Simpson Strong-Tie Introduces Dual-Purpose AHEP Connector for Wood and Cold-Formed-Steel Truss Applications

Visit Us at BCMC in Charlotte, N.C., September 29-October 1, Booth #200

Simpson Strong-Tie introduces the AHEP (adjustable hip-end purlin) connector for wood and cold-formed-steel (CFS) truss applications. Designed for step-down, hip trusses, the AHEP can be used as a lateral restraint to safely space and support the flat section of the top chord. In addition, the AHEP can be used as a structural purlin for attaching sheathing or decking.

As a structural purlin, the AHEP lines up with the end jack trusses to maintain framing spacing from eave to hip or peak. Roof sheathing or decking can be attached directly to the AHEP. As a lateral restraint, the AHEP saves time by eliminating the steps needed to install and possibly remove and dispose of other fill-in framing during installation. For example in wood step-down hip trusses, the restraint attaches at the leading edge, so there’s no need for dropped top chords and gable fillers. In CFS applications, the AHEP attaches similarly and saves the time and expense of cutting and installing C-stud fillers.

The AHEP is designed with an inner and outer tube, so it can be adjusted to the desired pitch or length and then fastened together with four #10 self-drilling tapping screws. The parts are installed with 10d nails for wood trusses or #10 self-drilling screws for CFS applications. The AHEP can accommodate a pitch range of 3/12 to 9/12 as a structural purlin and up to 12/12 as an installation spacer/lateral restraint.

“Up until now, no single product on the market could streamline step-down hip framing and provide additional structural integrity for lateral spacing restraints,” said Stan Sias, Simpson Strong-Tie national manager for the Plated Truss Industry. “In addition to saving time by eliminating gables or C-stud fillers during installation, the AHEP eliminates the need to attach twist clips and requires fewer nails or screws. By using the AHEP to serve as the framing purlin from the eave to the hip or ridge, installers also don’t have to cut and shift sheathing as they go.”

New Online Calculator for AHEP Installation
A new Web-based calculator is available that allows designers to input such values as, roof pitch, live and dead loads, deflection, and truss spacing, to help with AHEP specification and installation. To view the calculator, visit www.strongtie.com/webapps/ahep.

About Simpson Strong-Tie Company Inc.
For more than 50 years, Simpson Strong-Tie has focused on creating structural products that help people build safer and stronger homes and buildings. Considered a leader in structural systems research and testing, Simpson Strong-Tie® products are recognized for helping structures resist high winds, hurricanes and seismic forces. The company is one of the world’s largest manufacturers of connectors, fasteners, fastening systems, anchors and lateral-force resisting systems. Product lines include structural connectors, Wood and Steel Strong-Wall® prefabricated shearwalls, Anchor Tiedown Systems (ATS) for multi-story buildings and Strong Frame™ moment frames. Additional product lines include Quik Drive® auto-feed screw driving systems, structural and corrosion-resistant fasteners, and Simpson Strong-Tie Anchor Systems® – anchors and fasteners for concrete and masonry. Simpson Strong-Tie is committed to providing exceptional products and service to its customers, including engineering and field support, product testing and training. For more information, visit the company’s Web site at www.strongtie.com.

Construction Job Gains Become More Widespread, Losses Less Severe As Six States Add Jobs Between July 2009 & 2010; 27 States Add Jobs In The Past Month
Kansas Tops Yearly and Vermont & New York Top Monthly Gainers; California and Nevada Experience Most Job Losses During Past Year While Illinois Experiences Largest Monthly Percent Decline

Construction job gains were more widespread across the country and job losses were generally less severe in July than in June, the Associated General Contractors of America reported in an analysis of state employment data released today by the Labor Department. Twenty-six states added construction jobs in July, compared to 19 in June, while six states added construction jobs over the past year and most others are losing far fewer jobs than previously, association officials noted.

“Encouraging as it is to see some modest signs of progress, it is increasingly unlikely we’ll keep seeing these kinds of gains over the next few months,” said Ken Simonson, the association’s chief economist. “There is little to indicate that construction will be adding workers to a significant extent any time soon.”

Simonson noted that the largest year-over-year increase was in Kansas, where construction employment rose 6.9 percent (4,000 jobs), followed by New Hampshire (5.0 percent, 1,100 jobs); Oklahoma (1,900 jobs, 2.8 percent); West Virginia (2.4 percent, 800 jobs); Alaska (1.9 percent, 300 jobs); and Arkansas (1.5 percent, 800 jobs).

The largest percentage job decrease compared to July 2009 was in Nevada, 22.4 percent (-17,300 jobs), followed by Illinois (14.8 percent; 32,000 jobs, including many idled by a strike in early July that has since ended); Idaho (13.9 percent, 4,600 jobs); and Colorado (13.7 percent, 17,400 jobs). California lost the largest number of jobs (54,400 or 9.1 percent).

Vermont and Wyoming rebounded from the largest one-month percentage losses in June to the highest

monthly percent increase in construction employment in July. Vermont recouped all 600 jobs it had shed (5.5 percent) and Wyoming added 1,100 jobs (5.4 percent), followed by Oregon (5.3 percent, 3,500 jobs); New Mexico (4.0 percent, 1,700 jobs); and Louisiana (2.8 percent, 3,500 jobs).

New York added the largest number of jobs in July, seasonally adjusted (1.4 percent, 4,400 jobs), closely followed by Texas (0.8 percent, 4,300 jobs). Illinois lost the highest percentage of construction jobs during the past month (7.5 percent, 14,900 jobs, mostly strike-related); followed by Hawaii (6.6 percent, 2,000 jobs) and Montana (5.4 percent, 1,200 jobs).

Simonson cautioned that the improved employment picture may be attributable to a bulge in federal stimulus-funded projects that could soon fade. “There are few signs of life in privately funded construction, and state and local budget deficit projections are forcing further cuts in non-stimulus public projects,” he said.

Association officials urged Congress to act on long-stalled infrastructure bills that would build on momentum from the stimulus. “Continued neglect of our aging infrastructure will damage our economic competitiveness and plunge the construction industry into another cycle of layoffs and hardship,” said Stephen E. Sandherr, the association’s chief executive officer.

View construction employment figures by rank or by state.

Still Showing Weakness, Architecture Billings Index Increases Slightly
Commercial construction category continues to outperform other sectors

Following a two-month soft patch the Architecture Billings Index (ABI) rose almost two full points in July. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the July ABI score was 47.9, up from a reading of 46.0 the previous month. This score reflects a continued decline in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index dropped substantially from 57.7 to 53.1.

View this press release online here: http://www.aia.org/press/AIAB085874

“Business conditions at design firms remain quite volatile,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “While this recent uptick is encouraging, this state of the industry is likely to persist for a while as we continue to receive a mixed bag of feedback on the condition of the design market from improving to flat to being paralyzed by uncertainty.”

Key July ABI highlights:

• Regional averages: South (47.9), Northeast (47.2), Midwest (46.7), West (45.2)
• Sector index breakdown: commercial / industrial (50.4), institutional (47.9), multi-family residential (47.5), mixed practice (42.9)
• Project inquiries index: 53.1

About the AIA Architecture Billings Index
The Architecture Billings Index is derived from a monthly “Work-on-the-Boards” survey and produced by the AIA Economics & Market Research Group. Based on a comparison of data compiled since the survey’s inception in 1995 with figures from the Department of Commerce on Construction Put in Place, the findings amount to a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction activity. The diffusion indexes contained in the full report are derived from a monthly survey sent to a panel of AIA member-owned firms. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended. According to the proportion of respondents choosing each option, a score is generated, which represents an index value for each month. The regional and sector data is formulated using a three-month moving average.

About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. By using sustainable design practices, materials, and techniques, AIA architects are uniquely poised to provide the leadership and guidance needed to provide solutions to address climate change. AIA architects walk the walk on sustainable design. Visit www.aia.org

Change in A/E Firm Fees Reflects Market Challenges

Reeling from the economic downturn in recent years, A/E firms face a competitive business environment, and setting fees at levels that attract clients has not been without its challenges. According to ZweigWhite's 2010 Fee & Billing Survey , close to three-quarters (71%) of A/E firms adjust their budgets on an annual basis. Moreover, firms responding to the survey reported both increases and decreases in fees, but, overall, fees have changed a median of five percent this year.

"Triumphing over the competition requires more than an impressive list of similar projects and eloquent value proposition," says Christine Brack, PMP, Principal, ZweigWhite Strategic Advisory Services , who provides an in-depth forward to the 2010 Fee & Billing Survey . "There is a cost involved—your fee—and in today's environment this number alone can suddenly become the deal breaker."

ZweigWhite's Fee & Billing Survey of A/E/P & Environmental Consulting Firms takes an in-depth look at the fee structures and billing practices of U.S. architecture, engineering, and environmental consulting firms. This report gives managers the information they need to see if their firm is charging enough or too much for their employees' time, reimbursable expenses, equipment usage, and more. The report shows data broken down by firm size, type, region, growth rate, and client base enabling firms to make meaningful apples-to-apples comparisons. Fees for a number of services are shown for 12 different markets. Also compared by market are contract types, how firms determine the fee, and methods by which firms are awarded contracts.

ZweigWhite is a full-service consulting, information, and education firm specializing in serving the needs of design and construction industry principals and managers.

An electronic report or printed book is available for purchase from ZweigWhite at http://www.zweigwhite.com/p-933-fee-billing-survey-2010.aspx

About ZweigWhite: ZweigWhite is the nation's leader in enhancing business performance for architecture, engineering, and environmental consulting firms. The ZweigWhite team consists of experts in strategic business planning, business valuation, ownership transition, human resources management, finance and administration, mergers and acquisitions, market research, marketing, project management and project delivery methods who collectively produce a comprehensive suite of products and services, including newsletters, industry reports, executive training, business conferences, and advisory services covering virtually every aspect of firm management. The firm is headquartered in Wayland, MA, with additional offices in, Chicago, IL, Durham, NC, Fayetteville, AR and Washington, DC. The ownership of ZweigWhite are investors Eli Global and BIA Digital Partners, and management including Mssrs. Zweig and Friedrichs.

Lags in Public Highway Spending Contribute to Consumption Reduction

SKOKIE, Ill.—Due to delays in an extension of a federal highway bill, cement consumption will not begin a significant rebound until 2013, according to the most recent economic forecast from the Portland Cement Association (PCA).

In 2010, PCA anticipates a 2.4 percent increase in consumption compared to severely depressed 2009 levels. A 6.7 percent gain is predicted for 2011, followed by an 8.4 percent increase in 2012. An 18.8 percent jump is projected for 2013 when highway and street cement consumption comes back on track.

“Delays in an extension of SAFETEA-LU reduced highway cement consumption by one million metric tons in 2010,” Edward Sullivan, PCA chief economist said. “Lacking a new highway bill until 2013, highway cement consumption will be based on inflation eroded SAFETEA-LU extensions, declining ARRA stimulus and extremely weak state fiscal conditions.”

Spending from the stimulus package will increase in 2010 as composition of the projects shifts away from resurfacing to more cement intensive projects like road widening and bridgework--attributing 4.1 million metric tons, followed by 2.8 million metric tons in 2011. Due to the large deficits many are facing, state spending is expected to decline during the same period as states channel funds to higher priority areas.

Although nonresidential sectors like oil and farm construction will contribute to the modest 2010 cement consumption increase, consumption accrued to commercial building will decline 23.3 percent. The residential sector is projected to remain nearly unchanged from 2009 levels, but is expected to grow 12.1 percent in 2011 as foreclosures flatten and job creation increases.

“The turning point for cement consumption will most likely occur in 2013,” Sullivan said. “Then we will have a new highway bill in fiscal 2013, supplemented by the recovery in state fiscal conditions. At the same time, nonresidential and residential building should be on a solid upswing.”

About PCA
Based in Skokie, Ill., the Portland Cement Association represents cement companies in the United States and Canada. It conducts market development, engineering, research, education, and public affairs programs. More information on PCA programs is available at www.cement.org.

National Contractors Group Launches New Program To Make It Easier To Build And Renovate Green, Leed-Certified Buildings

New "Building to LEED for New Construction" Designed to Help Contractors, Designers and Developers Navigate Green Building Certification Process, Maintain LEED Accreditation

The Associated General Contractors of America today unveiled a new green construction education program designed to make it easier to build and renovate green, LEED-certified buildings. The new program, called Building to LEED® for New Construction, Second Edition is designed to help contractors, designers and developers successfully navigate the green building certification process and keep their green accreditations current.

"Green building is rapidly changing from a niche market to the industry norm," said Stephen E. Sandherr, the association's chief executive officer. "Within a short time, the ability to master the complexities of green construction and certification will be essential to succeeding as a building contractor."

Sandherr said the association developed Building to LEED to meet the growing demand for green construction and design experts. He noted that the number of green buildings under construction is expected to grow by an estimated 25 percent by 2013. As a result, anyone involved in building construction will need to complete a course like the association's new program to be successful, the association head added.

Starting next Wednesday, August 18th, the association will begin taking orders for the Building to LEED program, which includes Instructor's Guides and Participants Manuals to be used during the program's one-day class. In addition to learning invaluable green construction and design skills, anyone taking the class will earn 7.5 continuing education credits that can apply to maintaining LEED certification.

Anyone interested in learning more about Building to LEED, ordering the program or finding out where the new education program is being offered should visit www.agc.org/green. Anyone can order the program, which is designed to be used by construction firms, community colleges, joint-apprenticeship training programs and construction association chapters, among other groups.

Sandherr said that the new education program was part of the association's broader commitment to green construction. He noted that the association released, earlier this year, a comprehensive new green construction plan, "Building a Green Future," that outlines a series of public and private measures to further increase demand for green construction. "Policy makers need to understand that you can't simply wish for a green future, you have to build it," Sandherr added.

The Buzz word on BIM
By Barry Reid, LEED AP, business development manager, Georgia-Pacific Gypsum LLC

Ask any architect working on a complex commercial project and they will tell you Building Information Modeling, or BIM, will be the dominant design tool for them, as well as an important construction process facilitator for general contractors, in the near future. According to a recent survey conducted by McGraw Hill, the use of BIM technology on projects showed a growth of approximately 40% from 2008 to 2009. Indications show BIM’s popularity may be on the rise because, as a result of the economy and restrained budgets everywhere, the industry must move toward more predictable outcomes in order to be profitable and to maximize efficiency during the design and construction process. Architects and general contractors (GCs) have begun demonstrating the advantages of BIM to their clients by showing them the proven cost control processes achieved by using BIM 3D virtual construction modeling technology. “As a building product manufacturer, we want to be where the architect is and our Architectural Design Studio enables us to interact with them early on in the process,” states Warren Barber, Product Manager at Georgia-Pacific Gypsum. “By partnering with McGraw-Hill Construction and AutoDesk, architects are now able to design buildings utilizing Georgia-Pacific proprietary assemblies rather than using generic models.”

BIM 101
BIM provides the architects and contractors with, essentially, a 3D and sometimes 4D blueprint of information that ties design, construction and documentation together. With BIM, everyone on the project team can accurately plan for specific materials and assemblies, simulate operational scenarios, and schedule trades to work on areas of a building efficiently.

GCs value BIM for what commonly is called a Clash Detection System throughout the construction stage. BIM technology enables the project team to “virtually” work out areas of concerns early on… before they become a costly on-site problem as well as ensure that what has been designed is being built to the intended building performance standards. BIM also serves to make the building process clearer for contractors, as well as ensuring that their clients’ needs have been carried through to completion. "Those who learn to play well in the BIM arena by transitioning to the 3D and 4D digital process will prosper,” added Erik Ackroyd, Architectural Services Manager for Georgia-Pacific Gypsum. As a tool that aids in efficiency, problem deterring, cost saving and communications, BIM is an important process that building owners find incredibly valuable.

“As a company, The Beck Group is totally immersed in providing BIM services to its clients” said Bert Bauer, Director of Preconstruction for The Beck Group, a leading integrated enterprise in Atlanta, Georgia. “Our data confirms that utilizing BIM technology affords our clients faster delivery with less risk and fewer change orders.” Beck notes that all of this front end effort has advantages that culminate during the execution phase of construction. “We at Beck see this as the wave of the future, as BIM begins to extend further into the process to include subcontractors, vendors and manufacturers,” explained Bauer. “As more and more owners are exposed to BIM and its benefits, they are demanding it for their projects.”

BIM in Action
Georgia-Pacific Gypsum recently embarked on a study with a U.S. construction company to see if efficiencies in scheduling could be captured and improved with the use of BIM when the secenario of using higher performance building products was incorporated into the planning stage.

Georgia-Pacific Gypsum launched the first fiberglass mat gypsum panels two decades ago, but now, sophisticated modeling tools, like BIM, are allowing designers and contractors to visualize and capture the downstream savings and time gains of using these products now more than ever. As more architects and general contractors adopt BIM as a key tool for their projects, it will provide more opportunities to combine the benefits of both product and design technologies to meet and exceed increasingly demanding building performance and code standards, as well as the budget demands of building owners.

For the study, the task was to determine, through modeling, if the time to complete a large health care facility could be significantly reduced the construction team installed fiberglass mat gypsum panels in areas vulnerable to moisture-related damage in the building during construction, in place of conventional paper faced gypsum panels. Using BIM, it was confirmed and illustrated, that the durable, moisture and mold resistant attributes of fiberglass mat gypsum panels allowed the contractor to install DensArmor Plus® interior panels in the pre-rock and core areas of the building at the same time the exterior sheathing was being installed. The featured building was completed 10 weeks ahead of schedule in comparison to what would have been the result if the building had used regular paper-faced gypsum board as specified and scheduled.

This study, in its original form, was authored by Quality Planning Solutions LLC (www.q-plan.com) ("QPS"), a Turner Construction company. QPS's conclusions were based on particular projects under particular conditions. Different projects and different conditions may lead to different results.

Although it may be instinctive to use non-paper faced gypsum boards in moisture vulnerable areas to mitigate moisture and mold risks during construction, this study proves how BIM modeling can broaden the scope and application of unique product technologies. The study model demonstrated that when a fiberglass mat gypsum product is used on the interiors it allowed the drywall to be sequenced from the interior to the exterior rather than from the exterior to the interior as practiced when regular drywall is used. The contractor can now clearly see both the risk mitigation and the dollar savings if the construction schedule of a large project can be shortened early in the planning process.

The Georgia-Pacific logo and all trademarks are owned by or licensed to Georgia-Pacific Gypsum LLC.

Georgia-Pacific Gypsum Continues Its Support of the Sustainable Building Movement with New Online LEED® Calculator
ToughRock® and Dens™ Brand Products plus Plant Information Online for 24/7 LEED Documentation Access

Continuing its commitment to sustainable construction, Georgia-Pacific Gypsum announces the availability of its new online LEED® Calculator that significantly simplifies the process for determining its products’ potential contribution to a LEED credit.

Designed for use by architects, specifiers, contractors and suppliers, the LEED Calculator is available 24/7 at http://www.gp.com/build/leedcalc.aspx.

Georgia-Pacific Gypsum’s online LEED Calculator provides easy and immediate access to information about a product’s potential LEED credit contribution. This includes specific data regarding recycled content and regional materials.

LEED is an internationally recognized green building certification system, developed by the U.S. Green Building Council (USGBC), which provides building owners and operators a framework for identifying and implementing practical and measurable green building design, construction, operations and maintenance solutions, according to the USGBC.

Georgia-Pacific Gypsum’s LEED calculator provides instant access to LEED credit contribution information with the input of just a few pieces of information. Construction professionals need to only type in the project name, zip code and their Georgia-Pacific Gypsum product choice(s), and the calculator provides a readymade report and printable letter outlining the products’ relevant LEED credit documentation. Categories of information include recycled content and regional material availability.

“The importance of sustainable construction demands that our customers have timely and accurate information on the key attributes of our products,” said Barry Reid, LEED AP, and Georgia-Pacific’s business development marketing manager. “As part of our ongoing commitment to our customers, we are pleased to make this valuable tool available online, so information can be easily calculated and supporting documents created.”

The availability of this calculating tool is the latest news showcasing the ongoing commitment and range of Georgia-Pacific Gypsum’s environmentally sustainable building products. Its DensArmor Plus® Interior Panels were first to be GREENGUARD Indoor Air Quality Certified® and GREENGUARD Children & Schoolssm Certified as low-emitting gypsum panels, and were among the first gypsum panels to be listed by The Collaborative for High Performing Schools® (CHPS™) as low-emitting materials. Additionally, DensArmor Panels are listed with GREENGUARD as microbial resistant.

For more information on all Georgia-Pacific Gypsum products please visit www.gpgypsum.com. To see online related case studies and videos, please visit http://www.youtube.com/gpdens.

About Georgia-Pacific
Headquartered at Atlanta, Georgia-Pacific is one of the world’s leading manufacturers and marketers of building products, tissue, packaging, paper, cellulose and related chemicals. The company employs more than 40,000 people at approximately 300 locations in North America, South America and Europe. Georgia-Pacific creates long-term value by using resources efficiently to provide innovative products and solutions that meet the needs of customers and society, while operating in a manner that is environmentally and socially responsible and economically sound. The company has long been among the nation’s leading manufacturers and suppliers of building products to lumber and building materials dealers and large do-it-yourself warehouse retailers, with brands such as Plytanium® plywood, DryPly® water repellent plywood, Ply-Bead® panels and Wood I Beam™ and XJ 85® joists offered by Georgia-Pacific Wood Products LLC. DensArmor Plus® interior panels, DensGlass® Sheathing and ToughRock® drywall are offered by Georgia-Pacific Gypsum LLC. The familiar consumer tissue brands of Georgia-Pacific Consumer Products LP include Quilted Northern®, Angel Soft®, Brawny®, Sparkle®, Soft 'n Gentle®, Mardi Gras®, So-Dri® and Vanity Fair®. Dixie Consumer Products LLC, a Georgia-Pacific company, manufactures the Dixie® brand of tabletop products. For more information, visit www.gp.com.

Construction Employment Declines By 11,000 Between June And July While The Industry's Unemployment Rate Hit 17.3 Percent

As Stimulus Projects Begin to Wind Down and Private, State and Local Demand Remains Flat, Construction Group Urges Congress and the Administration to Act on Long-Delayed Infrastructure Bills

Construction employment decreased by 11,000 between June and July 2010 while the industry's unemployment rate fell to 17.3 percent, according to a new analysis by the Associated General Contractors of America of federal employment data released today. The third month of construction employment declines, despite the stimulus, reflects overall weak demand for private, local and state funded construction, association officials noted.

"The fact that this industry continues to suffer from unemployment rates nearly double the national average is a reflection of how much demand for construction has cratered in little more than two years," said Stephen E. Sandherr, the association's chief executive officer. "Worse yet, there's every indication that as the benefits of the stimulus fade the industry's employment picture will get even worse."

Sandherr noted that since July 2008, construction employment has declined by a total of 1,591,000 jobs, a 22 percent decline. He added that even though the industry accounts for four percent of the non-farm workforce, it has experienced 23 percent of the total job losses over the past two years. "The sad fact is that construction workers have been forced to endure depression-like conditions for far too long."

Heavy and civil engineering construction – the category that covers most workers in transportation, power, water and wastewater construction – lost 700 workers in July and has held roughly steady since last October, as federal stimulus funds have boosted construction in these categories, Sandherr noted. Nonresidential specialty trade contractors were a lone bright spot, gaining 8,000 workers in July.

Noting continued high retail, commercial and manufacturing vacancy rates and depressed state and local tax revenues, association officials said overall construction demand was unlikely to increase until at least 2011 and likely much later in many areas of the industry. Given the fact that many stimulus-funded construction projects were likely to end later this year, they urged Congress and the Administration to act now to pass a host of long-delayed infrastructure bills to finance new highway, transit, water and utility projects that are crucial to America's global economic competitiveness.

"Anyone who thinks we are going to outcompete China and India with old roads, unsafe bridges and outdated power grids is either sadly wrong or woefully ill-informed," Sandherr said. "The choice ought to be clear: put Americans to work today rebuilding our economy, or be prepared for our economy to drown in traffic, brownouts and water shortages."

Stimulus Helps Construction Spending Post Small Gain In June But Pain Continues For Other Contractors, Association Says

Total construction spending eked out a small rise in June as gains in stimulus-aided public categories offset decreases in homebuilding and private nonresidential spending, the Associated General Contractors of America said today in an analysis of new Census Bureau data. “Stimulus dollars are supporting construction jobs, but the pain is continuing for most contractors and their workers who depend on private projects or school construction,” said Ken Simonson, the association’s chief economist.

Simonson noted that total construction spending inched up 0.1 percent in June at a seasonally adjusted annual rate, buoyed by a 1.5 percent increase in public construction, which offset declines of 0.8 percent in private residential and 0.5 percent in private nonresidential spending. “Every private category was negative, most deeply so, compared to June 2009,” Simonson observed. “But there were encouraging gains for the month in private hospital and power construction, both of which should be growth markets over the next several quarters.”

Among public categories, Simonson remarked that highway and wastewater construction each rose for the fourth consecutive month; other public transportation facilities—transit, rail and airports—jumped 20 percent from a year earlier; and public housing soared 31 percent compared to June 2009. “All of these categories have benefited from stimulus funds. In contrast, public primary and secondary school construction, which has been battered by falling property tax receipts and lower in-migration to formerly fast-growing school districts, shrank 27 percent in the past year.”

Stephen Sandherr, chief executive officer of the construction association, called on Congress and the White House to quickly enact legislation to provide long-term funding for public infrastructure spending and certainty for private construction. “It is deplorable that the airport trust fund is now on its 14th short-term extension, the highway and transit trust fund is in danger of shutting down on December 31, and there is no trust fund to sustain vitally needed water infrastructure upgrades,” Sandherr said. “Meanwhile, uncertainty over the future of major tax provisions and new financial rules are keeping investors on the sidelines, further depressing private construction.”

AIA Urges Senate to Put Partisanship Aside and Pass Legislation to Help Solve the Credit Crunch

The American Institute of Architects today called on Congress to address the persistent lack of credit that has exacerbated the economic crisis and disproportionately affected the design and construction industry.

You can see this press release online here: http://www.aia.org/press/AIAB085581

“The design and construction sector in which architects compete has seen employment drop by 25 percent since the recession began in 2007,” said Paul Mendelsohn, AIA Vice President, Government and Community Relations. “The AIA Architecture Billings Index has remained in a negative state for nearly 2 years.

“The industry continues to be affected by an extremely risk-averse attitude on the part of lending institutions,” Mendelsohn said. “This is especially true for large construction projects.”

The AIA submitted its statement today to the House Financial Services Committee ahead of its hearing that will examine the alternatives available to promoting liquidity in the commercial real estate markets, and as the Senate continued debating small business relief legislation. The AIA congratulated the Committee for passing legislation on a voice vote that establishes a regulatory framework for a U.S. covered bond market. Such a market will increase liquidity in many credit markets by giving banks access to a separate source of funds for secured lending.

The AIA reiterated its support for the administration’s proposal to create a $30 billion fund to community banks. Such a fund will help architecture firms that need lines of credit to support day-to-day activities in between projects. It will also be available for clients who are having a hard time financing building projects.

“This bill has been held up by partisan wrangling in the Senate,” said Mendelsohn. “But the lack of access to credit is not a partisan issue. It is affecting blue-state and red-state entrepreneurs alike.”

Creating a loan fund to support community banks and provide a supply of credit will not be enough, the AIA said in its statement. Commercial real-estate values are 42 percent below their 2007 peak. It is estimated that nearly two-thirds of commercial real-estate loans maturing between now and 2014 are underwater. According to a recent story in the Wall Street Journal, banks are holding some $176 billion in souring commercial-real-estate loans.

The AIA supports language included in the House-passed small business bill, authored by Reps. Ed Perlmutter (D-CO) and Mike Coffman (R-CO), to let small community banks amortize commercial real estate losses over a longer period if they begin to lend.

“The House passed this bipartisan amendment. We hope that this common-sense provision remains a part of the small business bill,” added Mendelsohn.

About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. By using sustainable design practices, materials, and techniques, AIA architects are uniquely poised to provide the leadership and guidance needed to provide solutions to address climate change. AIA architects walk the walk on sustainable design. Visit www.aia.org

Construction Jobs Drop In 285 Out Of 337 Metro Areas Between June 2009 & 2010 As Stimulus Continues To Be Outpaced By Weak Demand
Chicago and Pascagoula, Mississippi Top Job Loss List, While Prince Georges-Calvert-Charles Counties, Maryland and Hanford-Corcoran, California Top List of Metro Areas Adding Jobs

Construction employment declined in 285 out of 337 metropolitan areas between June 2009 and June 2010 according to a new analysis of federal employment data released today by the Associated General Contractors of America. The employment figures demonstrate how weak overall demand for construction is outpacing the benefits of the stimulus’ $135 billion in construction-related investments, association officials noted.

“The overall lack of demand for new construction is hurting more than the stimulus is helping at this point,” said Ken Simonson, the association’s chief economist. “While more metropolitan areas have started adding construction jobs, most are still experiencing losses nearly four years after the construction downturn began.”

Chicago-Joliet-Naperville lost more construction jobs (21,300 jobs, 15 percent) than any other metro area, while Pascagoula, Mississippi (2,000 jobs, 32 percent) and Flagstaff, Arizona 700 jobs, 32 percent) lost the highest percentage. Other areas experiencing large declines in construction employment included Las Vegas (16,500 jobs, 26 percent); Houston (16,300 jobs, 9 percent); Los Angeles-Long Beach-Glendale (15,900 jobs, 13 percent); and Seattle-Bellevue-Everett (12,400 jobs, 16 percent).

Simonson noted that 25 metro areas added construction jobs over the past 12 months, while another 27 areas experienced no change in construction employment. Calvert-Charles-Prince George’s Counties in Maryland added more construction jobs (1,900, 5 percent) than any other metro area while Hanford-Corcoran, California added the highest percentage (22 percent, 200 jobs). Other areas adding jobs included Kansas City, Kansas (1,600 jobs, 8 percent); Columbus, Ohio (1,200 jobs, 4 percent); Chattanooga, Tennessee (900 jobs, 11 percent); and Eau Claire, Wisconsin (400 jobs, 13 percent).

The construction economist said the growing volume of stimulus-funded projects was helping save jobs throughout the construction industry. He added, however, that continued weak private, state and local demand for construction was taking a broader toll on construction employment. Worse, overall demand for construction is unlikely to recover until well after stimulus funding runs out, Simonson noted.

“The industry’s employment picture is only going to get worse unless Congress and the Administration act on long-overdue infrastructure investments programs,” said Stephen Sandherr, the association’s chief executive officer, referring to a series of recurring highway, transit, water and other investment programs Congress is months late in passing. “You have to ask how many more construction workers will lose their jobs once the stimulus runs out.”

View construction employment figures by state or by rank.

Negative Conditions Persist in Architecture Billings Index
Commercial construction category is only healthy sector

There was a negligible increase in the Architecture Billings Index (ABI) last month. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the June ABI rating was 46.0, up slightly from a reading of 45.8 the previous month. This score reflects a continued decline in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index increased from 55.5 to 57.7.

You can see this press release online here: http://www.aia.org/press/AIAB085519

“The steep decline in nonresidential property values has slowed investment in new facilities,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Conditions at architecture firms continue to remain very soft, but we’re optimistic that they will improve before the end of the year.”

Key June ABI highlights:

• Regional averages: Northeast (47.7), South (46.7), Midwest (46.3), West (43.6)
• Sector index breakdown: commercial / industrial (50.6), multi-family residential (46.5), institutional (45.0), mixed practice (44.7)
• Project inquiries index: 57.7

About the AIA Architecture Billings Index
The Architecture Billings Index is derived from a monthly “Work-on-the-Boards” survey and produced by the AIA Economics & Market Research Group. Based on a comparison of data compiled since the survey’s inception in 1995 with figures from the Department of Commerce on Construction Put in Place, the findings amount to a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction activity. The diffusion indexes contained in the full report are derived from a monthly survey sent to a panel of AIA member-owned firms. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended. According to the proportion of respondents choosing each option, a score is generated, which represents an index value for each month. The regional and sector data is formulated using a three-month moving average.

About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. By using sustainable design practices, materials, and techniques, AIA architects are uniquely poised to provide the leadership and guidance needed to provide solutions to address climate change. AIA architects walk the walk on sustainable design. Visit www.aia.org

Florida Construction Backlog: Up 12.5 Percent From the First Quarter of the Year

WASHINGTON, D.C. - Associated Builders and Contractors (ABC) today released its Construction Backlog Indicator (CBI) for Florida. Construction backlog in the state has risen from 6 months at the end of the first quarter of 2010 to 6.8 months in May, an increase of 12.5 percent. Despite the improvement, Florida's backlog remains below the national average of 7.03 months and below the southern region average of 7.20 months.

"The Construction Backlog Indicator readings for the past two months were the most positive this year. While commercial construction is unlikely to recover in earnest anytime soon, there is growing evidence that the recovery in Florida's nonresidential construction is both strengthening and broadening to encompass more than infrastructure-related construction work," said ABC Chief Economist Anirban Basu.

"While it is too soon to tell whether or not the emerging recovery in nonresidential construction will be sustained, particularly since there is recent evidence of lost momentum in the broader economy, the expectation for now is that average backlog will continue to expand over the next several months." Basu said.

Florida Economic Data Points

• Construction employment between June 2009 and June 2010 fell by 31,500 jobs statewide, according to the Bureau of Labor Statistics (http://www.labormarketinfo.com). During this period:
• Building construction lost 13,500 jobs, a 17.4 percent decline;
• Heavy and Civil engineering construction shed 3,500 jobs, a 6.4 percent decline;
• Building equipment contractors shed 7,300 jobs, a 6.2 percent decline; and
• Specialty trade construction lost 14,500 jobs, a 5.5 percent decline.
• Office vacancy rates for the second quarter of 2010 stood at:
• 23.8 percent in the Palm Beach County area (Grubb & Ellis);
• 22.0 percent in the Jacksonville metro area (as of first quarter 2010);
• 20.8 percent in the Miami-Dade County area;
• 19.9 percent in the Orlando metro area;
• 19.5 percent in the Tampa metro area; and
• 17.1 percent in the Broward County area.
• Retail vacancy rates for the second quarter of 2010 were:
• 15.0 percent in the Palm Beach County area;
• 13.8 percent in the Broward County area; and
• 9.4 percent in the Miami-Dade County area.
• In the first quarter 2010, retail vacancy rates were:
• 17.7 percent in the Orlando metro area;
• 16.6 percent in the Tampa metro area; and
• 10.5 percent in the Jacksonville metro area.
• Monthly home sales have gone up 18 percent since May 2009 (Florida Association of Realtors).
• Federal stimulus funds sent to Florida total more than $11.6 billion as of July 7, 2010 (Office of Management and Budget, Recovery.gov, http://www.recovery.gov/Pages/home.aspx).

Associated Builders and Contractors (ABC) is a national association with 77 chapters representing 25,000 merit shop construction and construction-related firms with two million employees. Visit us at www.abc.org.

Construction Employment Shows Signs Of “Stabilizing” As Six States Add Jobs Between June 2009 & 2010; 22 States Add Jobs During The Past Month

Kansas Tops Yearly and Kentucky Tops Monthly Gainers; Nevada and California Experience Most Jobs Losses During Past Year While Wyoming Experiences Largest Monthly Percent Decline

Construction employment edged closer to stabilizing in June, as half the states either added construction jobs or kept the same number as in May, the Associated General Contractors reported in an analysis of federal employment data released today. Compared to June 2009, construction employment rose in six states, the largest number of states to post year-over-year increases since October 2008.

“It is encouraging to see some states adding construction jobs and the declines in others getting less severe,” said Ken Simonson, chief economist for the construction trade association. “But there’s little room to celebrate with overall construction employment at a 14-year low and demand for most constructions services still weak.”

Simonson noted that the largest year-over-year increase was in Kansas, where construction employment rose 7.7 percent (4,400 jobs), followed by Alaska (3.1 percent, 500 jobs); Arkansas (2.4 percent, 1,200 jobs); West Virginia (2.4 percent, 800 jobs); and New Hampshire (2.3 percent, 500 jobs). The largest percentage job decrease compared to June 2009, was in Nevada, 24.4 percent (-19,500 jobs), followed by Vermont (18.5 percent, 2,500 jobs); Wyoming (16.6 percent, 4,000 jobs); and Washington (14.3 percent, 22,900 jobs). California lost the largest number of jobs (74,400 or 12 percent).

Kentucky experienced the highest one-month percent increase in construction employment (2.4 percent, 1,600 jobs), followed by New Mexico (2.1 percent, 900 jobs); Massachusetts (1.9 percent, 2,000 jobs); Utah (1.5 percent, 1,000 jobs); and Nebraska (1.5 percent, 700 jobs). Wyoming lost the highest percentage of construction jobs during the past month (6.9 percent, 1,500 jobs); followed by Vermont (5.2 percent, 600 jobs); Nevada (4.7 percent, 3,000 jobs); Idaho (3.7 percent, 1,100 jobs); and Iowa (3 percent, 1,900 jobs).

Simonson noted that the abundance of workers and firms eager to work, combined with relatively low materials costs makes construction services more affordable than they have been in years. He noted that the producer price index for construction dropped 0.9 percent in June. “In a few months, however, many companies are likely to have closed their doors, and materials costs will be rising again,” the economist cautioned.

Association officials noted that projects funded by federal stimulus money have added to the construction job tally in many states. They warned, however, that money will soon run out yet Congress has yet to pass most of its regular long-term infrastructure bills. “Any improvements in the construction employment picture will be difficult to sustain unless Congress quickly passes long-term funding for transportation, drinking water and wastewater infrastructure,” said Stephen E. Sandherr, the association’s chief executive officer.

View construction employment figures by rank and by state.

American Institute of Architects (AIA) Contract Documents and EADOC Announce Embedding of G702 and G703 Forms into the EADOC Construction Management Application

The American Institute of Architects (AIA) and EADOC LLC, the provider of the EADOC web-based project management application for the construction industry, today announced the integration of two select AIA Contract Documents into the EADOC application, giving easy access to AIA payment forms to owners and construction managers. These two forms, G702™–1992, Application and Certificate for Payment, and G703™–1992, Continuation Sheet, are two of the most heavily used AIA forms in the industry. This marks the AIA’s most recent effort to integrate AIA Contract Documents into a construction and project management system.

EADOC users can now easily share AIA’s G702 and G703 payment forms with other project team members through the software application. The application provides the content and tools necessary to streamline workflows and save time. It automatically populates forms with project data, tracks multiple payments by period relative to budget and eliminates the need to enter duplicate payment information into two systems, reducing the chance of error.

“We are eager to expand our customer’s access to and use of digital documents. The EADOC application provides our customers with access to our payment forms when they need them, where they need them,” said Molly Lindblom, Managing Director of AIA Contract Documents. “The partnership between EADOC and AIA is a great complement to the breadth of AIA contracts and forms that are available through AIA Contract Documents software.”

Eric Law, Founder and President of EADOC added, “Delivering AIA's G702 and G703 through EADOC's project management application makes it easier for clients to follow industry standards while reducing review time and waste associated with paper forms.”

“Utilizing the AIA G702 in EADOC for our monthly billings has greatly simplified the process as we are able to create, review, approve and distribute AIA pay applications electronically,” said David Heyde, Construction Manager of Mortenson Construction and an EADOC customer. “EADOC's project management application combined with AIA's payment forms has allowed me to focus my time on managing the project instead of pushing paperwork and filling out spreadsheets."

More information about AIA forms in EADOC can be found at www.eadocsoftware.com/aiadocs.

More information about AIA Contract Documents can be found at www.aia.org/contractdocs. AIA Contract Documents software can be purchased at www.aia.org/contractdocs/purchase. Documents in paper form are available through the AIA’s full service distributors. For a listing of full service distributors and pricing information, please visit www.aia.org/docs_purchase.

About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. By using sustainable design practices, materials, and techniques, AIA architects are uniquely poised to provide the leadership and guidance needed to provide solutions to address climate change. AIA architects walk the walk on sustainable design. Visit www.aia.org

About EADOC LLC
EADOC provides a fast, secure, easy to use web-based project management application that reduces construction delays, rework, and overhead costs. With unlimited users, a project team gains instant access to all the information communicated from design through construction. Visit www.eadocsoftware.com or call 877-305-3844 for more information.