to meet that growth because of its aggressive organizing.

"It certainly is a challenge to get qualified people," Sala said. "We recruit people all the time; we've expanded our training program and our facilities. We're out at job sites every day. We organize employers, we bring in workers we have people coming into the hall everyday."

Construction industry gets boost

The construction industry is again well on its way to becoming one of the best performing industries in the years to come. And what may well serve as a fitting recognition to its success is the 13th staging of Construction Show Cebu, regarded as the biggest and the longest running construction trade exhibit in the Southern Philippines.

After more than a decade of building business networks in the construction industry in the south by showcasing innovations and expertise, the 4-day exhibit, which typically happens every first Friday of June, is expected to gather over a hundred company exhibitors composed of market leaders and big hardware stores. With over 500 global brands represented, from concrete panels, flooring systems, to cement and plastering products and water heating technology and other innovative products and solutions, the exhibitors will go all out as they present their products and services to over 40,000 visitors and guests this year who will troop to the Cebu Trade Hall at the third level of SM City Cebu.

Aside from the innovative products and services, other interesting highlights of the 13th Construction Show Cebu would be discount offerings on selected products, which will be extended during the four-day exhibit, in close cooperation with Hardware Consolidated, Inc. (HCI).

A major factor of the success of the 13th Construction Show Cebu is its organizer, L.A. Ducut and Co., Inc., the event organizer of the annual exhibit for the last 12 years. Lilibeth A. Ducut-Abais, Managing Director of L.A. Ducut and Co., Inc., said that their quest for an attractive mix of innovations and expertise among more than a thousand suppliers of construction materials and technology contributed to the showís success.

The 13th Construction Show Cebu will be held on June 3-6, 2005 at the Cebu Trade Hall located at the 3rd floor of SM City Cebu. Exhibit doors open from 10 a.m. to 6 p.m. Major sponsors include CEMEX Philippines, makers of the innovative Cemex Palitada King; and Addmix, a technological breakthrough in job-site concrete mixes and the PDI.

The Philippine STAR 05/13/2005