CMD First Source

Construction Workers Hit Hard By The Great Recession

Times have certainly changed. Commercial construction workers are experiencing very difficult times. In the past, if work dried up in a major city, such workers as carpenters or electricians could just pack and head over to another city like Las Vegas. Now there is no work there or anywhere else. The biggest dilemma is the continued lack of funding. More specifically, financing. Many workers in their 60’s claim they have never seen it this bad. This prolonged downturn continues to affect the entire industry. Just a few short years ago, three or four contractors would bid on a particular project. Now there might be 80 or 90. This is as good of an indication as there is on just how desperate things and people are. In the Southwest states, the construction site is now like what the factory floor is to the Midwestern areas. That is a place where blue-collar workers earn their living. In California, the industrial warehouse areas have very few busy job sites. And in many other states, things are not much better. Unemployment figures are estimated at 20-35% for construction workers. What’s worse, most experts predict more of the same in the near future. Hopefully, we are at the bottom and things won’t get worse. The Great Recession continues…for now.

One of the World’s Greenest General Contractors

By numerous measures, Webcor Builders is most likely the greenest general contractor of any substantial size in the world. With$ 3. 5 billion in this last year alone in revenues, Webcor derives 85% of its revenues via LEED(Leadership in Energy and Environmental Design) projects- - the highest proportion of sales of any big builder. In 2010, Webcor looks to receive 99% of its sales from LEED projects, a magnificent statistic in California’s largest building company of lodging, office parks, high rises and other huge jobs.

The truth is, Webcor now merely builds or designs LEED projects, even if the customers haven’t even ask for that degree of environmental consciousness. Webcor additionally recycles, reuses or donates ninety nine per cent of the waste supply from its big programs. That’s when compared with a much lower- 40% recycling level for the industry on the whole.

Over and above putting up environment friendly properties, Webcor has as well taken on a role as a key participant within the green construction technology ecosystem. Whenever venture capitalists desire responses on whether or not a green building product is ready for the market, they speak with Phil Williams, Webcor’s vice president of sustainability and systems engineering. While budding enterprisers are searching for venture capitalists to back their green- building plans, they seek the advice of Williams. And Williams and his team have grown to be key information suppliers on green products for various tradesmen as well as subcontractors that work with Webcor frequently.

Construction Spending To Rebound… Slowly

Tοtal construction ѕpending in the U.S. οn аn annυal basis is forecаst to fall 12.2% this year and 5.6% in 2010 before growing 7.6% in 2011 and achieving double-digit groωth in 2012, according to thө IHS Global Insight Constructіon Sөrvice. While the construction industry has been showing signs of resurgence іn pockets, ѕuch аs thө residentiаl sөctor, nonresidential construction wіll continue declining for many quarterѕ to coмe. Commөrcial construction іs forecast to pοst sharp deсlines through 2010, overwhelming the develoрing strength in the residential sectοr and cauѕing аnnual total construction growth to drop іnto negative territory.
Tһe bгoader U.S. economү, meanwһile, has movөd Ьack into the blaсk and is showing рositive GDP grοwth for the first time since the seсond quarter 2008. However, crөdit cοntinues to Ьe limited, employers are still ѕhedding jobѕ, though thө pace slowed in Noveмber, and сonsumer and business confidence remain down.
The commercial sectοr is forecast to drop 30.3% in 2009 and 28.2% in 2010, and return to positive аnnual growth іn thө second quarteг 2011. Commerсial aсtivity іs һurt bү unemploүment, which means lower occupancy rates, tһis in spite of falling rents. All fiνe components of commercіal construction - office, lodging, automotive, retail, аnd warehousing - wіll get worѕe in 2010.
The residential sector posted the firѕt quarter-to-quarter increаse since the begіnning of 2006 and iѕ forecast to grow 9.6% іn 2010. Thө single-family sөctor iѕ οn the mend and expected to grow 4.1% іn the fourth quarter compared to a quarter ago, thoυgh, on an аnnual basis, spending levelѕ will be 22.1% loωer. In 2010, single-family constructiοn spending iѕ forecast to groω аt а recovөry pace of 32.6%. Multi-family construction will fаll 30.5% in 2009 аnd 47.0% in 2010.

Construction Industry Has Highest Unemployment Rate

Construction equipment maker Terex Corp has cut its workforce from 24,000 to 16,000 and will see its revenues drop to $5 billion this year from $10 billion last year. No other industry in the U.S. has had to reduce its workforce as much as  the U.S. construction industry. The current unemployment rate in the construction industry is 18.7 percent.  The highway construction industry in particular is reeling and expects things to be worse in 2010 unless a highway funding reauthorization bill is passed and signed into law by Congress. Many construction companies have reported that they do not have enough work on their books for 2010 to prevent having to lay off non-seasonal employees. The $27 billion of federal stimulus money devoted to highway construction has helped many contractors and has saved some construction jobs, but it is feared that the stimulus will not be enough without a long-term spending program. State funding of highway construction is also depressed and could see another slump in 2010.

Growth of Home Construction Still Slow

Experts are not predicting a rebound in home construction, at least not for awhile. New building permits for single-family homes fell in the month of September by three per cent, according to the Commerce Dept. Builders are expecting a decrease in demand since the $8,000 first-time home buyer credit expires at the end of November, and are planning accordingly. There is some good news as single-family home starts rose by 3.9% in September. The annual rate for all starts has remained steady since June. This number includes apartment construction as well. Annual rate of home starts went up by 17% since the start of this year. Unfortunately, it has fallen by 29% since September 2008. It is now well below historic norms, which is not good. Some experts say the annual housing start rate would have to more than double to reach the historic average of about 1.5 million units.