Archives for Industry News

Winter Economic Forecast

We are in the midst of Winter 2020 and we are probably wondering what the economic outlook is for the U.S. throughout the year that lies ahead. According to Investopedia, the year ahead will continue with a hot trend, but it will not be blazing. This is because many companies received 2017 tax breaks, but those have now worn off and the U.S. – China trade war is on the path to being resolved.

Experts believe that the global economy will show signs of improvement, and although the growth of China has slowed it is still growing at a rate of more than 6 percent, which shows that the Chinese government is still working to keep up a steady pace. The economies of those neighboring China are expected to grow thanks to the slowing trade war and lower interest rates.

What Are The Chances Of Recession?

Financial experts don’t think a recession is likely in 2020 because all the leading economic indicators still have some power on standby. While industrial production and manufacturing have slowed, the resolution of the trade war with China will help boost corporate confidence. The U.S. consumer sees a healthy job market, lowered gas prices, and low inflation, and with economic expansions thriving, there is still a strong financial foundation for the year ahead.

Outside the U.S., though, there are some areas that are not as financially stable. For example, Germany is nearing a recession and if that does happen, it can affect the Eurozone and cause it to be pulled down. On the other hand, the U.S. jobs market is expected to stay strong, but it may not be quite as strong as it was in the last few years. Healthcare and services remain on solid ground and will keep the economy standing strong.

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Construction Outlook for 2020

Looking ahead to 2020 Dodge Data & Analytics released in 2020 Dodge Construction Outlook, which is a mainstay in the industry for business planning and forecasting.

According to the report, which was released at the end of October, new construction starts are expected to slip to $776 billion in the new year, which is a 4 percent decline from the estimated level of activity for 2019.

The chief economist with Dodge Data & Analytics said that the recovery in construction starts that started in 2010 after the Great Recession’s aftermath is ending. After a 3 percent increase in construction starts in 2018, those starts fell 1 percent in 2019.

A Breakdown of the Construction Outlook

  • The report indicates that the dollar value of single-family housing starts is expected to fall by 3 percent in the new year and the number of units will lose 5 percent.
  • Multi-family construction was an early leader in the post Great Recession recovery, seeing 8 years of growth since 2009. Multi-family vacancy rates have moved sideways throughout the last year, suggesting slower economic growth will affect the construction market next year. They expect multifamily construction to drop 15 percent in units and 13 percent dollar-wise.
  • Commercial building starts will drop 6 percent as far as dollar value goes.
  • Institutional construction starts will remain even with the level it saw in 2019.
  • Public works construction starts will move up 4 percent seeing growth across all the project types.
  • Construction projects for electric utilities and gas plants will drop 27 percent after seeing 83 percent growth in 2019.

However, despite the drops in new construction projects, the demand for those who work in the construction industry is continuing to climb. The Bureau of Labor Statistics expects an 11 percent growth in the employment of construction workers from 2018 to 2028.

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Preparing Heavy Equipment For Winter

The days are getting colder. Winter is quickly approaching. You will want to be preparing your heavy equipment and machinery for the colder weather, so you can prevent damage that can be expensive and time-consuming. Now is the time to plan and get things in order. Here are a few tips for getting your heavy equipment ready for the cold weather that lies ahead.

  • Be sure to condition any and all hydraulic hoses and use the correct lubricants. Make sure your equipment has the right engine, transmission, hydraulic, and final drive lubricants for that specific piece of equipment.
  • Use enclosed storage facilities for your equipment, and be sure fluids are at room temperature. That will make for an easier start for your machine and you will spend less time brushing off all the snow and ice.
  • In most situations, block heaters are best for getting your engine started in cold weather. A block heater will increase the temperature of the hydraulic fluid and the engine. You can block the radiator to speed up the warming-up process.
  • Be sure that all batteries are fully charged and that they are warm. When it is cold, it takes twice as many cranking amps for your battery to turn over, so making sure it is charged and warm will make it start much easier and more quickly.
  • Keep starting fluid on hand, be sure it stays at room temperature, and only inject it as the engine is cranking. Be sure to store starting fluids properly and safely as they are highly flammable.
  • You should always run the engine until it reaches the temperature for operation. This can help you avoid sticking of the exhaust and intake.
  • Make sure you keep your tires properly inflated because they lose cold air faster in cold weather. Also, when they are inflated, do so in a heated area for the best results.
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Damage Cleanup After Mother Nature

Natural disasters have affected people around the world. These floods, tornadoes, and earthquakes have caused significant damage, which requires the efforts of many construction companies and their workers. Cranes, bulldozers, and other forms of heavy equipment are needed to clean up the debris and to make the communities safe again. Then, truckers are needed to haul in the equipment for the cleanups, take in supplies for the rebuilding, and haul in the equipment for the new construction efforts to clean up the damage.

The Water Damage Restoration and Clean-Up Process

For those communities that have suffered from flooding, there will be a need for water damage restoration and clean-up to ensure the communities are safe for residents. Here are some tips for those working with flood clean-up and restoration:

  • Structural and electrical damage inspections – starting from the exterior before entrance is permitted
  • Check for gas leaks and fire hazards using battery-powered light sources
  • Wear durable shoes, eye protection, and sturdy rubber gloves
  • Never mix chlorine bleach with vinegar or ammonia during the cleaning process.
  • Stay on the lookout for snakes, rodents, fire ants, and other animals.
  • Wear a respirator to filter spores when working around mold

Clean-Up After Tornados or Earthquakes

The clean-up process after an earthquake or tornado can be intense. Be sure to wear gloves, sturdy shoes, and protective gear. Be on the lookout for electrical risks, such as broken power lines. Watch for broken glass, sharp objects, and rodents. A respirator might be needed to filter the air if there are contaminants or mold.

Training For Such Tasks

If you are interested in a career helping with cleanup and damage restoration or rebuilding after natural disasters, ATS training programs are available to train those for different roles in the construction field. Learn about heavy equipment operation, crane operating, or truck driving from ATS. To learn about the ATS programs, call (800) 383-7364 today to learn more about training programs at Associated Training Services.

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$2 Trillion Infrastructure Bill

President Donald Trump and Congressional Democratic leaders agreed to aim for an infrastructure package worth $2 trillion recently, but many don’t think Congressional Republicans will agree because there are questions as to where the funding for the package would come from. However, the package is still in the works.

This infrastructure project would be designed to upgrade and improve the country’s aging infrastructure, which includes bridges, roads, internet, telephone, electric, sewage, and water systems. These all play a vital role in the development and prosperity of the communities.

The agreement was made because the infrastructure investment will create jobs and make the country more economically competitive with other countries. This means that there will be more opportunities and a greater demand for those who are trained and who can work in different construction roles.

The Need For More Construction Workers

There will be a greater need for heavy equipment operators, such as those who drive big trucks, dozers, graders, and even operate cranes. In addition, there will be a need for professional truck drivers who can transport the heavy equipment where it needs to go.

ATS offers training that can help with the different roles that will need to be filled with infrastructure projects. These jobs include:

ATS accepts financial assistance, including veterans’ benefits. If you would like to learn more about ATS and how we can help you prepare for a career-building infrastructure, call (800) 383-7364 today.

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How RVs Can Make a Work Camp Feel Like Home

Most heavy equipment jobs require some degree of travel. For most, regardless of the accommodations, hotels and restaurant food; living out of a duffel bag gets old. When you are putting in long hours on a job, a clean bed with easy access to food and bathroom facilities makes the work much more enjoyable. Living conditions can create relaxing or miserable work conditions, especially in the more remote areas. Fortunately, RVs can provide a great way to make a work camp feel like home. Here are some of those ways.

The Comforts of Home

Unlike a hotel room or other nightly accommodations, an RV allows a lot more comfortable. Not only do you have your own bathroom facilities, but you can also bring easily bring and make your favorite foods and entertainment. There are many different types of RVs depending on what you want to live in, which makes them flexible for any setting. From self-contained, individual trailers, to large bunkhouses with residential amenities, the options are endless. Many crews find RV living incorporates well with the demands of the job.

The interior floor plans are also greatly variable. For those who enjoy cooking, there are full-scale kitchens with a microwave, stove, oven, and full-sized fridge so any meal is possible, regardless of where you end up for the night. Or if you want higher-end entertainment facilities, a full walk-in shower, or separate bedroom spaces, there are RV floor plans that can accommodate those needs. This can go a long way toward making the RV ideal accommodation for work camp positions.

One big feature of many RVs to provide a more home-like feeling is a washer and dryer. Being away from home for extended periods will inevitably result in the accumulation of laundry. While laundromats are common and hotels often have washing facilities, having the capability to do it in the RV can make a huge difference.

Efficiency and Consistency

For both workers and employers, having an efficient and consistent work camp makes a huge difference on the job. Since, RVs can be easily modified, adapted, and decorated to suit your needs, they make an easy to set up a work community wherever they are needed. If a worker owns the RV, they can do whatever modifications necessary to make it homier. Many employers are choosing RVs as an investment in comfort and convenience. The great part is it all comes with you when you need to move to another location.

Another alternative is to rent an RV at the location the work is taking place. This is efficient because you save travel costs and maintenance and repairs that are involved with RV ownership. So, you can set up a temporary work camp and return the RVs when everything is done.

Having a consistent home base makes for a pleasant and enjoyable community feel to a work camp, which is hard to match.

Safety and Security With RVs

Being able to choose where to set up a mobile work camp can have a big effect on how comfortable it feels. Places to park can vary greatly by location and can range from basic remote locations with no amenities to high-end resorts with pools, spas, and other fancy features. Often it works better to set up somewhere remote, or right at the job site. This can allow you to tailor the overall experience to your needs. This also serves dual purposes for safety and security. Sometimes, depending on the job, leaving your personal belongings for the day can be risky, in the same way, thefts from unsupervised work sites are also common, combining the two into one location minimizes the risk and simplifies the process.

This way everyone starts the day, refreshed from a comfortable night’s sleep with their favorite breakfast on hand. And they can end the day, by firing up the BBQ and enjoying what is left of the evening. For the purpose of setting up a work camp, RVs are a great way to make the experience homier and more comfortable for everyone.

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Spring Flooding Will Lead to Roadway Repairs

Spring flooding has been harsh already this year, with several inches of rain hitting much of the U.S. and Canada. According to the National Oceanic and Atmospheric Administration (NOAA), about two-thirds of the lower 48 states are facing a higher risk of flooding throughout the month of May. There is a potential risk for moderate to major flooding in 25 states, according to the spring outlook issued by NOAA in late March.

Most of the U.S. is facing precipitation in higher amounts than usual this spring, which is leading to a higher than usual risk for floods. Portions of the U.S. – specifically those in the upper Mississippi and Missouri River basins including the states of Nebraska, Iowa, and Minnesota – have seen record flooding already in 2019. The rapidly melting snow, combined with late-season snowfalls and heavy early spring rains in areas where moisture is high has led to major flooding issues.

Damages From Flood Waters

Drivers should never attempt to maneuver their vehicles through the high flood waters. You don’t know what lies under the water or how deep the water is in the roadway. Sometimes, landslides or water will take out the pavement underneath or cause deep sinkholes or damaging potholes. The highway crews will be out in full force, repairing potholes, fixing sinkholes, fixing bridge damage, and taking care of drainage issues that might result from the spring flooding.

News outlets have reported that there are millions of dollars in flood damage to the roadways already this spring. Those who don’t have flood insurance are urged to consider purchasing a policy. Most homeowners’ policies don’t cover flood damage. The National Flood Insurance Program reports that the average cost of one inch of flooding in a home is about $27,000 in repairs.

What Lies Ahead

If the rest of the year is like this year started out, then there will be a lot of roadwork needed the rest of the year. Construction crews that are experienced in assessing and repairing flood damage will be in demand.

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Trade Tension and Construction Outlook

The ongoing trade tension between China and the United States could have a major impact on the construction industry here in the U.S. if there isn’t a deal reached within the next few months, GlobalData has reported.

Many goods from China, such as aluminum, Canadian lumber, and steel, are needed for home construction and commercial buildings. Since last September, these items have been subjected to a 10 percent tariff.

A construction analyst at Global Data, Dariana Tani, said that higher tariff rates will increase the costs for imported building materials. In turn, the higher costs could cause decreases in job creation and growth in the building industry.

This will affect the spending on infrastructure and will cause disruption of the supply chains and operations of companies. This will also reduce investment in the construction industry and will put construction loans at greater risk.

Curtailing New U.S. Construction Projects

U.S. products subjected to Chinese tariffs could affect the new construction projects based in the U.S. An example of how this came into play took place in October 2018 when a liquefied natural gas (LNG) export terminal being built in Louisiana was postponed by Australia’s LNG Limited following a Chinese-placed 10 percent tariff on all exports from U.S. LNG.

GlobalData’s Tani said that about one-half of the U.S. import value is from intermediate goods, including machine parts, capital equipment, raw materials, and industrial inputs, which is the category into which most Chinese imports that are subjected to the tariffs fall into.

This tariff rate on these products, is like taxing U.S. contractors by increasing the costs of their building materials. At the time of the report, steel producers can’t increase steel production to equal the demand to match the production of foreign steel suppliers. If contractors make the switch to a local U.S. producer, they will face serious delays in receiving the needed building supplies.

This situation might leave contractors in a situation where existing suppliers cannot source what they need so they will need to find a new supplier and pay higher material costs. Contractors and subcontractors will be forced to charge higher prices as well as price risks in their bids. To prevent increasing customer costs, contractors might start cutting corners, which could compromise durability and safety in projects.

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$10 Billion Wisconsin Project on Hold?

Wisconsin project, Foxconn, plans for a $10 billion plant in Wisconsin may or may not be a go, according to conflicting reports. Some recent reports indicate that the officials in charge of Foxconn might be abandoning the plans for the manufacturing plant and switching the project to a knowledge hub. But, others in charge of the project allege that the original $10 billion project will continue as originally planned.

Reuters reports that more than $200 million has already been invested in the project. Foxconn is a firm based in Taiwan, which originally announced it would make LCD technology products at the new manufacturing facility. However, some officials have said since the original announcement that making the products in the U.S. isn’t economically feasible. The assessment was made based on how much would be needed for the creation of 13,000 manufacturing jobs, which would be in return for promised tax incentives.

The Latest Updates

Foxconn Technology Group CEO Terry Gou notified the Wisconsin Economic Development Corporation that Foxconn wouldn’t tap into the hiring incentives for its $10 billion LCD manufacturing facility to be in Mount Pleasant because it hasn’t met the goals that were agreed upon in order to obtain those incentives.

Gou indicated that the company created 1.032 direct jobs during 2018, which included 854 positions in construction, but only 178 of them qualified for the agreed-upon incentive program. The company would have been eligible for as much as $9.5 million in tax credits, according to a report in the Milwaukee Business Journal, if only 260 jobs had been created by Foxconn. The company could potentially get as much as $3 billion in incentives if at least 13,000 full-time positions are created by the manufacturing facility.

Where it Stands

While there has been a setback, Foxconn did report that the construction for the Wisconsin project is progressing on schedule and more than $200 million has been invested in the project. The hired teams thus far have been 95% based in Wisconsin. The crews have moved more than 4 million cubic yards of dirt and they have finished building a 120,000-square-foot building that is multi-purpose. The building construction involved 37 contractors.

During the construction phase, contractors will share space with the company development and research teams in the multipurpose building. Total contract awards were about $14 million. The general contractor is a joint venture of Gilbane Building Co. and M+W Group.

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