Tag Archive for 'manufacturing'

Nonresidential Construction Spending Unchanged in June

“There is little reason to believe that construction spending will either substantially accelerate or decelerate in the near term.” —ABC Chief Economist Anirban Basu.

Total nonresidential construction spending was unchanged in June, as spending remained at a seasonally adjusted annual rate of $570 billion, according to the August 1 report by the U.S. Census Bureau. Year-over-year, total nonresidential construction spending is up 5.4 percent.

Private nonresidential construction spending was up 0.1 percent for the month and is up 14 percent year-over-year. Public nonresidential construction spending was unchanged for the month and is down 3.7 percent from June 2011.

Nine of the sixteen nonresidential construction subsectors posted increases for the month, the largest included communication, up 4.3 percent; lodging, up 3.7 percent; manufacturing, up 3.7 percent; and transportation, up 2.6 percent. Eight subsectors posted increases from one year ago, including lodging, up 23.3 percent; manufacturing, up 19.3 percent; and power, up 19.2 percent.

Seven subsectors saw decreases in spending for the month including water supply, down 4.5 percent; conservation and development, down 4 percent; power, down 3.1 percent; and commercial construction, down 1.9 percent. Since June 2011, construction spending decreased in eight subsectors, including conservation and development, down 18.2 percent; religious, down 5.2 percent; water supply, down 4.2 percent; and amusement and recreation, down 2.3 percent.

Residential construction spending was up 1.3 percent for the month and is 10.7 percent higher than the time last year. Overall, total construction spending – which includes both nonresidential and residential – was up 0.4 percent for the month and 7 percent from June 2011.


“Nonresidential construction spending in June was roughly in accordance with expectations,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu. “The volume of spending was virtually unchanged for the month, reflecting an economy that is growing slowly, but with an insufficient level of confidence to produce significant numbers of new construction starts.

“However, this does not suggest that the latest reports regarding construction spending were negative,” Basu said. “Nine of sixteen subsectors registered growth for the month, including highly cyclical segments like lodging and manufacturing.

“There is little reason to believe that construction spending will either substantially accelerate or decelerate in the near term,” said Basu. “Most economists expect the U.S. economy will continue to expand at roughly 2 percent, which was approximately the pace of growth registered last year and during the first half of this year.

“However, as the nation approaches the so-called fiscal cliff, when a number of tax increases and spending cuts take effect, there may be a meaningful pullback in activity during the final months of the year,” Basu said. “Many analysts expect Congress to act, but election year dynamics render many possible scenarios.

“A variety of leading indicators pertaining directly to the construction industry also suggest a flat level of spending going forward,” said Basu. “ABC’s Construction Backlog Indicator suggests the industry is not positioned for a surge in construction activity any time soon.”

To view the previous spending report, click here.

US Departments Of Transportation And Commerce Forge Partnership To Boost Domestic Manufacturing Across America

Partnership will help revitalize the domestic railway manufacturing sector, support Obama Administration’s historic investments in transportation and create jobs

U.S. Transportation Secretary Ray LaHood and Acting Commerce Secretary Rebecca Blanktoday announced a partnership to encourage the creation of domestic manufacturing jobs and opportunities for U.S. suppliers through transportation investments.

The Department of Commerce’s Manufacturing Extension Partnership (MEP) will help to ensure manufacturers meet the U.S. Department of Transportation’s (U.S. DOT) strict “Buy America” and “Buy American” standards, connecting U.S. manufacturers and suppliers for work on highways, railways and transit projects, and in the process help to create jobs.

“Investment in transportation is a critical piece of President Obama’s American Jobs Act,” said Secretary LaHood.  “Not only are we improving how we move people and goods, but we are strengthening our economy by providing opportunities for American companies and their employees to build our transportation system here at home.”

With a network in all 50 states and Puerto Rico, MEP serves more than 34,000 American suppliers, helping them to retool their manufacturing capabilities to meet demand, compete in the global marketplace and sell American-made products all over the world.

“This initiative is a win for workers and communities across America,” said Acting Secretary Blank. “The Manufacturing Extension Partnership will connect U.S. manufacturers and suppliers with hundreds of millions of dollars in upcoming highway, railway, and airport projects, providing new job opportunities in every corner of the country.”

MEP will leverage over 1,300 expert manufacturing assistance field staff in over 350 locations to provide knowledge of local manufacturing capabilities from across the nation. MEP will identify suppliers’ production and technical capabilities to match them up with viable business opportunities that may have otherwise gone to foreign suppliers, ensuring maximum economic benefit for taxpayer-funded transportation investments across all modes.

The U.S. Department of Transportation’s Federal Railroad Administration (FRA) will team up with MEP to connect American suppliers with opportunities created by the Obama Administration’s historic investments in high-speed intercity passenger rail, including track and station construction and the development of next-generation trains.  MEP will help DOT to guarantee American companies and workers receive benefits from public investments like the upcoming $782 million order for domestically-built passenger rail trains that will travel in California, Oregon, Washington, Illinois, Missouri, Michigan, Indiana and Iowa.

MEP will also help DOT assure that American companies and workers benefit when the state of California today issues a request for information (RFI) for new bi-level passenger coaches. Responses to the RFI will inform the states of the manufacturer’s capacity to complete the order and identify potential domestic suppliers.  A request for proposals will be issued this winter and winning bids will be selected next summer.

Already, MEP is working with the Federal Transit Administration (FTA) to improve its ability to assess the merits of requests for waivers from Buy America requirements, eliminate the need for some waivers, and strengthen FTA’s support for these requirements. In June, representatives from MEP joined FTA Administrator Peter Rogoff and Deputy Secretary John Porcari for a meeting between transit agencies and rail manufacturers to promote the domestic production of steel rails for streetcar projects.

The Federal Highway Administration (FHWA) will partner with MEP to help identify U.S. manufacturing capabilities to produce new technologies and emerging products for the nation’s highway systems. FHWA tasked MEP to identify U.S. manufacturers with potential production facilities for specialized steel fibers used in ultra high-performance concrete, which is a joint filler material between prefabricated bridge elements. Currently, this steel fiber is only made overseas.

At the U.S. Department of Commerce, the Hollings Manufacturing Extension Partnership (MEP) is part of the National Institute of Standards and Technology, an agency of the U.S. Department of Commerce. MEP is a catalyst for strengthening American manufacturing – accelerating its ongoing transformation into a more efficient and powerful engine of innovation driving economic growth and job creation.

President Obama has called on Congress to pass measures in the American Jobs Act, which invests $50 billion in new transportation construction.  In addition to construction jobs, these investments will pump billions into the domestic manufacturing sector, creating new orders and jobs at American manufacturers and suppliers.

Source: U.S.A. Department of Transportation

I Make America Supporter Mike Rowe Of Dirty Jobs Speaks To Congress About Importance Of U.S. Manufacturing Jobs

Mike Rowe Advocates for U.S. Manufacturing Competitiveness through Infrastructure Investment

Mike Rowe, host of the Discovery Channel’s TV program Dirty Jobs with Mike Rowe, yesterday testified

before the Senate Commerce, Science and Transportation Committee’s hearing on “Manufacturing Our Way to a Stronger Economy” in support of U.S. manufacturing jobs and the Association of Equipment Manufacturers’ (AEM) I Make America campaign. In his testimony, Mr. Rowe described his experiences working with manufacturers and skilled laborers across America, his personal initiatives in support of jobs creation, and the importance of paved roads and reliable bridges.

In his written testimony, Mr. Rowe said, “I am ready, able, and eager to partner with the federal government to help reconnect our country to the importance of manufacturing and skilled labor.”

In addition, he demonstrated his support of the I Make America campaign stating he was proud to join forces with AEM “…for the launch of I Make America, a national grassroots campaign to promote U.S. manufacturing jobs through infrastructure investment and the passage of export agreements.”

For Mr. Rowe’s complete remarks and to view video of the hearing starting at minute :68 click here.

“We are fortunate and proud to partner with Mike on the I Make America campaign, and in his support of U.S. manufacturing policies that help create American jobs,” said AEM President Dennis Slater.

“AEM and I Make America commend Senators Rockefeller and Hutchison for holding this hearing and for their ongoing commitment to support policies that promote infrastructure investment and job creation in the manufacturing sector across the U.S.,” he added.

To learn more about I Make America, visit us at www.IMakeAmerica.com. Submit a photo to the newly launched Picture a Better America Photo Contest at www.IMakeAmerica.com/photocontest to win a $250 prize and to help drive home for your elected officials the reality of America’s crumbling infrastructure and showcase the hard-working men and women that make and grow America.

View short videos of employees and small business owners around the country telling the real life stories of how manufacturing impacts the national economy at www.ADayinAmericanLife.com.

Keep up-to-date on the latest I Make America campaign news on Twitter @IMakeAmerica and on Facebook at www.IMakeAmerica.com.

About I Make America – www.imakeamerica.com

I Make America is supported by the Association of Equipment Manufacturers (AEM) and its 850+ member companies. We are joined by the memberships of like-minded associations, American business owners, and citizens and local elected officials across the nation.

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 850 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 capitals of Washington, D.C., Ottawa, Beijing and a European presence in Brussels.

Volvo Construction Equipment Plans To Spend 100 Million USD In Its North American Operations And Bring Its Regional Sales And Rental Activities To Shippensburg, PA, USA.

Over the next couple of years, Volvo CE plans to spend 100 million USD in its Shippensburg, PA, USA manufacturing facility and start production of Volvo wheel loaders, excavators and articulated haulers in North America.  Also, the Volvo CE North American sales headquarters and Volvo Rents will relocate from Asheville, NC to Shippensburg, PA by September 2012.

“It makes sense, when possible, to manufacture products close to where our customers are,” said Olof Persson, President and CEO of Volvo Construction Equipment.  “The global demand for Volvo construction equipment is rapidly increasing and we need to make investments to meet future demands in the region. Producing Volvo wheel loaders, articulated haulers and excavators in Shippensburg will result in shorter lead times for our customers. We will work closely with local suppliers to increase the North American content of our products. This will further reduce our exposure to exchange rate fluctuations, which will already be positively affected by our bringing more production to the USA.”

A world class Customer and Demonstration Center will be built in Shippensburg. In addition, Volvo CE will put up a new office building on the campus to house its Regional Sales Headquarters, its Volvo Rents offices, and its Training Center.

All Asheville, North Carolina based employees will be given the opportunity to relocate to Shippensburg. The move, which willaffect about 220 employees, will be concluded no later than September 2012. A comprehensive plan to assist with relocation is under development. For those employees who are unable or not prepared to relocate, an extensive human resources plan is currently being put in place.

Since the acquisition of the Shippensburg facility in 2007, Volvo Construction Equipment has continuously invested in the existing plant.  In June 2010, a 200,000 square foot, 30 million USD expansion of the facility was finalized, to improve manufacturing flow and increase production space to incorporate the production of Volvo motor graders.

Manufacturing Volvo wheel loaders, articulated haulers and excavators in Shippensburg, PA will have no significant impact on the current production in other Volvo locations.  It will also further improve the competitiveness and profitability of the total business.

AEM First Vice Chair Testifies at House Committee on Transportation and Infrastructure

…Also Participates in “I Make America” Grassroots Campaign to Support New Jobs

James McCullough, Association of Equipment Manufacturers (AEM) First Vice Chair and CEO and President ofCNH Construction, testified today before the House Committee on Transportation and Infrastructure about lagging jobs in the manufacturing industry and the need for new national policies to spur U.S. competitiveness globally.

Earlier in the day, McCullough participated in the launch of “I Make America,” a national grassroots campaign created by the Association of Equipment Manufacturers (AEM) to increase awareness about how vital equipment manufacturing is to the U.S. economy and global competitiveness.

“Our members don’t just make equipment, they make prosperity,” McCullough told the House Committee. “Each individual who works in our industry plays a part in making America a better place – safer, cleaner, more prosperous, more efficient, more competitive – and they each have a story to tell about how they help ‘make America.’”

Since 2001, more than 4.7 million manufacturing jobs have been lost. I Make America is a resource for workers in the manufacturing industry, as well as the businesses that rely on them and the communities they support, to send a message to Congress that America needs new manufacturing policies that will create jobs now and into the future.

Addressing Committee Chairman James Oberstar, McCullough stated, “The big news earlier this week was that the recession has ended. Well, Mr. Chairman and members of the Committee, let me respectfully tell you, it doesn’t feel that way to us.”

Citing numbers that indicate the manufacturing sector is trending up, McCullough posed the question, “Up from where? That trend is still not strong, and our numbers are nowhere near where they were before the economy imploded.”

AEM and McCullough are using the I Make America campaign to generate support for a new manufacturing policy that creates jobs by doing two fundamental things:

  • Generate economic activity by rebuilding and modernizing America’s infrastructure – roads, bridges, sewer, clean water and flood control systems.
  • Help our farmers and manufacturers create more jobs in the U.S. by exporting their products to new markets around the world.

The I Make America website www.IMakeAmerica.com highlights the disproportionate job losses in the equipment manufacturing sector and related industries and provides facts on benefits to American prosperity from supporting policies that protect and grow this industry. ###