Tag Archive for 'economy'

In Response to President Obama’s Infrastructure Bank

Published on September 7, 2010 in Daily Dirt. 0 Comments Tags: , , , , , , , , , , , , , , , , , .

Dennis Slater, AEM President

Statement from Dennis Slater, President of Association of Equipment Manufacturers

America’s equipment manufacturing industry applauds the President for recognizing the vital importance of infrastructure investment to the long-term strength and competitiveness of our country. What America needs – and what voters want – is the Administration and Congress to work in partnership right now to finally pass a transportation reauthorization bill that will address longstanding safety and quality issues, and put Americans back to work.

Investing in the rebuilding and modernization of our nation’s roads, railways, runways and transit systems is a strategy that Democrats and Republicans alike should be clamoring to support.  Instead, Congress has let a six-year bill expire while America falls behind other nations that are building infrastructure for future competition in the global marketplace. In the short term, this has and will continue to cost American jobs. In the long-term, it will cost us our competitive advantage – and even more jobs.

While the President’s plan for an Infrastructure Bank and increased capacity in our infrastructure system is an important step, Congress has the opportunity to act now on transportation reauthorization that will result in immediate job creation.  We need a strategic vision for modernizing our country’s infrastructure, and leaders with the courage to make it happen.  We need Congress to pass a transportation bill, and they need to come together on a robust, multi-faceted and sustainable way to pay for it, including consideration of a user fee increase.  Maybe this is not the most popular policy stance in an election year, but there is no such thing as a safe road built by American workers for free.

Editor’s Note:

Site-K Construction Zone has been posting information and comments about the country’s need for a new transportation bill. One, that had been based on a couple of years of intense research and addressed the immediate and long term transportation needs of the country by congressman James L. Oberstar and his committee, has been put on hold a couple times since the last bill,  SAFETEA-LU, expired on September 30, 2009. A year and billions of dollars have been wasted and more debt created while we as a nation sit and wait… A comprehensive transportation bill would be a step in the right direction. Congress doesn’t have to wait until December to pass one. Now would be a good time…

GS

Construction Spending Sinks To 10-Year Low In July As Investments In Projects Are Now 34 Percent Below February 2006 Peak


Published on September 1, 2010 in Daily Dirt. 0 Comments Tags: , , , , , , , , , , , , , .

Private Sector Caution, Plus Local and State Budget Cuts, Overwhelm Benefits of Stimulus, Construction Trade Association (AGC) Notes in New Analysis of Spending Data Released by Federal Officials Today

Total construction spending declined to a 10-year low of $805 billion in July, as investments in construction projects dropped 1.0 percent from a downwardly revised June total, the Associated General Contractors of America said today in an analysis of new Census Bureau data. Association officials noted that the new figures show depressed private sector activity, and local and state budget cuts are offsetting stimulus-funded construction spending.

“While the stimulus is funding some vital infrastructure projects, the private sector is too cautious and state and local governments are too cash-strapped, to help,” said Ken Simonson, the association’s chief economist. “As a result, overall construction spending is at its lowest level in a decade and hundreds of thousands of construction workers are unemployed.”

Simonson noted that the July total was one-third lower than the high-water mark set in February 2006 and was down by 11 percent in the past 12 months alone. He added that in the past year, all 12 private nonresidential construction categories and 10 of the 14 public categories declined. Private residential spending in July was 5.5 percent higher than a year before but has dropped for three straight months since the homebuyer tax credit expired in April, Simonson continued.

Stimulus funds appear to have buoyed public housing (up 18 percent from July 2009 to July 2010), sewage and waste disposal (up 11 percent), and water supply construction (up 0.7 percent), while reconstruction work around New Orleans helped conservation spending rise 12 percent, Simonson suggested. He added, however, that stimulus spending on highways and other transportation facilities was evidently not enough to offset the downturn in state and local budgets, leading these categories to contract by seven percent and one percent, respectively, from year-earlier levels.

Private nonresidential spending plunged 24 percent from July 2009 to July 2010 with double-digit declines in nearly all categories, Simonson remarked. The economist noted that private power construction reached the highest monthly level this year but manufacturing and developer-financed categories such as office, hotel and retail construction appear to be heading for still less activity.

Stephen Sandherr, chief executive officer of the construction association, said the new spending data and metropolitan area construction employment figures showing construction employment declined in 276 out of 337 metro areas this past year, made it clear that the industry is hurting. He said long-delayed federal legislation to invest in aging public infrastructure would provide a needed boost to the construction industry while making the U.S. more economically competitive. “Letting our roads age, our bridges deteriorate and our ports decline is no way to boost our export capacity,” Sandherr said.

Caterpillar To Expand Manufacturing And Increase Employment In The U.S. With New Hydraulic Excavator Facility In Victoria, Texas

Published on August 31, 2010 in Daily Dirt and Texas Contractor. 0 Comments Tags: , , , , , .

Caterpillar Excavator

Once fully operational, the facility is expected to employ more than 500 people and would triple Caterpillar’s U.S.-based excavator capacity

Caterpillar Inc. recently announced it has selected the city of Victoria, Texas, as the location for the company’s new state-of-the-art hydraulic excavator manufacturing facility. Ground breaking for the 600,000-square-foot manufacturing operation is scheduled to take place in September 2010. The facility is expected to begin production in mid-2012. Once fully operational, it will triple the current capacity of hydraulic excavators produced by the company in the United States, and would double the number of Caterpillar employees in the U.S. making excavators.

This announcement was released the day before the company’s annual analysts meeting, which was held at the New York Stock Exchange this year. Caterpillar Inc. CEO Doug Oberhelman reviewed the company’s updated five-year strategy and goals with analysts and investors this afternoon. During a presentation followed by a question and answer session held at the historic New York Stock Exchange, Oberhelman expressed confidence about Caterpillar’s growth opportunities throughout the world and the company’s strategic focus on operational execution, which will drive financial performance over the next five years.

Doug Oberhelman, Caterpillar CEO

Oberhelman also discussed growth opportunities and highlighted a series of recent investments totaling more than $2.5 billion that will increase capacity in nearly all geographic regions around the world and will position Caterpillar to expand rapidly.

“We have streamlined our organization from the top down, and our leadership team is driving an intense focus on helping our customers succeed,” Oberhelman said. “From our factory floors to our research and development laboratories and everywhere across the company, we have the talent in place to win, and as we execute this strategy, we will deliver greater value to our customers, our stockholders and employees.”

The primary goals for the next five years are focused in three areas:

•            Delivering superior results – earnings per share growth, operating profit after capital charge (an internal metric for measuring business performance) and cash flow

•            Developing the best team of people – world-class safety and inclusion

•            Becoming the global leader everywhere we do business – from the quality

of our products, to PINS (percent of industry sales) and including aftermarket parts growth

The Caterpillar Production System (CPS) is the primary enabler of the company’s plan to execute the updated strategy. Since its implementation, CPS has already resulted in gains in product quality, cost savings and employee safety. CPS is also the key reason Caterpillar’s manufacturing efficiency has improved in every quarter since the end of 2008.

“Our primary goal for stockholders is delivering total shareholder returns over the business cycle in the top 25 percent of the S&P 500,” Oberhelman said. “To do that, we believe that we need to deliver compound annual earnings per share growth of 15 to 20 percent over the business cycle,” said Oberhelman. “We performed well during the downturn in 2009, and so far this year we’re doing better than we expected as we came into 2010. Last year, we discussed our 2012 profit goal of sales and revenues in a range of $55 to $60 billion, and earnings per share of $8 to $10 – and that’s still our goal for 2012. We are on the path to 15 to 20 percent growth over the cycle,” Oberhelman added.

In just the last two months, Caterpillar has announced a series of investments to open new facilities, expand existing operations, develop a new mining shovel product line and expand into the locomotive business with the acquisition of Electro-Motive Diesel. The company’s improved financial performance positions Caterpillar to continue making these strategic long-term investments in order to maintain its global industry leadership.

“These recent investments total more than $2.5 billion that Caterpillar is putting to work over the next several years in the United States, Brazil, China and India,” Oberhelman said. “Our leadership team will be held accountable to deliver on these goals so that we can help our customers become more profitable. When that happens, everyone wins.”

The decision to increase manufacturing capacity and employment in the United States, which was discussed during the analysts meeting,  is part of Caterpillar’s long-term strategic initiative to develop the appropriate global footprint to competitively produce hydraulic excavators.

“Based on our comprehensive review of possible locations, Victoria’s proximity to our supply base, access to ports and other transportation, as well as the positive business climate in Texas made this the ideal site for this project,” said Gary Stampanato, Caterpillar vice president with responsibility for excavators. “Caterpillar is committed to maintaining its global leadership position in the excavator industry, and this new facility in Texas will play an important role in our long-term plans to provide customers in every region of the world with the products and solutions they need to help them with their businesses.”

“Texas is the best place in the nation to grow your business, and nobody knows that better than the companies that are already here in the Lone Star State,” Texa

Governor Rick Perry said. “This Texas Enterprise Fund investment in Caterpillar will help create good jobs to Texans, and this expansion is proof that our combination of low taxes, reasonable regulations, fair legal system and world-class workforce is working to attract and retain the best employers in the world.”

Victoria Mayor Will Armstrong said, “Victoria is proud to play a role in Caterpillar’s plans to expand its hydraulic excavator manufacturing in the United States, while at the same time Caterpillar will be an important part of the work to reinvent Victoria.”

Victoria County Judge Don Pozzi added, “I am excited that a company with the global stature of Caterpillar has selected our community and in these economic times, I am certainly happy that Victoria County is positioned to help a project that will put local people to work.”

Currently in the U.S., Caterpillar produces two excavator models at a facility in Aurora, Ill., where it also produces wheel loaders, soil and landfill compactors, wheel dozers and components. In addition, Caterpillar produces excavators in Belgium, Brazil, China, France, Indonesia, Japan and Russia. The new facility will manufacture the two models now made in Aurora, as well as several additional excavator models now produced in Akashi, Japan, and exported to the United States. The expansion of excavator production in the U.S. will allow the Caterpillar facility in Japan to better serve the growing demand for excavators in Asia. Caterpillar has also recently announced plans to quadruple excavator capacity at its manufacturing facility in Xuzhou, China, primarily in support of growing demand in the Chinese market.

“We are making a number of these long-term investments in our global excavator business so that we are appropriately positioned to support Caterpillar’s corporate strategy,” said Rich Lavin, Caterpillar group president with responsibility for construction industries. “This will enable us to maintain our global leadership position while delivering superior products to our customers and results for stockholders.”

America’s Equipment Manufacturing Industry Responds to Sluggish Economic News

Published on August 30, 2010 in Daily Dirt. 0 Comments Tags: , , , , , , , , , , , , .

Dennis Slater, AEM President

Statement from Dennis Slater, President of Association of Equipment Manufacturers

News that the U.S. economy grew at a slower pace than expected in the second quarter of 2010 should sound an alarm to Congress. There is an urgent need for job creation in this country. While there are no easy political fixes to jolt unemployment numbers or the GDP, our leaders need to acknowledge the reality that national policies to keep manufacturing strong in this country are inadequate and have failed to create the certainty that manufacturers need to invest and hire.

Congress needs to immediately pass a new transportation bill that addresses urgently needed safety, rebuilding and modernization issues across the nation. Now is the time to build and repair America’s roads and bridges for the good of the country. Infrastructure investment is a proven economic engine with staying power – not only does it drive growth, it creates lasting benefits. According to the U.S. Department of Transportation, 30,000 jobs are created for every $1 billion spent on infrastructure. And a modernized infrastructure system will give America the competitive edge in the global economy while improving the lives of Americans for generations to come.

Stimulus money is nearing an end, state and local budgets continue to shrink, and with a slowing recovery, the prospects for a sustained rebound in sales and employment are weakening.

Over the past 10 years, manufacturing in the U.S. has shed 5.5 million jobs. Unemployment in the manufacturing sector remains higher than the national average. There has been some recovery of lost jobs, but the rebound is much slower than it should be.

Infrastructure investment is the most effective action we can take to change this picture. We need a new national manufacturing policy that creates American jobs and rebuilds America’s infrastructure.

Oklahoma Commission Adopts $4.3Billion Road, Bridge Plan

Published on August 26, 2010 in Construction News and Daily Dirt. 0 Comments Tags: , , , , , , , , , .

By TIM TALLEY (AP) Source Google News

A $4.3 billion plan to improve or replace hundreds of bridges and highways across the state over the next eight years was adopted Tuesday by the Oklahoma Transportation Commission.

The ambitious plan, which includes more than 1,750 transportation projects statewide, will mean Oklahoma will no longer be the state with the highest percentage of deficient bridges in the nation, said Gary Ridley, transportation secretary and director of the state Department of Transportation.

“This is a really good day for the agency; not just for the agency but the people of Oklahoma,” Ridley said.

“I don’t think there’s any doubt that we’re moving up the list.”

The plan, which outlines proposed spending on road and bridge projects through 2018, includes more than 650 bridge replacements or major rehabilitations as well as improvements to segments of Interstates 35, 40 and 44 and other major roads.

“The overall condition of our roadways will vastly improve,” Ridley said.

In 2002, The Road Information Program, a Washington, D.C.-based nonprofit group that promotes policies that improve roads and bridges, reported that Oklahoma had the highest percentage of deficient bridges in the nation, with one-third of bridges 20 feet or longer in need of repair or replacement.

The Transportation Department estimated more than 3,000 miles of Oklahoma’s 12,266 miles of highways — about 25 percent — were inadequate and in need of improvement or replacement and about one-third of Oklahoma’s driving surfaces, about 4,300 miles, were in poor condition.

State lawmakers began putting more emphasis on transportation in 2005 and dedicated more state tax dollars to road and bridge maintenance, resulting in a steady increase in spending on transportation needs.

In 2003, the state’s first eight-year road and bridge plan totaled $1.8 billion — less than half the current plan. About 530 bridges have been replaced or rebuilt since 2005 and other improvement projects have been authorized on major roads and highways across the state, Ridley said.

“We can see the fruits of our labor over the last five years,” Ridley said. “We’ve seen major improvements in our investment in the system. That has to continue.”

The department’s goal is to replace or rehabilitate 100 bridges a year, he said.

Ridley said transportation officials were able to accelerate the pace of many projects in the eight-year plan after the state received $465 million in federal economic stimulus money for transportation.

About 80 percent of projects listed in the plan, which relies on state and federal dollars, are actually performed, he said.

The commission authorized Ridley to execute agreements with the Oklahoma Capital Improvement Authority to repay debt from a $215 million transportation bond issue authorized by the Legislature in 2008. Officials have said the bond issue is needed to keep the eight-year highway plan on track.

Transportation commissioners also approved a $28 million contract to pave part of a new 4.5-mile long section of the Interstate 40 Crosstown Expressway in Oklahoma City, the first of four paving contracts that will complete the project.

“What this is is the start of the finish,” Ridley said. Bids for two other paving contracts will be received this month and bids for the final contract will come in next spring.

The new highway is scheduled to open in 2012. The project will cost about $650 million.