Tag Archive for 'equipment'

ABC Reports: Construction Job Growth Accelerates Amid Optimistic Post-Election Outlook in November

1291931467352794367The U.S. construction industry added 19,000 net new jobs in November and has now added jobs for three consecutive months, according to analysis of U.S. Bureau of Labor Statistics data released today by Associated Builders and Contractors (ABC).

Industry employment is up by 2.4 percent on a year-over-year basis, considerably faster than the overall economy’s 1.6 percent job growth rate. Construction industry employment growth would likely be much sharper if more suitably skilled or trainable workers were available to fill available job openings. The skilled labor shortage appears to be impacting nonresidential activity more than residential. The nonresidential sector added 1,100 net new jobs in November, while the residential sector added 19,600 positions. Heavy and civil engineering lost 2,100 jobs for the month.

“The demand for construction talent was strong before the election, and the outcome has improved the near-term outlook for private and public construction activity,” said ABC Chief Economist Anirban Basu. “The implication is that demand for construction workers is positioned to remain high, which will translate into gradual reduction in industry unemployment and significant wage pressures.

“Some of these wage pressures are already evident,” said Basu. “Construction firms in the nation’s hottest markets, including New York, Seattle and Miami, report that in certain occupational categories, compensation is rising at a 10 percent per annum pace or more. This appears to be particularly true for construction superintendents and managers.

“Next year is shaping up to be a good one for both residential and nonresidential construction segments,” said Basu. “Of the two branches of the industry, nonresidential likely offers the larger upside. An infrastructure-led stimulus package would largely be oriented around nonresidential activities. Moreover, in certain markets, there is evidence that the apartment market is approaching saturation. Expected increases in interest rates next year would also tend to hit certain residential activities (i.e., single-family construction) more forcefully.”

The construction unemployment rate remained unchanged at 5.7 percent in November. One might have expected that this rate would have declined given the generally elevated levels of demand for construction talent. However, there are certain parts of the country that are softer economically, including many commodity-rich communities that have been impacted by lower oil and natural gas prices. Moreover, it is difficult to assess the skill level of jobseekers.

The unemployment rate for all U.S. industries fell to 4.6 percent, the lowest rate since mid-2007 and 0.3 percentage points below October’s rate. The labor force lost 226,000 persons for the month, but is still more than 2 million people larger than at the same time one year ago.

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Wells Fargo Reports: Construction Spending Bounces Back in October

Wells_Fargo_Securities_logoFollowing a surge in the third quarter in private nonresidential construction, the pace of spending slowed to start Q4. Spending on residential construction showed some signs of strengthening in the fourth quarter.

Public Construction Picks Up

  • Total construction spending rose 0.5 percent to begin the fourth quarter with residential investment rising 1.8 percent, while nonresidential construction declined 0.3 percent for the month.
  • Private construction spending contracted for the second straight month, while public construction activity rose 2.8 percent with additional upward revisions to prior months’ data.

Better Residential Investment in Q4

  • Private residential construction rose 1.6 percent with single and multifamily both posting 2.8 percent increases, while home improvement fell 0.6 percent for the month. The bounce back in private residential supports our view for a rebound in residential investment in Q4.
  • A rise in both federal and state & local construction are supportive of greater government investment in Q4.

Construction Spending Softens Further in September

 

 

 

 

 

Construction Spending Softens Further in September

Construction Spending Softens Further in September

ARTBA Foundation Announces 2016Transportation Development Hall of Fame Honorees

36c7fbed-30d0-432b-8904-e2b650dedefdThe 34th President of the United States, one of the “fathers” of the Interstate Highway System, and the iconic founders of Caterpillar Inc., have been selected into the 2016 American Road & Transportation Builders Association (ARTBA) Foundation’s “Hall of Fame.”

Launched in 2010, the “Transportation Development Hall of Fame” honors individuals or families from the public and private sectors who have made extraordinary contributions to U.S. transportation development during their careers. A committee of judges comprised of construction industry journalists annually reviews nominees in two categories:

Transportation Design & Construction Industry Innovators: Honors the men and women who discovered or created a “game changing” product or process that significantly advanced transportation design, construction and/or safety. It seeks to honor the original innovator.
     Benjamin Leroy Holt & Clarence Leo “C.L.” Best

Transportation Design & Construction Industry Leaders (Individuals or Families): Recognizes men, women and families who have made significant contributions—beyond just having successful businesses or careers—that have notably helped advance the interests and image of the transportation design, construction and safety industry.

President Dwight D. Eisenhower
 Francis C. Turner

Innovators:

Benjamin Leroy Holt (1849-1920) & Clarence Leo “C.L.” Best (1878-1951)

Benjamin Leroy Holt built his first combined harvester in Stockton, California, in 1886, using flexible chain belts rather than gears to transmit power from the ground wheels to the working mechanism, thus reducing breakage and down time. He built his first steam traction engine tractor in 1890, which could burn wood, coal or oil as fuel and carry 675 gallons of water. Holt incorporated the Holt Manufacturing Company with his brothers in 1892.

Meanwhile, Clarence Leo “C.L.” Best began his career in 1891, at the age of 13, working for his father Daniel Best. Best established the C.L. Best Gas Traction Co. in 1910, the same year Holt Manufacturing registered “Caterpillar” as a trademark. The two companies merged to form the Caterpillar Tractor Co., in 1925. Its first product line consisted of five tractors. In 1936, the company’s track-type tractors helped complete the construction of the Hoover Dam, and one year later Caterpillar machines helped complete the Golden Gate Bridge. Best was chairman of the board of Caterpillar Tractor Company from its founding until his death in 1951.

Whether supporting Allied Troops during World Wars I and II, widening the Panama Canal or helping to construct the Three Gorges Dam in China, “Caterpillar Yellow” machines are known as the standard for the industry. The company, whose current product line consists of more than 300 machines, helped transform the way both the private and public sector transportation construction market completes projects.

Leaders:

     President Dwight D. Eisenhower (1890-1969)

His views about the need for a network of Interstate highways were shaped by a 62-day, 3,000-mile cross country trek over dirt, mud and sand roads in 1919 as a young army officer, and also by seeing first-hand the efficiency and strategic value of Germany’s Autobahn during World War II.

Later, as president, Dwight David Eisenhower worked doggedly to build a similar superhighway in the U.S., not only for military transport and evacuation of cities, but also to help reduce road fatalities and connect communities.

On June 29, 1956, President Eisenhower signed the law authorizing construction of the Interstate Highway System and creating the Highway Trust Fund to pay for it. It was the most notable domestic achievement of his presidency, and has been called one of the greatest achievements of the federal government during the second half of the 20th century.

The 47,000-mile road network became the thread that connects the fabric of America. Today, it continues to serve as the lifeblood of the U.S. economy, and provides an unprecedented level of mobility and safety for all Americans.

     Francis C. Turner (1908-1999)

In 1994, American Heritage magazine named him one of 10 people who, although unknown to the general public, had changed life for all in America. Others called him one of the “fathers” of the U.S. Interstate Highway System.

Much of his 50-year career in public service focused on big projects and big ideas, and his work produced big results.

Frank Turner first joined the federal Bureau of Public Roads in 1929. In 1943, he was chosen to expedite completion of the Alaska Highway. In 1950, he was named coordinator of the Inter-American highway and projects in other countries.

When President Eisenhower appointed the Clay Committee to plan the Interstates, Turner became the body’s executive secretary. He helped lead the committee’s work and was the liaison between the Bureau and Congress as it wrote the 1956 law authorizing the Interstate system.

With Interstate construction underway, Turner worked from 1957-69 as deputy commissioner of public roads, chief engineer and director of public roads to resolve disputes and keep the program moving forward. In 1969, he was appointed Federal Highway Administrator, the only holder of that position to come up through the ranks. He held the post until his retirement in June 1972.

For more than 30 years, the ARTBA Foundation, a 501(c)(3) tax-exempt entity, has supported an array of initiatives to “promote research, education and public awareness.” Its efforts include educational scholarships, awards, executive education seminars, roadway work zone safety and training programs, special economic reports and a national exhibition on transportation at the Smithsonian’s National Museum of American History.

AEM Announces ‘I Make America’ Award Winners

imageThe Association of Equipment Manufacturers (AEM) announces the 2016 recipients of its I Make America advocacy awards.

Winners are AEM member companies that have achieved the highest level of support in AEM’s signature program to build grassroots support and advocate for pro-manufacturing policies that create and sustain jobs across America.

AEM honored 32 companies during its recent annual conference for achieving Gold status, and 6 of these companies also received recognition as Legacy supporters after maintaining Gold status for five consecutive years.

I Make America activities can include significant employee involvement; outreach to state, local and federal legislators; and promoting campaign sign-ups at trade shows and with allied trade associations.

“I Make America’s success depends on the strong support of member companies and their employees to help our elected officials understand the critical importance of the off-road equipment industry and manufacturing to economic prosperity and quality of life across America,” said AEM President Dennis Slater. “We appreciate their hard work and are pleased to publicly acknowledge their outstanding commitment and efforts.”

‘Legacy’ Award Salutes Continuous Service  

The 2016 I Make America Legacy award winners are:

CLAAS of America Inc.
CNH Industrial
General Kinematics
Kondex Corporation
Volvo Construction Equipment
Wolf Robotics LLC

2016 ‘Pillar of the Industry’ Award Winners

A total of 32 companies received Pillar of the Industry awards for achieving or maintaining I Make America Gold status during the year.

For more information about and to join in I Make America, visit www.imakeamerica.com.

The 2016 Pillar of the Industry Award winners are:

  • AGCO Corporation
  • Astec Mobile Screens
  • Blount International/Woods Equipment
  • Calder Brothers Corporation
  • Carlson Paving Products
  • Caterpillar Inc.
  • CLAAS of America Inc.
  • CNH Industrial
  • Custom Products of Litchfield Inc.
  • Deere & Company
  • Doosan Bobcat
  • General Kinematics
  • Gradall Industries
  • HUSCO International Inc.
  • InQuest Marketing LLC
  • JCB Inc.
  • Johnson Crushers International
  • Ken Cook Co.
  • Kobelco Construction Machinery USA
  • Kolberg Pioneer Inc.
  • Kondex Corporation
  • Mahindra USA
  • Manitou Americas Inc.
  • Morbark LLC
  • Sioux Corporation
  • Stellar Industries Inc.
  • Terex Corporation
  • Topcon Positioning Systems Inc.
  • Vermeer Corporation
  • Volvo Construction Equipment
  • Weiler
  • Wolf Robotics LLC

 

AEM is the North American-based international trade group providing innovative business development resources to advance the off-road equipment manufacturing industry in the global marketplace. AEM membership comprises more than 900 companies and more than 200 product lines in the agriculture, construction, forestry, mining and utility sectors worldwide. AEM is headquartered in Milwaukee, Wisconsin, with offices in the world capitals of Washington, D.C.; Ottawa, Canada; and Beijing, China.

Visit www.aem.org for more information.

AEM Market Update and Analysis: U.S. Construction Equipment Exports Down 25 Percent

imageExports of U.S.-made construction equipment fell 25 percent overall for the first three quarters of 2016 compared to 2015 January – September, for a total $8.2 billion shipped to global markets.

All world regions were in decline from single-digit drops for Europe and Central America to decreases in the 50-percent range for Africa and South America, according to the Association of Equipment Manufacturers (AEM), citing U.S. Department of Commerce data it uses in global market reports for members.

AEM is the North American-based international business group representing the off-road equipment manufacturing industry.

Exports by World Region

aem-ytd-sept-2016-exports-us-made-construction-equipment-copy

January-September 2016 U.S. construction equipment exports by major world regions compared to January-September 2015:

Canada dropped 21 percent, for a total $3.5 billion
Europe declined 6 percent, for a total $1.2 billion
Central America fell 9 percent, for a total $1.0 billion
Asia decreased 30 percent, for a total $972 million
South America declined 49 percent, for a total $733 million
Australia/Oceania fell 36 percent to $427 million
Africa declined 51 percent to $317 million
AEM Market Overview

AEM’s Benjamin Duyck, director of market intelligence, provides some insights:

“For the past 15 quarters U.S. exports of construction equipment declined year over year and in the third quarter of 2016, that trend remains unchanged. A key factor affecting the reduction in exports is most likely due to the strong dollar making U.S. manufacturers less competitive in the global marketplace. Of course, the strong currency is a problem that plagues all U.S. exports. Some international markets are still viable; exports are up year over year to Belgium and Germany, for example.

“Our expectations for the fourth quarter remain subdued as the U.S. dollar is experiencing its longest rally in 16 years. With the global economic malaise, the slowdown in emerging markets and the negative interest rates seen in several economies’ bond markets, investment is flowing to the U.S. and U.S. stocks, driving up demand for our dollar, inadvertently affecting our competitiveness abroad.”

Exports by Top 10 Countries

The top countries buying the most U.S.-made construction machinery during the first three quarters of 2016 (by dollar volume) were:

Canada – $3.5 billion, down 21 percent
Mexico – $831 million, down 9 percent
Australia – $392 million, down 38 percent
Belgium – $294 million, up 33 percent
Germany – $202 million, up 24 percent
China – $190 million, down 8 percent
Peru – $181 million, down 30 percent
Chile – $165 million, down 60 percent
Japan – $147 million, up 6 percent
Brazil – $145 million, down 61 percent
Economic Resources Available

AEM provides a variety of market macroeconomic and industry trend data for members as well as survey opportunities and custom research. Visit www.aem.org in the Market Data/Market Intelligence section. For more information, contact AEM’s Benjamin Duyck, director of market intelligence (bduyck@aem.org).

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About the Association of Equipment Manufacturers (AEM) – www.aem.org AEM is the North American-based international trade group providing innovative business development resources to advance the off-road equipment manufacturing industry in the global marketplace. AEM membership comprises more than 900 companies and more than 200 product lines in the agriculture, construction, forestry, mining and utility sectors worldwide. AEM is headquartered in Milwaukee, Wisconsin, with offices in the world capitals of Washington, D.C.; Ottawa, Canada; and Beijing, China.