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Latest Scoop
McGraw-Hill
Construction Forecast Calls for 11 Percent Increase in 2010
Despite the sobering construction forecast numbers for
2009 and the slow climb back to prosperity that economists expect, the
general mood at the McGraw-Hill 2010 Construction Forecast, held Oct.
15-16 in a packed ballroom in the Capital Hilton, Washington, D.C., was
one of relief because conference speakers concurred that economic
conditions had pretty much bottomed out.
The good news is that construction economists are forecasting
double-digit increases in some segments of the construction market for
2010. The bad news is these increases come off some incredibly low
levels of construction activity. Everyone knows about the train wreck
in
the residential market, but not as many industry observers may be aware
of the record drops in some other areas, such as the construction of
stores and shopping centers, which McGraw-Hill Construction expects to
drop an additional five percent to a record-low 95 million square feet.
Federal
ARRA Stimulus Funds Starting to Hit Mainstream Construction
Market
Last week’s 2010 McGraw-Hill Construction Outlook,
offered a fascinating status report on the impact on the $130 billion
(Yes, that’s billion with a “b”) in funding earmarked for the
construction industry by the American Recovery and Reinvestment Act of
2009 (ARRA). Funds have been slow to hit the construction market, but
some savvy contractors have been ready with “shovel-ready”
projects,
particularly in highway construction and road resurfacing.
One of the biggest beneficiaries of ARRA funds will be the federal
government’s General Services Administration (GSA), which oversees
the
business of the U.S. federal government, including the construction and
maintenance of millions of square feet of office space and other
facilities and resources for different departments of the federal
government. The GSA is scheduled to get $5.6 billion in ARRA funding,
including $4.5 billion for energy-efficient upgrades of government
buildings.
Earnings
Down but Outlook Brightening
Many of the publicly held electrical manufacturers and
distributors who reported financial results over the past few weeks
continued to post numbers that reflect a brutal market, though some
found a note of optimism in beating their earlier estimates of
earnings.
Their forward-looking statements, on the other hand, showed a growing
sense of confidence that the industry has seen the worst of this
economic downturn.
EPI
Down 2.8% YTY in September
Last month’s EPI Index was virtually unchanged over
August, but saw a big drop of 2.8% over September 2008. Year-over-year
declines in building wire (-11.1%) and power cable (-15.2%) once again
had the most dramatic impact, followed by fasteners (-8%). Power cable
(-2.2%) and appliances (-1.1%) were the only product categories with
declines of more than one percent from August.
People On The Move
Klein to
direct North American sales for Klein Tools
Klein Tools Inc. (Lincolnshire, Ill.): Mark
Klein has been promoted to director, North American sales, where he
will direct, coordinate and develop sales growth in the company’s
electrical, telecom and utilities channels. His new position also
entails overseeing the design and execution of strategic sales plans
and
product promotions for the company’s North American sales force and
rep organizations.
Ashmore
named
executive vice president at Emerson
Emerson Electric (St. Louis): Craig
Ashmore was named as executive vice president. He has been senior
vice president for planning and development since 2004. Ashmore is a
member of the board of NEMA and holds a bachelor’s degree in
mechanical and civil engineering at the University of Connecticut, and
a
master’s degree in business administration from Harvard Business
School.
On The Wire
Vision
Control & Automation expands to Indianapolis
Vision Control & Automation, a ten-year-old unit of
Standard Electric Supply, Milwaukee, has acquired the Indianapolis
location of Ohio-based distributor Richards Electric. Vision also
recently opened a location in Chicago to serve industrial
customers.
“Vision’s goal as an electrical distributor is not only to deliver
quality products on time, but also to help customers reduce their
overall operating costs and increase productivity,” said Larry Stern,
president of both Vision and Standard Electric, in a press release.
“Our new Indianapolis location also establishes Vision’s commitment
to become the Midwest’s leading distributor of ABB products.”
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